Carbon credits have proven to be a new way that will help in reducing carbon emissions in the world. It aims at reducing the total damage that is done to the environment by greenhouse gases. It is a relatively new phenomenon, and there are a lot of questions that are lingering and have been left unanswered. People have doubts about the process as they cannot understand what the whole thing entails. How much carbon offsetting one needs to offset their carbon footprint and be neutral is also unsure, and the general public still doesn’t understand the principles.
What Are Carbon Credits
It is the easiest way to reduce your carbon footprint from your daily lifestyle. The idea revolves around the basis of if you cannot make changes in your lifestyle to ensure carbon emission compliance, then you can pay someone who is reducing the emission by their efforts. Examples of people working to reduce carbon emission are renewable and clean energy projects, reforestation and energy conservation. These activities will surely offset some amount of carbon emissions from your total carbon expenditure. The concept of carbon credits works in this way: if you are looking to go on a road trip with your car and you know you will create some carbon emissions, you can buy carbon credits from an organization that is critical to reducing their emissions and are going green. This way, your carbon footprint is neutralized.
Carbon Credit Pricing
Many claims to know how carbon credit priced, but end up getting duped. It is due to shoddy pricing mechanisms. Projects are coming up that are intuitive and transparent; some of the projects have standardized by agencies such as VCS and Gold Standard. An example of a project is a biogas project; this project guaranteed to reduce carbon emission by one metric ton of carbon dioxide emission. It can be exchanged for 11 US dollars. Biogas produces clean energy, the number of emissions from another unclean energy source is calculated, and then the offsetting options in carbon is then used in an economic context. Learn more about calculator for carbon offset.
Where To Buy Carbon Credits
Lack of proper regulation, the process of acquiring carbon credits is ambiguous and very opaque. Pricing has also been affected since there is no proper standard to which people can use in pricing. Companies have started working on the process to make it intuitive, affordable and approachable. Companies like CO2nsensus have prided themselves to be among the best sellers of carbon credits. They offer customized solutions that you can use to monitor your emissions and customize your emissions plan. Their projects are rated by IHS Markit, VCS and the Gold Standard.
Many companies are going head-on into the idea of carbon credits, one such company being JetBlue, and they bought enough carbon credits in 2016 to offset 800,000 metric tons of CO2. Airline carriers are also following suit and have started compensating using carbon credits.