Carbon credits: an important tool in the fight against climate change

Economic incentive to reduce greenhouse gas emissions.

Carbon credits: an important tool in the fight against climate change
Author
PERENNIS
Date
Mar 6, 2023
Category
Research

Carbon credits are a market mechanism that seeks to reduce greenhouse gas emissions by buying and selling emission permits. Governments or international organizations set a maximum allowable emissions limit, and then issue emission permits corresponding to that limit. Companies or individuals that emit less than what is allowed can sell their unused permits to others that emit more than what is allowed.

What are carbon emissions?

Carbon emissions are the release of greenhouse gases, primarily carbon dioxide (CO2), into the environment. These gases contribute to global warming and climate change. Carbon emissions occur primarily through the burning of fossil fuels (such as oil, gas, and coal) for power, industry, agriculture, deforestation, and agriculture. They can also be generated by the production of cement, the use of plastics and other industrial processes.

Carbon credits are a key tool in the transition towards a regenerative and sustainable economy.

These credits represent a unit of measurement used to quantify the reduction of greenhouse gas emissions in the atmosphere, through climate change mitigation and adaptation projects.

In a regenerative economy, the goal is to reduce your carbon footprint as much as possible, and carbon credits are an effective way to do this. These credits can be obtained by companies, organizations and countries that carry out projects that reduce greenhouse gas emissions, such as the implementation of renewable energies, the improvement of energy efficiency, the protection of forests and the sustainable management of natural resources.

Why are they relevant right now?

Carbon credits are used in various emissions trading programs such as the Kyoto Protocol and the European Union Emissions Trading System. However, there are also voluntary carbon credit initiatives, such as carbon emission reduction projects (CERs) in which companies and organizations can purchase to offset their own emissions.

The objective of carbon credits:

Is to provide an economic incentive to reduce greenhouse gas emissions, since companies and individuals that emit less than allowed can obtain additional income through the sale of their unused permits.

In short, carbon credits are a key tool in the transition towards a regenerative and sustainable economy, and represent a unique opportunity to reduce the carbon footprint, encourage sustainable investment and protect natural resources and the environment.