Carbon Credits represent a world of opportunity in sustainable and thriving societies. If they’re valid.
Carbon Credits, commonly known as carbon offsets, are essentially a permit or representation of an amount of CO2e that has been avoided or removed from the atmosphere. This credit, allows the buyer of the credit to emit an amount of emissions equal to that credit in order to achieve carbon neutrality.
A carbon credit can be a nature based solution (such as tree planting), a renewable energy solution (such as wind and solar farms) or technological (such as sustainable aviation fuel or solar ovens).
Carbon credits are bought and sold on what’s called the voluntary market. Unlike the compliance market that includes various Emissions Trading Schemes (ETS) and largely monitored by governments, the voluntary market is a relatively unregulated space. More regulation is being called for to increase the quality and trustworthiness of carbon credits.
