Sustainable Ideas...

So you may have heard something about carbon credits, and that they can be bought and sold by corporations looking to green up their act. But how exactly does this work? What are carbon credits, how are they measured, and how much do they cost? 

The concept of carbon credits was one of the outcomes of the Kyoto Protocol. They are intended as a means to reduce greenhouse emissions and fight climate change. A carbon credit is essentially a marker representing one tonne of carbon dioxide either removed from the atmosphere or saved from being emitted. Companies can sell carbon credits to commercial and individual customers looking to reduce their carbon footprint. Additionally, on a larger scale, countries with high emissions levels can purchase carbon credits from other nations that have less detrimental impact on the environment, in an effort to offset the amount of greenhouse gases they are releasing into the atmosphere.

Carbon credit prices vary and fluctuate based on location and economic trends. There are many companies that sell carbon credits at relatively cheap rates, which might work well for a little while but, as with any supply and demand situation, when there is an influx of carbon credits available on the market, the price tends to be driven way down, reducing the effectiveness of selling the credits in the first place. Click here for a more in-depth explanation of emissions trading.

To give you a general idea of the current price of carbon credits: in 2007, Carbon Planet, one of the leading carbon credit vendors, was purchasing credits wholesale for $13.21 per credit, and was reselling them to companies at $21.25. As I mentioned, though, this number is constantly changing, and varies greatly with the demands of the carbon market.

If you’re looking to buy or sell carbon credits, a good first step to take is to ask your utility company if they offer a carbon offset program (of course, if you run a huge, multinational corporation, this is not the most viable option). From there, try running an internet search on “carbon credits,” and be sure to include your country in the search parameters (for example, if you live in French Guyana, trying searching “carbon credits French Guyana”), as markets and prices very significantly from nation to nation.

Good luck, and happy carbon trading.

Want to learn more about carbon credits?

Selling Carbon Credits on eBay—Solution or Scam?

Carbon Footprints

The Quest for the Perfect Carbon Calculator

How Much Do Carbon Credits Cost?