They have now "offset" their excess pollution by funding a project that removed the same amount of CO2 elsewhere.
What are carbon markets and how do they work? | UNDP Climate Promise buy sell carbon credits
Eco-Growers spends years planting millions of native trees. As these trees grow, they naturally "inhale" carbon dioxide from the atmosphere. According to Investopedia , a is a permit representing the removal of one metric ton of carbon dioxide. Once an independent auditor verifies that Eco-Growers has successfully sequestered 1,000 tons of CO2, they are issued 1,000 digital carbon credits. 2. The Buyer: Offsetting Emissions They have now "offset" their excess pollution by
The money they receive from the sale provides the capital needed to plant even more trees or protect existing forests from logging. 4. Retirement: Ending the Cycle As these trees grow, they naturally "inhale" carbon
This system is used by everyone from major corporations like Amazon to public figures like Taylor Swift , who reportedly purchased double the credits needed to offset her "Eras Tour" travel.
To understand how buying and selling carbon credits works, imagine two very different businesses: , a massive reforestation project in the Amazon, and Steel-Forge , a heavy industrial plant in Europe. 1. The Producer: Creating a Credit