A Case for Carbon Markets As a Path for Climate Action | Opinion
- Media Manager
- Sep 17, 2023
- 1 min read
Microsoft Start
Written By: Tarciana Medeiros
Published: September 18, 2023
Global carbon markets represent an alternative model for addressing greenhouse gas emissions and combating climate change. They are a pivotal component of the solution, reshaping economic paradigms to promote sustainable consumption patterns and mitigate adverse externalities throughout the business value chain.
Companies and individuals can offset their emissions by acquiring credits from projects focused on carbon reduction and capture. This trading system provides an avenue to bolster anti-deforestation efforts, endorse reforestation initiatives, and acknowledge companies dedicated to decarbonization.
Whether you are a business, organization, or individual interested in offsetting your emissions, you have the option to buy credits from mandatory schemes or voluntary programs. However, purchasing carbon credits hinges on the adoption of technologies, procedures, products, and materials designed to reduce emissions associated with human activities. In the case of regulated carbon trading, the government establishes a regulatory body tasked with enforcing rules and limits for a specific region or sector.
While this has not yet become a reality in Brazil, the largest economy in Latin America, the federal government has already presented promising proposals that are currently under discussion. The market is optimistic about the direction that will ultimately be chosen.
Projects in the voluntary trading system entail private negotiations among companies, organizations, and individuals, without the presence of a formal OTC market. Each credit represents the value of 1 ton of CO2 emissions that have been avoided or captured, and these credits undergo verification to ensure compliance with international standards.
