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Monday, May 2, 2011

How Green Companies have advantage over others in terms of 'Carbon Credit'?


Definitely green companies have advantage over others in terms of 'Carbon Credit'. To understand this let us know first what does this mean?

What is Carbon Credit? 
In simple terms 'a carbon credit' is a permission to emit one tonne of carbon or carbon dioxide equivalent. And obviously it needs one to spend money to buy these carbon credits 

What is the Objective of introduction of carbon credits and how it reduces Carbon in atmosphere??
The objective is to reduce carbon emissions into atmosphere from all the business sources. Giving monetary value to the cost of polluting air makes business more responsible towards emissions they are making. These expenses will be included in their balance sheets of the business, there by encouraging them reduce the emissions. 

How Green Companies have advantage over others in terms of 'Carbon Credit'?
If these things hold on their grip then, companies who are not green will feel the heat. They need to spend more money for the emissions, either through higher tax or through buying Carbon credits. 
It takes considerable amount of time make improvements and reduce emissions. The one who takes early steps is the one who benefits. 
So it is better to buck up and take green initiatives as early as possible.



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