subject: Lower My Emissions Now - What is a Carbon Credit [print this page] What is a carbon credit? Before we answer this question, let us first take a look at the Kyoto Protocol. According to this protocol, signatory countries should play a leading role when it comes to implementing ways to lower emissions of greenhouse gases like carbon dioxide. The two means to reduce emissions that were suggested by the protocol are carbon offset and carbon trading. In accordance with the Kyoto Protocol, consumers of fossil fuels are assigned carbon dioxide emission levels. Also, they are allowed to pay others to store carbon for them in exchange for the right to release carbon into the atmosphere that is in excess of their limits.
Now, a carbon credit is a monetary value given by an organization that can be bought and used to pay for carbon dioxide offsetting services that fund renewable energy research and development and other environmental practices. As such, it helps individuals and companies to reduce their carbon dioxide emissions by offsetting them in a more environmentally-friendly manner.
Purchasing carbon credits is beneficial for the environment. For one, it reduces carbon dioxide emissions. Also, it increases the awareness of people on global warming, and it conserves natural habitats and resources as well. Buying carbon credits saves energy, provides employment opportunities, and introduces new technology. The money from the purchases of carbon credits is used to create renewable energy projects and to develop sources of renewable energy from wind turbines and solar panels for example.
Another benefit of carbon credits is that they can form a massive source of revenue for the developing world. Energy-saving initiatives are also created using carbon credits.
What is a carbon credit? What are its advantages? Well, by buying carbon credits, you know for sure that your money is going to an eco-friendly and sustainable cause.
