Understanding the concept what is a carbon credit? The carbon credit works as a certificate of non-emission of CO2 into the atmosphere, serving as a negotiation currency in different contexts where there is an interest in reducing pollutant emissions. In the carbon market, a credit is equivalent to a ton of CO2 that is no longer emitted. The concept Mobile List was born in 1997 with the Kyoto Protocol , when developed countries set targets for reducing their greenhouse gas emissions. When a country reaches its emission reduction target, it starts to generate carbon credits and can trade them with other nations that have not reached their targets. The carbon market in Brazil In Brazil, carbon credit trading operates through the so-call voluntary carbon market.
Carbon credit trading operates
Which means that it is head by companies, organizations and people who generate or buy credits . This is because in the country, until recently, there was still no legislation regulating the issue. However, in May 2022, Decree 11,075/2022 was publish, which defines Germany Email Database the concept of carbon credit and aims to regulate the market. It is estimat that Brazil, because it has a tropical forest and has a great possibility of developing renewable energy, could move 100 billion dollars by 2030 with this market. This commercialization model was also use in the corporate context, since many companies have difficulty in reducing or zeroing carbon emissions, adopting the option of buying credits to balance their emissions. The purchase and sale of credits can be relat to reforestation projects and regenerative agriculture, for example.
How can companies invest in carbon credits? If your company delivers products using fossil fuel vehicles, this activity is already link to the emission of pollutants. Therefore, it is indicat as a first step, before investing in carbon credits, that companies are aware of their emissions in order to then identify the impact they are generating on the environment. Enlisting the help of a specializ consultancy to carry out the emission assessment or using emission control tools are two ways to calculate the amount of carbon emissions. In addition to the emissions relat to the company’s activities, it is also important to analyze emissions relat to raw materials, such as those from suppliers, and those generat by the company’s consumption of electricity.