Facts & FAQ

Facts

  • Carbon credits must be real, quantifiable, verified reductions in GHG emissions
  • Gases have different values depending on their global warming potentia
  • One unit of Methane is 21 – 23 times more potent than one unit of CO2
  • All Greenhouse Gas is expressed as metric tons of CO2 equivalents.
  • One ton of CO2 equivalent = one carbon credit

FAQ’S

What is a CO2 equivalent?

Carbon dioxide equivalent (CDE) and Equivalent carbon dioxide (or CO2e) are two related but distinct  measures for describing how much global warming a given type and amount of greenhouse gas may cause, using the functionally equivalent amount or concentration of carbon dioxide (CO2) as the reference.

Carbon dioxide equivalency is a quantity that describes, for a given mixture and amount of greenhouse gas, the amount of CO2 that would have the same global warming potential (GWP), when measured over a specified timescale (generally, 100 years). Carbon dioxide equivalency thus reflects the time-integrated radiative forcing of a quantity of emissions or rate of greenhouse gas emission – a flow into the atmosphere – rather than the instantaneous value of the radiative forcing of the stock (concentration) of greenhouse gases in the atmosphere described by CO2e.

The carbon dioxide equivalency for a gas is obtained by multiplying the mass and the GWP of the gas. The following units are commonly used:

  • By the UN climate change panel IPCC: billion metric tonnes of CO2 equivalent (GtCO2eq).
  • In industry: million metric tonnes of carbon dioxide equivalents (MMTCDE).
  • For vehicles: g of carbon dioxide equivalents / km (gCDE/km).

For example, the GWP for methane over 100 years is 25 and for nitrous oxide 298. This means that emissions of 1 million metric tonnes of methane and nitrous oxide respectively is equivalent to emissions of 25 and 298 million metric tonnes of carbon dioxide.

Equivalent CO2 (CO2e) is the concentration of CO2 that would cause the same level of radiative forcing as a given type and concentration of greenhouse gas. Examples of such greenhouse gases are methane, perfluorocarbons and nitrous oxide. CO2e is expressed as parts per million by volume, ppmv.

What is the difference between Carbon Credits  and Offsets?

A carbon credit refers to the value of  One Metric Ton of greenhouse gas emissions. When you acquire carbon credits from Carbon Credit Integrators you are contributing to the global effort to either reduce or ‘bundle up’ one metric ton of carbon discharge from earth’s atmosphere from one location to a different location.
By acquiring carbon credits you are effectively ‘offsetting’ some or all of your own carbon emissions.
What Industries/Greenhouse Gases are eligible for carbon credits?

All Industries that discharge CO2 – Carbon Dioxide

In Agriculture
C+ – Ionized Carbon
CH4 – Methane
N2O – Nitrous Oxide
C+ – Ionized Carbon

In Waste Management
CH4 – Methane
N2O – Nitrous Oxide

In Coal Mining

CH4 – Methane

What is the difference between the voluntary and regulatory carbon market?

World Governments have introduced a regulated carbon market (Cap and Trade) for trading Greenhouse Gas (GHG) discharges. The demand for credits is growing daily, as is the complexity of the marketplace. You need a partner who knows the rights points of leverage in the regulated carbon market.

You need a Partner – Carbon Credit Integrators is that Partner.

Among regulated markets is a growing number of businesses who are dedicated to reducing their own GHG discharge in a voluntary carbon market.
Whether voluntary or regulatory, it is in the best interest of your company to reduce your carbon discharges and purchasing carbon credits is one step in the process to meet the goal of overall carbon reductions globally as per the Kyoto Protocol. (http://en.wikipedia.org/wiki/Kyoto_Protocol). Nearly every country in the world is a signatory to the Protocol except the United States.

What are the Carbon Credit categories?

Carbon Credit Integrators, Inc. positions our asset portfolio to include all categories of carbon credits.

Each has a spectrum of quality, price and applicability.

CER’s Certified Emission Reduction Credits (CER’s)

CER’s are carbon credits issued by the Clean Development Mechanism (CDM) an arrangement under the Kyoto Protocol  allowing industrialized countries committed to reducing GHGs to invest in ventures that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. Each approved CDM ‘carbon project’ must show that without the financial incentives provided by the credits, the planned reductions would not occur; a concept known as “additionality”.
CER’s can be used by those “Annex I’ industrialized countries in order to meet their emission limitation targets. CER’s can be held by governmental and private entities on electronic accounts. CER’s are either long-term (lCER) or temporary (tCER), depending on the likely duration of their benefit. CER’s can be purchased from the primary market (purchased from original party that makes the reduction) or secondary market (resold from a marketplace). At present, most of the approved CERs are recorded in CDM Registry accounts only. It is only when the CER is actually sitting in an operator’s trading account that its value can be monetized through being traded.

