Resources sourced by: Matt Fergerson MBA ‘25
Date sourced: Sep ‘25
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Carbon credits play a significant role in addressing climate change by providing a market-based mechanism to reduce greenhouse gas emissions. They represent one metric ton of carbon dioxide or equivalent greenhouse gases that have been reduced, avoided, or sequestered. Companies and organizations can purchase these credits to offset their unavoidable emissions, effectively financing projects that remove or prevent carbon from entering the atmosphere. While carbon credits should not be seen as a substitute for direct emissions reductions, they can serve as a valuable complementary tool in a comprehensive climate strategy. Carbon credits enable businesses to support decarbonization efforts beyond their own operations, accelerate the transition to renewable energy, and fund nature-based solutions. However, it's crucial that carbon credits are high-quality, verified, and used responsibly as part of a broader emissions reduction plan to ensure their effectiveness in combating climate change.
Fun fact: Cumulative sales of carbon credits have grown from 980K tons CO2e sold through March 2023 to 12M tons CO2e sold through September 2024.
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Key People
Director of Berkeley Carbon Trading Project
Partner, Environmental Commodity Partners
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Key Organizations
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