WHAT ARE CARBON CREDITS?

Carbon credits are an investment that permits your business or you as an individual to emit one tonne of 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., by saving that carbon elsewhere. Literally, a carbon credit is a tradable certificate or permit that is equivalent to one tonne of 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. (or a different greenhouse gas).

Why do carbon credits exist?

Carbon credits and trading carbon credits exist as an attempt to limit the global growth in the concentration 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. in the atmosphere. Because a carbon credit equals one metric tonne of 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. (or 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. equivalent), carbon credits are able to be precisely traded.

How does carbon trading work?

Typically, a carbon management company (such as Eco Global Markets) trades carbon credits in different projects that directly mitigate climate change.

So how do carbon credits help the environment?

The aim of carbon credits and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source. is to allow the market to influence industrial and commercial processes to drive down emissions and adopt less carbon intensive approaches. With a cost attached to emitting carbon dioxide, and the very real threat to our planet, becoming carbon neutralAchieving net zero carbon emissions. as a business or individual is something everyone should consider.

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 dioxide, 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.