Recent analysis by reveals most of the easy carbon credit projects are already being availed and chances are high that such low-price credits will diminish sharply in future. Afterwards, greater efforts and higher investments would have to be put in to gain carbon credits.
Up till now, most cheap credits have come mainly from elimination of two kinds of waste gases, and . These two gases have a greater impact on global warming as compared to carbon dioxide. Due to this larger scale of emissions reductions, low-investment projects have resulted in cheaper carbon credits. However, since , future projects would have to earn credits through renewable energy and energy efficiency. This may result in at least a fivefold increase in project costs, which would eventually raise the price of carbon.
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