Google: Google will buy carbon credits, know what it is and why companies are buying it?

What are carbon credits?

A carbon credit means a company is allowed to emit one metric ton of carbon dioxide (CO₂) or another greenhouse gas. It's a tradable asset, similar to a stock or commodity, meaning companies can buy and sell it. Carbon credits are generated from environmental projects that reduce or eliminate pollution, such as planting trees, generating solar energy, wind energy, or building energy-efficiency projects.

Why do companies buy carbon credits?
If a company's pollution exceeds a set limit, it must purchase carbon credits from companies that have polluted less than their emission limits. This helps maintain the overall pollution balance. Some companies also voluntarily purchase carbon credits to offset emissions that are difficult to completely prevent. This demonstrates that they are not only complying with the law but also acting responsibly toward climate action. When a company purchases carbon credits, it sends a message to customers, investors, and society that it takes the environment and climate change seriously. This increases both trust and brand value. Purchasing carbon credits funds projects that contribute to environmental improvement, such as tree planting, solar or wind power projects, and energy-efficient stoves or technologies. These not only reduce pollution but also provide employment and health benefits to local people.

Google to Buy 200,000 Metric Tons of Carbon Credits
Google announced on Thursday that it will purchase 200,000 metric tons of carbon credits from the Brazilian company Mombak. Under this project, agricultural land will be purchased and reforested to improve the environment. The deal was struck through the Symbiosis Alliance, which aims to create a robust market for nature-based carbon removal projects. The initiative is supported by major companies such as Google, McKinsey, Meta, Microsoft, and Salesforce. 

Such projects have many benefits, such as replenishing water sources in the forest, promoting biodiversity, and naturally balancing the environment. These are tasks that technologies like direct air capture cannot accomplish. However, there are some challenges, such as a forest fire or a natural disaster, that could jeopardize the entire project. Google has said it will use its DeepMind Perch AI system to measure and track the biodiversity benefits of these projects.

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