What is Carbon Credit?

What is Carbon Credit?

Carbon credits or Carbon Credit is a unit of measurement of the amount of greenhouse gases reduced or stored by 1 ton of carbon dioxide equivalent (CO2e). Carbon credits are a marketing tool used to reduce greenhouse gas emissions. mirror By allowing individuals or organizations that emit less greenhouse gas than specified

Carbon Credits are things that can be traded on the Carbon Market, where people who want to reduce their greenhouse gas emissions can purchase carbon credits from those who have reduced their greenhouse gas emissions. can It is like buying the right to increase greenhouse gas emissions.

Types of carbon credits

Carbon credits can be divided into two main types:

  • Carbon credits from greenhouse gas reduction projects (Emission Reduction Projects: ERPs) are projects designed to reduce greenhouse gas emissions, such as reforestation projects. Renewable energy production project Project to improve energy efficiency, etc.
  • Carbon Credits from the Carbon Credits Program (Carbon Credits Program) is a program designed to encourage individuals or organizations to reduce their greenhouse gas emissions, such as the Industrial Greenhouse Gas Emission Reduction Project. Project to reduce household greenhouse gas emissions, etc.

Benefits of carbon credits

As for the benefits that affect both buyers and sellers of Carbon Credit, they are:

  • Benefits for buyers
    • Helps in reducing the greenhouse gas emissions of a company or organization.
    • Helps reduce the risk of being fined for greenhouse gas emissions.
    • Increase the image of the company or organization in terms of environmental responsibility.
  • Benefits for sellers
    • It is a source of income from selling carbon credits.
    • It gives companies or organizations an incentive to reduce their greenhouse gas emissions.
    • Participate in solving global warming problems

Carbon Credit Market (Carbon Market)

Carbon Credit Market is a carbon credit trading market. Buyers and sellers of carbon credits can meet through the carbon credit market or through carbon credit brokers. which carbon market

Carbon credit trends

Carbon credits play an important role in reducing greenhouse gas emissions. It is expected that the carbon credit market will continue to grow in the future. Factors supporting the growth of the carbon credit market include:

  • Commitment by both the public and private sectors to reduce greenhouse gas emissions Around the world, there are many countries. Announcing a goal of achieving net zero greenhouse gas emissions (Net Zero) by 2050 or sooner.
  • Development of greenhouse gas emissions reduction technology which helps the public and private sectors to further reduce greenhouse gas emissions. This will result in more carbon credits being added to the market.
  • Acceptance of Carbon Credits by Businesses and Consumers Businesses and consumers are becoming more aware of the impacts of climate change. and are alert to reducing greenhouse gas emissions This will result in increased demand for carbon credits.

According to McKinsey & Company, global demand for carbon credits is projected to be 3,000-5,000 million tonnes of carbon dioxide equivalent per year by 2050, meaning the carbon credit market will be enormous.

For trends in the carbon credit market in Thailand It is expected to grow according to global market trends as well. The Ministry of Natural Resources and Environment expects that the demand for carbon credits in Thailand will be 182-197 million tons of carbon dioxide equivalent per year by 2030.

Carbon Credit is an effective marketing tool for reducing greenhouse gas emissions. Carbon credits benefit both the emitter of greenhouse gases and the buyer of the carbon credit. The carbon credit market plays an important role in driving the efficient and transparent trading of carbon credits. Carbon credits are likely to continue to grow in the future.

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