CARBON CREDITS
Carbon credits, also known as carbon offsets, refer to carbon emissions reductions, measured in tonnes of carbon dioxide equivalent (tCO2e). Carbon credits can be generated through projects which take in carbon from the atmosphere (e.g. reforestation), or reduce the amount of carbon released into the atmosphere (e.g. renewable energy projects). Carbon markets enable the buying, selling and transfer of carbon credits.
WHO NEEDS CARBON CREDITS?
Energy companies and companies which provide transport services obviously pollute the most, but these companies are not the only ones who should buy carbon credits. Fashion industries which use lot of water or agriculture which cause farm emissions through the pesticides are also high polutants. Any companiy which cannot regulate toxic waste (which is in most sectors like that) shall engage in carbon market and expect that governments would enact more regulations to cope with climate change.
TRADE WITH CARBON CREDITS
The price of the carbon credits vary depending on which region we aim to engage with carbon credits. Highest prices are found in Europe which are mostly above 60EUR per credit, and prices are expected to steadily rise due to high demand. In our firm, we offer carbon credits for 10 year maturity. Credits are measured as 1 credit = 1 ton of carbon dioxide.
HOW TO FIX THE PROBLEM?
Buying carbon credits is part of the ways to potentially improve the situation. Participating in afforestation is also detrimental in combating climate change. Crowther lab estimates that one trillion newly planted trees could absorb one third of all CO2 made by humans, considering the fact that 100 billion trees are cut each year. We also assume that in nearby future, many governments would engage in afforestation as a source to face deforestation.