Are carbon credits helpful to the environment or just a way for companies with cash to “greenwash” their reputations? The answer is yes and yes.
Carbon credits do provide investment capital to execute carbon reductions strategies such as planting trees, capturing methane from landfills, or encouraging companies to exceed their emissions limit goals.
But there are also situations where credits are more a public relations ploy for the company acquiring them. Carbon credits work best in situations where a company can’t effectively reduce its carbon footprint.
The dubious nature of carbon credits comes into play when they are used by companies that have viable emission-reduction strategies available but choose not to pursue them. Much also depends on the origin of the credits. And there is a difference between carbon credits and carbon offset. More on that in future videos.