A carbon credit is a permit that a company buys. This permit lets the company make a set amount of carbon dioxide or other greenhouse gas. Each credit gives them permission to release one ton of harmful gas into the environment. That’s the same amount of carbon that you might produce by driving a car for 2400 miles.

What is Carbon Credit

The goal of carbon credits is to reward companies for reducing their greenhouse gas emissions. These companies have to pay for a carbon credit if they make more harmful gases than they are allowed.

Some companies succeed in staying below the limits. Then they sell their carbon credit to another company. This way, there’s an opportunity for companies to make money by reducing their emissions.

Unfortunately, not every country has a program in place for awarding carbon credits. Some people wonder if they are effective in reducing carbon emissions.

How do I get carbon credits?

There are several ways to get carbon credits.

One way is by leading a project that pulls greenhouse gas out of the air or lowers the number of emissions. You earn one carbon credit by destroying or preventing one ton of greenhouse gas emissions.

Examples of such projects are training people in the Amazon on how to save the rainforest or protecting forests from logging. 

You can also buy carbon credits directly from a safe marketplace, such as Native Energy, Terrapass, or South Pole.

how do i get carbon credits

How much is carbon credit worth?

The cost of a carbon credit differs depending on what kind of project you’re doing. In general, their value goes up with time.

For example, in 2019 it cost $4.33 to buy forest and land use credits. By 2021, the price was $4.73 per credit.

Part of the reason for the higher price is that fewer carbon credits are available over time. Basically, the supply of carbon credits is limited.

What are carbon credits in agriculture?

Farmers earn carbon credits by using sustainable methods in farming.

One example is planting cover crops. These are crops that slow down the loss of soil and make the soil healthier. Another sustainable practice is to lessen the amount of tilling.  Tilling is turning the soil over.  Tilling causes soil to blow in the wind or lose nutrition.

If farmers show they use sustainable farming practices they earn carbon credits.

Carbon credit sellers

In most cases, carbon credit sellers are individuals or organizations that want to invest in projects that reduce carbon emissions. They make money by selling carbon credits to farmers or companies. Sometimes, a farmer might decide to sell carbon credits as a way to earn extra money.

In addition, companies may opt to sell carbon credits to customers who want to reduce their carbon footprint.

carbon credit sellers

Carbon credit investors

Carbon credits keep increasing in value. So, there is an opportunity to make a profit by investing in them. Individuals can start investment funds for this purpose. They can also invest in companies that trade carbon credits. Some companies include Microsoft or Shell. Some companies use carbon credits to reduce emissions. Others trade them to make money.

Overall, carbon credits are an interesting way to earn money and help the environment at the same time.

Helpful Teaching Resources:

Other Recent Posts:

  • what is habitat conservation

What Is Habitat Conservation

Comments Off on What Is Habitat Conservation

WHAT IS HABITAT CONSERVATION? Habitat conservation means protecting the places where things on earth live.  A habitat is a place where a certain animal, plant, or other living thing lives. These places are [...]

  • sick building image

What Is Sick Building Syndrome?

Comments Off on What Is Sick Building Syndrome?

WHAT IS SICK BUILDING SYNDROME? Sick building syndrome is a term that describes a wide range of undefined symptoms that people have when they live in a building. It is mostly because of [...]

  • What Is Hydrology

What Is Hydrology?

Comments Off on What Is Hydrology?

WHAT IS HYDROLOGY? Hydrology is the study of water from a scientific standpoint. It includes the study of water's occurrence, properties, circulation, and distribution on, beneath, and above the earth's surface. Hydrologists are [...]

  • define ocean acidification

What Is Ocean Acidification?

Comments Off on What Is Ocean Acidification?

WHAT IS OCEAN ACIDIFICATION? Ocean acidification is the process by which the ocean absorbs carbon dioxide from the atmosphere, thus decreasing the ocean’s pH. The ocean absorbs up to one-third of the carbon [...]

  • what is the wildlife trade

What Is the Wildlife Trade?

Comments Off on What Is the Wildlife Trade?

WHAT IS THE WILDLIFE TRADE? It is called the "wildlife trade" when people trade and sell living or dead wild animals and plants. This practice has a direct effect on biodiversity and also [...]

  • Why corals are important

Why Are Coral Reefs Important?

Comments Off on Why Are Coral Reefs Important?

Why Are Coral Reefs Important? At first look, you may think you’re looking at a lump of colorful rocks. But, these are not rocks. These eye-catching figures are coral reefs! Found in oceans [...]

  • ocean dead zone

Ocean Dead Zones

Comments Off on Ocean Dead Zones

Ocean Dead Zones The ocean is an important part of our ecosystem. It produces most of the oxygen we breathe. It’s also very important for our economy, providing food for many people around [...]

  • walking outside and fitness

Walking for Fitness

Comments Off on Walking for Fitness

Walking is an excellent way to stay fit and healthy. In fact, walking has been proven to be one of the best ways to lose weight because it burns calories. It also helps [...]

  • What's Avian Flu

What’s Avian Flu?

Comments Off on What’s Avian Flu?

What is Avian Flu? Avian flu, also known as avian influenza or bird flu, is a viral disease that primarily affects birds. The virus can be transmitted between different species of birds, but [...]

  • what is carbon absorption

What is Carbon Absorption

Comments Off on What is Carbon Absorption

What is Carbon Absorption? Carbon absorption, or carbon sequestration, is the capture and storage of carbon dioxide (CO2) from the atmosphere. This process occurs naturally through photosynthesis in plants and algae, which absorb [...]

Have a Topic Suggestion ? We are Open to New Ideas!