Tag: carbon markets
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Carbon credit/offset
Carbon credit/offset A carbon credit, also referred to as a carbon offset, is exchanged between private entities within the voluntary carbon market. These credits are issued by carbon crediting schemes and symbolize the reduction, removal, or prevention of one ton of CO2e. Carbon credits or offsets undergo a unique serialization process and are managed, issued,…
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Carbon Allowance
Carbon Allowance Carbon allowances represent official permissions granted by a governmental agency, allowing a company to release one ton of CO2 or its equivalent (CO2e). Governments establish emission targets in advance and progressively reduce them over time, aiming to achieve net-zero targets by 2050. These allowances are integral to compliance markets, where they can be…
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Carbon allowances, credits and offsets
Carbon allowances, credits and offsets Carbon allowances and carbon credits/offsets form part of carbon markets that attempt to reduce greenhouse gas emissions by putting a price on them, effectively turning CO2 into a commodity. While the terms are often used interchangeably, they trade on two distinct markets: carbon allowances – an official, or compliance market;…