Courtesy – pediaa
A carbon credit is basically a tradable certificate and it is a permit that gives the holder the right to emit over a certain time carbon dioxide or other greenhouse gases. The carbon credit limits the emission to one ton of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent corresponding to one ton of carbon dioxide
How much do carbon credits cost?
The carbon credits do not have same value always. It is because the carbon rate markets, just like any other voluntary market, do not have a central authority that dictates the rule or approach to pricing them. The carbon credit prices can be determined by the market dynamics, the cost of a specific project and the pricing model offers excellent examples of the same. You also need to keep in mind carbon tax credit to better understand this point of view. Projections suggest that the carbon price can reach an all-time high in 2025 reflecting quick switch from less efficient and more polluting coal plants to cleaner gas fired facilities and reduction of greenhouse gas emissions.
Carbon credits are stirring up a lot of interest in among the private sector there is a great awareness of their true value and the importance of natural capital a stable climate a prosperous ecosystem and the use of renewable energies will stop companies are increasingly adapting tools or technologies to lessen the impact on the environment and be more ecofriendly. There are those who say the acceleration on the carbon market after years of slow growth is a positive and those who openly criticize it saying that carbon trading is a false solution to the climate change. Carbon offsetting plans are also gaining a relevant position in the political agenda of the same countries but not without some opposition.
