Commercialization of Carbon Credits: Strategies for Sustainable Businesses

By Legal Solutions • 3 minute read

The commercialization of carbon credits has become a fundamental strategy for companies seeking to adopt sustainable practices. In this article, we will explore how businesses can effectively implement carbon credit marketing to reduce their carbon footprint. Additionally, they can comply with environmental regulations and make a significant contribution to combating climate change.

What are carbon credits?

Carbon credits, also known as carbon offsets, are tools created for climate actions, typically issued in the form of certificates. They represent the certified reduction or elimination of one ton of carbon dioxide from the Earth's atmosphere, thereby reducing greenhouse gases. Projects that reduce, avoid, or eliminate such gases are responsible for generating these credits.

The goal of trading these credits is to incentivize the reduction of CO2 emissions that occur in other lands or locations. Carbon credits are transferable certificates that can be issued by governments or independent bodies with the necessary certification. Typically, international entities such as the UN, the GOLD STANDARD, or the VERIFIED CARBON STANDARD (VCS) issue carbon credits. To obtain these certifications, international mechanisms assess and verify that greenhouse gas emissions are real and measurable.

Who can trade carbon credits?

Businesses in regulated markets and private companies can buy carbon credits to offset their emissions. They can also trade these credits. The latter sellers engage in trading in markets that are not regulated by entities and whose value can vary.

Where can I market carbon credits?

These sales or transactions can be carried out through intermediaries, known as brokers, as well as through online platforms that facilitate the exchange between buyers and sellers.

Is this trade regulated in Panama?

Executive Decree No. 100 of October 20, 2020, on the mitigation of Global Climate Change, created the National Reduce Your Footprint Program for the management and monitoring of low-carbon economic and social development in the Republic of Panama. The aim of this decree is to provide information on ways to reduce our carbon footprint, using plans and tools that will be managed by the MiAmbiente entity.

The carbon credit market is quite extensive and still remains unknown globally, highlighting the need for greater dissemination and understanding of its operation and benefits. If you are looking to create an offshore company based on sustainable strategies, we recommend Panama as the ideal destination. At Legal Solutions Panama, we are ready to help you with the opening of your company, do not hesitate to contact us.

By Alina González