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Carbon trading and carbon brokers

Md Mamunur Rashid Imagine you are a farmer near the Padma River in Rajshahi. You need to plant trees to arrest salinity, Soil erosion and soil acidification. You are not eager to plant trees because trees usually don't earn you money for many years. Now a carbon broker came and offers you to plant trees and keep it alive for a definite period, in exchange he will pay you money. This is the dream of some environmental organizations, economist, states and entrepreneurs. They believe a system of carbon trading that allows the buying and selling of carbon credits will simultaneously help prevent global warning and promote planting of trees. Carbon trading is the trading of carbon dioxide emissions by exchanging it from one's limit fixed according to Kyoto Protocol by the state. This earth when created carbon dioxide was used to keep the earth warm for friendly living environment. And it was in a balance amount. But now-a-days carbon dioxide exists over the balance amount and causing different problems like global warming and green house effect. United Nations Frame work Convention on climate change (UNFCCC) and different organizations are trying to protect global warming by decreasing carbon dioxide emission. Kyoto Protocol is the first step towards decreasing global emissions of carbon dioxide. By 2012, UNFCCC wants to decrease 5.2% global emission of Carbon dioxide. Article 17 of the Kyoto Protocol regulates emission trading. Parties who have ratified Kyoto Protocol shall not exceed this carbon dioxide emission from the limit fixed by the UNFCCC. Carbon trading may be in different ways. There is no single format which is internationally recognized. Different formats are given below. ¦Exchanging From one's Permit: UNFCCC sets a limit on the amount of carbon dioxide that can be emitted by the state. And the state is bound as she has ratified the Kyoto Protocol. The limit is allocated in the form of emissions permits by the state to the bodies that need to emit carbon dioxide. The total number of permit can not exceed the limit. Firms who need to emit more than the permit, they can buy it from others who are emitting less than the amount permitted. The transfer of this extra amount in exchange of money is an example of carbon trading. ¦Planting Trees and Forestation: Suppose I have a company. I need to emit 200 metric tones of carbon dioxide. But the state has permitted me of 100 metric tones. Then I plant some trees some where of the country that can absorb 100 metric tones of carbon dioxide annually. Then I showed the authority that though I am directly emitting 200 metric tones of carbon dioxide but 100 metric tones of carbon dioxide is being absorbed by those trees. So, my actual emission of carbon dioxide is 100 metric tones. ¦Allowance to Non-Profit Organization: Someone who is emitting carbon dioxide is directly and indirectly harming the environment. So, it is his corporate social responsibility to take part for the recovery of environment. If he directly can not do so he can take help from others who are working for the protection of global warming. That means, payment of a good amount of money to that non profit organization which will be reasonable to recover the amount you are harming through emitting carbon dioxide. It is the alternative way to keep balance the environment. ¦Individual Limit: Some persons are leading luxurious life in the whole world. Whenever they are using more electricity than the usual, they are taking part to emit more carbon dioxide. At the same way adding fuels to their vehicles, using air conditioner, air cooler etc. They are taking part in global warming. State can fix a limit of emitting carbon dioxide for every individual. Whenever some one needs more amount to emit then he have to buy it from the extra amount of others who are emitting less than their limit. Market Size: According to the World Bank's Carbon Finance Unit, 374 million metric tones of carbon dioxide equivalent were exchanged through projects in 2005. In terms of dollars, the World Bank has estimated that the size of carbon market was 11 billion USD in 2005, 30 billion USD in 2006 and 64 billion USD in 2007. Opportunity for Bangladesh: Bangladesh as already ratified the Kyoto Protocol may apply for emission permit for trading and if permitted may exchange the amount what Bangladesh does not emit with other countries. A country should have 25% forest land, Bangladesh has only 16%. The cost of planting trees here is lower than any other country of the world, so the emitters can get the permit with low cost and Bangladesh can increase it's forestry up to the mark. Sea level raising an effect of global warming will affect us the most, so we are in great danger. The state and the organizations that are protecting climate change may apply and demand the cost to recover such climate change. It is high time to abstain some persons from emitting more amount of carbon dioxide particularly they are the high class society people. Either there should be a ban on there emitting amount or they have to pay for it. Carbon trading compels to keep the emissions of carbon dioxide within a certain limit. It encourages using green technology. It helps in increasing forestation. It is an alternative means to recover global warming through taking part with the activities of global environmental organization. As a whole it is a reward to who are emitting less carbon dioxide and a charge on who are liable for global warming. (Md Mamunur Rashid, a student of Law, University of Dhaka)