As countries approach their climate goals, the importance of sustainability in the global supply chain industry continues to rise. Failure to implement sustainable practices can cause economic and social harm for businesses, while sustainable practices can help build trust with customers and other stakeholders. Carbon credits are one tool within sustainability. Governments set limits on greenhouse gas emissions, and companies are incentivized to reduce their emissions through gradually lowering limits, financial penalties for exceeding limits, and earning credits for reducing emissions. Companies can sell credits to other companies that require them, and emissions trading now occurs on the carbon market. In India, the Clean Development Mechanism (CDM) program is a successful example of carbon credit implementation, which has attracted investment in sectors such as renewable energy and waste management. The supply chain and logistics sector has a significant impact on emissions, and reducing emissions through cleaner fuels, energy-efficient vehicles, and optimized routes can earn carbon credits. Logistics companies can also provide financing solutions for carbon credit projects, and many have invested in renewable energy projects to reduce their carbon footprint. Carbon credit programs have promoted sustainable development globally, with various programs such as the CDM, the Verified Carbon Standard (VCS), and the Gold Standard established by the United Nations Framework Convention on Climate Change (UNFCCC). In conclusion, carbon credit programs are crucial for achieving goals on reducing greenhouse gas emissions and combatting climate change.
Source link
It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...
