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Carbon Credits

It seems everybody talks nowadays about “Carbon Credits"; but what are they, where do they come from and how can YOU get them?

Based on the 3rd World Conference on Climate Change, 1997 in Kyoto, Japan, 163 countries signed and ratified the “Kyoto Protocol" which (in short) declares that these countries are committed to reduce the world wide emission of “greenhouse gases".

Further, it initialized the possibility for environmental sound projects in “mostly" developing countries to generate additional income, which might be necessary to a) make the installation of environmental sound systems economically viable and b) generate additional income as incentive for the additional efforts for the implementation of such systems.

These incentives are available to projects, which are accredited to generate “Certified Emission Reductions" (CERs).
There are three Kyoto Mechanisms related to the task:

  • Joint Implementation (JI)
  • Clean Development Mechanism (CDM)
  • International Emissions Trading (IET)

Both JI and CDM are "project based mechanisms" and involve carrying out climate change projects overseas, and transferring the reduction of emissions into CERs, which now could be traded.
Here the Clean Development Mechanism is the most important for projects in developing countries and is further evaluated.
In short and simplified:

  • Every country generates Carbon Dioxide (CO2) and other emissions due to its industrialization (power plants, chemical industries, incinerators etc. etc.)
  • CO2 and other emission are the origin for the “greenhouse effect", which damages our atmosphere
  • Every country (industries) agreed on a maximum CO2 output level
  • Most developed countries are above this levels
  • Most developing countries are much below this levels
  • To give developing countries the financial ability to implement new technologies, the CDM allows them to sell their available CO2e (Carbon Dioxide Equivalents) or also named CERs, based on environmental sound projects
  • Developed countries or its industries can buy these CERs to be able to (theoretical) reduce their emission (in the total balance). If they still generating more than allowed, they have to pay penalties.

Unfortunately, accreditation and certification of qualified Projects under CDM is still a work intensive and challenging process. The accreditation has to be done with the UNFCCC (United Nations Framework Convention for Climate Change, in Washington, US.

One of the most viable CDM Projects

All countries have since ages Landfills, Dumpsites or Sanitary Landfills to handle the growing amount of garbage generated by its citizens. The usually high amount of organic materials (i.e. kitchen waste) in the landfill contributes with its high amount of organic carbon to the generation of so called LANDFILL GAS or LFG, which is a result of an unavoidable bio-chemical process within the landfill.

The LFG (sometimes also named Bio-gas) is basically Methane (CH4) and Carbon Dioxide (CO2), whereas the Methane, compared to Carbon Dioxide, has a much higher damaging effect on our atmosphere.

Methane if collected can be flamed and converted to Carbon Dioxide and water or even utilized as engine fuel to generate power. Doing so, the damaging effect on our atmosphere would be seriously reduced.

Landfill Gas capture and utilization is an environmental improvement and properly done also a clear indicator for the implementation of an environmental sound system, which allows its accreditation as CER generating facility under the Clean Development Mechanism.

Most developing countries however would not be able to install such LFG capture systems due to its financial needs. The accreditation under the CDM now would not only generate the finances to install such system, it further would mostly generate additional income for the facilities.

So, mostly every owner / operator of landfills could apply for the accreditation of its facility to generate and earn from CERs under the Clean Development Mechanism.

Where BNE comes in

The BN group has more than 20 years of experience with the planning, design, implementation and operation of LFG capture and utilization systems in Europe and Asia. BN realized its first LFG fueled Power Plant in 1984 and we are proud to say that it is still generates power (and income) to the fullest satisfaction of our client.

BNE is able to validate YOUR project and is experienced in the accreditation process needed. BNE with its cooperative partners can further utilize possible buyer for your CERs as also design partial to complete packages for LFG capture and utilization systems from self operated to BOT or BOO project implementation.