Carbon Credits
What is a Carbon Credit?
A carbon credit represents one metric ton of carbon dioxide (CO₂) that was either not emitted or removed from the atmosphere through climate mitigation actions. These credits are generated by projects that protect forests, restore ecosystems, or adopt clean technologies that prevent or capture greenhouse gas (GHG) emissions.
Once they go through audit and registration processes, carbon credits can be traded. Companies, individuals, and governments may acquire them to support these projects while offsetting part of their own emissions.
Each credit represents a tangible contribution to the fight against climate change, encouraging actions that foster sustainability and environmental protection, while also supporting decarbonization strategies.
Why Are Carbon Credits Important?
Carbon credits are an essential tool in addressing the climate crisis. They allow financial resources to be directed toward initiatives that protect the environment, promote sustainable development, and support local communities.
In addition, they offer companies a practical way to take responsibility for their emissions, complementing their decarbonization efforts and accelerating the transition to a low-carbon economy.
Types of Carbon Credits
There are approximately 170 types of carbon credits, which can be grouped into main categories, each associated with different methodologies and certifications.
Understanding carbon credits and their various types is essential for individuals and companies to make informed decisions about how to offset their emissions and contribute to a sustainable future.
Forests and Land Use
Credits generated from reforestation, avoided deforestation, and sustainable forest management projects, contributing to CO₂ capture and biodiversity preservation.
Transportation
Credits resulting from projects that aim to reduce emissions in the transportation sector, such as promoting public transit and the use of electric vehicles.
Agriculture
Associated with sustainable agricultural practices that reduce GHG emissions, such as crop rotation, efficient fertilizer use, and soil conservation techniques.
Waste Management
Generated by initiatives that improve waste handling, including composting and recycling, helping to reduce emissions from landfills.
Energy Efficiency
Resulting from projects that implement technologies or practices that improve energy efficiency, leading to lower emissions.
Chemical/Industrial
Credits generated from industrial processes that adopt clean or alternative technologies to reduce their emissions.
Renewable Energy
Associated with projects that generate energy from renewable sources such as solar, wind, or hydroelectric power. These credits represent energy that was not generated from fossil fuels.
Household and Community
Credits generated by initiatives that promote change at the household or community level, such as improving residential energy efficiency and adopting sustainable practices in local communities.
What Is a Carbon Footprint
A carbon footprint is the total amount of greenhouse gas (GHG) emissions caused directly or indirectly by a person, organization, event, or product. It is measured in metric tons of carbon dioxide equivalent (tCO₂e) and includes emissions from sources such as fossil fuel combustion, industrial production, and electricity use. Reducing the carbon footprint is crucial for mitigating climate change.
Frequently Asked Questions
Carbonext can help your company become more sustainable through a comprehensive approach that includes conducting greenhouse gas (GHG) emission inventories to identify its main sources and developing decarbonization strategies to reduce them. Your company can also take part in the development of environmental projects such as REDD+, ARR, and ALM, benefiting from long-term contracts for acquiring carbon credits. We offer customized technologies for emission calculation and offsetting, ensuring your company builds an efficient and tailored journey toward environmental impact reduction.
Offsetting carbon emissions—as part of a broader decarbonization effort—brings several benefits to your company, including reducing environmental impact, improving corporate image and reputation, ensuring compliance with environmental regulations, attracting sustainability-minded investors and customers, and gaining competitive differentiation in the market. Investing in conservation projects also directly contributes to climate change mitigation, generating positive environmental and social impact.
Carbonext projects are designed to effectively reduce and remove carbon emissions. Our REDD+ projects aim to protect and restore forests, reducing deforestation and forest degradation while promoting the sustainable development of local communities. ARR projects focus on tree planting and restoring degraded areas, while ALM projects implement sustainable agricultural practices. These projects generate carbon credits that can be purchased by individuals and companies as part of their environmental impact reduction strategies.
Companies of all sectors and sizes can benefit from Carbonext’s services. If your company is looking to rethink its relationship with nature, reduce environmental impact, improve sustainability practices, and comply with environmental regulations, our services—such as emission inventories, decarbonization strategies, and environmental project development—are right for you. From small and medium-sized enterprises to large corporations, all can benefit from our customized solutions that promote sustainability and environmental responsibility.