Carbon emissions trading involves the trading of permits to emit carbon dioxide (and other greenhouse gases, calculated in tons of carbon dioxide equivalent, tCO2e). Carbon trading is one of the ways countries can meet their obligations under the Kyoto Protocol to reduce emissions and thereby mitigate global warming.

The European Union Greenhouse Gas Emission Trading Scheme is the largest multi-national Greenhouse gas emissions trading scheme in the world. Operations commenced in January 2005 and all 25-member states of the European Union participate in the scheme. Each ratifying country has agreed to limit emissions to the levels described in the protocol. But many countries have limits that are set above their current production. Other countries on the open market can purchase surplus credit amounts.

A country caps its carbon emissions at a certain level (known as cap and trade) and then issues permits to firms and industries, granting the firm the right to emit a unitized increased amount of carbon dioxide over a period of time Firms are then able to trade these credits in a free market. Firms whose emissions exceed the allowed amount of credits will be penalized. The idea behind carbon trading is that the selling of credits to firms that are unable to reduce emissions will reward firms that do reduce their emissions. AEG plans to have its farm certified for a CDM project and sell carbon credits or CER. Interested parties could contact us for participation at any stage of our project cycle.