What’s Carbon Credit? Let us Understand in Detail

Estimated read time 3 min read

Carbon credit is the certificate or tradable permit that offers holder of a credit their right to emit carbon dioxide or another greenhouse gas – essentially it is one kind of offset for the producers of these gases. Primary goal for creation of the carbon credit is reduction of the carbon dioxide emissions or other gases from the industrial activities that will reduce effects of the global warming.

Buying Carbon Credit 

The carbon credits are the market mechanisms for minimization of the greenhouse gases emission. Regulatory authorities and governments set certain caps on the greenhouse gas emissions. And for a few companies, immediate reduction of emission isn’t economically viable. Thus, they will buy carbon credits that will comply with emission cap. The companies who achieve carbon offsets (decreasing emissions of the greenhouse gases) are generally awarded with the additional carbon credits that helps in intelligent energy-saving management system. Sale of the credit surpluses can be used for subsidizing the future projects for reduction of the emissions.

Types of the Carbon Credits 

Here we will look at two kinds of credits:

  1. Certified emissions reduction: Emission units and credits made through the regulatory framework with a purpose of offsetting the project’s emissions. Main difference between two is there’s the third party certifying counsel that regulates CER than VER.
  2. Voluntary emissions reduction: The carbon offset, which is exchanged in over-the-counter and voluntary market for the credits.

Carbon Credit

Energy Management Solutions For the Critical Environment

Whereas energy management solutions are the most effective methods for monitoring and reducing the energy consumption, most of the residents & business owners just do not have understanding of an actual benefit like system will deliver to the home and office. There are many questions that will come up when discussing an idea of the energy management system:

  • What type of cost-savings can this kind of system deliver?
  • What does this cost me?
  • Does this take up plenty of space and need lots of maintenance?
  • What will I do with the energy management solution in my house?

Let us look at these questions in detail:

What does this cost me? There are a few upfront costs to acquiring the quality energy management solution for the homeowner and business owner. However, with reduction in the energy consumption, the energy bills may start to get down immediately.

The savings, all along with increasing number of the government incentives for an installation of the energy saving products or technology, the system may end up paying itself in a short-term. Any government and other regulating body keen to limit carbon dioxide emissions will issue the Carbon Credits. The carbon trading follows principle of the emissions trading (cap & trade) approach, that is market-based approach where economic incentives will be given to encourage the reductions in emissions of pollutants.

Tao

Want to explore your idea and to implement it in the real life, Tao - a strategist, author, educator, and the successful business magnet is ready with his points here. Stay connected with his blog to get clear knowledge on it.

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