Carbon Credits

What are Carbon Credits?

Carbon Credits are a tool within the compliance and Voluntary Market that allow institutions to offset their Carbon Footprints, or the carbon emissions that they produce. Each Carbon Credit has the value of 1t\co2e. They are traded or retired with the Climate Change market and are available to any entity wishing to reduce the effect of their carbon emissions. Credits can be used to finance carbon reduction schemes around the world.

Carbon Credits, their Creation and Validation

Carbon Credits are created through the implementation of a Carbon Project. a business initiative that receives funding because of the resulting cut in the emission of greenhouse gases (GHGs) To prove that the project will result in real, permanent, verifiable reductions in greenhouse gases, proof must be provided in the form of a project design document and activity reports validated by an approved third party. Reductions must be additional to what would be created under a "business as usual" scenario.

Once the Carbon Project has been initiated, the credits are sold to companies interested in reducing their carbon footprints. The quality of the credits is based in part on the validation process and sophistication of the fund or development company that acted as the sponsor to the carbon project. Other elements such as technology, location, additionality and vintage, all have a bearing on the price an offsetter will pay for their Carbon Offset. Any Carbon Credit (offset) must prove additionality in order to ensure legitimacy, this is also true of voluntary carbon offset projects.

There are several types of credits, VERs \ VCUs, CERs, AAUs \ EUAs, some are created under the Clean Development Mechanism, while others are Pollution Permits, they all have different values.

Purchasing credits, whilst offsetting worldwide emissions can, in many cases, contributes to third world sustainability. This is provided in the form of technology, investment, local employment and better facilities resulting from the Carbon Project.

Buying Carbon Credits

ecotomy assures that only the most transparent and verifiable Carbon Credits are sold through its exchange. This high standard is obtained by adhering to the "Planet Positive Carbon Offset Procurement Policy" which reflects our up-to-date and demanding requirements when sourcing Carbon Projects.