RENEWCONNECT - All about renewables & power sector

The Carbon Credit Pricing Scheme is a mechanism designed to encourage the reduction of greenhouse gas (GHG) emissions by placing a monetary value on carbon emissions. It incentivizes organizations and countries to adopt cleaner technologies and practices. Here’s a detailed overview of the scheme: 1. Understanding Carbon Credits A carbon credit represents the right to emit one metric ton of carbon dioxide (CO₂) or its equivalent in other GHGs. These credits can be earned by reducing emissions below a baseline level or through activities like afforestation or renewable energy projects. 2. Key Components of Carbon Credit Pricing a. Pricing Mechanisms Carbon Tax : Directly sets a price on carbon emissions. Emitters pay for each ton of CO₂ released into the atmosphere. Example: Canada's carbon tax program. Emissions Trading System (ETS) : A cap-and-trade system where a limit (cap) is set on emissions. Companies that emit less than their cap can sell surplus credits to others. Example:...

The Global Carbon Council (GCC) is a carbon credit certification program that supports carbon emission reductions. It enables project developers to earn certified carbon credits by implementing sustainable projects. GCC accounting revolves around the processes, standards, and methodologies for tracking, verifying, and managing carbon credits within the program. Key Features of GCC Accounting Carbon Credit Certification : GCC certifies greenhouse gas (GHG) emission reductions from projects. These credits are aligned with international standards like the Clean Development Mechanism (CDM) under the Kyoto Protocol and voluntary carbon markets. Accounting Standards : Adheres to frameworks such as the Greenhouse Gas Protocol and ISO 14064 . Focuses on Scope 1, Scope 2, and Scope 3 emissions: Scope 1: Direct emissions from owned or controlled sources. Scope 2: Indirect emissions from purchased electricity, heat, or steam. Scope 3: Indirect emissions in the value chain. Market Relevance : G...