Carbon credits represent one metric tonne of CO₂e avoided or removed. They are central to global climate frameworks and can be bought, sold, and retired to offset emissions.
Compliance Credits — Required under legal or regulatory systems tied to climate agreements.
Voluntary Credits — Purchased outside regulations to support climate projects and offset emissions.
1. Emissions Cap
Authorities set a cap that declines over time to drive reductions.
2. Credit Allocation
Credits are allocated or auctioned based on baselines or commitments.
3. Monitor & Report
Organizations track emissions and can sell surplus credits.
4. Trade Credits
Markets enable pricing based on supply and demand.
5. Retire & Offset
Retirement proves a specific quantity of emissions was offset.