Online carbon credit trading platform from IBS

IBS is planning to launch an online carbon credit trading platform for the airline industry.This e-commerce platform will enable airlines to trade carbon offsets.It would be an IT tool for airlines to find out how much emission their aircraft generate and with the European Commission all set to penalise polluting aircraft, those that have the least emission will be given carbon credits.

What is the carbon credit?

Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). One carbon credit is equal to one ton of carbon dioxide or in some markets carbon dioxide equivalent gases. Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches than those used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world.

The European Union has begun working out a plan to control carbon emissions at all airports in the 27 member countries by 2012. The implementation of a European Union requirement would mean airlines will have to buy carbon credits to offset their emissions. Most flights touching down in Europe would be covered by a trading system for emissions of greenhouse gases and this will increase costs for air carriers.