Greenhouse Gas Trading Credits and Geothermal Heat Pump Systems

Abstract

International agreements to limit greenhouse gas (GHG) emissions allow for trading of reduction credits to achieve an overall lowest cost to realize emissions targets. The Kyoto Agreement calls for different percentage reductions from a 1990 baseline for individual countries. In the United States, the State of New Jersey is developing a pilot project to generate GHG emission reduction credits. This will initially be a voluntary program in which entities will follow a protocol to document real reductions of GHG emissions and apply those credits to meet later regulations. This program will help achieve targeted reductions by allowing facilities to anticipate and take early action. Geothermal Heat Pump (GHP) systems usually result in either reduction or avoidance of some GHG emissions. However, many installations are on a small scale. This paper addresses how GHP systems can be included in a GHG trading credit program and the importance of the development of appropriate protocols for inclusion of small-scale projects.