What are carbon bonds?

Since the last century, the world has tried to control the emission of greenhouse gases to prevent global warming. In 1997, carbon credit bonds were created during the signing of the Kyoto Protocol.

The international agreement established that all initiatives that prevent the emission of carbon into the atmosphere must be financially rewarded; in other words, every ton of CO² that was not released into the atmosphere was transformed into a carbon offset bond.

In addition to generating income for those who preserve the environment, the carbon offset title allows for more flexibility in the goals presented by countries seeking to reduce carbon emissions into the atmosphere.

With carbon offset bonds, companies and countries can achieve zero carbon emissions. Each bond is issued by the Clean Development Mechanism (CDM).

Each country has its legislation on the trading of carbon offset bonds on the market. Currently, each security is traded for around R$70 in the Brazilian market, for example.

As well as Light DeFi, which represents the tokenization of renewable energy production, there are also tokens related to carbon offset bonds, such as Moss Earth (MCO2), for example.

Used to offset carbon emissions by large companies such as iFood and Gol, MCO2 is a carbon offset bond turned into a cryptoactive.

 

Source: ZD Net

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