Way Out

Although most pundits mention that climate change is fundamentally irreversible, a fast reduction of greenhouse gas emissions – particularly CO2 – would significantly soften the consequences. Simultaneously, new technologies can help mankind to deal with the changed environmental conditions.

Since the passage of the Kyoto Protocol, the trading emission certificates have become an important instrument for the reduction of environmentally damaging greenhouse gases. A main instrument of the protocol is the Clean Development Mechanism (CDM), which allows the acquisition of emission reduction certificates through participation in climate protection projects in emerging markets.

According to the Kyoto Protocol, operators of the projects receive emission reduction certificates for reducing or absorbing the CO2 emissions. These certificates can be sold through the European Union Emissions Trading Scheme (EU ETS), other trading systems or over the counter (OTC) to institutional clients for a gainful profit. Examples of projects are sealings of landfills, solar plants, biomass generating plants or biofuels, especially in emerging and developing countries.