How are carbon credits generated?

Carbon credits are generated by climate change mitigation projects, often in developing countries. Typically, a project will aim to directly lower the use of greenhouse gasesGases in the earth’s atmosphere that absorb and re-emit infra-red radiation. These gases occur through natural and human-influenced processes. Carbon dioxideA naturally occurring gas and one of the most abundant greenhouse gases in the atmosphere. Carbon dioxide is also a by-product of industrial processes, burning fossil fuels and land use changes., methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride are the 6 GHGs subject to emission reduction in the Kyoto Protocol.. By buying credits it is possible to finance carbon reduction schemes throughout the world. This has the secondary benefit of helping people achieve their goals and improving infrastructure.

Where are carbon credits initially purchased from?

Typically, a carbon management company will purchase carbon credits from a carbon development company or an investment fund, effectively someone that has aggregated a number of credits from individual climate change mitigation projects.

How do I know my carbon credits will genuinely help?

The quality and validity of carbon credits may be thoroughly checked by their validationIndependent project evaluation of a Designated Operational Entity, not to mention the reputation of the carbon management company that sponsors the carbon project.