The European Union has established that certified carbon credits, generated according to certified methodologies also in Africa, can be used to achieve climate targets by 2040. This is a very important step that introduces a further level of carbon credit use and turns them from a voluntary tool into an almost mandatory tool for achieving emission reduction targets.
Their use is limited to 3% of 1990 emissions, or approximately 150 million tons of CO2 per year. The European Union is only the latest institution to formally introduce carbon credits into official mechanisms: other countries such as Japan, Switzerland, and Norway had already begun, as well as entire sectors such as aviation with CORSIA credits.
On the one hand, this move will have the effect of introducing new rules and new levels of control over projects that generate carbon credits, which is certainly positive. On the other hand, however, it will also lead to an increase in demand and therefore an increase in the prices of high-quality credits.
It is likely that the European mechanism will be based on the provisions of Article 6 of the Paris Agreement, which is only now, after 10 years, beginning to be implemented.
OffgridSun is already actively working to obtain Letters of Authorization (LoAs) from the countries hosting our projects in order to make the carbon credits generated available for this new European market as well.
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