ERU’s Emission Reduction Units

ERU’s are trading units under the Kyoto Protocol representing a reduction of GHG’s where it represents one ton of CO2 equivalent reduced.
To allow comparison between the different effect of gases on the environment, scientists have defined multipliers for gases that compare their greenhouse potency (global warming potential) relative to that of carbon dioxide.
One example of an ERU is the production of biogases from landfills These gases consist of mostly methane which escapes to the atmosphere if not collected. The reason for dealing with methane is that it has a 100-year global warming potential multiplier of 25,  compared to carbon dioxide (i.e. has 25 times the greenhouse potency). Methane Collection included combustion. Although burning methane produces carbon dioxide, its ‘Greenhouse Effect’ is reduced by 22 ERU (i.e. 1 ton of methane (25 tonnes CO2 equivalent) produces nearly 3 tons of CO2)

VER’s Verified Emission Reductions

A Verified Emission Reduction credit is a unit of greenhouse gas emission reduction that has been verified by an independent auditor, but has not yet undergone the procedures and may not yet have met the requirements for verification, certification and issuance of CER’s or ERU’s.
Buyers of VER’s assume all carbon-specific policy and regulatory risks (i.e. the risk that the VER’s are not ultimately registered as CER’s or ERU’s). Buyers therefore tend to pay a discounted price for VER’s, which takes the inherent regulatory risks into account. VER’s are carbon credits which are not certified under the Kyoto Protocol but which can be used to compensate carbon emissions.
1 VER corresponds to one metric tone of CO2 equivalent.

NGAC’s  NSW Greenhouse Abatement Certificates

NGAC’s are tradable abatement certificates Corporations can purchase to meet their emission reduction targets. These originate in Australia, as are;

REC’s   Renewable Energy Certificates/Credits

REC’s were created under a separate national scheme aimed at stimulating renewable energy projects (the Mandatory Renewable Energy Target, MRET) can also be used.
(The New South Wales Greenhouse Gas Reduction Scheme (NSW GGAS, formerly the New South Wales Greenhouse Gas Abatement Scheme) is a mandatory emissions trading scheme for the state’s electricity sector. It was established initially as a voluntary scheme which commenced in 1997, via amendments to the Electricity Supply Act 1995. The scheme became mandatory on January 1, 2003. On January 1, 2005, the Australian Capital Territory (ACT), a separate jurisdiction physically located inside New South Wales, also introduced legislation to become part of the NSW GGAS. The NSW GGAS establishes an annual state-wide per capita GHG emission target, a “benchmark”, for the electricity sector, based on the reductions necessary to achieve the global target set in the Kyoto Protocol of reducing overall GHG emissions to 5% below the baseline year (1990) emissions).

What is Hot Air?

Hot Air is the term economists use to refer to the Assigned Amount Units (AAU) credits given for the reduction of GHG emissions among the former Soviet Bloc countries since 1990.

The fall of the Soviet Union led to massive restructuring and de-industrialization of many of the former Soviet Bloc countries; when the Kyoto Protocol was negotiated, there were several mechanisms that allowed for trading of emissions credits. These included credits produced under the Joint Initiative (JI) provision: Emission Reduction Unit credits; the Clean Development Mechanism (CDM): Certified Emission Reduction credits; and Assigned Amount Units (AAU) now also widely known as Hot Air in the post Soviet context. These were given to Russia as an incentive to sign the treaty. Critical climate change experts decry these credits as a way for countries to buy their way out of taking action to address climate change.
What are Standard Credits versus Branded Credits?

Corporations seeking to meet their carbon reduction goals purchase carbon credits for different purposes. Carbon Credit Integrators identifies which is right for your individualized needs.

Standard Credits:

Standard Credits are considered generic or no-name credits and are fully certified to offset and reduce GHG emissions, however they have no customized marketing benefits or specific project details. For example, you may not know which offsetting project they have come from or the details of it.

Branded Credits:

Branded Credits typically cost more than the standard credits or come at a premium, but they have additional benefits. They can be chosen to create additional value to your business and can be used for specific marketing and promotional purposes. We usually try to match these types of credits appropriately to your business or organization’s environmental and carbon reduction platform.
Why should we use a broker instead or going direct ourselves?

