Greeneum Carbon Credits and Emissions Offset Management

A carbon credit is a permit to enable a company to produce carbon emissions and is quantified 1 Ton of CO2 or an equivalent amount for any GHG. Companies that emit less than their allotted amount can sell their unused credits to others that emit more than their limit. The goal of carbon credits is to create a financial incentive for companies to reduce their carbon emissions, as this helps to mitigate the impact of climate change. 

Carbon Offset Credits: Carbon offset credits represent emissions reductions achieved by projects, such as reforestation or carbon capture and storage, that remove carbon dioxide from the atmosphere. Offset credits can be purchased by companies and individuals in the voluntary market to offset their own emissions.

The value of one carbon credit is determined by the carbon credit market, which comprises companies and investors who buy and sell carbon credits. In the Us, price fluctuates depending on demand and supply but generally ranges from $40 to $80 per metric. As for Europe, the trading value of a carbon credit is now close to 70-80 EUR per ton. The World Bank estimates that a carbon price of $50-100 per metric ton of carbon dioxide is required by 2030 to meet the temperature goals of the Paris Agreement – to limit global warming to well below 2 degrees Celsius above pre-industrial levels [1].

However, only the EU, UK and New Zealand currently have prices within or above this range, with other major markets falling well short. Prices in China, the world’s largest market in terms of emissions covered, are below $10 per ton of CO2.

The carbon credit market:

The carbon credit market can be divided into two main segments: voluntary and compliance (or mandatory) markets. The voluntary is the one which individuals, companies, and organizations can purchase carbon credits to offset their own emissions voluntarily, without any legal obligation. In the voluntary market, carbon credits can be generated from a wide range of projects, including renewable energy, energy efficiency, and reforestation, among others. The voluntary market is driven by companies and individuals looking to reduce their carbon footprint, without necessarily facing legal requirements. The compliance market, on the other hand ,is a market in which companies purchase carbon credits to comply with legal obligations. This market is typically established by governments through cap-and-trade programs, which set limits on the amount of greenhouse gas emissions that can be released by specific industries. Companies that emit more than their allotted amount must purchase additional credits to meet their obligation, while companies that emit less can sell their unused credits. The compliance market is driven by government regulations and legal requirements and is typically limited to a specific set of industries and emissions sources.

Description: Carbon credit offset process in Greeneum platform rewarding renewable energy and carbon NetZero.

There are several types of carbon credits, each with a specific use:

Allowance Credits: Allowance credits are issued as part of a government-mandated cap-and-trade program. They allow companies to emit a specific amount of carbon dioxide or other greenhouse gasses. Companies that emit less than their allotted amount can sell their unused credits to others that emit more than their limit.

Certified Emission Reduction (CER) credits: CER credits are issued under the Clean Development Mechanism (CDM) of the Kyoto Protocol. They represent verified emissions reductions achieved by projects in developing countries. CER credits can be traded and used by companies in developed countries to meet their emissions reduction targets.

Verified Carbon Unit (VCU) credits: VCU credits are similar to CER credits but are issued under other voluntary or mandatory emissions reduction programs. They represent verified emissions reductions achieved by projects in a variety of countries and regions.

Greeneum operates in the carbon credits market by providing a decentralized platform for verifying and trading certified carbon credits. It leverages the power of blockchain technology and artificial intelligence (AI) to create a transparent and secure system for tracking and verifying carbon emissions reductions.

Blockchain technology provides a secure and transparent platform for recording transactions in the carbon credits market. The decentralized nature of blockchain eliminates the need for intermediaries, reducing the transaction costs and increasing the efficiency of the market. The transparency and security of the blockchain also helps to prevent fraud and ensure accurate accounting of carbon credits, reducing the risk of double counting.

AI is used by Greeneum to accurately monitor and verify carbon emissions reductions, reducing the risk of fraud and errors in the carbon credits market and supporting companies to verify data of new projects. AI algorithms can analyze data from various sources, such as power plants, factories, and transportation systems, to calculate the exact amount of emissions that have been reduced. This information is then recorded on the blockchain, providing an immutable record of emissions reductions.

image process description :

An Organization wants to offset GHG emissions that could not be reduced directly. The organization contributes economically to a project to reduce emissions that generates carbon offsets. Emissions offset projects may include : Reforestation , Renewable energy , Methane capture/combustion. The organization receives carbon credits for its contribution to the emission reduction projects.

Greeneum incentivizes companies to become net zero carbon emissions by implementing a blockchain-based platform that facilitates the issuance and trading of carbon credits. The platform can create a transparent and decentralized marketplace for carbon credits, allowing companies to buy and sell credits to meet their carbon reduction targets.

Furthermore, Greeneum collaborates with policymakers and regulators to create a favorable regulatory framework that supports the transition to a net zero carbon economy. By incentivizing companies to reduce their carbon emissions and supporting the transition to a more sustainable energy system, Greeneum members can impact and contribute to the global effort to combat climate change.

In summary, Greeneum's platform helps to make the carbon credits market more efficient, transparent, and secure, promoting sustainable practices and reducing the negative impact of carbon emissions on the environment. Register to Greeneum today and get your carbon credits and renewable energy rewards and offsets - greeneum.net.

Reference: 

[1] Carbon Pricing (www.worldbank.org)