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Carbon credit UPSC NOTE

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  What is Carbon credit? A carbon credit is a permit that allows the holder to emit a specific amount of carbon dioxide (CO2) — typically eq...

 What is Carbon credit?

  • A carbon credit is a permit that allows the holder to emit a specific amount of carbon dioxide (CO2) — typically equivalent to 1,000 kg (or one metric ton).

  • Carbon credits serve as a financial tool to encourage the reduction of greenhouse gas emissions

  • They are part of climate finance mechanisms aimed at combating climate change.

  • Individuals or organizations can earn carbon credits by:

    • Removing 1,000 kg of CO2 from the atmosphere.

    • Completing projects that promote renewable energy, reforestation, or carbon capture.

    • Providing proof of their emission reductions to a certifying agency.

  • Once earned, carbon credits can be sold to companies or governments looking to offset their emissions.

  • This creates a market for carbon credits, where the price is determined by supply and demand.

  • The Paris Agreement established a global carbon market, helping countries meet their emissions reduction targets by trading carbon credits.

  • A significant issue with carbon credits is the difficulty in verifying that the claimed emissions reductions actually occurred. 

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Carbon credit UPSC NOTE
Carbon credit UPSC NOTE
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