What is a Carbon Credit Market? One carbon credit (CC) is equal to one tonne of CO₂ emissions. CCs are issued to projects that remove, reduce or avoid emissions. These credits can then be sold to cover the costs of the project. Two types of CC markets exist: compulsory and voluntary. Compulsory markets are regulated by governments or international organizations such as the United Nations Framework Convention on Climate Change (UNFCCC). Voluntary markets are run by independent organizations such as Verra or the Gold Carbon Standard. For credits calculated based on reduced or avoided emissions, the CC quantity is the baseline (business-as-usual) emissions minus the project emissions.

Climate change is a global issue; the adverse effects of air pollution affect our health, lead to extreme weather disasters, and contribute to the destruction of our ecosystem. This news is not new, the climate crisis has been discussed in length for decades. Although we aware of the severity of rising temperatures, we have still seen an increase in the earth’s global temperature of approximately 0.13°C each decade. Industrialized countries, and the people who live within them, have grown accustomed to a specific lifestyle that consists of an abundance of readily available options at the lowest possible price point. Eco-friendly consumption options do not often fit these characteristics and villainizing everyday consumers for not making sustainable decisions pressures people to live outside of their means. Walmart contributed over 17 million metric tons of carbon dioxide equivalent in 2019, and we can see comparable emissions from similar major corporations. However, a low-cost mass production strategy is often the only option for lower income families, especially with the rising cost of living. We can all make small changes, but municipalities and corporations are key to seeing real advancements.

The Confederation of Indian Industry (CII) invited Raj Krishnamurthy, Co-founder and CTO, Hygge Energy, to speak at their 12th GreenCo Summit on July 13, 2023

In his talk, Raj shed light on the carbon market, which is currently valued at 1 trillion dollars and is growing at a CAGR of 18.23%. However, before we go any further, there is a need to engage with all the stakeholders involved and simplify participation to encourage involvement from all industry members.