If your business model revolves around a green technology, thanks to Kyoto Protocol and green movement, you can get access to an additional revenue stream and access to clean technology.
Kyoto Protocol sets a limit on amount of greenhouse gases a country can emit. To limit emissions to predefined set quota, signatory nations limit emission from polluting industries. The protocol also prescribes a regulatory and market mechanism of tradable carbon credits to effectively implement a global emission control program.
This is how it works. Assume, there is a company 'A' in
To comply, company 'A' has two options, either reduce emissions by 20K tons, that has a cost, or buy 20k tons of carbon credits from someone who has earned a right sell carbon credits.
Sellers in this market earn rights to sell carbon credits by undertaking any effort that will help reduce greenhouse gases in atmosphere. This could be a simple mechanism such as undertaking tree plantation or advanced mechanisms such as creating a business around clean technologies.
The amount of greenhouse gases emission you help prevent is the amount of carbon credits you can sell in the international market.
For developing nations the mechanism to participate in emission marketplace is Clean Development Mechanism (CDM). Under CDM, a developed country can take up a greenhouse gas reduction project activity in a developing country where the cost of greenhouse gas reduction project activities is usually much lower.
The developed country would be given credits for meeting its emission reduction targets, while the developing country would receive the capital and clean technology to implement the project. You can visit Wikipedia to know more about world of carbon credits, mechanisms such as CDM and much more.
You can call it making money out of someone else' guilt, nevertheless, going green was never so greener.
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