The snags of Carbon Banking

Carbon banking is a system where an intermediary connects farmers with companies seeking to compensate for CO2 emissions. In this model, farmers sell the CO2 rights from their trees, which absorb carbon, to polluting companies as a form of CO2 compensation.

Carbon banking works by allowing farmers to sell CO2 rights from their assets, like mango trees that absorb carbon dioxide. Companies that are polluting can then purchase these rights to compensate for their own emissions, with an intermediary like Rabobank facilitating the transaction.

The benefits for farmers include removing financial barriers to going green by providing money from the sale of CO2 rights. This income helps them earn back their investment in trees, which also offer extra income from fruit sales and protect livestock and crops from heat.

This carbon banking initiative is designed for companies that are already working on sustainability. The program's goal is to avoid working with businesses that 'remain gray' and are not actively pursuing sustainability improvements.

Hedgehog can assist your business with CO2 compensation by connecting you to sustainable projects through its network of partners. The company is affiliated with various compensation partners, each managing a specific sustainable compensation project.