The impact of green house gases (GHG) in the atmosphere is not the same for all. Each GHG has a different energy absorption potential and life cycle.

Methane (CH4) gas GHG potential is 21 times larger than CO2 and Nitrate Oxide (N2O) is 310 times larger than CO2. This difference made necessary a way to compare the emission reduction effect of each GHG. Equivalence was created to compare any GHG to CO2, in this manner any gas will now have a standard to represent its green house effect impact on the atmosphere.

This homogeneous unit is known as CO2 equivalent (CO2eq or CO2e). A ton of CO2 equivalent gas is called a “carbon credit”. A carbon credit can be traded in the international market. This way, developed countries with a carbon debt can purchase carbon credits to accredit their contribution to reduce emissions of GHE gases in the world.

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