What are carbon credits?
Carbon credits, also known as carbon offsets, refer to carbon emissions reductions, measured in tonnes of carbon dioxide equivalent (tCO2e). Carbon credits can be generated through projects which take in carbon from the atmosphere (e.g. reforestation), or reduce the amount of carbon released into the atmosphere (e.g. renewable energy projects). Carbon markets enable the buying, selling, transfer and exchange of carbon credits.
Illustrative lifecycle of carbon credits:
To ensure these carbon credits can truly advance global climate action and ambition, they need to meet a set of environmental integrity principles.
Diagram on environmental integrity principles