What are the benefits of carbon credits?
Carbon credits enable companies, governments, and organizations to offset their greenhouse gas emissions by financing projects that reduce or avoid greenhouse gas emissions. Carbon credits can help reduce an organization’s overall carbon footprint, meet greenhouse gas emission reduction targets, and contribute to the fight against climate change.
How do carbon markets work?
Carbon markets are exchange systems in which greenhouse gas emitters can buy and sell carbon credits. Emitters can buy carbon credits to offset their greenhouse gas emissions, while suppliers of carbon credits can sell their credits on the market to finance projects that reduce greenhouse gas emissions.
How are carbon credits valued?
Carbon credits are valued based on perceived quality, which may include factors such as locality, project type, carbon standard, involved parties (project developer, project proponent), etc. Projects are assessed by independent third parties to ensure that they are credible, verifiable and comply with environmental standards.
Who can buy carbon credits?
Companies, governments, organizations and individuals can purchase carbon credits to offset their greenhouse gas emissions.
How are carbon credits used to offset greenhouse gas emissions?
Carbon credits are used to finance projects that reduce or avoid greenhouse gas emissions. By purchasing carbon credits, greenhouse gas emitters can offset their emissions by financing these projects.
How are carbon credits measured?
Carbon credits are measured in tons of carbon dioxide equivalent (tCO2e), which is a standardized measure used to compare emissions of different greenhouse gases.
How are carbon credits purchased?
Carbon credits can be sold through wholesalers (such as McGill St Laurent Climate Solutions), on carbon exchanges or trading platforms, or directly between suppliers and buyers. Carbon credit prices vary according to market supply and demand. A quality wholesaler such as McGill St Laurent Climate Solutions simplifies and derisks the process.
Can carbon credits be used to achieve sustainable development goals?
Yes, carbon credits can be used to help achieve the United Nations’ Sustainable Development Goals, such as fighting climate change and promoting clean energy and a sustainable environment.
What type of projects are eligible for carbon credits?
Projects eligible for carbon credits are projects that reduce, avoid or remove greenhouse gas emissions from the atmosphere. Projects can be related to renewable energy, sustainable forest management, energy efficiency or other activities.
How are carbon credits tracked and verified?
Carbon credit projects are monitored and verified by independent third parties to ensure that they meet environmental standards and meet the criteria established by the carbon standard’s protocol.