Carbon Offsetting

A carbon credit is a certificate representing one metric ton of carbon dioxide equivalent that is either prevented from being emitted into the atmosphere (emissions avoidance/reduction) or removed from the atmosphere as the result of a carbon-reduction project. For a carbon-reduction project to generate carbon credits, it needs to demonstrate that the achieved emission reductions or carbon dioxide removals are real, measurable, permanent, additional, independently verified, and unique. Additionally, it is important that appropriate safeguards are in place to ensure projects comprehensively address and mitigate all potential environmental and social risks.

If a project meets these criteria - as specified by independent standards such as Gold Standard and Verified Carbon Standard (VCS) - credits can be issued. For example, in case of a renewable energy project, the amount calculated is the amount of greenhouse gas emissions that the climate protection project reduces or avoids. If the renewable energy project avoids the emission of 1.000 metric tonnes of CO2, 1.000 credits are issued for this project. 

Once issued, these certificates can be traded on voluntary carbon markets. Once certificates are bought, these can be retired. A retired credit can never be traded again. Therefore, the party that retires a certificate can claim the amount of CO2 (in metric tonnes) compensated through these certificates. In the case of our users, Regreener retires the credits their behalf.

Before we invest in a certain project by buying and retiring carbon credits, we discuss the relevant project with one of our Climate Science Advisors, which are experts with a background in climate and environmental science.

Real: There is evidence that this project will actually reduce emissions

Additionality: This requirement ensures those avoided emissions would not have happened without being financed through the carbon offset market. This requirement must be determined by a third party.

Measurable: For a project to be certified it must be accurately measurable.

Permanent: The project must meet a standard to ensure the emission reductions are permanently avoided from entering the atmosphere.

Verifiable: Independent third-parties must be able to routinely verify the project is making the stated emission reductions all through the project’s life.

Leakage: This is to prevent negative side effects of the project operating. For example, a project which reduces emissions in one place, but increase emissions elsewhere as a result, would be considered ‘leaky’.

Gold Standard was established in 2003 by WWF and other international NGOs to ensure projects that reduced carbon emissions featured the highest levels of environmental integrity and also contributed to sustainable development. Gold Standard is a standard and logo certification mark program for non-governmental emission reductions projects in the Clean Development Mechanism (CDM), the Voluntary Carbon Market and other climate and development interventions. It is published and administered by the Gold Standard Foundation, a non-profit foundation headquartered in Geneva, Switzerland. It was designed with an intent to ensure that carbon credits are real and verifiable and that projects make measurable contributions to sustainable development.

Gold Standard is considered the most rigorous climate standard by many NGO's. Gold Standard verified projects provide additional social and community benefits in addition to high quality carbon offsetting. Gold Standard-certified projects have created over $20.5 billion in shared value for climate action and sustainable development.

Verified Carbon Standard (VCS) was founded in 2005 by environmental and business leaders who saw the need for greater quality assurance in voluntary carbon markets. VCS now serves as a secretariat for the various standards they develop and programs they manage, as well as an incubator of new ideas that can generate meaningful environmental and social value at scale. VCS is a global leader helping to tackle the world’s most intractable environmental and social challenges by developing and managing standards that help the private sector, countries, and civil society achieve ambitious sustainable development and climate action goals. 

The VCS Program is the world’s most widely used voluntary greenhouse gas (GHG) program. Over 1.900 certified Verra VCS projects have collectively reduced or removed more than 600 million tonnes of carbon and other GHG emissions from the atmosphere.

The Clean Development Mechanism (CDM) is part of the United Nations Framework Convention on Climate Change (UNFCCC). As the largest regulatory project-based mechanism, the CDM is aimed at financing carbon emission reduction projects in low and middle-income countries. CDM is involved in setting standards and verifying projects. Offset credits are verified and certified by authorized third parties. The CDM is also meant to deliver sustainable development benefits to the host country. CDM projects generate emissions credits called Certified Emission Reductions (CERs).

The impact and quality of a carbon-reducing or -removing project is measured by a third-party (such as Gold Standard) that certifies the project to international standards. These standards ensure that the projects are what we say they are: real, permanent and truely green. The third-party will monitor the project to ensure it delivers to its promises.