There has been a lot of buzz concerning the carbon credit market. This brief article will discuss the importance of carbon and carbon markets, and what they can offer producers.
What is carbon?
Carbon is the basic building block for all living things. It is present in the atmosphere as carbon dioxide (CO2), in living and nonliving organisms, as organic matter in soils, in fossil fuels, and in the oceans as shells, coral, and sedimentary rock. Carbon is all around us.
While carbon is essential for all life, there is a balance between where the carbon is located and stored within the earth, oceans, and atmosphere. In the past 60+ years, carbon, as carbon dioxide, has accumulated in the atmosphere.
To counter these effects, many U.S. and global companies that emit carbon dioxide are willing to pay for practices that move carbon from the atmosphere into different pools, like soil. Paying for practices is known as carbon “crediting.” Carbon credits can be…