Green Automotive Enters Into Agreement To Monetize Future Carbon Credits

Green Automotive Company Corporation (OTC:GACR) announced today the engagement of Green Giant Venture Fund as part of the Company’s plans to sell forward it’s expected allocation of carbon credits generated by future sales of it’s zero emission, All-Electric vehicles through the developing “Cap and Trade” commodity market.

“Carbon Credits, also known as Certified Emission Reductions,” said Fred Luke, President of Green Automotive, “are the evolution of the Clean Air Act of 1990, which set out to reduce sulfur emissions that cause acid rain, but in this case the goal is to reduce the amount of carbon dioxide emitted into the environment by companies whose products emit CO ₂ in excess of the applicable regulatory standards."

Under newly enacted CO ₂ emissions regulations, companies whose products emit CO ₂ will have a limit on the amount of greenhouse gas that their products can emit. The company, or “emitter”, must have an “emissions permit” for a certain amount of CO ₂ it releases into the atmosphere. These permits set an enforceable limit, or “cap”, on the amount of greenhouse gas pollution that the emitter is allowed to emit. Over time, the limits become stricter, allowing less and less pollution, until the ultimate reduction goal is met.

“The newly developed Carbon Credits,” said Mr. Luke, “are essentially ‘script’ issued as a reward to those companies who reduce the amount of CO ₂ emitted into the environment by their products. These credits, known as Carbon Credits, are becoming a commodity in which a world-wide market seems to be developing, and those large-scale emitters of CO ₂, who are unable to meet the regional maximum emission standards in the time allotted, see purchasing as cost-effective alternative to the penalties and fines potentially imposed for not being in CO ₂ emission compliance within the prescribed timeframe.”

“Based upon the information provided by Green Giant Venture Fund,” said Mr. Luke, “I believe Green Automotive's All-Electric, emission-free vehicles, beginning with the All-Electric Sport Utility Vehicle which showcased recently at the OC Technology Influencer and Summit 2011 in Newport Beach California, will qualify as a Clean Development Mechanism (CDM) as set out in the United Nations Framework Convention on Climate Change, and generate Carbon Credits.”