What are carbon credits?
Carbon credits are certificates that enable companies to compensate their carbon emissions: by purchasing them, companies fund projects where the emission of CO2 is avoided, reduced, absorbed, or removed. Each credit represents one ton of CO2.
What projects can produce carbon credits?
There are three types: carbon avoidance, carbon reduction, and carbon removal.
Avoidance: carbon avoidance credits are obtained from projects that prevent a carbon-emitting activity that emits CO2.
Reduction: carbon reduction credits refer to projects that decrease greenhouse gas emissions compared to prior practices.
Removal: carbon removal credits involve removing CO2 from the atmosphere and securely storing it for decades, centuries, or millennia, depending on the method used. Removal should always be the final step in a mitigation hierarchy, giving priority to avoiding and reducing emissions where possible.
What are carbon removal projects?
Carbon removal projects can be divided into “nature-based” solutions (e.g., reforestation) and “technology-based” or “engineered” solutions (as ours).
Credits are distinguished by their quality, considering factors such as storage durability, verifiability, additionality, and safety. Credits acquired through DACCS, i.e., through the capture of CO2 from the atmosphere with subsequent storage (literally Direct Air Capture with Carbon Storage), are considered to be of the highest quality. Conversely, there have been concerns and doubts regarding the validity of credits obtained through nature-based solutions.
How are they certified?
Certification of carbon credits is conducted by international third-party bodies, specialised in verifying the authenticity of these projects. The accreditation standards followed are globally recognised to ensure the transparency of the entire system.
