A Brief Financial Soultions breakdown on carbon credits in the US.

Sept. 3, 2009 - PRLog -- Carbon credits are the latest international commodity. Very simply put, a carbon credit is one ton of carbon avoided or negated from the atmosphere. This commodity has an estimated value in the trillions of dollars on carbon trading markets throughout the world, Financial Soultions research shows.

When the US implements its domestic cap and trade system, it will put into place a system that will create wealth where there was none before.  Placing values on carbon emission reductions, will give a boost to both the private and public sectors. The Democrats claim $636 billion dollars can be generated for the public coffers over the first five years alone.

The cap and trade system will generate capital beyond the income for the federal government’s coffers. The proposal FinSoul has been told, will also generate revenue for the companies, organizations, farmers, and any other folks who create emissions reducing projects. Private industry and agri-businesses stand to make ‘carbon credits’ and recognize a new revenue stream that had not previously been available.

To create a cap and trade system the administration places a limit (or cap) on the quantity of greenhouse gas emissions large emitters are allowed to produce each year. The limits are either set by a prearranged allocation that is established by the administration or an auction is held that allows companies to bid for the right to emit. Emission reduction units are auctioned by the ton, according to Financial Soultions information sources.

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