Emerald Knight and Carbon Credits
Carbon creditsCarbon dioxide is the main greenhouse (GHG) or heat-absorbing gas in the atmosphere, and thus, plays a very important role in climate change. In a nutshell, the less carbon dioxide there is in the atmosphere, the less the amount of heat trapped in it. The carbon market exists as a form of incentive for reducing carbon emissions. One tonne of carbon dioxide removed, avoided or sequestered is equivalent to one carbon credit. In the carbon market, there are two types of credits: voluntary and regulatory.
Two marketsFor the regulatory market, also known as compliance market, credits are given in the form of Certified Emission Reductions (CERs). The United Nations Framework Convention on Climate Change (UNFCC) has several approved mechanisms that will work towards reduction of carbon dioxide. Projects that work towards this are awarded CERs.
On the other hand, carbon credits certified by many independent international standards are given to the voluntary market. Credits from both the compliance and voluntary markets are supported by the Carbon Trade Exchange.
Climate changeThe amount of GHG emissions in the atmosphere is rising to alarmingly high levels that speed up global warming; one of the surest ways to ensure reduction of these gases is through carbon credits. The value of carbon credits when generated and sold is reinvested in carbon projects and used as funds for technologies that require renewable energy or lower carbon emissions.
Carbon projectsSeveral types of projects that yield carbon credits include those that support the use of renewable energy or assist communities to transition from fossil fuels to solar, wind and other sources of clean energy.
Tree planting is also counted as a carbon project because the world's combined flora sequester carbon from the atmosphere by trapping and using it in their systems for respiration and photosynthesis. Aside from keeping carbon out of the atmosphere, reforestation is important to maintain the quality of soil and prevent it from eroding, and to support biodiversity in local ecosystems.
Ask Emerald Knight how carbon credits offer an opportunity to help protect the environment while simultaneously earning a return on investment.