Will Carbon Credits Become the Currency of the Future While Reducing Global Carbon Emissions?

Abstract

Beneath the canopy of climate agreements, the need for transformative action gains prominence. If carbon emissions remain unchanged, global temperatures could increase 2.7 degrees Celsius by 2050, resulting in a sea-level rise of 0.5-0.7 meters, drastically impacting coastal populations (Krishnamurthy, 2023 & National Ocean Service, 2022). Furthermore, agricultural productivity may decrease by 10-25%, exacerbating food security concerns (International Institution for Sustainable Development, 2023). Urgent action is vital to mitigate these threats and transition to a sustainable, low-carbon future. One solution to this problem is using carbon credit as a tool to reduce carbon emissions. Carbon credits revolutionise emission reduction with a market-based approach. By offsetting emissions, companies will drive investment in cleaner technologies, breaking down barriers in hard-to-change sectors. Proper monitoring and verification will ensure real reductions, reinforcing their role in global climate change mitigation and low-carbon economies. This paper explores the transformative power of carbon credits as a solution to mitigate carbon emissions, highlighting the broader benefits, as well as the social and economic co-benefits of carbon credits. The research will be conducted using databases like Google Scholar as well as other sources like articles, news, and books. At the conclusion of this research, it was deduced that carbon credits hold a compelling role in addressing climate change's complex challenges and advancing a more sustainable future for all.