Knowledge base

What are Carbon Credits for?

Climate change is an acute crisis requiring everyone’s input, from businesses of all scales to individual consumers. In the business world, the approach to putting in the work and signaling these environmental goals to the customer base can be challenging. Hence, many companies end up turning to professional parties for help. Carbon credits (also known as carbon offset) are a product that can help a company gain its environmental plans and remind the customer about this joint mission we are on to slow down the climate crisis.

Why carbon credits?

The primary goal of companies is usually to reduce their greenhouse gas emissions to a minimum or even zero. However, in practice, this is rarely possible, especially in a shorter timeframe. For this sole purpose, carbon credits are an attractive tool to reach environmental goals and even net-zero emissions. In the case of net-zero emissions, the company is removing as much greenhouse gas from the atmosphere as they release it.

The different carbon credit markets

There are two types of carbon credit markets; a compliance carbon offset market and a voluntary market. While a compliance carbon offset market is a legally-binding way to supervise emissions, a voluntary market enables a business to satisfy its social responsibility objectives. In both cases, carbon credits can be crucial for a business and its image.

Carbon credits and projects for the future

To reach the 1,5-degree maximum cap for global warming, global greenhouse gas emissions have to be cut by half by 2030 and reduced to zero level by 2050. While many companies struggle to meet zero emissions right away, carbon credits can help steer the financing toward projects to compensate for the emissions in the meantime.

Help with carbon credits

Offsetting your business’s carbon emissions, can be done with the help of GRN Energy. GRN Energy will guide you through the different carbon credit types (CER, VER, CER Gold, and CCER) to find the most suitable option tailored to your company’s needs. Interested to find out if your company can apply for Carbon Credits? Do the Carbon Credit Check.