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Heat Is On To Clean Up Greenhouse Gases
September 4, 2009Article by Ray Withers
The heat is on governments, companies and individuals to clean up their act by reducing greenhouses by buying in to carbon credit offset.A carbon offset is a financial instrument with a commodity base that is equivalent to one metric tonne of carbon dioxide or other pollutant gases.The principle behind carbon offsetting is that governments will introduce ‘caps’ on the amount of emissions that can be released in to the atmosphere.
The average British family releases 18 metric tonnes of greenhouse gases a year, so to ‘offset’ those harmful gases, the family would have to invest in an eco-friendly project that consumes 18 metric tonnes of greenhouse gases a year.One method of giving the boot to your carbon footprint is to invest US$12,000 in Costa Rican forestry that soaks up 200 metric tonnes of gases a year.
Then, you and your family retain 18 credits a year to offset the gases you release and then trade the remaining credits worth 182 metric tonnes of ‘clean’ air to someone else that has exceeded their cap.“I believe the carbon offsetting market is set to become one of the largest in the world,” said Ben Jeffris of international property investment consultants Property Frontiers.
“The carbon market is expected to be worth $2.1 trillion by 2020 and is being helped by the Obama regime’s commitment to green investment and carbon neutral strategies.”
According to an Ecosystem Marketplace survey of the carbon offset market, in 2008, about U$705 million of carbon offsets were traded in the smaller of the two carbon offsetting schemes from individuals and small organisations, representing about 123.4 million metric tonnes of greenhouse gas reductions.
“One $12,000 unit of land in Costa Rica will produce 200 guaranteed carbon offset credits per year,” said Jeffris. “ They receive a minimum 8% return for the first year, although I anticipate this will be closer to 16%. “These are sold for a market value of $10 each, giving a $2,000 return per year per $12,000 unit of land. As the carbon market is expected to expand year on year, so is your return on your initial outlay.”
According to a recent survey of the carbon offset market, in 2008, about U$705 million of carbon offsets were traded in the smaller of the two carbon offsetting schemes from individuals and small organisations, representing about 123.4 million metric tonnes of greenhouse gas reductions.