For those who are not clear about carbon credit, a single carbon credit is equivalent to one metric ton of carbon dioxide. Businesses and industries will be given a carbon credit for every metric ton of carbon dioxide which was saved. Businesses and companies produce a large amount of carbon while they operate, so they should buy carbon credits as a way to help reduce their carbon footprint. This is considered as a motivation for firms to become more motivated to reduce their emissions plus playing a part in preserving the earth. If a business follows eco-friendly manufacturing procedure, it can save up to 1000 tons of carbon dioxide, which is equal to 1,000 granted carbon credit certificates. These carbon credits that were saved can be sold off to other businesses that surpassed the limit. In doing so, it can help with the bottom line and also showing others that the firm is environmentally-friendly in nature.
People can realize that there are two carbon credits type available in the market: voluntary carbon credits and compliance carbon credits. With the voluntary carbon credits, they can be purchased voluntarily in order to decrease the carbon footprint as well as the amount of emissions that was produced with the activities of a particular business or industry. As opposed to the compliance market, the voluntary market allows room for unique and new project ideas to be developed and implemented.
People should purchase voluntary carbon credits for many reasons. A particular buyer who will decide to purchase carbon credits from the voluntary carbon market has the confidence that the projects that will generate their credits are genuine, legalized and certified. The voluntary carbon credit market provides an amazing chance for small businesses and individuals to get involved in big-scale offset projects. Projects that may not have otherwise been able to get off the ground are able to operate because they receive the funding and buyers through the voluntary market. Even projects which were not started can become operational as they obtained sufficient funding from buyers through the voluntary carbon market. Canadian citizens opting to take initiative and fund their own carbon offsets says something to the government. Citizens are willing to be financially involved in sustainable practices and projects. Due to the growing interest on carbon neutralization, it eventually covered a wider reach from individuals up to a nationwide coverage.
It cannot be denied that the carbon credit market is continuously on the rise. It is not just the compliance carbon market, but also the voluntary carbon market. There is a remarkable increase on the transactions when it comes to carbon credits. Global warming is a trend that affects industry, business and individuals worldwide.
The advantages that can be gained by investing on the voluntary carbon credits are definitely worth the cost either for individuals or for the small-scale businesses. It does not only make a certain business or industry eco-friendly, but also do their part in protecting the planet from severe carbon dioxide present in the atmosphere which is to blame for the negative impacts of climatic change.