ARBON BANK Background In the recent time the world economies have grown at an incredible rate w i t h s p u r t i n technological innovations.

This growth has lead to rise in manufacturing especially in the BRIC(Brazil, Russia, India, china) Countries. With the growing industrialization, there has been an incre ase in energy consumption globally. This growth has lead to increase in green house gases including carbondioxide, methane, nitrous oxide, sulphur hexafluoride.According to one study, 60-70% of Green House Gases emission is through fuel combustion inindustries like cement, steel, textiles and fertilizers. Science has correlated climate over theages with core samples from ice sheets and found that carbon dioxide levels fluctuate withclimatic events. Only recently has science been able to understand how this CO2 actually worksto trap the heat in the atmosphere and by calling it the greenhouse effect gives us the basicunderstanding of what goes on.These gases are released as by-products of certain industrial process, which adversely affectthe ozone layer, leading to global warming.These harmful gases have lead to various environmental imbalances. Melting glaciers, freaks t o r m s a n d s t r a n d e d p o l a r b e a r s w h i c h h a v e b e e n w i t n e s s e d i n r e c e n t t i m e s p l a y i n g t h e mascots of climate change affecting our planet. More fuel to fire According to The Intergovernmental Panel on Climate Change 2007 assessment reportsaid world temperatures are likely to rise between 1.1 to 6.4 degrees Celsius by 2100. triggering more frequent floods, droughts, melting of icecaps and threatening speciesextinction. An estimated 30 per cent of the worlds total greenhouse emissions in 1997 came fromwildfires in Borneo, which destroyed one million hectares of forests. Worldwide carbon dioxide emissions in 2005 are estimated to be slightly more than 24billion tonnes. Every litre of gasoline or petrol used in motor vehicles produces 2.4k i l o g r a m s o f c a r b o n d i o x i d e e m i s s i o n s . F o r d i e s e l f u e l , e v e r y l i t e r p r o d u c e s 2 . 7 kilograms carbon dioxide. The World Health Organization has estimated that climate change leads to more than150,000 deaths every year and at least 5 million cases of illness. Global sea levels willincrease by 11 to 13 inches by 2100, according to 2006 estimates by Australia's scienceresearch agency CSIRO. Ten countries account for two-thirds of global forest area, according to the UN Fooda n d A g r i c u l t u r e O r g a n i z a t i o n : A u s t r a l i a , B r a z i l , C a n a d a , C h i n a , T h e D e m o c r a t i c Republic of Congo, India, Indonesia, Peru, Russia and United States. The Earths carbon absorbing capacity is finite and delectable and that growth of GHGemissions, even at their present level poses a threat to humankind. The per capita GHG emission is strongly correlated with economic prosperity. Further,i t i s r e c o g n i z e d t h a t w i t h o u t i n c r e a s e i n G H G e m i s s i o n s o r a c c e s s t o a p p r o p r i a t e alternative technology options, developing countries would not

be able to pursue theirsocio-economic goals. Kyoto Protocol is a global cooperative attempt to address boththese issues.Thus, fear of increased sea level and lower agricultural yield have made people around theworld to want to reduce consumption and lower their personal shares of globalgrowing concerns among nations to curb pollution levels while maintaining the growth in theireconomic activities, the emission trading (ET) industry has come to life. Thus, the conceptionof Kyoto Protocol was formed emissions. With