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You can make money selling carbon credits, but you need to be a qualifying company and not an individual. This is a relatively new market that depends on the theory that increasing amounts of carbon dioxide in the atmosphere is responsible for raising global temperatures. Selling carbon credits is a way that has been designed to lower or offset carbon dioxide emissions.
Carbon brokering is a new business, but one that has been making a lot of money for some. According to the Chicago Climate Exchange, some 30% of all Fortune 500 companies are now actively seeking ways to reduce or offset their carbon footprints through trading in carbon credits.
The Chicago Climate Exchange is one of the biggest carbon credit exchanges in the west. There are others in other parts of the world, such as the Multi Commodity Exchange in India, for example. Companies can trade carbon credits at these places in a similar way that shares and stocks are traded all over the world, and have been for generations.
Those who make money selling carbon credits are trading in carbon futures. It works in a way between developed countries and developing countries. For example, in a developing country like India or China, a company can contact the United Nations Framework Convention on Climate Change where they will learn the carbon emission standard level allowed.
If, for example, the company is emitting carbon dioxide at a level that is lower than the United Nations Framework Convention on Climate Change standard set at the time of enquiry, then that company in the developing country can get credited. That's what carbon credits are in real terms.
In developed countries there will be companies that are producing more carbon dioxide than they should be doing under the Kyoto Protocol. These companies, mostly located in Europe, can purchase the credits generated by the companies in the developing countries. In this way a worldwide market has been created that trades in carbon credits.
One way for the individual to make money out of carbon credits is to set up as an expert in reducing the carbon footprints of companies. Many companies are being forced to address their situation as regards the emissions of carbon dioxide that the company is responsible for. They are seeking the advice of consultants and companies newly set up to cater for this kind of valuable information.
Setting up as a green consultant has many advantages. It is a type of consultancy that is obviously in demand, and likely to stay in demand for some time to come. There is an obvious need for it and companies will pay to get good advice as it will save them money in the long term.
This is not really a business that anyone can jump into. It will need careful consideration, not to mention the necessary expertise. However, the opportunities are there to make money selling carbon credits, and it seem there is a lot of money to be made doing it too.
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