Carbon credits are traded and sold just like stocks. The selling price of carbon credits in Europe is higher because the companies in Europe need to have more carbon credits to offset their carbon emissions. If they didn't get the minimum amount of carbon credits at the end of the year, the fine/penalty will be high. That is why price of carbon credits is high in Europe.
Carbon credits are traded and sold just like stocks. The selling price of carbon credits in Europe is higher because the companies in Europe need to have more carbon credits to offset their carbon emissions. If they didn't get the minimum amount of carbon credits at the end of the year, the fine/penalty will be high. That is why price of carbon credits is high in Europe.
Uh? I'm completely lost here. Could you explain? Why would companies in Europe require more carbon credits to offset their carbon emissions?
Uh? I'm completely lost here. Could you explain? Why would companies in Europe require more carbon credits to offset their carbon emissions?
Possibly it is because the governments in Europe are doing more about it and imposing greater regulation and sanctions on companies than some other countries.
Possibly it is because the governments in Europe are doing more about it and imposing greater regulation and sanctions on companies than some other countries.
Yes, justontime, that's it. That's why a lot of people trade in Europe rather than in America because carbon credits are in demand in Europe and they are wiling to pay a higher price for it.
Companies are allowed/given so many "credits." They'll allowed to emit so much carbon and anything above that, they get fined for. Well, some companies don't need all their "credits" (or paying the extra fines is nothing compared to how much they make off selling their credits) and they can sell them off to other companies. They're allowed to trade/buy/sell because the idea is to keep carbon emissions under a certain amount.
I am lost as well. Can somebody please explain what a "carbon credit" is? Please be as specific as you can in layman's terms. So that the rest of us can understand it.
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I'm not sure if I know enough to explain it simply, but basically the level of carbon emissions a company creates is capped at a certain level (by law). If they need to emit more they need to buy credits from companies who have spare credits. This creates a market in carbon credits, it imposes a cost on those who cause the most damage and it rewards those who minimise their impact on the environment. This provides an incentive to reduce carbon emissions. Carbon credit - Wikipedia, the free encyclopedia
I'm not sure that I agree with the idea of trading in these 'credits'. Presumably that means that a company who create a high level of carbon emissions can opt out of doing anything about it by just buying up someone else's?
Carbon Credits
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