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In an emissions trading system, permits may be traded by emitters who are liable to hold a sufficient number of permits in this system.

Carbon Trading is a way of allowing some kind of flexibility into a system where participants have to meet emissions targets. These participants may be countries (as in the case of the Kyoto Protocol), or companies (as in the case of a domestic emissions trading scheme).

Participants can buy units to cover any emissions above their targets, or sell units if they reduce their emissions below their targets. The presence of a market for these units creates a value for emissions reductions which stimulates investment in the most cost-effective areas. Emissions trading lead to a reduction in compliance costs compared to meeting the same target through basic means only.

Because every compliant EU country nationally is allocated an amount of CO2 they can emit, they can then allocate emission allowances to companies in the relevant industry sectors. These companies must submit annual sufficient emissions allowances and carbon credits to ascertain the amount of CO2 units that they have emitted in that year. Any excesses can be offset by the way of purchasing emission allowances or credits on the open market. Failure to follow the legislation leads to fines for these offending companies that do not comply.

Carbon Offset Trading and the market it has created has massively increased in the last decade from a theoretical concept to a $100 billion-a-year industry. Forestry projects make up almost 50% of the carbon trading market. Prosumis Carbon Solutions expects the global carbon market to increase in value by a further 10% this year alone as a result of greater use of the EU Emissions Trading System

Under the set provisions of the EU Emissions Trading System, CERs (Carbon dioxide Evolution Rate) can be traded and used fully interchangeably with emission allowances; hence the price of such allowances is a proxy for the market value of CERs. EU allowance prices quadrupled in the first two quarters before settling back to nearly 3 times its starting price.

Outside the EU Emissions Trading System there are a number of other carbon emission trading schemes, including programs in places that have not signed up to the Kyoto Protocol. In both Australia and the United States certain individual state governments are bringing in legislation that places constraints on GHG emissions, regardless of what the country is doing as a whole.

The Clean Development Mechanism (CDM), set out by the Kyoto Protocol, allows projects in a developing country to create emission credits if they result in emission levels lower than would have been otherwise. These credits can then be brought to market, sold and eventually deducted from the developed country’s emission obligation that purchased them.

Our Mission

Our mission is to combat global warming by offsetting carbon emissions through funding the highest quality clean energy projects. Afforestation and reforestation provide social and environmental benefits in developing countries while adhering to international standards such as VCS, CDM/JI, and the Gold Standard. By executing a long-term effective carbon management strategy we can help improve the environment on a global level.