To transition into a decarbonised economy, it is fundamental to establish carbon markets and related instruments for public and private sectors. Carbon pricing, carbon credits, and offsetting mechanisms are part of the climate policy packages that are needed to reduce global emissions. In most cases, they are also a source of revenue for both public and private sector organisations.
Carbon credits and offsetting the residual carbon emission are one of the final steps to achieve Net Zero goals. Once the annual carbon emission targets are achieved upon implementation of emission reduction measures, an organisation should offset the residual emissions. Following this approach, countries and organisations will be positioned on the net zero journey and work towards the long-term targets while offsetting the annual emission impact.
In addition, AESG supports public and private sector organisations to develop voluntary or regulated carbon markets based on the emission trading schemes (in alignment to the joint implementation and clean development (CDM) mechanisms) to facilitate efficient and cost-effective solutions to assign a price on the social costs of emissions.
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