CARBON CREDITS

NEW MODELS OF SUSTAINABLE DEVELOPMENT

Offset carbon emissions to support the reduction of greenhouse gas emissions and contribute concretely to the achievement of the Sustainable Development Goals (SDGs), or the common objectives set by most UN member states, which concern a set of important issues for development.

 

But what is really a carbon credit?

And why should companies use this tool as an integral part of their business strategy?

 

Carbon credit is a real financial unit that represents the removal of a ton of CO2 equivalent from the atmosphere. It represents the carbon that has been avoided, reduced or seized through a project and that can be purchased as a means to offset emissions.

The carbon credit mechanism was introduced for the first time with the approval of the Kyoto Protocol - an international treaty that deals with the environment and in particular global warming with the aim of reducing polluting gases deriving from human activities . Its entry into force in 2005 has allowed the adoption of the carbon credit system as a real financial mechanism able to offset the effects of those emissions that would not have otherwise been reduced, and all this has made possible the adoption of ad hoc climate change mitigation strategies.

Carbon credits as an instrument able to promote new models of sustainable development play a key role also within the Paris Agreement, where for the first time we talk about the priority role that companies can have in mitigating the effects of climate change.

Through the simple process of purchasing carbon credits, organizations direct finance to economies and ecosystems in severe difficulty. This means that their funding is not only helping to mitigate climate change, but contributes to the concrete improvement of communities by ensuring an improvement in living conditions and bringing social, economic and environmental benefits on a global scale.

Carbon credits are considered one of the cornerstones of the so-called "Climate Finance", that is all those funding, from both public and private sources, destined to the development of projects and programs for mitigation and adaptation to climate change, with the aim of encouraging transition to "Climate Neutrality" and towards sustainable development.

 

TO KNOW MORE ABOUT THIS TOPICS:

Carbon credits

What is the Kyoto Protocol

What is the Paris Agreement

What is Climate Finance

United Nations Sustainable Development Goals (SDGs)