Netural Carbone Zone
Welcome to our new website!

What are carbon credits: A step towards a greener tomorrow

11 October, 2023

In the evolving journey towards a sustainable future, terms like ‘carbon credits’ have become an integral part of the green vernacular. But what are carbon credits, and why are they so crucial for our planet’s well-being? Let’s delve deep into this innovative mechanism that’s helping industries combat climate change.

What is a Carbon Credit?

In essence, a carbon credit represents the removal or prevention of one metric tonne of carbon dioxide (or its equivalent in other greenhouse gases) from entering our atmosphere. Think of it as a ‘green certificate’ that says, “I’ve reduced or offset one tonne of CO2.”

Why Carbon Credits?

The inception of carbon credits springs from an urgent need to limit global warming and reduce greenhouse gas emissions. Several international agreements and accords, such as the Kyoto Protocol and Paris Agreement, have sought to establish a global market where greenhouse gas reductions are quantified and traded. For companies with higher emissions, buying carbon credits provides a path to offset their environmental footprint.

How Do Carbon Credits Work?

The mechanism is quite simple:

  1. Baseline Calculation: A company first calculates their carbon emissions. We can do this for you and this provides a baseline or reference.
  2. Emission Reduction: Efforts are then made to reduce these emissions by adopting cleaner technologies, improving energy efficiency, or implementing sustainable practices.
  3. Residual Balance: After all reduction activity, the remaining balance of any currently unavoidable emissions can be offset by investing in carbon credit projects that balance the emissions that cannot be avoided through carbon savings.
  4. Clear Communication: Demonstrate a best practice approach to carbon neutrality by detailing the specific efforts made, and the validity of the steps taken to achieve verifiable carbon neutrality.


Benefits of Carbon Credits

  1. Economic Incentives: Companies are financially motivated to reduce emissions through fostering innovation and adoption of greener technologies as this reduces consumption and costs, and also the reliance on carbon offsetting to achieve a zero figure.
  2. Flexibility: Carbon credit systems provide flexibility to entities. If immediate emission reductions are challenging, they can offset their emissions by purchasing carbon credits, ensuring that elsewhere, the equivalent amount of carbon is being reduced or offset.
  3. Supporting Green Projects: Often, the proceeds from selling carbon credits are channelled into environmental projects such as reforestation, renewable energy installations, or community-based sustainability projects. This means when you buy a carbon credit, you’re indirectly supporting more than environmental benefit, but also infrastructure, education, employment and economic growth.


A Few Words About Offsetting

Offsetting doesn’t mean a free pass to emit CO2. The ultimate goal remains reducing our global carbon footprint. Offsetting is a tool to ensure that while we transition to greener technologies and strategies, the overall environmental impact remains minimal. Moreover, for industries where emissions are hard to eliminate completely, carbon credits offer a solution to balance out their impact.

Your Journey to Net-Zero

We can help you start your company’s journey to net-zero, by taking you through proactive steps to measure, reduce, and offset your carbon footprint.

We begin by understanding your emissions from every aspect – from workplace energy consumption to your supply chain logistics. Next, we can implement a robust sustainability strategy, integrating renewable energy, enhancing your operational efficiency, and fostering a green culture. Finally, to offset any remaining emissions, you can invest in carbon credits, ensuring your net carbon footprint is zero.

The Road Ahead

The world of carbon credits is dynamic. With advancements in technology and the increasing involvement of the global community, the carbon credit system is continually evolving. Some critics argue that the system isn’t perfect, and they’re right. However, what’s undeniable is the value and potential carbon credits offer in our shared pursuit of a sustainable future.

Your journey to net-zero status underscores your unwavering commitment to the planet. Carbon credits are not just a tool, but a testament to your dedication towards creating a greener tomorrow.

In conclusion, as our understanding of climate change deepens, tools like carbon credits will continue to play a pivotal role. They encapsulate the essence of collective responsibility, urging us all to act, innovate, and contribute towards a world where the air is cleaner, the forests denser, and the future brighter.

If you’re ready to get started on your Net Zero journey, contact one of our friendly team today.

If you’d like to host a carbon neutral event, click here.

If you’d like to show your sustainability intent to other businesses, find out more about our carbon neutral tender service here.

Related Blogs

Speak to our team

Start integrating sustainability now, one step at a time with independent third party verification from NCZ.