Carbon Credits

A "Carbon Credit" is a non-specific term for any tradable certificate or license representing the right to emit one tonne of Carbon Dioxide (CO2) or the equivalent of another greenhouse gas (GHG) such as H2O, CH4, N2O and 03.

Carbon Credits were launched in 1997 during the United Nations Framework Convention on Climate Change (UNFCCC), held in Kyoto, Japan. At that convention, the nations of the world agreed that carbon credits are a good way to reduce GHG emissions and climate change. However, it was only at the end of 2016, when carbon credits gained great prominence from around the world during the Paris Agreement event, also held by the UNFCCC.

During this global event, 175 parties (including China, the United States and India and the European Union) signed the agreement with all its conditions – including Article 6, in which all parties agree to collaborate for GHG reduction and allow cooperation internationally, which means that emission reductions can be transferred between countries and accounted for by NDCs (Nationally Determined Contributions) using carbon credits.

The aim is to allow market mechanisms to guide industrial and commercial processes towards lower or less carbon intensive emissions approaches than those used when emissions of carbon dioxide to the atmosphere and other GHGs are free.

Our carbon credits will be certified by the two largest certifiers for this type of asset.