Climate change is one of the most pressing global challenges, driven by the rising concentration of greenhouse gases from fossil fuel combustion. Its consequences of rising sea levels, shifting weather patterns, and an increasing frequency of extreme events demand urgent action. Transitioning to renewable energy, conserving resources, and adopting sustainable practices are imperative to address this crisis.
The Kyoto Protocol, an international treaty established by the United Nations, introduced mechanisms such as carbon credits and the Clean Development Mechanism (CDM) to reduce global emissions. Carbon credits create a market-driven approach by allowing companies to offset their greenhouse gas emissions through tradable allowances, incentivizing emission reductions. The CDM further enables industrialized nations to invest in sustainable projects in developing countries, earning carbon credits while fostering environmental and economic benefits for local communities.
This study examines the functioning and significance of carbon credits and the CDM, exploring their market dynamics and the evolution from the Kyoto Protocol to the Paris Agreement. It highlights the environmental and economic benefits of carbon credits, the business opportunities they present, and the critical role of sustainable practices in combating climate change. By analyzing these mechanisms, the study underscores their potential to drive meaningful global action toward a low-carbon, sustainable future.
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Journal of Civil and Environmental Engineering received 1798 citations as per Google Scholar report
