The use of carbon credits, however, is by no means a risk-free proposition. The Potential Benefits of Carbon CreditsThe terminology around carbon “credits” and “offsets” is confusing. Trade in these voluntary carbon credits, with each credit being equivalent to one metric ton of carbon dioxide equivalent (CO2e), emerged with the 1997 United Nations (UN) Kyoto Protocol to facilitate and enable carbon removal and/or reduction projects. Companies that purchase carbon credits should vet and screen the widest possible swath of individuals and organizations associated with carbon credit offerings and projects to the fullest extent practicable. Disclosure and Communication RiskLastly, even for clearly legitimate carbon credits, there are important risks around their use.

Source: The Guardian June 28, 2023 09:37 UTC