(Thematic Report) Carbon Credits and Carbon Offsets: scheme for Carbon Reduction

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(Thematic Report) Carbon Credits and Carbon Offsets: scheme for Carbon Reduction
by Binita Suwal \| 17-07-2021 13:25 0
Carbon credit It refers to a permit that allows a company to emit certain quantity of carbon dioxide or other greenhouse gases. One credit allows the emission of one metric tonne of carbon dioxide equivalent. According to the Corporate Credit Institute, a carbon credit is a tradable permit or certificate that provides the holder of the credit the right to emit one tonne of carbon dioxide or an equivalent of another greenhouse gases. Hence, it can be said that the carbon credit is an instrument that represents ownership of one metric tonne of carbon dioxide equivalent. This system is often called as cap and trade system. This credit is provided to the company that pollute the environment so that they limit their pollution up to the allowed amount only. How does carbon credit work? Any company is allowed to release certain amount of greenhouse gases or carbon dioxide to a limit or cap, set by the central authority. If they exceed this limit, they need to purchase carbon credits or carbon offsets whereas if they don’t exceed this cap, they can sell unused carbon credit. Carbon offset It refers to the action (Such as land restoration or planting trees) intended to compensate for the emission of carbon dioxide into the atmosphere by company or human activities. One tonne of carbon offset represent reduction of 1 tonne of carbon dioxide or its equivalent in other greenhouse gases. Carbon offset scheme allows individuals or company to invest in environmental project around the world to balance out their own carbon footprint. When someone buys a carbon offset, the invest ultimately goes to pay for a reduction of greenhouse gases that has already occurred. Hence, carbon offset has many benefits as it helps the environmental project that can't secure funding on their own, it provides a structure for the companies which helps in tracking their own carbon footprint and it also provides valuable resources to the project that generally either sequester Carbon through forest growth and order mechanisms or avoid emissions such as renewable energy generation or clean energy appliances. Both carbon credits and carbon offsets aimed to reduce the carbon emission and greenhouse gases. Carbon credits stand for the right to emit the carbon while carbon offset represents the production of certain amount of sustainable energy to counterbalance the use of fossil fuel. These are the better initiatives to achieve carbon neutrality by reducing current carbon emission.

Dormant user Binita Suwal

5 Comments

Yuseon Mentor says :
Hi Binita,

This is your mentor Yuseon:D

Thanks for explaining the two terms is detail!
It was easy to understand, and thanks to you, I've finally got to know thow the
actual meaning of 'carbon credit'. It seems to be a system of buying the authority to emit carbon gas. It sounds like a rational penalty for polluting the earth. I worry if some giant corporate would misuse this policy by understanding that if they pay, they are 'allowed' to emit as mush as they want. Hope the consequence would be severe in that case.

Thanks for sharing this report!
Posted 29-07-2021 23:54

Debbie Mentor says :
Dear Binita,

This is your mentor Debbie :)
Thanks for sharing with us about carbon credit and carbon offset. I would like to raise a question upon the ethical reasoning behind carbon credit. Is it really a "right to emit carbon"? The entire goal was to reduce emissions but once we introduce the idea of "trade" in the system, this becomes another capitalistic policy that some people can take advantage of. I don't know - it was something to think about :D

Best,
Debbie
Posted 25-07-2021 00:40

Sandhya Adhikari says :
Hello Binita,

I do hope you are fine there and doing great with your works,

Carbon credit and offset are absolutely new topic for me,
I am glad that I get to learn much from you on this topic,

Keep sharing,

We are eager to read much more from you,

Yours,
Sandhya

Green cheers
Posted 18-07-2021 03:18

Shobha Pokhrel

Shobha Pokhrel says :
thanks for sharing such an insightful Report
Posted 18-07-2021 00:42

Bindu Dhakal says :
Hello Binita,
Hope you are doing great,
Thank you for your report on carbon reduction,
Keep shining,
Green cheers,
Bindu
Posted 17-07-2021 15:22