Is a way to provide financial incentives to reduce greenhouse gas emissions
by using carbon project development up to reduce greenhouse gases
and the reward is. Carbon credit
trading, which led to the exchange and
to reduce carbon emissions and then sell
the development mechanism, called Clean Development Mechanism (CDM)
and the Joint Implementation. In order to have the flexibility to deal with carbon in this trading. Starting from the authorities before. Most of which are government To determine the maximum allowable carbon footprint. Each plant will have the right to be released on a certain amount. Factory emissions exceed the limit must buy the rights to the factory where their rights were not released. If you leave without buying excess will be severely punished. For example, One factory before starting the project had carbon dioxide emissions by 100,000 tons per year when the legal obligations and voluntary. Will have to reduce emissions by 5% is to release 95,000 tons per year if it can lead to the reduction of sales. However, if the reduction is not To pay back part of the reduction was too.
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