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How to sell carbon credits |
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Carbon credits were introduced in order to counter greenhouse gas emissions. Individuals or organizations owning carbon credits can sell them off in exchange of money.
How does carbon credit system work?
Carbon credit system rewards enterprises for cutting down on greenhouse gases. For avoiding carbon dioxide emission, enterprises get a carbon emission certificate of proportionate value. This carbon emission certificate or carbon credit can be sold through futures market like other commodities.
Selling carbon credits
Businesses and even individuals can exchange, sell, or buy carbon credits in the international market at prevailing prices. Carbon credits can be earned and sold by countries, traders, organizations, and also by farmers. In India, carbon credits have begun to be traded on the Multi Commodity Exchange (MCX). In fact, MCX became Asia’s first exchange where carbon credits began to be traded.
Carbon credit buyers
Carbon credit buyers are usually entities operating in developed countries. Many big factories and enterprises have to meet certain emission targets as stipulated by government regulations. When they are unable to stay below that target and exceed it, those enterprises can buy carbon credits in order to “offset” their exceeded target. Power utilities are major buyers of carbon emission certificates or carbon credits.
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