How Do Carbon Credits Work?


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As the Holiday season is here, travelers worries about climate change will have to deal with the consequences of flying.

Air transit accounts for 2% - 2.5% of global carbon dioxide emissions.

So most people decide that buying carbon offsets is more realistic than riding a yacht or never flying at all. However, no one really understands how they work.

A carbon credit is defined as a unit that funds the removal of 1 metric ton of carbon from the environment.

The price of a carbon credit is entirely based on the project you are trying to fund. What that means is the price of the unit can change greatly. Protecting forest is far more affordable, so credits cost less than building clean cooking stoves in developing countries, for instance.

For more information, please read here.

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