Keywords: global carbon credits, climate exchanges, global warming, greenhouse gas emissions, Kyoto Protocol, carbon contracts, carbon trading, greenhouse gas reduction, greenhous gasses, carbon dioxide, climate change
Global carbon credits and climate exchanges
This study analyses the carbon credits contracts as a market-based mechanism to solve the global environmental problem by offering monetary rewards to countries and corporations that are low greenhouse emitters and putting economic pressure on those that are high greenhouse emitters. The mechanism is a by-product of the Kyoto Protocol which came into effect on February 16, 2005. There are two functioning climate exchanges that are exclusively trading carbon contracts, and at least another four climate exchanges plan to offer carbon contracts in the near future. Finally, this study discusses some of the present and future programs to reduce greenhouse gas emission and suggests additional solutions.