Carbon credits represent a verified reduction of one metric ton of carbon dioxide (tCO2e) or its equivalent in greenhouse gases. Companies purchase these credits to offset their own emissions.

Carbon credits are generated by projects that reduce or remove greenhouse gases from the atmosphere, such as renewable energy generation, tree planting, and energy efficiency improvements.

There are various certification standards, carbon credit registries, and regulatory bodies, each with their own requirements and verification processes. Common examples include the Verified Carbon Standard (VCS), Gold Standard (GS), and the Clean Development Mechanism (CDM).

The price of carbon credits varies depending on the type of project, credit quality, and market demand. Prices can range from a few cents to tens of dollars per ton.

The effectiveness of carbon credits depends on the quality of projects and the overall integrity of the carbon market. While there are concerns about possible greenwashing and lack of additionality (reductions that would have occurred anyway), well-designed carbon credit systems can play a crucial role in mitigating climate change.

Purchasing carbon credits can be a way to contribute to emission reduction efforts, but it’s important to remember that individual actions and internal corporate goals, such as reducing energy consumption and transportation emissions, are also crucial.

Several resources provide information on carbon credits, including the websites of carbon offset providers, certification bodies, and NGOs working on climate change. Reliable sources include:
- United Nations Framework Convention on Climate Change (UNFCCC).
- International Emissions Trading Association (IETA).

The regulated market involves countries with norms and laws mandating emission reductions. Periodic studies and measurements indicate the need for compensation.
- Credit prices are monitored by legislators.
- Annual compensation is mandatory.
- Reduction targets are increasing.
- Some international credits are not accepted.
- Global targets are periodically adjusted.
The voluntary market, on the other hand, is driven by companies seeking to offset their emissions ahead of regulations, contributing significantly to preservation and enhancing their ESG metrics and commercial image.
- Prices are negotiated based on the project, duration, and scale.
- It can receive various certification types.
- Extra attention to transparency and traceability is required.
- A good option for specific actions like events, construction, and products.
Both markets and all operations involving carbon credits are concerned with exposure to fraud and greenwashing. Maintaining reductions with seriousness and commitment remains the focus of organizations and administrators in these markets.