Carbon Credits are transferable permits that grant the holder the right to emit one metric ton of carbon dioxide or an equivalent amount of other greenhouse gases. Governmental bodies or other organizations establish these credits within a cap-and-trade system, which employs market-based mechanisms to curtail greenhouse gas emissions.
What is A Cap and Trade System?
Under a cap-and-trade system, the companies are subsequently allocated a specific number of Carbon Credits, symbolizing their entitlement to emit one metric ton of greenhouse gases. Companies that emit less than their allotted credits can sell the surplus credits to other companies in need, thus establishing a financial incentive for emission reduction, as unused credits can be lucratively traded.
Benefits of Carbon Credits
Carbon credits serve the purpose of offsetting greenhouse gas emissions arising from diverse sources, encompassing power plants, factories, and transportation. Moreover, they can counterbalance emissions from individual activities, such as air travel or personal vehicle usage.
Various categories of carbon credits exist, each adhering to its standards and regulations. Some examples include:
- Voluntary Carbon Credits: These credits are not mandated by law but are acquired by companies and individuals who voluntarily seek to neutralize their emissions.
- Compliance Carbon Credits: These credits are legally required and are purchased by companies aiming to fulfill specific emissions targets.
- Project-based Carbon Credits: These credits originate from initiatives that diminish or eliminate greenhouse gases in the atmosphere. Illustrative projects include renewable energy, energy efficiency, and afforestation.
Carbon Marketplaces
A carbon marketplace is a platform where buyers and sellers of carbon credits can trade. The Greenhouse Gas (GHG) Offset Credit System in Canada incentivizes various entities such as businesses, municipalities, Indigenous communities, and farmers to embark on inventive initiatives to reduce greenhouse gas emissions.
This system allows project proponents to generate federal offset credits by adhering to the Canadian Greenhouse Gas Offset Credit System Regulations and relevant federal GHG offset protocols upon project registration and implementation.
Why Choose Climate Carbon for Carbon Offsets?
Climate Carbon offers a compelling choice for your carbon offset needs. Our excellent commitment ensures you invest in high-impact carbon offset projects like reforestation and clean energy initiatives.
Our carbon footprint calculator lets you measure your impact and understand your carbon footprint based on your lifestyle choices. By purchasing carbon credits and offsets through us, you actively contribute to the fight against climate change.
Bottom Line
Climate Carbon is your carbon marketplace for building a sustainable and environmentally conscious future. Together, we can work towards a net-zero carbon emissions world. Choose us for your carbon offset needs and make a lasting impact today.