If I purchase carbon credits from a company, how do they use the money to help the environment?

Question

Do they use it to plant trees or buy rainforest land or what?

Answer 1

Carbon credits are like pyramid or Ponzi scams a few people make money for a while but in the end only the person doing the selling makes anything and everybody else loses. There was a recent ABC news investigation where they were actually find how the credit was generated. They found a village in India where the credits were being generated by switching their farmers from using tractors to using animals for plowing and other heavy farming work, These credits were being purchased from the farmers at 1 cent per dollar the credit was being sold for on the market.

As to the rain making response it can be done by those who know how. Eject dust particles into a moist cloud along with powdered dry ice (frozen Co2) and you will get rain. But no wet cloud no rain, this is one of the methods that could be used to reduce hurricane intensity except for the religious fervor against the commercial use of extracted Co2.

Answer 2

It sounds like a scam to me - do you recall the selling of indulgences by the Catholic church in the dark ages? One could "buy" access into heaven for loved ones or themselves. I would check an see if any federal regulations even exist that would standardize such things.

Answer 3

There is no regulation of these "carbon credit dollars."  This means the recipient of this money can do with it as they please... Go out to dinner, purchase a vehicle.  This is similar to a charity scam...they say your money goes to help the environment when in actuality, they may just use one penny for every dollar to put towards the environment...the rest going for other expenses...sometimes unrelated.

Please don't fall for this.  It was created simply to generate a buzz.  Many people are caught up in this hype and are willing to give somebody else their money as long as they think they are helping the environment.

If you really want to help the environment, plant a tree yourself.  Don't pay somebody else to do it...while they are profiting from your hard earned money.

Answer 4

Sorry this question is way too complex for my ditzy little head...there is nothing more ditzy than a ditzy sissy.

Answer 5

They keep some and buy advertising to sell more.

Then keep some and buy advertising to sell more.

Carbon credits are a form of money laundering.

How funny that people believe they can control the weather by giving money to strangers!

In 10 years, this is going to sound as bizarre as flat earth believers.  

Right now it is literally like the people who pay "rain makers".

Answer 6

It's a money making scam . They pocket the money .  

Answer 7

It really all depends on the company...some use it for planting trees others give it to farmers.....the main reason companys do it, is to offset their carbon footprint.  Beware of scams...there are companys out there that have not been giving back to the enviroment under the carbon credits.  Do some reserach and see which company is right for you.

Answer 8

Russia, India, and China have credits to sell-- because they are "developing" --- in my opinion this will be a money transfer scheme to the worst polluting countries on Earth.

Answer 9

They are "supposed" to do things that take carbon dioxide out of the air, such as planting trees.  They also find companies that use less than their "quota" of carbon dioxide, and they will "buy" that excess capacity from that company and sell it to you.  

In other words, it is a money laundering scheme that is supposed to make you feel like you are doing something for the environment when all you are doing is buying nothing for something.  AlGore is in the carbon credit business and buys credits from himself so he can have the homes that burn enough energy to power a small town and allows him to fly on his personal jet and ride in limos left with the engine running.  

Sweet little game if you can get a part of it.  Remember PT  Barnum's statement:  "There's a sucker born every minute."  Don't be one of them.

Answer 10

It depends on where you buy them.

There are agencies, like the Chicago Climate Exchange, that "certify" these credits.    A good certifying agency will verify that these credits actually represent a particular amount of carbon abatement.   For example, someone who puts in a solar array, and thus offsets some coal-burning electricty, might be certified for a certain number of credits.   They can then sell these credits to you.

The money that you put down isn't used to fund some future environmental project.  It is used to purchase carbon emission reduction projects that have already been implemented.  

Now, some of these certifying agencies have been called into question regarding exactly what they were certifying, and it seems that some of their certifications were quite questionable.  

But there are more than one certifying agency in the US, so you just need to shop around to find one that is truly reliable.   Usually, this means that you are willing to purchase a large number of credits.   Thousands and thousands of dollars worth.

Do a websearch on "carbon credit certification" for different companies that do this, and for information on why this may or may not be a reliable way to reduce carbon emissions.

Good luck.

Answer 11

They don't.  It's nothing more than a scam to transfer wealth from rich countries to poor.