June 16, 2010

What Are The Carbon Offset Benefits Of A Wind Farm

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With all the stress on the environment today, carbon and greenhouse fuel (GHG) discount has turn out to be a major issue. With greater than 20 million tons of carbon dioxide being produced globally each year; reducing carbon emissions, curbing waste, and producing more clean vitality are the call of the day. Eco-conscious individuals, businesses, and corporations are all striving towards decreasing their carbon footprint. When emissions are reduced as much as potential or until it’s feasible to eradicate the carbon footprint, carbon offsets come into play. A carbon offset is a form of trading, specifically a credit score for the reduction in dangerous emissions not by the firm’s actions however through the work of one other establishment. This credit is generated when the mentioned establishment’s work results in a drop in the level of carbon dioxide or greenhouse gas emissions below a certain necessary or voluntary cap. The mandatory/compliance cap is normally set by governments or a global body. Therefore, a carbon offset primarily lets an entity pay to reduce the level of those harmful pollutants somewhat than making any improbable or unachievable reductions on its own.

These carbon offsets are traded on a local, nationwide and international scale. An international network of retailers, brokers and trading arenas exist to facilitate the shopping for and selling of those offsets. The offsets are usually measured when it comes to a ton of carbon dioxide equivalents i.e. CO2e. Various activities will help create carbon offsets; for example, the use of renewable sources of energy such as wind power and biomass energy in addition to participating in actions like reforestation and agriculture. The use of renewable power systems can generate an incredible carbon offset, as a result of important fact that they eradicate the dependency on fossil fuels and nearly generate zero emissions.

As far as offset tasks go, wind projects tend to be more sustainable and viable, especially because the process does not produce any ozone harming by-products and doesn’t depend on fossil fuels. To quantify what number of carbon offsets are generated by a wind farm, in response to the American Wind Energy Association (AWEA), in 2008, the U.S. wind energy business brought online approximately 8,500 megawatts (MW) of recent wind power capacity. This manufacturing will help avoid nearly forty four million tons of carbon emissions – the equivalent of taking 7 million cars off the road. Therefore, for each megawatt of put in capacity, a wind farm can potentially earn approximately 5,175 of CO2e – the equal of taxing approximately 820 cars off the road. Wind vitality generation organizations sell carbon offsets, benefitting both the client and the company. Buyers buy these offsets because supporting wind energy not only leads to the creation of a ‘green’ supply of energy, but in addition helps ‘negate’ their own greenhouse emissions, massive and small. Buying carbon offsets from wind farms should not only a way to ease the buyers’ conscience and reduce their carbon footprint, but can also be much less expensive than making changes to eliminate emissions. The wind power generation facility itself profits as a result of selling these offsets makes the project more financially viable and profitable, which helps increase the scale of productiveness as well.

With environmental markets growing, it is necessary to understand the scope of emissions today.
There are three completely different scopes for carbon emissions that occur within the carbon footprint of a company or business concern:

– Emissions that are created directly on the location, through direct sources like on-site equipment and apparatus like a generator located at a factory.

– Energy associated emissions and indirect power based emissions just like the electricity purchased by a company to hold the premises well lit up.

– Emissions that happen via indirect sources of emissions like those related to the use of paper in an office, corporate travel etc.

As the United States has neither ratified the Kyoto Protocol nor mandated any legal guidelines to cap its emissions as of July 2009, all carbon offsets are voluntary. Therefore, only two environmental markets coexist in the United States i.e. carbon offsets often known as voluntary emission reductions (VERs) and renewable energy certificates (RECs). Although these markets are interrelated, there are marked variations between the 2 commodities.

VERs or carbon offsets, also known as carbon discount ton, denotes activities that end in a cutting of, reduction and/or getting rid of one ton of greenhouses gases at a given site, to counteract an emission happening in another. Typically these offsets are used to negate direct emissions or a scope one emission. For example a company can purchase carbon offsets created via a wind energy project to ‘clear’ emissions created by a boiler of their office.

Offsets are subject to a rigorous set of guidelines, standards and rules. These tips primarily make sure that vital environmental and monetary criteria are met in order that customers will be assured that the offsets bought are indeed genuine and verifiable. There can also be an additionality requirement that represents the fact that a given greenhouse gas reduction project would not have been made possible without the expectation of extra funds procured from the sale of offsets. This is to make sure that the emissions reduction exercise is in addition to regular business practice, therefore facilitating a reduction that might not have happened in any other case in previous circumstances. In different words, countries and/ or businesses should make an energetic contribution to emission reduction to be able to earn or promote credits instead of relying on pre-existing tasks planned for other reasons with funds already committed. Thereby, ensuring buyers that their purchase will additional the betterment of the global climate and environment.

RECs or renewable vitality certificates denote one megawatt hour (MWh) of energy produced by a ‘clean’ renewable source. Energy produced by sources like wind, hydro, and biomass represents an offset because an environmentally pleasant procedure replaces one utilizing environmentally degrading fuel; emitting little to no carbon within the process. Emission reductions take place throughout energy creation, by changing fossil fuel, at the utility itself. RECs are sometimes used to counteract indirect scope two emissions, whereby ‘clean’ megawatts of electrical energy by the REC can neutralize the unclean ones used by a company. RECs, however, are usually not held to the identical standards and more importantly the additionality necessities like VERs. As a result, they can be supplied from resources which can be running as is, or partly from extra business activities.

It is interesting to note that solely renewable energy projects akin to wind farms and solar power plants meet the highest standards required of carbon offsets, because the risks they pose to the setting are negligible they usually encourage a much wanted departure from fossil gas usage.

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