What are carbon credits?

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I want it to be explained as simple as possible, because I have a wide audience and have to give a pitch, and don’t know how to simplify this thing. Especially the voluntary carbon markets and carbon offsets. I want a genius analogy.
I’d really appreciate your help 🙂

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6 Answers

Anonymous 0 Comments

Suppose you have two people. Like most people, they have to use the bathroom on a regular basis.

Now suppose that they each have to pay a subscription to use the toilet in their house. For $10 a month, you can go to the bathroom twice a day.

Now, suppose one of the people goes on a diet. That diet has the net effect that they only have to go to the bathroom once a day. However, the other person has a problem: their eating habits are very poor, and really they need to go to the bathroom three times a day.

The person needing more visits to the bathroom could pay a fee and go to the bathroom. Or, the person needing fewer visits could sell their unused bathroom visits. The net use of the toilet goes down, and the person on the diet gets a little reward.

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