| Emissions trading is an administrative approach to reduce
greenhouse gas emissions and solve global warming, such as European
Union Emission Trading Scheme (EU ETS). Governments set the limit
or cap on the amount of greenhouse gas emissions to companies or other
groups that are issued emission permits. These organizations are required
to hold an equivalent number of allowances or credits that represent
the right to emit a specific amount.
| The total amount of allowances and credits
cannot exceed the cap, limiting total emissions to a particular level.
The transfer of allowances is referred to as a trade. In effect, the
buyer is paying a charge for polluting, while the seller will be rewarded
for having reduced emissions by more than was needed.
There are two ways of emission trading, namely "cap
& trade" and "baseline & credit". Along with
the "baseline & credit" way, Our Carbon-Circulating
Agriculture would be developed as Joint Implementation (JI) or Clean
Development Mechanism (CDM) of Kyoto
Protocol, will be issued Certified Emission Reductions (emission
reductions credits). The credits would be traded or use it for the
expansion of the cap of related/invested company or business.
Thus, Carbon-Circulating Agriculture not only protects
the environment but becomes an integral part of the sustainable development
of our society and industry.
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