How many tons of carbon make up one carbon credit?”
Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). One Carbon Credit is equal to one ton of Carbon. Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. The idea is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less “carbon intensive” approaches than are used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world. There are also many companies that sell carbon credits to commercial and individual customers who are interested in lowering their carbon footprint on a voluntary basis. These carbon offsetters purchase
WASHINGTON (Reuters) – The World Bank said on Tuesday it will buy 500,000 tons of carbon credits from a forest project replanting about 4,120 hectares destroyed by deforestation in the Democratic Republic of Congo. Replanting forests, which have been cut or burned, is central to the reduction in global greenhouse case emissions because they soak up vast amounts of carbon dioxide. The World Bank said it had signed an Emission Reductions Purchase Agreement with Congolese firm Novacel, the first of its kind in the West African country. It is part of efforts by the Washington-based poverty-fighting institution to address climate change caused by deforestation by compensating developing countries for greenhouse gas emission reductions. The Bank said French carbon buyer Orbeo, a unit of French conglomerate Societe Generale, would also buy “a similar amount” of carbon credits from the Ibi Bateke Sink Plantation project, some 150 kilometers from the Congolese capital Kinshasa. The World bank s
Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). One Carbon Credit is equal to one ton of Carbon. Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. The idea is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less “carbon intensive” approaches than are used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world.
