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Advantages of the Carbon Credit

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You already know what the Carbon Footprint is, and it’s impact is not just limited to our lives , but on the whole world. But did you have the knowledge that it is possible to buy Carbon Credit to compensate for all the carbon emissions that companies and people make?

As it is the largest responsible gas that causes the imbalance in the Greenhouse Effect, we need to confront global warming and climate change that are already, showing their presence. Therefore, if we don’t change the way we relate to carbon, we’ll face the possibility of a bleak future.

In the belief that the amount of carbon that goes into the air is concerning the concept of carbon credit was developed in 1997. It was based off Kyoto Protocol. Kyoto Protocol.

The proposal was linked in the direction of decreasing greenhouse gas emissions. Countries must reduce their carbon emissions by 5.2%, compared to the levels recorded in 1990, in addition to participating more actively in environmental issues.

The goals of governments and companies need to be developed in order to cut carbon emissions without having to buy credits. Because the less the purchase is needed and the less carbon is required, the less carbon will be released into the atmosphere.

Find out more about carbon credits along with its benefits and drawbacks in this article.

What are the components that make carbon?

Photosynthesis is the most well-known method for producing carbon. Living beings absorb solar energy as well as carbon dioxide from atmosphere, and transform the carbon dioxide into oxygen. Through breathing and the decomposition process of living beings, carbon is also released.

Carbon is created by terrestrial, marine, animal and human beings. These are the products that result from the process of decay and from the use of fossil fuels, such as coal, oil along with natural gas. Additionally, carbon production occurs on a daily basis through pollution, deforestation, and fires.

What are the carbon’s issues?

Carbon production started to be a problem due to the high volume of production. The process, that was thought to be natural and balanced, increased with the advent of human activities following the Industrial Revolution. This is why the amount of carbon in the atmosphere is now so bad.

These emissions to the atmosphere can disrupt the natural process of warming in Earth. Instead of having an ideal greenhouse effect, which is essential to maintain a balanced temperature on the planet it is necessary to deal with overheating, since the greater concentration of gases that trigger this process prevents the heat from going out into space.

The amount of greenhouse gases alters the entire ecosystem on Earth and causes global warming. Overheating leads to global climate change. Every aspect of our life is tied to the seasons, excessive or insufficient rain. Extreme cold and intense heat are two aspects that can completely alter the way we live on Earth.

Thus, we have to be prepared for drastic changes such as:

melting glaciers;
Droughts and floods;
loss of biodiversity;
volcanoes erupting, etc.

What is Carbon compensation?

There are initiatives to cut carbon emissions. However, some emissions are inevitable. However, they can be offset or neutralized which means that investments are made in actions to reduce the amount of carbon released.

One carbon credit corresponds to one tonne of carbon dioxide that is not released in the environment. The price varies, and momentarily, in Brazil, it costs around R$2000. Countries can purchase and sell carbon credits as well as companies. But this market shouldn’t be viewed as a solution for releasing carbon in a hurry. Instead, it’s the reverse.

Carbon compensation can be achieved with simple actions in everyday life, such as cutting down on energy consumption. Being a green lifestyle can also be a method to offset carbon emissions, so you can:

selecting one or two days a week not to eat meat for a couple of days;
reconsider the usage of the car;
have a conscious consumption;
with others.

The changes made by companies on a regular basis need to be compared to the changes that are made by individuals.

Companies should consider sustainable infrastructure, maintaining environmental awareness, and even encouraging environmentally conscious actions among employees. In addition, they need think of different ways of compensation, for example, to trade carbon credits.

Another option for businesses is to promote planting trees and the creation of green areas. People can also participate in the green movement and even support organisations that promote sustainable practices. Carbon compensation is a necessity that needs to be thought of by all to stop environmental degradation for life on Earth.

Take a look at our article on what are carbon footprints? and why does it affect your daily life. In it, you will be able to learn more about carbon and the consequences of carbon in your life. The book also contains facts to help to reduce the emissions of greenhouse gases.

Who can neutralize carbon emissions?

The carbon emissions that are released can be offset by corporations and individuals.

It is becoming more popular for companies to get involved in the process of neutralizing carbon emissions and purchasing carbon credits. Even large global companies participate in this initiative, such as Apple, Google, Microsoft, Mercedes-Benz and Unilever. In Brazil, Natura put into practice their Carbon Neutral Program in 2007.

Businesses are becoming aware of the connection between environmental concerns and economic prosperity. So, in addition to investing in green initiatives, they are also creating goals to reduce carbon emissions. Projects are as varied as they are possible and may be:

investments in renewable energy
Zero waste
make biodegradable material;
Creation of eco-friendly automobiles;
create a sustainable production chain;
and many more.

Alongside the actions and changes within the production cycle of businesses, some also make investments in the acquisition and sale of carbon credits, which have become a new currency in the financial market. One carbon credit is equivalent to one ton of carbon that hasn’t gone into the atmosphere.

The countries also join in this initiative to offset emissions. Like companies, their actions need be thought through in a way that is sustainable. Additionally, they are able to participate in the carbon credit market.

The advantages of the Carbon Credit

As mentioned earlier, each carbon credit corresponds to one ton of carbon that has not been emitted to the air. This means that getting the credit an advantage. The company or country that doesn’t have alternatives to reduce its emission finds an advantage by purchasing this credit.

For certain countries, organisations, as well as companies, the value is the possibility of selling carbon credits. They are entities that are able to lower the carbon footprint of their operations. This way, they enhance their economies by providing the worth of investing in sustainable activities they develop.

Carbon credits purchased by firms that are conscious of the environment will boost their image. Sometimes, the company is environmentally conscious however there is an amount of carbon it is unable to stop emitting. In this case the purchase of credit shows how much the company is committed to promoting sustainable practices.

Carbon Credit has disadvantages. Credit

The main disadvantage of the carbon credit lies precisely on the exchange market. Certain institutions and nations can take advantage of this market , allowing them to continue to emit their greenhouse gasses. They don’t take strategies to cut emissions because they can buy unlimited credits.

In this situation, the reduction of 1 ton of carbon, that is, 1 credit, will never be enough. Since somebody will use this ton therefore there will never be a reduction in emissions. This disadvantage has caused a lot of controversy for environmentalists and world leaders.

The usage of carbon credits should be considered as a sustainable option. Be aware that it’s an option for emergencies and not to rely on the notion that it has helped.

Everyone’s focus must be on reducing carbon dioxide emissions. Only in this way will we be able reverse the negative effects caused by global warming.