Carbon credits represent the removal of one tonne of carbon dioxide or an equivalent amount of a different greenhouse gas from the atmosphere. These are from verified and measured emissions reductions from certified emissions reduction or removal projects. These allow the owner to emit a specific amount of carbon dioxide or the equivalent of other GHGs.
Carbon credits are used in carbon markets as a tool for reducing greenhouse emissions on a global scale. By putting a price on carbon emissions, carbon credits incentivize companies, governments, and other organizations to reduce their emissions.
Carbon credits operate either in compliance or voluntary markets.
For compliance markets, governments or international bodies usually set a cap on the amount of emissions allowed, and then allocate or sell credits to organizations. This allows them to emit a certain amount of GHGs. Companies that reduce their emissions can sell their extra credits to those who need them to comply with the cap.
On a voluntary basis, companies or individuals can also buy carbon credits from specific projects that reduce, remove, or capture emissions. These projects can range from reforestation and forest management to renewable energy projects like wind or solar farms.
Keslio is an international sustainability advisory that helps companies and investors navigate their sustainability journey. We support our clients through various services, such as strategy development and implementation, reporting and communications, and greenhouse gas emissions calculations.
We’re passionate about supporting business leaders and their companies with sustainability and ESG and we’d love to help you. To talk to us and find out what Keslio can do for you, please use the section below to contact us, or email us at hello@keslio.com.
