Carbon Credits

Carbon Credit is a way that allows industries and nations to reduce their own emission rates of greenhouse gases by carbon credit compensation.

Governments from signatory countries, in other words, Annex 1 Countries, must calculate how much they need to reduce their debt systematically to domestic industries, establishing a quota of emission reduction for each segment.

There is, in turn, the Voluntary Market, where companies, NGO´s, institutions, governments or even regular citizens, take the initiative to reduce emissions voluntarily. Carbon credits can be generated anywhere in the world and are audited by independent third-party entities in accordance with each type of Standard.

In order to establish the rights to sell carbon credits, a project must meet two requirements: to contribute to sustainable development and add some benefit to environment, either by absorption of carbon dioxide (e.g. planting trees) or to avoid the release of greenhouse gases into the atmosphere – the amount of CO2 avoided in the atmosphere will be converted into carbon credits.

 

The Carbon Credits are measured in tons of carbon credits: 1 credit = 1 tonne of CO2, where the metric ton is equivalent to 1000 kilograms.

 

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