Carbon Credit Generation & Registration

Carbon credits are a system designed to help reduce global greenhouse gas emissions. Think of a carbon credit as a certificate or a "permission slip" that allows a company to emit a certain amount of carbon dioxide (CO2) or other greenhouse gases (GHG). Typically, one carbon credit equals one metric ton of CO2.

Carbon credits are created when organisations take actions that reduce or avoid carbon emissions. This can happen in two main ways:
 

1. Reducing Emissions: Companies may invest in cleaner technologies or renewable energy sources (like wind or solar power) to emit less carbon. When they reduce emissions beyond a certain limit, they earn carbon credits for the extra reductions.
    

2. Capturing Carbon: Carbon credits can also be created by projects that remove carbon from the atmosphere. Examples include planting trees or capturing CO2 from industrial processes.
    

These actions are verified by independent agencies to ensure they truly reduce or capture emissions.

Carbon credits are mainly used in two ways:
 

1. Compliance: Some governments require companies to limit their emissions. If a company can't meet its target, it can buy carbon credits from another company that has reduced more than needed. This system is known as "cap and trade."
    

2. Voluntary Offsetting: Companies and individuals may choose to offset their carbon footprint by purchasing credits from projects that reduce or capture carbon. This is voluntary and often done to show commitment to sustainability.