FAQs about Carbon Markets

2. What are CERs or carbon credits?

The carbon bond, also called Certified Emission Reductions (CERs) is an international mechanism created with the intention of reducing greenhouse gas (GHG) emissions.

CERs are negotiated in regional, national or international “carbon markets”. They were created with the idea of ​​encouraging, instead of forcing, the different actors to stabilize and reduce their GHG emissions and therefore global warming and climate change.

The objective of the carbon markets was to reduce carbon dioxide emissions globally. The bonds were initially distributed among the main GHG emitting industries, required by law to issue an amount equal to or less than the bonds delivered. These bonds could be sold and bought in the carbon markets, according to the needs of the issuer. In this way, if a company did not consume its carbon credits, it could sell them to another that needed them to exceed its GHG emissions.

Likewise, you should keep track of the emissions made, as well as if they are consistent with the bonds available in each case. When this does not happen, the official agencies are responsible for executing the economic or administrative sanctions corresponding to the companies that violate the rules of the carbon markets.

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