Carbon credits are units of measurement that businesses and organizations can purchase to offset their carbon emissions. One carbon credit is equivalent to one metric ton of carbon dioxide, which is the most common greenhouse gas. Businesses who wish to offset their emissions can invest in various projects that help reduce carbon emissions, such as conserving endangered rainforests or energy-saving cookstoves. These projects are verified by organizations like Verra to ensure that they actually result in a reduction of greenhouse gases.
There are several criteria that a project must meet in order to be eligible for carbon credits. First, the project must result in a net reduction of greenhouse gas emissions. Second, the reductions must be permanent, meaning they cannot be reversed or undone. Third, the reductions must be verifiable, meaning they can be measured and monitored over time. And finally, the reductions must be additional, meaning they would not have occurred without the investment from businesses or organizations seeking carbon credits.
The verification process begins with a project proposal from the organization seeking carbon credits. This proposal is reviewed by a team of experts to assess whether it meets the eligibility criteria. If it does, the team will visit the project site to verify that the project is underway and that it is indeed resulting in greenhouse gas reductions. The team will also collect data to monitor the reductions over time. Once the data has been collected and analyzed, the team will issue a report detailing their findings. If the project continues to meet all of the criteria, it will be registered and made available for businesses and organizations seeking to purchase carbon credits.
Carbon credits provide businesses and organizations with a way to offset their carbon emissions and invest in projects that help reduce greenhouse gases. The standards for carbon credits are set by international organizations like Verra, and the projects seeking credits must go through a rigorous verification process to ensure they actually result in GHG reductions. By investing in carbon credits, businesses can play a role in fighting climate change and helping to create a sustainable future for our planet.
Want to know your business's carbon footprint? Click here to calculate your emissions