From the course: Microsoft Cloud for Sustainability: ESG and the Future of Business

What are carbon credits?

From the course: Microsoft Cloud for Sustainability: ESG and the Future of Business

What are carbon credits?

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- [Instructor] Let's first talk about carbon credits. Carbon credits are a type of environmental credit which represents the right to emit one ton of carbon dioxide or the equivalent in greenhouse gases. Carbon credits can be traded between companies and individuals. Different parties can offset their activities such as flying and driving by purchasing carbon credits from trusted sources. CEO of Climate Impact X, Mikkel Larsen, said it best: Carbon credits are a crucial market-based mechanism to finance solutions for climate mitigation. But to realize its true potential, we need a healthy carbon services ecosystem underpinned by trust. Now let's talk about cap-and-trade systems.

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