Frequently Asked Questions

Capitalizing on environmental responsibility

Why do we exist?

Eco~nomics exists to help the people of Alabama benefit from the sell of carbon credits.

What do you do?

We sell carbon credits. Eco~nomics serves as an aggregator of carbon credits generated from local offset projects. We essentially enroll qualifying projects in the program, take your credits to market, and sell them for you.

What is a carbon credit?

A carbon credit is a commodity based on the reduction of emissions of pollutants to the air. Industries, vehicles, and livestock release green house gases (GHG) to the atmosphere. The most common GHG is carbon dioxide (CO2). A carbon credit is equivalent to one metric ton of carbon dioxide removed from the atmosphere.

How are carbon credits generated?

Carbon credits are issued when GHG's are reduced through the following means:

Reduction - Participant Members may voluntarily cut emissions through improved technologies or other means such as reducing energy consumption.
Use or Destruction - Members may destroy (combust) GHG's such as methane by flaring the excess biogas or by utilizing these fuels generated from agricultural, wastewater, or landfill processes.
Sequestration - Sequestration involves the capture and retention of GHG's in carbon “stocks” such as trees or grass. This process is performed naturally by trees, grazing land, and grass lands. Members enroll in the program and agree to manage their project lands in a way that continues to promote the sequestration of GHG's for long periods of time.

Where is the market for these credits?

We are members of the Chicago Climate Exchange (CCX). The CCX is the first and only voluntary and legally binding green house gas emissions marketplace in North America . The members of the CCX comprise many different fields: Toyota , Ford, Eastman-Kodak, Goldman Sachs, and Bayer are among the many notable participants. Participant members join the Exchange and agree to reduce their production of GHG's over a period of years. They either reduce their emissions or purchase large blocks of credits to achieve their emission goals.

What is “cap-and-trade”?

Cap-and-trade is an environmental system designed to reduce GHG emissions by using free market financial strategies to accomplish the reduction goals. A “ cap ” is established by setting a specified limit on how much pollution an entity may produce. Producers may choose to reduce their emissions through technological innovation or they may purchase credits from others who have exceeded their emissions reduction goals. The cap-and-trade scheme allows emitters to choose the most cost effective means for achieving their reduction targets ( trade ). This approach is effective because it specifies a definite target, allows emitters to choose the most efficient means of achieving their targets, and benefits the environment by reducing the volume of pollutants emitted.

A great description of Cap-and-trade can be found at the following link:

http://www.ucsusa.org/publications/catalyst/page.jsp?itemID=27226959