Carbon credits are rights generated from the reduction of greenhouse gas emissions. They can be obtained from both operational activities and forestry-related projects. These rights must be measured and verified by relevant authorities, such as the Thailand Greenhouse Gas Management Organization (TGO). The certified carbon credits can be traded in carbon markets to organizations that need them to achieve their environmental targets.
What is the Carbon Credit Market?
The carbon credit market is a platform for trading carbon credits, established with the objective to reduce greenhouse gas emissions, which can be divided into 2 types:
Mandatory Carbon Market A carbon market established and regulated by governments with legal enforcement. It operates under clearly defined rules, and procedures. Governments or relevant authorities oversee emission limits. If participating entities fail to comply, penalties are imposed according to the specified criteria.
Voluntary Carbon Market A carbon market established through voluntary participation by the private sector, allowing organizations to trade carbon credits to offset their emissions. However, this market has no legally enforcing effect.
In Thailand, the carbon credit market currently operates under the voluntary carbon market frameworksince 2012 and is regulated by the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO).
Benefits of Carbon Credits
Reducing greenhouse gas emissions and removing carbon from the atmosphere play a crucial role in mitigating global warming. Activities that reduce or absorb greenhouse gases are rewarded with carbon credits, serving as an important mechanism to incentivize the private sector to lower emissions. In addition, carbon credits support sustainable natural resource restoration projects, raise awareness of climate change, promote reforestation, and encourage long-term investment in green businesses and clean energy. They also create new economic opportunities and drive continuous development in clean energy technologies.
Carbon Credits from the Underlying Project of Blu Green Token
Carbon credits from the underlying project are generated from the Mangrove Reforestation Project of Blu Green Token are categorized as Blue Carbon, which are carbon credits generated from marine ecosystem-based projects and have a higher potential for absorbing and storing carbon dioxide.
Conclusion
Carbon credits are an important tool in addressing climate change. Investing in Blu Green Token provides an alternative investment opportunity that allows investors to participate in supporting the reforestation and maintenance of mangrove forests to generate carbon credits.