How to Perform Diligence on Sustainability in M&A
M&A Science
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What Are Carbon Credits?
Carbon credits are tradable certificates or permits that represent the right to emit a certain amount of greenhouse gas into the air. What they represent is a equivalent offset project such as reforestation that would sequester the same amount of greenhouse gases from the atmosphere. The carbon credits market is, it's kind of the Wild Wild West right now, especially the voluntary carbon credits market. It's rife with issues of greenwashing, truthfully speaking, and sometimes double counting.
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