What are carbon credits?
Carbon credits are certificates that enable companies to compensate their carbon emissions: by purchasing them, companies fund projects that avoid, reduce, absorb, or remove CO2 emissions. Each credit represents one ton of CO2.
What projects can produce carbon credits?
Carbon credits come in three types: carbon avoidance, carbon reduction, and carbon removal. Carbon avoidance prevents a carbon-emitting activity. Carbon reduction decreases greenhouse gas emissions compared to prior practices. Carbon removal involves removing CO2 from the atmosphere and securely storing it for decades, centuries, or millennia. Removals should always be the final step in a mitigation hierarchy, giving priority to avoid or reduce 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 durability, verifiability, additionality, and safety. Credits acquired through DACCS (direct air capture with carbon storage) are considered to be of the highest quality, while there are increasing concerns about the validity of nature-based credits.
How are they certified?
Certification of carbon credits is conducted by international third-party bodies, specialized in verifying the authenticity of these projects. Accreditation standards are globally recognized to ensure transparency and fairness.