Carbon Credits: Mechanism for Sustainable Business Opportunities and Environmental Benefits
In an era where climate change is escalating rapidly, carbon credits have become a topic of great discussion. According to data from the Harvard Business Review, more than one in three of the world's largest corporations, totaling around 2,000 companies, have announced goals of achieving Net Zero Emissions. This is because carbon credits, with their intriguing mechanism, not only benefit the environment but also have positive implications for businesses' operations, organizational image, and long-term stability.
What are Carbon Credits and Why are They Important?
Although the term "carbon credits" may sound technical, it's not as complicated as it seems. Essentially, carbon credits act as permits that allow organizations to emit carbon up to a certain predefined limit. Therefore, the number of credits issued to an organization signifies the limit on greenhouse gas emissions. Conversely, if an organization manages to limit emissions below the specified value, it accumulates excess carbon credits, which can be saved for future use or sold on the carbon market. However, it's essential to note that these carbon credits must meet certification standards from various accredited agencies beforehand.
Currently, carbon credits mainly come from two types of projects:
Emission Reduction/Avoidance Projects: These projects focus on preventing or reducing greenhouse gas emissions. Examples include renewable energy projects, energy efficiency improvements, and waste management initiatives.
Removal or Nature-based Sequestration Projects: Unlike the first type, these projects aim to capture and store carbon dioxide from the atmosphere. Methods include afforestation, reforestation, and other land-use practices.
What do Businesses Gain from Carbon Credits?
Environmental Friendliness and Green Image: Having carbon credits enhances an organization's credibility by demonstrating its commitment and goals to reduce carbon emissions. This showcases responsibility towards society and the environment, attracting like-minded business partners and contributing to long-term environmental conservation.
Business Opportunities: Statistics from The Roundup show that over 78% of consumers prioritize environmentally friendly products and services. Additionally, sustainable products have a 32% larger market growth rate and grow 2.7 times faster than regular products. Therefore, participating in carbon credit projects promotes business expansion opportunities by tapping into new customer segments.
Cost Savings: Managing resources efficiently to achieve carbon credit goals directly impacts production cost reduction. Moreover, if organizations have surplus carbon credits, they can either sell them or use them to offset energy costs. This efficient resource management leads to overall cost savings.
Presently, the management of carbon credits is overseen by the Thailand Greenhouse Gas Management Organization (TGO), with various industrial sectors participating in ten branches of projects. As of 2026, certified carbon credits amounted to 4.7 MtCO2e, with a trading volume of 1.2 MtCO2e at an average price of 108 Baht/tCO2e. Although this price may be lower than the global average, it reflects the awakening and environmental awareness within the business sector.
In conclusion, carbon credits offer a compelling mechanism for organizations to align environmental goals with business objectives, fostering sustainability, credibility, and cost-effectiveness in the long run.
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