Carbon Credits

Carbon credits are a product of the Kyoto agreement. World leaders agreed to reverse climate change by limiting the amount of carbon dioxide each country could emit. A set budget of carbon credits, measured in tonnes of carbon dioxide, was allocated to each nation.

In order to manufacture goods, industries must first purchase carbon credits. For instance, a car company might generate a ton of CO2 to make one car. One carbon credit needs to be bought to make that car, unless they can find a way to make it with less carbon emission. If there are no more carbon credits left in the budget, the car cannot be made.

Credits are purchased in bulk from the European Energy Exchange and brokers of Gold Standard credits. GoCarbonFree has dedicated all its dividends to buying carbon credits (50%), investing in carbon credit producing assets (25%), and day-to-day business running costs (25%). - in other words, shareholders see no profit.

You can keep prevent carbon credits from going to polluting industries by earning them in the form of personal carbon credits. These personal carbon credits also offset your own carbon emission.