Skip to content

What is Carbon compensation?

We all know what Carbon Footprint is, and it’s impact is not only limited to our daily lives, but also on the world at large. Did you know that it is possible to buy Carbon Credit to compensate for all the emissions that businesses and individuals emit?

As it is the most responsible gas that causes the imbalance in the Greenhouse Effect, we need to face global warming and climate change which are already, revealing their presence. If we do not alter our approach to carbon, we will have an uncertain future.

With the thought that the amount of carbon released into the atmosphere is alarming The concept of carbon credit was conceived in 1997, based on Kyoto Protocol. Kyoto Protocol.

The proposal was linked in the direction of decreasing greenhouse gases. Countries had to reduce their carbon emissions by 5.2%, compared to the numbers reported in 1990, addition to taking a more active role in environmental problems.

The goals of countries as well as companies must be designed to lower carbon emissions, without the requirement to purchase credits. 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 drawbacks in this article.

What is the source of carbon?

The process of photosynthesis is the most well-known method of creating carbon. Living beings absorb solar energy along with carbon dioxide from atmosphere and convert this carbon dioxide in oxygen. Through breathing and decomposition of living beings carbon is released too.

Carbon is created by terrestrial, marine, animal and plant beings. These are the products that result from the process of decay and through the use of fossil fuels like coal, oil, and natural gas. In addition, carbon production happens on a daily basis through pollution, deforestation, and fires.

What are Carbon’s problems?

Carbon production began to become an issue due to the high volume of production. The process, which was supposed to be natural and balanced, increased with the advent of human activity after the Industrial Revolution. That’s the reason the amount of carbon dioxide in the atmosphere has become very dangerous.

These emissions into the atmosphere affect the process of natural warming on Earth. Instead of having an ideal greenhouse effect vital to ensure a stable temperature across the globe We must be aware of overheating as the higher concentration of gases that cause this prevents the heat from going out into space.

The amount of greenhouse gases impacts the entire ecosystem on Earth and causes global warming. Overheating leads to climate change in the world. Our entire lifestyle is intrinsically linked to the seasons, over or under rain. Extreme cold and intense heat are two aspects that can completely alter the way we live on Earth.

Therefore, we follow drastic changes such as:

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

What exactly is Carbon compensation?

There are various initiatives that aim to limit carbon emissions. However, certain emissions are inexplicably inevitable. However they can be compensated or neutralized in the sense that investments are made into actions to make sure that carbon emissions are balanced. that is released.

A carbon credit equals one ton of carbon emitted into the atmosphere. The value of the credit varies. at present, in Brazil it is priced at R$2000. Countries can buy as well as sell carbon credit, as well as companies. However, this market should not be considered as a solution for releasing carbon at will. In fact, it is the opposite.

Carbon compensation can be achieved with simple actions in everyday life, such as cutting down on energy consumption. Being a green lifestyle can also be a method to offset carbon emissions, so you can:

choosing one or two days in a week when you do not eat meat on one or two days a week;
Think about the future of cars;
You are aware of your consumption habits;
with others.

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

Companies should choose green infrastructure while maintaining ecological consciousness and even encouraging environmental actions with employees. They also need to consider different forms of compensation, such as the purchase of carbon credits.

A different option for businesses is to encourage the planting of trees and to create green spaces. The public can also take part in this green movement and also support organisations that promote sustainable practices. The concept of compensating carbon emissions is a reality that must be contemplated by all in order to ensure that the environment is not deteriorating for life on Earth.

Take a look at our article on what can a carbon footprint be and how it impacts your daily life. In it, you’ll discover more about carbon as well as the impact of carbon on your life. It also has details to help you reduce greenhouse gas emissions.

Who can neutralize carbon emissions?

The carbon emissions that are released can be offset through companies and people.

It is increasingly common for businesses to be involved in this process of neutralizing emission and purchasing carbon credits. Many large multinational companies are involved in this movement, including Apple, Google, Microsoft, Mercedes-Benz and Unilever. In Brazil, Natura put into the practice of the Carbon Neutral Program in 2007.

Businesses are becoming aware of the connection between environmental concerns and economic development. In addition to investing in sustainable initiatives, they are also establishing carbon neutralization targets. Projects can be as diverse as they can be, and could include:

investment in renewable energy;
zero waste;
Create biodegradable materials
creation of ecological cars;
create a sustainable production chain;
and many more.

Alongside the actions and changes in the manufacturing process of firms, some companies invest in the purchase and sale of carbon credits, which have become a new currency on the financial market. One carbon credit is equivalent to one ton of carbon dioxide that has not been released into the atmosphere.

Countries are also part of this initiative to offset emissions. Like businesses, their actions have be planned out in a sustainable manner. Furthermore, they may participate in the carbon credit market.

Benefits of the Carbon Credit

As previously mentioned the carbon credits correspond 1 ton of carbon dioxide which was not emitted in the environment. So just possessing the right to buy the credit can be an advantage. A company or a country which doesn’t have alternatives to reduce their carbon emissions will find a benefit in purchasing this credit.

For some countries, organisations, and even companies, the profit lies in the sale of carbon credits since they are institutions that manage to lower the carbon footprint of their operations. This way, they increase their economic performance by leveraging the money they can invest in the green activities they design.

The purchase of carbon credits by companies who are concerned about the environment is favorable for their image. Sometimes, the company acts sustainably but it still emits some amount of carbon will not stop releasing. In this scenario, the purchase of credit illustrates how much the company takes pride in encouraging sustainable activities.

Advantages of Carbon Credit

The primary drawback to the carbon credit is precisely on the carbon credit exchange market. Some institutions and countries can be able to participate in this market , allowing them to continue to emit greenhouse gases. They do not take strategies to cut emissions because they can purchase unlimited credits.

In this situation in this scenario, the reduction of one ton of carbon that is 1 credit will not be enough. Because, in the end it is likely that someone will utilize the entire ton, and there is no emission reduction. This disadvantage causes much controversy among environmentalists and world leaders.

Carbon credit is also to be thought of in a sustainable manner. It is an option for emergencies, not to rest on the assumption that it has helped.

Everyone’s focus must be on cutting carbon dioxide emissions. Only this way will it be possible to stop the negative impact of global warming.