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Carbon Credits

A tool to offset unavoidable carbon emissions.

What is a Carbon Credit?

A carbon credit is a tradable intangible instrument that is issued by a carbon-crediting programme, representing a greenhouse gas (GHG) emission reduction from the atmosphere equivalent to one metric tonne of carbon dioxide equivalent (tCO2e). Reduction can be achieved through avoidance or removal. Carbon credits can be used to offset carbon emissions generated by governments, organisations or individuals.

What is a Carbon Credits?

A carbon credit is a tradable intangible instrument that is issued by a carbon-crediting programme, representing a greenhouse gas (GHG) emission reduction from the atmosphere equivalent to one metric tonne of carbon dioxide equivalent (tCO2e). Reduction can be achieved through avoidance or removal. Carbon credits can be used to offset carbon emissions generated by governments, organisations or individuals.

Why Carbon Credits?

Why Carbon Credits?

Carbon offsetting​

By purchasing carbon credits, you are paying for the avoidance or removal of GHG emissions elsewhere, thereby compensating for, or offsetting, the equivalent amount of GHG emissions that you or your business generate. Offsets are calculated relative to a baseline that represents a hypothetical scenario for what emissions would have been in the absence of the project.

A Cost-effective Approach to Support Decarbonisation

Investing in renewable energy or other initiatives to reduce or remove carbon emissions can be costly. Carbon credits offer individuals and companies a way to channel money to carbon reduction projects, regardless of the scale.

Carbon Credits - decarbonisation
Carbon Credits - corporate social responsibility

Strengthen corporate social responsibility

Using credible carbon credits could demonstrate your company’s commitment to corporate social responsibility as it shows an effort to offset your emissions.

The History of Carbon Credits

1990sThe concept of carbon credits was introduced.1990s199720032006 - 2007200820152017
1997The Kyoto Protocol was signed. Clean Development Mechanism (CDM) was established to allow industrialised countries to offset their GHG emissions by investing in emissions reduction projects in developing countries.
2003Chicago Climate Exchange (CCX) was launched, making it the first voluntary carbon trading platform where buyers and sellers can trade carbon credits.
2006 - 2007The Verified Carbon Standard (VCS) and The Gold Standard (GS) were established to provide a framework for ensuring the emissions reductions are real, additional and verifiable.
2008Carbon Disclosure Project (CDP) was launched, providing a platform for entities to voluntarily disclose their GHG profile.
2015The Paris Agreement was signed. It sets goals to guide all nations to limit the global temperature increase in this century to 2 degree Celsius while pursuing efforts to limit the increase even further to 1.5 degrees.
2017The CLP Carbon Credits website was established to educate the public on the concept of carbon credits.

The History of Carbon Credits

1990s

The concept of carbon creditswas introduced.

1997

The Kyoto Protocol was signed. Clean Development Mechanism (CDM) was established to allow industrialised countries to offset their GHG emissions by investing in emissions reduction projects in developing countries.

2003

Chicago Climate Exchange (CCX) was launched, making it the first voluntary carbon trading platform where buyers and sellers can trade carbon credits.

2006 – 2007

The Verified Carbon Standard (VCS) and The Gold Standard (GS) were established to provide a framework for ensuring the emissions reductions are real, additional and verifiable.

2008

Carbon Disclosure Project (CDP) was launched, providing a platform for entities to voluntarily disclose their GHG profile.

2015

The Paris Agreement was signed. It sets goals to guide all nations to limit the global temperature increase in this century to 2 degree Celsius while pursuing efforts to limit the increase even further to 1.5 degrees.

2017

The CLP Carbon Credits website was established to educate the public on the concept of carbon credits.