What Is a Carbon Credit? Carbon Credits Explained

The need to reduce greenhouse gas emissions has never been as urgent as nowadays. Climate changes and pressure from the governments on the private sector to reduce their carbon footprint have turned companies to financial products to offset their harmful impact on the environment called carbon credits. So what are carbon credits, and how do they work? We will go over all of this in this article.

What Are Carbon Credits?

Carbon credits are permits that allow the owner of the credit to emit one ton of carbon dioxide or other greenhouse gasses. Companies that pollute the environment can purchase carbon credits that will allow them to continue to pollute up to a certain limit. On the other hand, companies that don't pollute that much can sell their carbon credits to companies that need them.

Companies get a number of credits that decline over time. Companies that have huge emissions of carbon must either buy credits or pay a fine.

How Do Carbon Credits Work?

Let's explain in more detail how carbon credits work. Imagine you have Company A that emits less carbon than its target amount - this means that Company A has more credits. On the other hand, Company B emits more carbon than its target amount, so Company B has two options - to pay a fine or to buy carbon credits from Company A. Companies can trade their carbon credits on exchanges similar to the stock exchange.

How Is Carbon Credit Made?

Carbon credits are often made through agricultural or forestry practices, but in essence, credit can be made by any project that reduces, avoids, or captures carbon emissions. So how does this work? Companies or individuals who are looking to offset their carbon footprint can purchase carbon credits from middlemen or directly from those who are capturing carbon. For example, a farmer who plants trees is an entity that is capturing carbon emissions.

Types of Carbon Marketplace

There are two types of carbon marketplace: vary market and compliance market.

A compliance market is a government-set cap on how much carbon emissions certain industrial countries can have. For example, if an oil company goes over the prescribed cap, it will have to buy credits to stay under the cap. On the other hand, if a company emits less carbon gas, it will have more credits than it needs, which can then be sold to another company. This can be done on a cap-and-trade market.

The other market is a voluntary market, where companies can trade their carbon credits as they wish.

The biggest criticism of carbon credits is the lack of transparency because users cannot know where their carbon credits come from and whether they actually have an impact on the environment. In recent years there have been several initiatives that tried to increase the transparency of the carbon market. One of the initiatives is called IMPT.io, a carbon credit ecosystem that is based on blockchain. On this platform, you will get minted carbon credits in the form of NFTs, and all users can follow up on their carbon credits and how they are used.

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How to Buy Carbon Credits?

As you can see, there are several ways you can buy carbon credits. Aside from the government cap-and-trade markets, there are many voluntary markets where you can purchase carbon credits. When looking for carbon credits, the most important part is that these credits actually come from sustainable and eco-friendly projects and companies that capture carbon emissions.

One of the unique and, most importantly, transparent ecosystems where you can purchase these credits is IMPT.io. This platform is based on blockchain, which means all credits that are minted there are safe proof, transparent, and without any possibility of being altered.

What is IMPT.io?

Impt.io is an ecosystem and marketplace individuals, companies, and investors can trade carbon credits based on blockchain. Currently, over 10,000 worldly famous brands and companies are on this platform. All carbon credits on the platform will be minted as NFTs, which means you will get unique and traceable carbon credits you can sell or hold.

In order to purchase carbon credits, users must sign in on the platform and first purchase IMPT tokens, which are crypto coins. These IMPT tokens can be purchased via credit card or another crypto, and you use them to mint your carbon credits NFTs. All users of the platform will be able to earn IMPT tokens by shopping online on the platform.

The mining facility is powered by a surplus supply of clean, green, renewable energy. The energy comes from hydroelectricity that is generated in the foothills of New Zealand's Southern Alps.

Currently, IMPT tokens are on presale that will last until 25 November or until all 600,000,000 are sold. The price of IMPT tokens is $0.018. The platform has carefully selected the most impactful projects around the world and revised them all to make sure no fraudulent activities are in place and that all these companies are following Global Certification Protocols.

Other Exciting Cryptos to Invest In

If talking about IMPT NFTs has spiked your interest in NFTs, there are other new projects you can explore, and one of those projects is Tamadoge. This is a play-to-earn game where users can grow and breed their virtual NFT pets. Similar to IMPT tokens, Tamadoge allows you to earn new tokens by playing a game. The platform has utility and a native meme coin called TAMA.

TAMA coin is currently available on OKX and OKX DEX, exchanges for $0.03, and it is predicted that the price of TAMA will increase by 10x until the end of 2023. Aside from the fact that the Tamadoge is a fun game you can play, you can also learn more about NFTs and the crypto world and earn profit along the way.

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Why Should You Invest in Carbon Credits?

If you are a company that emits a lot of carbon gas, carbon credits are an excellent way you can contribute to the reduction of this harmful impact. Either way, you will either pay a fine or purchase carbon credits. If you buy credits, you will avoid paying a fine and also have the opportunity to invest your credits and earn profit along the way. The carbon market has grown by 20% in the last couple of years, so this can also be a chance for investment.

Nowadays, if you want to be a successful investor, you need to include all possibilities you have, and the best way to earn a profit is by spreading your portfolio. If you are seeking new investment opportunities, explore other cryptocurrencies like TAMA.

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