is a mechanism that advances climate action by supporting certified third-party projects that contribute to the reduction or removal of greenhouse gas (GHG) emissions.
Certified projects issue carbon credits, also referred to as offset credits or offsets, which act as an instrument for selling or trading the project’s associated removal or reduction impact. Each carbon credit represents a single unit of GHG emissions–one credit equates to one tonne of carbon dioxide equivalent (tCO2e) that is reduced or removed from the atmosphere or the emissions life cycle. A key defining factor is that the emissions reduced or removed by a carbon credit would not have taken place without the prospect of selling such a credit. A unit of GHG emissions can be reduced or removed through various methods or project types.
A project's ability to issue carbon/offset credits depends on a set of rigorous conditions – in order for a project to issue credits, the emission reductions or removals must be validated as additional, measurable, auditable, permanent, and unique.