Hi All,
At a high level, I understand what the purpose of carbon credits are, how the marketplace functions more broadly, and how to pursue issuance of carbon credits.
**But at a very basic level, what IS a carbon credit?** Is it like an NFT or more like a company stock? Are they regulated by the federal government (in the US at least) like a stock? How can one be sure that a carbon credit is legitimate and not a forgery or otherwise worthless?
Thanks in advance for any explanation, especially if you can provide source(s)! Google search has produced vague, mostly unhelpful results.
In: 3
There are two answers.
One is that a carbon credit is one company that is carbon negative makes a deal with another company that is carbon positive so they balance out. They measure their carbon footprints as balance it out
The second is that it’s a scheme by investment bankers to make a commission from being the middle man in another series of transactions.
The second reason is why this has become a big deal.
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