What is Carbon Credit?
A Carbon Credit is a certificate representing 1 ton of carbon dioxide (CO2) that projects preventing or reducing greenhouse gas emissions obtain.
A Carbon Credit is a certificate representing 1 ton of carbon dioxide (CO2) that projects preventing or reducing greenhouse gas emissions obtain. Tradable in both voluntary and mandatory carbon markets, these assets can be involved in carbon trading. However, recent Greenwashing reports in the UK media have led to a decline in the popularity of carbon credits. The British press criticizes businesses engaging in carbon credit and trading activities, considering them a form of greenwashing. This has resulted in significant price drops in voluntary carbon markets. Experts suggest that businesses should focus not only on carbon balancing but also on decarbonization efforts.
Various methods are being developed to address issues such as climate change, global warming, and carbon emissions. Since global warming and climate change are global problems, both governments and private organizations are implementing various policies to solve and minimize their impacts. Particularly in today's context, where carbon emissions are on the rise, one of the practices employed to mitigate the consequences is the use of carbon credits.
Carbon credits are emission reduction units used to account for each ton of CO2 equivalent greenhouse gas reduction achieved by an activity. These credits are termed Verified Emission Reductions (VER). The definition of greenhouse gas reduction represented by these credits, also known as carbon offset certificates, is based on the equivalent capacity of greenhouse gas emissions produced by a reference activity.
Carbon credit is a financial commitment made to offset the amount of greenhouse gases released into the atmosphere in terms of CO2 equivalent. This commitment typically involves investing in projects that either reduce carbon emissions or sequester carbon. Carbon credits are implemented to support environmental sustainability and address issues such as climate change.
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