What are Carbon Credits?

Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gas (GHG). 1 carbon credit is equal to 1 tonne of carbon dioxide (CO2). CO2 is believed to be the most significant GHG contributing to global warming.

We all contribute to our current GHG problems one person at a time. Every time you use your car, heat your home or boil the kettle more CO2 is released and adds to the problem. Part of the solution is for concerned individuals and companies (like you!) to take action to both reduce our GHG, and to use carbon credits to offset those which we can’t cut down on.

You can offset these emissions by buying carbon credits that are invested in renewable energy projects, in reforestation or in some other activity that results in a net reduction in atmospheric CO2. For every 1 tonne of CO2 you or your business produces, 1 tonne is saved somewhere else in the world. If you buy enough carbon credits you can offset all your emissions and effectively become carbon neutral.

For businesses, as well as enhancing your brand reputation, reducing your carbon footprint can bring real commercial benefit and financial savings. It helps prepare you for future environmental legislation whilst staying ahead of your competitors. More importantly, it resonates with today’s discerning consumers who are increasingly opting to deal with only the most responsible companies and those with an upstanding Corporate Social Responsibility programme.

Governments, international institutions and private companies have devised a trading system to enable organisations to pay for emission reductions elsewhere. Using this system, companies can buy carbon credits to offset some of their unavoidable emissions.

Companies tackling climate change:

		Forestry For Life is carbon neutral
		SEM have pledged to become carbon neutral with Forestry For Life
		BP has led the oil sector on global policy, energy saving, emissions reduction and renewable technology
		BSkyB became carbon neutral in 2006 and is beginning to help its customers take action at home
		BT has cut its carbon footprint by 60% and has been at the forefront of buying renewable energy
		Goldman Sachs has committed to go carbon neutral and is looking to invest in green energy
		HSBC has been carbon neutral for 2 years