Carbon offsets near record low !!!

Carbon offsets neared all-time lows Friday, confirming their status as the world's worst performing commodity, as slumping demand meets rising supply of the U.N. instrument traded under the Kyoto Protocol.

 

A worsening global economic outlook has dented prices for emissions permits which depend on a robust economy belching greenhouse gases into the air, and has also impacted oil, grains, coal and natural gas.

Carbon offsets have fared uniquely badly because a U.N. climate panel continues to print new offsets, regardless of a widening glut in emissions permits in the main demand market, the European Union's carbon market.
Countries and companies in the developed world can buy offsets as a way to meet emissions caps agreed under Kyoto, paying for cuts in developing country projects instead, but the financial crisis has left a global oversupply.
"If the European economy goes through a double dip (recession) it could be a lethal threat for the carbon market," said Marius-Cristian Frunza, analyst at Schwarzthal Kapital.

The U.N. scheme for generating certified emissions reductions (CERs), called the clean development mechanism (CDM), faces additional problems besides the economy.
Failure by countries to agree a new round of carbon caps after 2012 under drifting U.N. climate talks, has further curbed prospective demand.
The financial crisis has blown off course talks to agree a global climate deal, which now seems years off. The CER market had a traded value of $18.3 billion last year, down from $26.3 billion in its peak year 2008.

Adding to CER woes, the EU has banned from 2013 imports of the most common type of offset, from refrigerant plants in China, prompting investors to dump these.
Benchmark CERs fell as low as 7.4 euros Friday, down more than 7 percent on the day, fractionally above an all-time low of 7.15 euros.
Prices are now at around cost price in developing countries, squeezing margins for project developers such as London-listed Camco, whose shares were down more than 10 percent at midday, and by nearly 40 percent over the past month.

Rival developer Trading Emissions PLC last week pulled a proposed sale of its assets because of falling carbon prices. Its average CER costs are 7.5 euros per tonne.
European carbon prices also continued falls on Friday, to as low as 10.65 euros or by 5 percent.
See below for a performance ranking of various commodities as of 1245 GMT Friday, compared with December 19 2008 when U.S. crude hit a financial crisis low of $32. Change is also shown over the past month.

Carbon Credits

Carbon Credits

There is an urgent need for countries to adopt a universal and global "carbon price" to arrest large scale greenhouse gas emissions. There is also much discussion about the best methods and incentives to control carbon output, that is, should there be a 'cap and trade' or tax combined with a voluntary carbon market or an emissions trading scheme to ensure emissions compliance?

As the world’s first cap-and-trade program for carbon dioxide emissions, the European Union’s Emissions Trading System (EU ETS) has attracted a lot of attention. Although this scheme has come under criticism from some quarters, the performance of the EU ETS cannot be evaluated without understanding that the first three years from 2005 through 2007 were a “trial” period. The EU ETS is also interesting because it provides some insights into the problems to be faced in constructing a global greenhouse gas emission trading system.

The personal approach discussed below differs from the larger industry scale Renewable Energy Certificates (RECs) and large scale carbon markets already mentioned. RECs are a tradable form of electronic currency and represent the environmental attributes of the power produced from renewable energy projects and are sold separate from commodity electricity. Although they differ between countries, under most programs, one REC would be equivalent to the environmental attributes of one MWh (Mega Watt hour) of electricity from a renewable generation source. More information on RECs is available by following the link above.



Personal Approach
By purchasing carbon credits you can help stimulate clean energy uptake and cut emissions contributing to global warming. Anyone can completely compensate their greenhouse gas emissions by going carbon neutral. Carbon neutral means that all your carbon dioxide (CO2) emissions are offset by carbon credits. You can purchase these for your home, car or air flights, compensating for all your personal CO2 emissions.


carbon footprints For individuals or households this is how it works: Firstly, a carbon calculator is used to work out your personal or family carbon footprint based on your annual energy activity. This calculation is the total of how much carbon dioxide you are releasing into the atmosphere through your activities. The amount of carbon dioxide you emit is then offset by the purchase of Carbon Credits.

There are quite a few retailers offering uncertified carbon offsets. You should avoid carbon offsets that don't come with a certification as they provide no guarantees that you are getting what you are paying for.

4Offsets.com are fighting global warming and provide a variety of ways for you to offset your greenhouse gas emissions and goGo Carbon Neutral. When you purchase carbon credits, you take responsibility for your contribution to climate change.


Planting Trees and Land Re-forestation
Another way to slow global warming is to plant more trees. Forests and trees breathe in carbon dioxide and by planting trees we create additional sinks, (C02 is sunk in the trees). Carbon storage in forests is part of a natural cycle, whereby some carbon is removed from the atmosphere and incorporated into the plant, and at the same time some carbon is released back to the atmosphere from the decomposition of litter and soil organic matter. The carbon dioxide absorbed by forests is tied up and kept out of the atmosphere. Deforestation at a global level has removed these precious carbon sinks, stopping the natural uptake of this gas. By planting more trees we can create forests that breathe in the carbon dioxide and breathe out our life giving oxygen.

Volunteer with tree planting groups and get involved for a few hours each year to reinvigorate yourself and our atmosphere. If you are unable to get out and plant, or spare the time, then purchase trees to be planted on your behalf.

By purchasing credits from an accredited company like Carbon Planet you are ensuring that the CO2 you produce is removed from the atmosphere and stored within a tree where it can no longer impact on the Greenhouse Effect.