What Are Carbon Credits and Why Are They Important Today?
What Are Carbon Credits?
A carbon credit represents one metric ton of carbon dioxide (or equivalent greenhouse gas) that has been reduced, avoided, or removed from the atmosphere through specific projects. These projects can include activities like reforestation, renewable energy development, or methane capture.
Why Are Carbon Credits Important?
Climate Change Mitigation: Carbon credits incentivize emission reduction efforts by providing financial rewards for environmentally positive actions.
Corporate Responsibility: Many companies use carbon credits to offset emissions they cannot eliminate, helping them meet sustainability targets.
Compliance and Voluntary Markets: Governments impose emission limits on certain industries, and carbon credits allow businesses to meet these requirements. In voluntary markets, companies purchase credits to support environmental causes and boost their green credentials.
Carbon credits bridge the gap between carbon-heavy industries and sustainable projects, helping the world move toward a greener future.
