Dec. 5, 2012
-- As the global carbon trading market is now worth a US$144 billion according to the latest report from the World Bank, it has come to the notice of Swiss Investor Club that although private interest in carbon trading is high many of the investors are lacking in some of the basic knowledge how this relatively new investment opportunity works. In an effort to eradicate some of the myths and disseminate correct information Swiss Investor Club invites all new and existing carbon trading investors to contact them in an effort to bring them up to date with the current situation but also to set the record straight on a few misconceptions and confusions they may have.
Swiss Investor Club would like to address here some of the basic misconceptions. What are carbon credits ? Every carbon credit represents one tonne of CO2. This creates a method of monetising greenhouse gases. Each carbon credit acquired puts funds directly into a project that is verified to reduce greenhouse gas emissions. It can then be sold to companies who need to reduce emissions to fall into place and comply with global targets, or to private individuals looking to reduce their emissions.
The opportunity to trade carbon credits was created by the United Nations’ Kyoto Protocol, a legally binding document committing nations to make efforts in the reduction of greenhouse gases (GHGs). The treaty created a set of emission reduction targets that countries needed to meet to safeguard the environment. In addition, industrial nations agreed to reduce their GHGs by 5.2% from 1990 levels. On an individual country basis, this ranges from an 8% reduction in the European Union to 6% for Japan, 0% for Russia, and an increase permitted of 8% for Australia and 10% for Iceland. These countries are now responsible for ensuring that companies, industries, and the governments themselves, are reducing GHGs.
To facilitate this, the Kyoto Protocol gave GHGs (Green House Gases) a value, known as a carbon credit. Each carbon credit is equivalent to one tonne of CO2. If a company has emissions over its allowance, then this entails a cost. Private investors, through Swiss Investor Club, can get access to these credits on exchanges, and trade rising demand for credits to make a profit and to channel funds into these projects, helping them expand and grow. This boom has meant increasing interest from investors, who usually trade stocks and shares.
Please visit www.swissinvestorclub.com
or contact Swiss Investor Club on +41 435 012 916 (tel:%2B41%20435%20012%20916
) to find out more with no compromise.