Who are potential sellers of Carbon Credits?
Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils. Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters. Carbon trading is one market-based way to lower greenhouse gas emissions. People want to reduce consumption and lower their personal shares of global emissions, but behind the emotional front of climate change lies a developing framework of economic solutions to the problem. Two major market-based options exist, and politicians around the world have largely settled on carbon trading over its rival, carbon tax, as the chosen method to regulate GHG emissions. The carbon market trades emissions under cap-and-trade schemes or with credits that pay for or offset GHG reductions. Cap-and-trade schemes are the most popular way to regulate carbon dioxide (CO2) and other emissions.
