I came across this concept of carbon credits the other day and found it extremely intriguing. To my understanding, they are credits that allow companies to pollute the environment to a certain extent each year and companies that don’t pollute that much can sell their credits to other companies. The idea is that in the future, governments can basically reduce the carbon allowances of all companies (essentially reducing supply) and the price per carbon credit will rise accordingly. I am assuming that eventually (or maybe even currently, I literally cannot find much) that carbon credits are a need for certain companies that are under the jurisdictions of where this system has been implemented, meaning companies will have to buy and sell carbon credits.
That’s what I understood from this concept, did I get it right? And if I did, what are the barriers to carbon credits that might stop it from being a good investment?
I really want to jump into it now while the concept is still young but I don’t know too much about it so I am unsure if it is a sustainable long term investment
Submitted October 14, 2021 at 06:02AM by mavyapsy https://ift.tt/3BIOe3B
