Carbon Trade Exchange enables companies to access carbon credits that can be used for compliance and voluntary purposes
Carbon credits can either be purchased to comply with mandatory carbon regulations, such as the European Union’s Emissions Trading Scheme (EU-ETS) or purchased voluntarily to enable companies to offset their residual emissions.
Why purchase Verified Emission Reductions (VERs)?
In the voluntary market, companies that are not or even may never have been required by law or regulation to reduce their emissions are already doing so in a variety of ways, including purchasing voluntary carbon offsets. Overall, the motivations for companies engaging in voluntary carbon markets are as diverse as the players and include:
- Fulfilling corporate GHG reduction targets, especially when internal reductions are not feasible or cost-effective
- Preparing for potential regulatory requirements that may include a range of offset approaches and partnerships
- Enhancing brands and/or differentiating products, including being able to offer products that are carbon neutral at a price premium
- Attracting investors, particularly in light of increasing investor awareness of risks associated with GHG emissions in a carbon constrained future
- Supporting positive environmental change by channelling money into clean and energy efficient technology projects that otherwise would not have been deployed
- Entering new supply chains, market leaders are committing to environmental engagements and increasing pressure on their suppliers to participate in the fight against climate change
>> Please click here for further information on VERs.
Why purchase Certified Emission Reductions (CERs)?
CERs are emissions reductions generated by projects operating under the Clean Development Mechanism (CDM) which is one of the three flexible mechanisms created by the introduction of United Nations’ Kyoto Protocol. CERs can be surrendered to enable the holder to comply with national and international climate change policies.
A company or government can purchase CERs to:
- Comply with international carbon legislation such as the EU Emissions Trading Scheme, New Zealand Emissions Trading Scheme etc. If a company fails to do this, heavy fines can be imposed (€100 per tonne in the EU ETS)
- Meet emission commitments under the Kyoto Protocol
- Speculate on the carbon market
- Hedge against risk
>> Please click here for further information on CERs.
>> Please click here to learn more about how you can purchase VERs or CERs on Carbon Trade Exchange.
