Global climate change has gradually become a major challenge facing mankind, and all countries** are actively responding to it and striving to reduce greenhouse gas emissions. As a market-oriented means, carbon emission trading has become an important tool to combat climate change by encouraging enterprises to reduce carbon emissions through economic incentives. However, the method of calculating carbon emission allowances has not been well known to the public. So, how exactly are carbon credits calculated? This article will unravel this mystery for you. There are two main ways to calculate carbon emission allowances:
Historical emissions method and baseline method. The historical emission method is based on the carbon emissions of the enterprise in the past few years, and calculates the carbon emission quota of the enterprise according to the total carbon emission limit of the country or region. This approach is suitable for companies with relatively stable carbon emissions, but it may lead to large emitters continuing to expand production capacity, which can exacerbate environmental problems.
The baseline law is based on the advanced level of the industry in which the enterprise is located, and the carbon emission quota of the enterprise is calculated. This approach can help drive companies to improve productivity and reduce carbon emissions, but it can lead to increased competition within the industry, or even vicious competition. In practice, each country** will adopt different calculation methods for carbon emission allowances according to its own national conditions and development stage. For example, the European Union has adopted a baseline approach, while China has adopted a historical emissions approach. In addition, in order to ensure the fairness of carbon emission trading, countries** will also regulate and adjust the allocation of carbon emission credits. The calculation method of carbon emission allowance is of great significance for promoting enterprises to reduce carbon emissions and respond to climate change.
For more details about carbon-related businesses, please consult the Carbon Cloud Management Center.