What are carbon credits and how do they work?

03 June 2022

Carbon credits are measurable, verifiable emission reductions from certified climate action projects. These projects reduce, remove or avoid greenhouse gas (GHG) emissions. But they also bring a whole host of other positive benefits, for example: they empower communities, protect ecosystems, restore forests or reduce reliance on fossil fuels.

Projects must adhere to a rigorous set of criteria to pass verification by third-party agencies and a review by a panel of experts at a leading carbon offset standard like Verra or Gold Standard.

After an organisation or an individual buys a carbon credit, the credit is permanently retired so it can’t be reused.

Learn more about carbon credits.