Courtesy – sourceintelligence
In the global effort to deal with the climate change, carbon credits have emerged as a major financial instrument that promotes sustainability and encourages you to minimize your carbon emissions.
Basics about carbon credits
Carbon credits are also known as carbon offsets, and there are types of tradable units that represent the reduction or avoidance of one metric ton of carbon dioxide. When you have carbon credits in Australia you can incentivize and reward projects or activities that contribute towards reducing the carbon emissions and mitigating climate change.
The mechanism
The carbon credits basically work on the principles of emissions trading projector activity generates emissions reductions it can earn carbon credits. These credits can then be sold or traded on the carbon markets. If you are buying carbon credits like companies or governments you can use them to offset your own emissions and reduce inability objectives. This can help you create a financial value for reducing your carbon emissions and promote investment in climate friendly initiatives.
Benefits
The use of carbon credits offers plenty of benefits. It encourages you to go for innovation and development of sustainable solutions and also provide financial rewards for emission reductions. Secondly it allows you to take responsibility of your carbon footprint and contribute towards climate objectives.
Furthermore carbon credits support sustainable development projects like renewable energy installations and forest conservation.
