The African Carbon Alliance
African Carbon Alliance Carbon Credits 101
01
What Are Carbon Credits?
Carbon credits are tradable permits that represent the reduction or removal of one metric ton of carbon dioxide (COâ‚‚) or equivalent greenhouse gases from the atmosphere. They are part of a system designed to incentivize companies and individuals to reduce their carbon footprint by supporting projects that capture, reduce, or prevent emissions. Businesses can offset their emissions by purchasing carbon credits and support sustainable practices.
03
Reducing Nitrogen Fertilizers
Reducing or replacing nitrogen fertilizers can earn carbon credits. Nitrogen fertilizers release nitrous oxide, a potent greenhouse gas. By switching to organic alternatives like microbial soil enhancers, farmers reduce these emissions and earn carbon credits for their efforts. These changes help to restore soil health and reduce the environmental impact of conventional farming practices.
05
Biochar Carbon Credits
Biochar is a form of charcoal produced from organic material. When added to soil, it sequesters carbon for hundreds to thousands of years, enhancing soil fertility and water retention. Farmers who produce and apply biochar can earn carbon credits because of its long-term carbon storage capabilities, promoting both soil health and carbon reduction.
02
How are Carbon Credits Sold
Carbon credits are sold through carbon markets. Projects that generate carbon reductions, such as reforestation or soil improvement initiatives, can register their projects and have their carbon reductions verified. These verified carbon credits are then sold to businesses or individuals seeking to offset their emissions. Carbon credits can be traded directly between buyers and sellers or through carbon trading platforms.
04
Altering Farming Practices
Sustainable farming practices, such as crop rotation, cover cropping, and conservation tillage, can sequester soil carbon and earn carbon credits. These practices improve soil structure and fertility while capturing more carbon, contributing to long-term carbon storage and healthier, more resilient ecosystems
06
Soil Sequestration Credits
Soil sequestration credits reward practices that store carbon in the soil, such as regenerative agriculture, agroforestry, and organic amendments. These practices increase soil organic matter, enhancing carbon storage capacity. Farmers implementing these techniques are rewarded with carbon credits, providing financial incentives for sustainable soil management and ecosystem restoration.