Where do carbon credits come from?
Carbon credits originate from a range of emission reduction activities associated with the removal of existing emissions from the atmosphere and the reduction of future emissions. These are commonly called “methodologies”. Afforestation and reforestation activities are a key means by which existing emissions can be removed from the atmosphere and carbon credits created while construction of a wind farm rather than a coal-fired power station may create carbon credits through reducing future emissions. Carbon credits originated through these emission reduction activities can be created under a variety of voluntary and compliance market mechanisms, schemes and standards. Some of these instruments have been established so countries can comply with their mandatory Kyoto targets and others provide avenues for voluntary offsetting purposes. Some schemes around the world clearly deliver more environmental benefits than others. Developing parts of the world produce the most carbon credits by fa
