Carbon Credits

Carbon Credits

A "Carbon Credit" is a non-specific term for any tradable certificate or license that represents the right to emit one ton of Carbon Dioxide (CO2) or the equivalent of another greenhouse gas (GHG) such as H2O, CH4, N2O, and 03.

Carbon Credits were launched in 1997 during the United Nations Framework Convention on Climate Change (UNFCCC), held in Kyoto, Japan. At that convention, the nations of the world agreed that carbon credits are a good way to reduce GHG emissions and climate change. However, it was only at the end of 2016 when carbon credits gained great prominence around the world during the Paris Agreement event, also held by the UNFCCC.

During this global event, 175 parties (including China, the United States, India, and the European Union) signed the agreement with all its conditions – including Article 6, in which all parties agree to collaborate for GHG reduction and enable international cooperation, meaning that emissions reductions can be transferred between countries and accounted for by NDCs (Nationally Determined Contributions) using carbon credits.

The goal is to enable market mechanisms to steer industrial and commercial processes toward lower or less carbon-intensive emissions approaches than those used when emissions of carbon dioxide to the atmosphere and other GHGs are free.

Our carbon credits will be certified by the two largest certifiers of this type of asset.