Carbon Credit – Advantages and Disadvantages

You already know what the Carbon Footprint is, and its impact not only on our lives but on the whole world. However, did you also know that it is possible to buy Carbon Credit to compensate for all the emissions that companies and people make?

As it is the most responsible gas for the imbalance in the Greenhouse Effect, we need to face global warming and climate change that are, already, making their obvious presence. Therefore, if we do not change the way we relate to carbon, we will have an uncertain future.

With the thought that the amount of carbon that goes into the atmosphere is worrying, the concept of carbon credit was created in 1997, based on the Kyoto Protocol.

The proposal was linked to the reduction of greenhouse gas emissions. Countries needed to reduce their emissions by 5.2%, compared to the numbers recorded in 1990, in addition to participating more actively in environmental issues.

The goals of countries and companies need to be designed to reduce carbon emissions, without the need to buy credits. Because the less the purchase is necessary, the less carbon will be released into the atmosphere.

Find out more about the use of carbon credit in addition to its advantages and disadvantages in this post.

In this post has:

• What Produces Carbon?
• What are Carbon’s problems?
• What is Carbon compensation?
• Who can neutralize carbon emissions?
• Advantages of the Carbon Credit
• Disadvantages of Carbon Credit
• Get to know Redda+

What Produces Carbon?

The process of photosynthesis is the best-known way of producing carbon. Living beings absorb solar energy and carbon dioxide from the atmosphere, and transform this carbon dioxide into oxygen. In the process of breathing and decomposition of living beings, carbon is also released.

Carbon is produced by aquatic, terrestrial, plant, animal and human beings. The latter produce in the process of decomposition and from the use of fossil fuels such as oil, coal, and natural gas. In addition, carbon production takes place on a daily basis through pollution, deforestation, and fires.

What are Carbon’s problems?

Carbon production started to be a problem due to the excessive amount of its production. The process, which would be natural and balanced, was intensified with human activities after the Industrial Revolution. That’s why the amount of carbon in the atmosphere has become so bad.

These emissions into the atmosphere disrupt the dynamics of natural warming on Earth. Instead of having an ideal greenhouse effect, which is necessary to maintain a balanced temperature on the planet, we need to deal with overheating, since the higher concentration of the gases responsible for this process prevents the heat from going out into space.

The concentration of greenhouse gases changes the entire ecosystem on Earth, causing global warming: overheating causes climate change in the world. Our entire lifestyle is intrinsically linked to the seasons, too much or too little rain. Intense heat and extreme cold are details that completely change the dynamics of life on Earth.

Therefore, we follow drastic changes such as:

• melting glaciers;
• floods and droughts;
• loss of biodiversity;
• volcanoes erupting, etc.

Click here and understand the difference between global warming and the greenhouse effect.

What is Carbon compensation?

There are initiatives to slow down carbon emissions. However, some emissions are unavoidable. However, they can be compensated or neutralized, that is, investments are made in actions to balance the amount of carbon emitted.

One carbon credit is equivalent to one ton of carbon not emitted into the atmosphere. The value varies and, currently, in Brazil, it costs around R$2000. Countries can buy and sell carbon credits as well as companies. However, this market should not be understood as the solution to emitting carbon at will. On the contrary.

Carbon compensation can be done through simple measures in everyday life, such as reducing energy expenditure. Having a sustainable lifestyle is also a way to compensate for carbon, so you can:

• recycle;
• choosing one or two days a week not to eat meat;
• rethink the use of the car;
• have a conscious consumption;
• between others.

The changes made by companies on a day-to-day basis must be added to those made by people.

Companies must opt ​​for sustainable infrastructure, maintaining ecological awareness and even encouraging environmental actions with employees. In addition, they need to think about forms of compensation, such as the purchase of carbon credits.

Another alternative for companies is to encourage planting trees and the creation of green spaces. People can also participate in this movement to be greener and even support organizations that encourage sustainable actions. Compensating for carbon is a reality that must be thought of by everyone to prevent an environmental deterioration for life on Earth.

