Carbon credits: a step towards a sustainable future

Within the framework of the fight against climate change, carbon credits have become an essential tool for reducing greenhouse gas emissions. This brief document aims to explain the origin as well as the essence of carbon credits; the market for buying and selling certifications (regulated and voluntary market); the planning of carbon projects; and, finally, to give examples of companies using certificates for the protection of the Amazon.

These credits, initially proposed in the Kyoto Protocol and strengthened in the Paris Agreement, represent a ton of carbon dioxide that has been removed from the atmosphere or avoided through mitigation projects.

Within this context, there are two carbon markets: the regulated market and the voluntary market; in 2023, the global carbon market (including both) broke the record for its valuation: €881 billion ($948.75 billion USD).

In the regulated market, governments set emissions limits, and companies that exceed them must purchase carbon credits to offset their excess. This approach creates clear incentives for organizations to reduce their emissions, while compliance with the limits set becomes a pillar of environmental policy in several countries.

On the other hand, the voluntary market allows companies and organizations to purchase carbon credits on their own initiative, often as part of their social responsibility policies or to respond to growing demand from environmentally conscious consumers and stakeholders. In this market, companies take an active role in sustainability, investing in projects that go beyond their legal obligations. These voluntary credits are managed by independent bodies, which develop specific methodologies and carry out ongoing verifications to ensure that projects meet quality standards and achieve the expected positive impact.

Technology, energy, manufacturing, FMCG and other companies have recognized the importance of mitigating their carbon footprint to comply with regulations and to align with the expectations of consumers, investors and other stakeholders who place sustainability and environmental impact at the forefront of their priorities. For them, participating in the voluntary market is more than just buying credits; it is a statement of principle and a commitment to the future of the planet.

“The voluntary market allows companies and organizations to purchase carbon credits on their own their own initiativeoften as part of their social responsibility policies or to respond to growing demand from environmentally committed consumers and stakeholders. and stakeholders committed to the environment..”

The success of these markets depends on key factors, such as robust regulatory frameworks, long-term planning and the quality of the bonds issued. Transparency and clear rules are essential to protect credit buyers, investors and the local communities involved in the projects. In addition, the quality and traceability of projects is an increasingly valued aspect, as buyers seek assurances that projects not only comply with environmental standards, but also with social commitments, benefiting local communities and protecting the ecosystem as a whole.

It could be said that there are two standards that a project has to meet: those imposed by the organization of their choice and those of the market. Buyers expect projects not only to comply with the methodology, but also to have social management by the forest owners, and buyers expect the developer to provide comprehensive support and, if there are communities within the protected territory, that they are not left to their own devices and always seek to benefit all the agents involved.

In Latin America, the preservation of the Amazon and other critical ecosystems depends to a large extent on the success of projects that generate carbon credits. These certifications not only capture CO₂, but also promote biodiversity conservation and improve the living conditions of local communities. Global companies are increasingly interested in acquiring carbon credits from this region, attracted by the positive impact these projects have on one of the world’s most important ecosystems.

In short, carbon credits offer companies a tool to make an active contribution to global sustainability. By committing to these projects, organizations can move towards a green transition and at the same time reinforce their commitment to protecting the planet and the well-being of future generations.

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