Carbon Solutions

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Markets for Carbon Offsets

There are two types of markets for carbon offsets: compliance and voluntary. In compliance markets like the European Union (EU) Emission Trading Scheme, companies, governments, or other entities buy carbon offsets in order to comply with mandatory and legally binding caps on the total amount of carbon dioxide they are allowed to emit per year. Failure to comply with these mandatory caps within compliance markets results in fines or legal penalty.

In voluntary markets, demand for carbon offset credits is generated by individuals, companies, and organizations that purchase carbon offsets to mitigate their greenhouse gas emissions, and to meet carbon neutral, net-zero or other established emission reduction goals. The voluntary carbon market is facilitated by certification programs (e.g., the Verified Carbon Standard, the Gold Standard, the Climate Action Reserve) which provide standards, guidance, and establish requirements for project developers to follow in order to generate and monetize carbon offset credits.

What are Carbon Offsets?

Carbon and greenhouse gas (GHG) emissions can create a greenhouse effect when they are released into the atmosphere. Excessive amounts of these gases can disrupt the earth’s natural energy balance, and create abnormal, and potentially harmful, changes in the global environment. Carbon dioxide and other greenhouse gases are typically emitted during activities that generate or use energy.

The National Greenhouse Gas Inventory list includes:
* Carbon dioxide (CO2)
* Methane (CH4)
* Nitrous oxide (N2O)
* Perfluorocarbons (PFC)
* Hydrofluorocarbons (HFC)
* Sulphur hexafluoride (SF6)

A carbon offset is the act of mitigating emissions of carbon gases made in one area to compensate for an emission made elsewhere. Carbon offsets are measured in metric tons of carbon dioxide-equivalent (MTCO2E). One ton of carbon offset represents the reduction of one ton of carbon dioxide or its equivalent in other greenhouse gases.

GEC can help solve a major global environmental problem in the treatment of organic waste. Our technology provides significant, positive environmental impacts by eliminating food waste to landfills, sequestering carbon, reducing waste transport, reducing the need for synthetic fertilizers, and preventing the release of greenhouse gases (GHG).

Global environmental business opportunity to tackle food waste and methane gas emissions in the United Arab Emirates (UAE). The UAE is heavily reliant on food imports but reducing methane gas emissions in landfills and utilizing bio-fertilizer could help to reduce this dependence. Global Agriculture Developmenthas centers that can rapidly condition organic matter to create high-quality, nutrient-rich bio-fertilizer while preventing methane gas emission in landfills.

The UAE has established initiatives such as the ‘UAE Food Waste Management Program’ and the ‘UAE Zero Waste to Landfill’ initiative to reduce food waste, as well as joining the Global Methane Pledge and the Climate and Clean Air Coalition (CCAC) to reduce methane gas emissions. Despite emerging market solutions for food waste recycling, none of these technologies will make a significant difference on a larger scale compared to measures from GEC.