Using a specialist broker for a purchase like this will normally save you time and money in the long run. Carbon Credit Integrators understands the marketplace, knows where to access good quality carbon credits and gives you independent advice.

We fully survey the entire global market and source the most appropriate carbon credits at the best possible price.

What type of prices can I expect to pay for carbon credits?

Depending on the quantity and type of credits you are looking for, prices can range from the following per credit/metric ton.

Australia –  $9 – $27

European Union – €8 – €32

United States – $7 – $25

These are approximations only. Because of the rapidly changing nature of the carbon credit marketplace, prices are subject to change at any time. If you would like more specifics, please contact us.

Is there a minimum or maximum quantity of credits we will broker?

Carbon Credit Integrators is a commercial carbon broker that only serves the needs of medium and large business. We create value for companies by negotiating superior transactions with quantities ranging from 1,000 – 100,000 tons/credits or more. Other commercial applications can be arranged by negotiation.

How can I be sure I am buying the right type of carbon credits?

Carbon Credit Integrators only deals in certified carbon credits. For each carbon credit we broker , 1 ton of carbon emissions (CO2 equivalent) is offset and/or reduced by a third party in another location.
Our job is too make sure you purchase the right carbon credits to suit your needs, ensure they are of the right quality and make sure they meet the important criteria of ‘additionality’.

How long does it take to purchase carbon credits?

This is a 2-3 week process, once the application form has been completed. Depending on the quantity of carbon credits, availability and price point this time window may vary.

What does it mean to ‘retire’ my credits?

Companies who offset their emissions with carbon credits must ‘retire’ their credits once they have been purchased in order to complete the carbon credit transaction process. Once a credit has been used it cannot be used, claimed or sold again.

Can I trade my carbon credits in the future?

Yes, carbon credits can be purchased to trade with in the future. A number of companies that believe the price will increase in the future have started doing this already and some are even stockpiling them. It should be noted that if you plan to trade your credits in the future they should not be retired as this will render them as ‘used’.

What are Flexible Mechanisms?

Flexible mechanisms, also known as (Flexibility Mechanisms or Kyoto Mechanisms), refers to Emissions Trading, the Clean Development Mechanism and Joint Implementation. These are mechanisms intended to lower the overall costs of achieving corporate emissions goals. Using these mechanisms, companies can achieve emission reductions, removing carbon from the atmosphere cost-effectively in other countries.

There is concern regarding the integrity of these mechanisms leading to potential exchanges of fictitious credits which would undermine the Kyoto Protocol’s environmental goals. The answer is a system that fulfills the cost-effectiveness promise of the mechanisms while addressing environmental integrity and equity.

To participate in the mechanisms, Annex 1 Parties must meet the following eligibility requirements:

  1. They must have ratified the Kyoto Protocol.
  2. They must have calculated their assigned amount, as referred to in Articles 3.7 and 3.8 and Annex B of the Protocol in terms of tonnes of CO2-equivalent emissions.
  3. They must have in place a national system for estimating emissions and removals of GHG’s within their territory.
  4. They must have in place a national registry to record and track the creation and movement of ERUs, CERs, AAUs and RMUs and must annually report such information to the secretariat.
  5. They must annually report information on emissions and removals to the secretariat.

How do I know if my business is or can be carbon neutral?

An independent company must conduct an audit or assessment for you. The cost of such an assessment will vary depending on your industry and how complex is the regulatory environment you operate in. Once completed, you will receive a report that details that status of your carbon neutrality.

There are Do-It-Yourself calculators online which help with this process. Typically our clients seek our assistance after this audit is completed and the actual net carbon position of their company is known. We will then help them to offset the balance of their emissions they discharge and cannot offset internally through equipment upgrades.

What is the fee structure of Carbon Credit Integrators?

Carbon Credit Integrators charges a fee based on the total purchase price of the carbon credits you buy. The percentage will vary depending on the quantity required, type of credits and the amount of work that needs to be done. This fee will typically range from 5.5% 2.75% for quantities ranging from 1,000 100,000 tons.

Does Carbon Credit Integrators charge any upfront fees?

No upfront commitment fee is charged to engage the services of Carbon Credit Integrators. This is part of our One Fee Only Policy. The total fee amount will be calculated for you on the indicative quote during the application process. This amount applies to the entire process – from the initial fact-finding stage, to the the time credits are purchased to the time they are `retired.’