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A carbon credit is a permit that represents 1 ton of carbon dioxide removed from the atmosphere. These credits are created when projects reduce, avoid, or capture emissions. Project developers can then sell these credits to individuals or companies that seek to offset their environmental footprint, oftentimes with the goal of reaching net-zero emissions.
. “It may very well be a good business, but that doesn’t necessarily mean it’s a good thing for the environment or for the climate.”Flowcarbon CEO Dana Gibber says tokenizing carbon credits will make their prices more transparent and lower transaction costs, which will enable credit holders to more easily access financing for their emissions-reducing projects.
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