What are carbon credits and what is their importance in our lives?

The idea behind a carbon credit system was to try to compensate for the emission of greenhouse gases through a program that promotes policies that encourage countries to review their industrial processes in order to reduce atmospheric pollution and its impact on global warming.

To this end regulatory environmental protection agencies created a certificate that attests to the fact that there was a reduction in the emission of greenhouse gases. The amount of carbon credits received varies according to the reduction of carbon emissions.

It was determined that one ton of carbon dioxide (CO2) is equivalent to one carbon credit. Reductions in other gases that cause the greenhouse effect can also be converted into carbon credits using the concept of a carbon equivalent.

The certificate is traded in the international market, where the reduction of greenhouse gases acquires a monetary value in pollution containment.  There are several ways to acquire credits, here are some examples: reforestation; reduction of emissions from fossil fuel burning; substituting fossil fuels for clean and renewable energy such as wind, solar power, biomass, SHP (Small Hydroelectric Plants), among others; using emissions that would otherwise be discharged into the atmosphere (methane from landfills) for energy production.

Through international agreements, developed countries received maximum allotments for greenhouse gases. It was up to these countries to establish rules for restricting the emission of these gases within their territories.

Countries or companies that go over their established targets will have to purchase carbon credit certificates; similarly, those who are able to reduce their emissions will be able to sell their surplus emission reduction on stock and commodities markets to other countries or companies that need the credits.

The carbon market has a criterion called additionality. According to this criterion a project must absorb carbon from the atmosphere, as in performing reforestation, or avoid the emission of greenhouse gases, as in the use of efficient energy.

Some people criticize these certificates, interpreting them as a permission for countries and companies to pollute. That may be true, since the certificate’s intention was to organize the criteria for neutralizing the emission of these polluting gases.

However, built into the program there is also the intention that the most polluting countries reduce their emissions and that through economic incentive this carbon market would encourage developing countries to better care for their forests and refrain from burning.

But the warnings and financial stimuli were not enough. Due to their greed and ignorance, some companies continue to destroy forests, forgetting that the consequences will be dire for all of us and for future generations.

Governments were remiss to allow, and continue to allow, uncontrolled deforestation to steal our greatest wealth: forests. We still watch those in important government positions ignore all nature’s warning signs against human existence.

Two actions must be immediately implemented by all governments in the world. The first is the significant reduction in the emission of polluting gases, whether by industries or transportation. The second is to take strong action against uncontrolled deforestation.

We have recently learned that Incra, an organization connected to the Brazilian Government, is responsible for most of the deforestation in our country. This surprised us and diminished the government’s reputation; if it cannot control its own subordinates how will it supervise others?

For all these reasons, the creation of carbon credits has an important role in raising awareness in countries and companies, but it will not be enough to solve this problem without the willing participation of all involved.  Governments, companies and society must come together to discuss how to address this crime against the environment and, especially, against ourselves.

In order for us to become a sustainable world, we will need more than financial environmental incentive programs. We must be aware of our social-environmental responsibility and have a collective conscience about this change right now.