Carbon Credits
What is a Carbon Credit?
A carbon credit represents one metric ton of carbon dioxide being removed from the atmosphere. The value of a carbon credit ranges with different markets, and they can be traded.
North America Benefits
The United States currently has a voluntary carbon credit market. California is the only state with a cap and trade program. In Canada, carbon credits can be used as part of the federal offset program.
Why Carbon Credits?
Purchasing carbon credits allow a company to offset their carbon emissions. Carbon credits can help a company reach net zero emissions as well as reduce carbon emission related taxes or penalties.
European Benefits
The European Union currently participates an emission trading system (EU ETS). This system is known as a cap and trade system. Carbon credits are a way emitters can get a higher allowance and avoid fines.
Credit Validation
Carbon dioxide sequestration or mineralization is validated and verified by third party organizations.
Asia Benefits
China, Japan, Indonesia, and South Korea also have cap and trade programs similar to the European Union, with India planning to follow suit in the near future. Watch the EU ETS video explanation below to learn more about the concept.
Contact
Like what you see? Get in touch to learn more.