The scientist have been warning since 1960 or so that the temperature of the Earth is rising and this is quite dangerous. The principal reasons responsible for these are burning of greater quantities of oil, gas and coal and cutting down of forests. The industrial and transport units are throwing excessive quantities of 6 most dangerous gases ( referred to as greenhouse gases ) especially carbon dioxide in the environment. On the initiative of the UNO, the international community joined hands to find the ways to cope up with the problem and and international protocol, known as Kyoto protocol was signed. This protocol come into force with effect from 16th December, 2005. The Kyoto protocol aims to tackle global warming by setting target levels for Nations to reduce greenhouse gas emission worldwide.
Under this approach, the companies with emission levels less than the prescribed level are issued certificate by the secretariat of Kyoto protocol. These certificates are referred to as carbon credit certificate. These certificates are tradable. The companies having excess emissions may buy these certificates or otherwise they have to pay penalty for excess emissions. Companies using biogas, solar energy, windmill etc are making a fortune on account of this system.
