What Are Carbon Credits?

Carbon credits are permits representing one ton of carbon dioxide (or its equivalent) removed from or prevented from entering the atmosphere. They are generated by certified climate action projects, such as renewable energy installations, forest conservation, and methane capture initiatives. These credits play a crucial role in reducing global emissions by incentivizing businesses and individuals to fund activities that actively mitigate climate change.

Carbon credits must meet rigorous standards to ensure their effectiveness:

• Measurable: The reductions must be quantifiable.

• Permanent: The emissions reductions are irreversible.

• Unique: Each credit represents a specific reduction and cannot be double-counted.

• Verified: Independent third parties verify the project's credibility.