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Carbon Credits

What is a carbon credit?

As a significant emitter of CO2, our consumer society inevitably impacts our planet and its ecosystem. In this context, the mechanism of carbon credits was created to work on an integrated decarbonization process.

A carbon credit represents the avoidance or removal of one metric ton of carbon dioxide equivalent (CO2e) emissions, in the form of a credit. These market-based instruments enable the avoidance, reduction, or removal of emissions where it is most economically sensible.

There are different types of carbon credits, each corresponding to a specific climate change mitigation strategy:

Carbon avoidance credits

Carbon avoidance credits are generated when it is possible to prevent or reduce CO2 emissions that would have otherwise occurred. This is particularly the case with the production of electricity from renewable sources (such as wind or solar), or the recovery and combustion of methane from landfills to produce clean energy.

Carbon removal credits

These credits are generated when carbon is directly extracted from the atmosphere. This is made possible through technologies such as Direct Air Carbon Capture and Storage (DACCS), which remove carbon dioxide from the atmosphere and securely store it underground.

Types of Carbon Credits

Carbon credits can be classified into nature-based credits, which stem from ecosystem restoration and conservation projects, and technology-based credits, which are generated through advanced processes:

  1. Forestry and land use (afforestation and reforestation, improved forest management, agroforestry);
  2. Energy efficiency;
  3. Renewable energy production;
  4. Waste management;
  5. Marine and coastal ecosystems restoration (Blue carbon).

What is the mission of carbon credits?

Carbon credits play a crucial role in the fight against climate change through various fields of intervention:

1
They are integrated into a global approach of Measuring, Reducing, and Offsetting greenhouse gas emissions, for instance, based on scientifically founded objectives.
2
They reflect the commitment to take responsibility for generated emissions and to act accordingly.
3
By assigning a cost to carbon, they aim to modify individual and collective behaviors.
4
They contribute to the financing of projects aimed at preventing or neutralizing greenhouse gas emissions.
5
They send a clear signal to policymakers, urging them to act more decisively and quickly.

Although essential to any well-crafted greenhouse gas emissions reduction strategy, carbon credits should be used as part of a broader sustainability approach, ideally based on scientific objectives to measure, reduce, and offset residual emissions. Thus, carbon credits are not used as a substitute, but rather as a component of a comprehensive decarbonization strategy.

When choosing carbon credits, it is important to favour those aligned with international best practices and recognized for their reliability. It is also wise to extend your efforts and opt for carbon credits that offer co-benefits aligned with the United Nations Sustainable Development Goals.

How Nvalue can assist you

How Nvalue can assist you

Nvalue operates as an expert and trustworthy partner, with an extensive network in the field of carbon credits. Thanks to our expertise, we fully grasp the challenges associated with selecting and acquiring credits from carbon projects, allowing us to guide you effectively in the voluntary market. We collaborate with organizations of all sizes to realize a multitude of climate strategies. With our international carbon network, we support you in overcoming the complexities of the carbon offset market, and we develop a tailored plan that respects your budgetary constraints and sustainability ambitions.

How do we do that?

  1. We assist in identifying the right project or portfolio of projects that match your needs and source them for you.
  2. Our portfolio also includes a diverse range of high-quality carbon credits, available quickly and cost-effectively, to meet your preferences and budgetary constraints.

With offices across Europe, the United States, and a strategic partnership in Asia, we are the ideal partner to provide you with responsive and effective support.

Start your decarbonization journey with us