Check out our post What is a carbon footprint and why does it affect your life. In it, you will learn more about carbon and the consequences of carbon in your life. It still has information for you to help curb greenhouse gas emissions.

Who can neutralize carbon emissions?

Carbon emissions can be neutralized by companies and people.

It is more common for companies to get involved in this process of neutralizing emissions and purchasing carbon credits. Even large global companies participate in this movement, including Apple, Google, Microsoft, Mercedes-Benz and Unilever. In Brazil, Natura put into practice the Carbon Neutral Program in 2007.

Businesses are understanding the connection between environmental concerns and economic prosperity. Therefore, in addition to investing in sustainable initiatives, they are creating carbon neutralization goals. Projects are as varied as possible, and can be:

• investment in renewable energy;
• zero waste;
• create biodegradable materials;
• creation of ecological cars;
• create a sustainable production chain;
• among others.

In addition to the actions and changes in the production cycle of companies, some invest in the purchase and sale of carbon credits, which have become a new currency in the financial market. One carbon credit is equivalent to one ton of carbon that has not gone into the atmosphere.

Countries also participate in this movement to neutralize emissions. As in companies, their actions need to be thought out in a sustainable way. In addition, they can participate in the carbon credit market.

Advantages of the Carbon Credit

As previously mentioned, each carbon credit corresponds to one ton of carbon that was not emitted into the atmosphere. So just having the credit is an advantage. The company or country that does not see an alternative to reduce its emission finds an advantage in the purchase of this credit.

For some organizations, countries and companies, the advantage lies in the sale of carbon credits, as they are institutions that manage to reduce the use of carbon. In this way, they boost their economy with the value to invest in the sustainable activities they develop.

The purchase of carbon credits by companies that are environmentally conscious is favorable for their image. Sometimes the company behaves sustainably, but there is an amount of carbon that it cannot stop emitting. In this case, the purchase of credit shows how much the company cares about encouraging sustainable activities.

Disadvantages of Carbon Credit

The main disadvantage of the carbon credit is precisely in this exchange market. Some institutions and countries can accommodate themselves in this market to continue emitting their greenhouse gases. They do not invest in actions to avoid emissions because they are able to buy unlimited credits.

In this case, the reduction of 1 ton of carbon, that is, 1 credit, will never be enough. Because, in fact, somebody will use this ton, so there won’t really be an emission reduction. It is a disadvantage that causes much controversy among environmentalists and world leaders.

The use of carbon credit also needs to be thought of in a sustainable way. Understand that it is an alternative for emergency needs, not to rest on the fact that the other has saved.

Everyone’s focus must be on reducing greenhouse gas emissions. Only in this way will it be possible to stop the negative impacts caused by global warming.

Get to know Redda+

Redda+ is an organization concerned with the reality of greenhouse gas emissions. Therefore, it invests in projects that integrate social well-being and sustainable collective consciousness. It is a way found by Redda+ to participate in this movement to stop global warming.

Supported by the 17 UN Sustainable Development Goals, Redda+ has a project in Portel, Pará. The proposal is to share with the community the possible ways of living well with nature. An integrative lifestyle that offers autonomous economic resources and respects the history of the community.

To complete, REDD mechanisms are applied in these projects. In this way, Redda+ actively participates in the reduction of carbon in the atmosphere. REDD is a guideline for Reducing Emissions from Deforestation and Degradation in the forest.

In Redda+ the UN and REDD guidelines are essential to help the development of communities. It is a way of showing that it is possible to invest in actions that do not deny our responsibility to nature. It also understands the importance of valuing the socioeconomic and cultural context of the residents.

Enter our website and learn more about us and our projects. Your support is essential for us to move forward together for a better future.

Curious to know more about the acronym REDD? Then click here and read our post: What is Redd? Know everything about the acronym.