"Offsetting GHGGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. (CO2), methane (CH4Methane (CH4) is a greenhouse gas with a GWP of 21. ), nitrous oxideAgriculture accounts for the majority of nitrous oxide (N2O) emissions in Australia, The transport sector also contributes to emissions of N2O. N2O has a high global warming potential of about 310 times that of CO2.it breaks down very slowly – over about 120 years (N2O), HFCs (hydrofluorocarbonsMajor releases of HFCs are from leakage from refrigeration equipment during operation and its end-of-life destruction. Minor releases arise from the use of HFC-containing aerosols, air conditioners and metered dose inhalers.HFCs have very high global warming potentials (140 to 11,700 times that of carbon dioxide).), PFCsMost emissions of PFCs in Australia are generated during aluminium production. PFCs have extremely high global warming potentials (5000 to 10,000 times that of carbon dioxide). However, because they are only released in relatively small amounts, their contribution to global warming is minor. Due to their stability they have very long atmospheric lifetimes (thousands of years). (perfluorocarbons) and sulphur hexafluoride (SF6Sulphur hexafluoride (SF6) is a man-made chemical. The major sources of SF6 release include leakage from electrical switchgear, from magnesium smelting processes and use in semiconductor manufacture. It has by far the highest global warming potential (23,900 times that of carbon dioxide), however it is only released in relatively small amounts.). emissions with Verified Emission Reductions (VERsVerified Emission Reductions or Voluntary Emissions Reductions are tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organisations and individuals wanting to offset their own emissions. VERs can be generated from projects to which a range of circumstances might apply, including:
- are either based in a country that has not ratified the Kyoto Protocol (e.g. USA) or does not have the infrastructure to support CDMClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. project development;
- have not yet been registered under the CDM;
- fall outside the scope of the CDM;
- are too small to warrant the costs of CDM approval;
- are specifically developed for the voluntary market.) is one effective way to counteract the impact of climate change caused by anthropogenic effects. However, VERs must be verified by a recognised standard, one that can assess additionality, validate the project and verify the emission reductions according to clear, logical and sensible criteria.
Registries play a vital role in the voluntary carbon market by reducing the risks associated with double countingDouble counting can happen when two or more businesses claim the same emissions reduction. This can happen if an offset is sold to two or more entities, or when an entity upstream of the project unknowingly claims the reduction as its own. The establishment of protocols, and the use of an offsets registry can ensure offsets are adequately accounted for. while preserving offset project information and good title transfer.
By providing an Electronic Emissions TradingUsually means an ETS. In relation to the Kyoto Protocol, Annex I countries can trade emissions reduction credits in order to comply with their Kyoto-assigned targets. (See also ETS.) Platform, an Emissions Offset Registry, and applying the necessary level of due diligence when assessing VER ownership claims, the Australian Climate Exchange aims to bring increased transparency to the voluntary carbon market. By making available the VER trade price, disclosing product information, and keeping a record of good title, VER Buyers can purchase with confidence.
The Emissions Trading Platform allows Buyers to determine the price of the VERs listed based on the Offset ‘story’ by making available all relevant information pertaining to the creation of that Offset. The price set by the voluntary market relays information back to project developers about what verification standards, community benefits, and other elements are preferred. "