Climate change is a serious challenge. Greenhouse gases (GHGs) from human activities like power generation, manufacturing and transportation are accumulating in the atmosphere and warming the Earth’s climate. Climate change has been called the ‘world’s greatest market failure’ because releasing GHGs into the atmosphere has been free, with little economic incentive for alternatives. A carbon price helps level the playing field between more expensive low-emission projects (ie. renewable energy wind farms) and cheaper high-emission projects (ie. power generation using fossil fuels like oil and coal).
Carbon offsets (carbon credits) are an innovative, market-based way to take responsibility for the carbon footprint of an individual or organization. Carbon offsets are credits for reductions made at another location, such as wind farms that create renewable energy and reduce the need for conventional electricity like coal-burning generators.
Carbon offsets are measured in metric tonnes of carbon dioxide-equivalent (CO2e). One carbon offset represents the reduction of one tonne of carbon dioxide or its equivalent in other GHGs. Carbon offsetting has gained popularity with consumers concerned about the negative environmental effects of energy-intensive lifestyles and economies.
The Ontario Ministry of the Environment (MOE) operates an emissions registry to control pollution from industry. Emissions trading is used to reduce smog-causing emissions from fossil-fuel power generators and other heavy industries. The Ontario MOE system provides economic incentives for those who reduce emissions, and higher costs for those who must buy allowances. Overall, total emissions stay within the emissions target set by Government. Each credit represents one tonne of approved emission reductions created by non-capped emitters that take action to reduce emissions at their site. Carbon credits must be approved by Ontario MOE before they can be sold.
CO2 WebTrade is committed to promoting environmentally responsible business practices in Canada by facilitating trading of carbon credits. CO2 WebTrade is a Registered Carbon Broker with the Ontario Emissions Trading Registry, Account No. B_2011_116.