Carbon trading is a market-based mechanism for helping mitigate the increase of carbon dioxide in the atmosphere. A carbon trading system allows the development of a market through which carbon or carbon equivalents can be traded between participants, whether with countries or companies. Through carbon trading, individuals or entities can either buy or purchase carbon offsets. These offsets or credits go towards projects that either remove greenhouse gases from the environment, or support technology to reduce greenhouse gases.
Carbon credits are like certificates that represent a reduction of greenhouse gases in the atmosphere. They are measured in tons of carbon dioxide equivalent (tons CO2e), and they may represent six primary categories of greenhouse gases. Carbon sequestration credits or offsets are calculated by the amount of carbon emissions that would have been emitted if a diesel or other traditional polluting electric generator was used to produce the same amount of electricity. The four types of carbon credits include EUAs (European Union Allowances), CERs (Certified Emission Reductions), ERUs (Emission Reduction Units), and VERs (Verified Emission Reductions).
In order to earn these credits, you should support projects such as those that prevent the generation of greenhouse gases or those that remove greenhouse gases from the atmosphere. Again, these credits can be bought from and sold to other businesses and individuals to offset the emissions they create. People can buy the credits to make up for the greenhouse gases they produce while driving to work, buying groceries, or watching television.
But aside from the credits that individuals or companies can voluntarily purchase, there are also carbon credits that they must purchase so they comply with legal requirements. Environmental legislature, stemming from the Kyoto Protocol has made sure of this.
Again, carbon trading is the process by which individuals or entities buy or purchase carbon offsets under standardized rules of trade.
Source: www.offsetmyco2.com
Carbon Expert enable our clients to purchase verified carbon credits and participate in an established globally recognised carbon trading platform.
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