Carbon Emission and Offset
At Clax Commodities, we recognize the pressing need to address carbon emissions to combat the global climate crisis. Carbon emissions, primarily from burning fossil fuels, have significantly contributed to climate change, leading to rising temperatures, extreme weather events, and environmental degradation.
As responsible global citizens, we are committed to driving change and fostering a sustainable future for generations to come.
Reducing Carbon Emissions
The Imperative Call
Climate Impact: Carbon emissions, such as carbon dioxide (CO2) and other greenhouse gases, trap heat in the Earth's atmosphere, resulting in the greenhouse effect. This, in turn, leads to the warming of our planet, causing glaciers to melt, sea levels to rise, and severe disruptions to ecosystems. The consequences of unchecked carbon emissions pose a threat to biodiversity, food security, and human livelihoods, making it crucial for individuals and businesses to take action.
The markets we operate in:
The Compliance Market
EU Allowances (EUA) and UK Allowances (UKA)
EU Allowances (EUA): The European Union Allowance (EUA) is a key component of the EU Emissions Trading System (EU ETS). EUAs are tradable carbon credits that represent the right to emit one tonne of CO2 or its equivalent. Companies within the EU ETS must hold enough EUAs to cover their emissions, and these allowances are issued by governments or allocated based on a cap-and-trade mechanism. By setting a cap on total emissions, the EU ETS encourages emission reductions while providing flexibility for companies to buy or sell allowances as needed.
UK Allowances (UKA): The UK Emissions Trading System (UK ETS) is a separate carbon market that was established after the UK's exit from the EU. Similar to EUAs, UK Allowances (UKA) are carbon credits that regulate carbon emissions in the United Kingdom. Companies operating in the UK must comply with emission reduction targets and possess enough UKAs to offset their carbon output.
Voluntary Carbon Market
In addition to compliance markets, there exists a voluntary carbon market that allows companies and individuals to voluntarily offset their carbon emissions beyond regulatory requirements. In this market, businesses and individuals can purchase carbon credits or offsets from projects that reduce or remove emissions.
These projects might include afforestation, renewable energy initiatives, or sustainable agriculture practices. By participating in the voluntary carbon market, organizations can demonstrate their commitment to environmental responsibility and contribute to projects that positively impact climate change.
Clax Commodities:
advancing towards a greener future
At Clax Commodities, we are passionate about supporting businesses in their carbon reduction efforts and navigating the complex world of carbon emissions and offsets.
Our expertise in environmental commodities, including carbon credits and offsets, empowers clients to make meaningful contributions to a sustainable future.