RE:Carbon credit
by Naveen on Feb 06, 2008 12:13 PM Permalink
Carbon Credit is not a specific project. A company can buy Carbon Credits from any Eco-friendly company. For example: Company A satisfies pollution norms by only 80% and it cannot further improve beyond that percent. So, Comapny A can go and buy Carbon Credits from Company B (say in this case a eco-friendly Power Plant which uses Garbage as it's raw material). Basically, Company A is paying money to Company B i.e., Company A is investing in eco-friendly projects. So, Company A although did not follow it's eco-norms, it substituted that with an investment in eco-friendly project.
