If you’ve ever heard of the term “carbon credits,” you might be wondering what they are and how they work. This article will provide a brief introduction to carbon credits, and how they do not help reduce your carbon footprint but could help offset your carbon footprint.
Carbon credits are a form of permit or certificate that can be used to buy or sell emissions reductions in order to reduce the amount of Green House Gases released into the atmosphere. They are a way for companies and individuals to offset their emissions by investing in projects that remove carbon from the air or prevent additional emissions from entering it. Companies, governments, and other organisations purchase carbon credits from an approved source in order to offset their own emissions. The money is then used by the seller of the credits to fund projects that reduce emissions elsewhere.
One example of a project funded by carbon credits is tree planting initiatives. Trees absorb large amounts of CO2, helping to reduce levels in the atmosphere. By investing in tree planting projects, companies can offset some of their own emissions while also providing financial assistance for green initiatives around the world. Other types of projects funded by carbon credit purchases include renewable energy sources such as wind turbines and solar panels, as well as energy efficiency upgrades like insulation and LED lighting.
In addition to helping reduce global greenhouse gas emissions, there are economic benefits associated with buying carbon credits.. Carbon credits also create jobs by funding green projects around the world – often in countries where unemployment rates are high.
Carbon credits have become an important tool for businesses looking to become more sustainable and environmentally friendly. By purchasing them, companies are able to invest in green initiatives around the world while reducing their own environmental footprint,. Not only does this help protect our planet for future generations, but it also provides economic benefits through job creation and potential investment opportunities while doing something positive for our planet.
However, it must also be noted that simply buying Carbon Credits to offset your emissions, without any further effort on your own part to reduce your actual emissions can lead to criticism. Many environmentalists would argue that any organisation that prioritises carbon credits over actual in-house reductions are simply greenwashing.
At Auditel we believe Carbon Credit have a role play in the journey to save our planet, but it must be part of a wider and transparent Carbon Reduction Strategy.
If you’re looking for a way to invest responsibly while protecting our environment at the same time, speak to our carbon consultancy team at Auditel who can you tailored advice on carbon credits and carbon offsetting initiatives.