Carbon credits were created to help incentivize protection of the environment and sequester CO2.
What ARE Carbon Credits And Why Should I Care?
Carbon credits were created to help incentivize protection of the environment and sequester CO2.
Carbon credits, or carbon offsets, is one metric ton of carbon sequestered, meaning one ton of carbon CO2 taken out of the atmosphere. The concept of carbon credits was created to incentivize corporations around the world to offset their greenhouse gas emissions (GHGs.)
Many corporations in industries like mining and oil and gas will not be able to completely eliminate their GHGs and will thus need to purchase carbon credits to offset their GHGs that they produce.
Incentivize Protection & Sequester CO2.
Carbon credits were created to help tackle the issue of climate change and to incentivize others to help protect the environment and engage in projects that sequester CO2.
There are certifying bodies like Verra, Gold Standard and Canopee to name a few who have specific methodologies in place to help measure the quantity of CO2 sequestered in various projects. Some of these projects that help eliminate CO2 are:
- Regenerative agriculture - helps to improve the soil biome and biodiversity and increase the amount of CO2 in the soil
- Conservation of existing forests in developing countries
- Afforestation - trees planted on land where there were previously no trees
- Reforestation - trees planted on land where there used to be rainforest or other forest - helps restore ecosystems and biodiversity
- Controlled grazing for cattle - specific grazing methods can help increase CO2 levels in the soil biome on grasslands
- Mangroves - restoring mangroves to their natural health
- Renewable energy projects - these help to offer alternatives to fossil fuels
Carbon offsets are really the first industry to be created that has a public societal end, one that is for the benefit of the entire planet at large. The intent is that with the private market and through proper incentives with carbon credits that we can tackle the issue of climate change at scale throughout the world and also help to restore ecosystems and biodiversity.
