A carbon credit is the representation of a ton of carbon that is no longer emitted into the atmosphere, contributing to the reduction of the greenhouse effect. There are several ways to generate carbon credits, including the substitution of fuels in factories, where they stop using non-renewable biomass, such as firewood from deforestation, and start using renewable biomass, which in addition to emitting less greenhouse gases , contribute to the reduction of deforestation.
Thus, based on the difference between the two scenarios, it is calculated how much carbon is no longer emitted with this substitution, thus generating credits.
Carbon credit is the currency used in the carbon market. In this market, companies that have a very high level of emissions and few options for reduction can buy carbon credits to offset their emissions. Thus, they indirectly help maintain the reduction project and, in addition to balancing the level of ghg emissions into the atmosphere, contribute to the sustainable development of poor communities.
Click here to see the list of projects that generate carbon credits, developed by Sustainable Carbon.
Check out the infographic below for how it works and how a carbon credit is generated: