Carbon Expert - What are Carbon Credits?

EU Allowances, or EUAs, are the emission allowances given to participants in the EU ETS and are traded in a secondary market on the European Climate Exchange (ECX). One EUA gives the holder the right to emit one tonne of CO2. Approximately 2.3bn EUAs have been issued annually to industries covered under the EU ETS.

Trading these credits enables companies to meet emissions limits and enables environmentally friendly projects to profit. This market based approach benefits the environment and businesses.

Carbon credits are similar to certificates that represent a reduction of greenhouse gases in the atmosphere. Projects that prevent the generation of greenhouse gases or remove greenhouse gases from the atmosphere earn these credits, which can in turn then be "sold" to other businesses and individuals to "offset" the emissions they generate. One carbon credit is the equivalent to a saving of one tonne of carbon dioxide (CO2).

Carbon Expert use only Gold Standard credits, which are premium credits coming only from projects which have been verified to a high standard. The Gold Standard quality benchmark promotes sustainable development in carbon markets and certifies real emission reductions.

Carbon is generally priced per metric tonne of carbon dioxide. The price can vary a great deal between providers, due to differences in project cost and administrative overheads. So what you should consider when selecting a provider:

Is the provider open about its management and ethos?

Are they associated with Ethical projects ?

Do they explain how the credits are derived and how the local economy will benefit?

What type of project does the provider support?

Does the investment stack up – can you view your credits online

How does the pricing compare? Is the difference justified?

 

Carbon Expert enable our clients to purchase verified carbon credits and participate in an established globally recognised carbon trading platform.