An understanding of Carbon Credits

The definition of carbon credits is only too well known. Let us get the idea behind it to sink in, in this article.

When the realization of the increasing climate change dawned on humankind, people started spearheading carbon reduction programs. Cost became the major issue. To offset the cost involved, a system was required.

Let the guys who are polluting pay for the cost increase, was a logical solution. A measure was evolved and one metric ton of carbon and its equivalent in other GHGs were taken as the base.

Every method of carbon reduction has to prove how much of carbon reduction they really save and boil it down to metric tons of carbon. Every one ton was called by different names, carbon credits, Carbon Emission Reduction Credits or CER credits, Carbon Offset Units (CoU) and so on. But all mean the same.

For our purpose, let us call them CCs. Carbon Credits.

Essentially, carbon credits were brought in to offset the high cost of carbon reduction methods! Let us not lose sight of it.

So, any carbon reducing mechanism that is commercially viable should NOT get any carbon credit, by definition!

But then, the system had evolved to a new level! That of, cap and trade method.

So, what is this supposed to be?

If a factory A ejects carbon or GHG pollutants into the atmosphere, then they will have to offset the same by setting up carbon reducing methods to the extent that they eject. That is to offset the carbons emitted.

This is required because, industries can never be carbon non-emitters simply because, by their manufacturing process itself, the industries will emit carbon or GHG gases. By operating efficiently, we may try to reduce it but eliminating one hundred percent does not seem plausible. Therefore, the offsetting option was evolved!

If you are an industry that will emit carbon or GHG gases, you will have to find ways to offset the same, either by setting up your own unit or by simply buying the CCs that others have generated. By virtue of this, you can now claim to be carbon neutral or Net Zero industry.

Carbon credits are now acquiring a new meaning. From being an investment / operational support system for setting up carbon reducing projects, they transform to a platform that offers companies that are unable to come out of their emissions to become carbon neutral.

This is where eClouds comes in with its team to support your carbon needs. Whether you want to buy or sell carbon credits, the right people for the purpose will be our team. Get in touch with them at the contact numbers given. You can get bilateral agreements drawn at reasonable price on long term basis.