Carbon credits are a form of emissions trading, whereby organizations and companies can purchase credits to offset their emissions of carbon dioxide and other greenhouse gases. Carbon credits are generated through voluntary emissions trading systems, with the impact of the emissions quantified by independent certified entities such as the Gold Standard. The credits are then sold to companies and organizations who are looking to offset their emissions. The credits are used to fund projects that reduce greenhouse gas emissions, such as renewable energy projects, reforestation projects, and energy efficiency projects.
The Gold Standard is a certification system that verifies the impact of the emissions reductions from carbon credits. It is one of the most widely used certification systems, and provides assurance that the emissions reductions are real, measurable, and permanent. The Gold Standard also ensures that the projects funded by the credits have positive impacts on local communities and the environment.
The use of carbon credits can be an effective way to reduce emissions and address climate change. Companies and organizations that purchase the credits are able to offset their emissions, while the projects funded by the credits can reduce emissions and improve the environment. Carbon credits can also help to fund projects that provide economic and social benefits to local communities.