A carbon credit represents one metric tonne of carbon dioxide equivalent reduced, avoided or removed under a defined quantification programme. The unit is only the final output of a longer process involving project design, monitoring, independent verification, issuance and retirement.
How a credit is created
A project selects an approved methodology, defines the baseline and demonstrates additionality. An independent validation and verification body reviews the design. After implementation, the project monitors performance and completes verification for a specific period.
The registry then issues serialised units equal to the verified net outcome after deductions for leakage, uncertainty, buffers and project emissions.
Reductions, avoidance and removals
Reduction and avoidance projects prevent or lower emissions compared with a baseline. Examples include methane destruction, refrigerant abatement and clean transport.
Removal projects take carbon dioxide out of the atmosphere and store it in biomass, soils, products or geological formations. Storage duration and reversal risk vary significantly.
What retirement means
A buyer can hold or transfer a credit, but a climate use normally requires retirement. Retirement permanently removes the serial number from circulation and records the beneficiary and purpose.
How buyers compare quality
High-integrity procurement examines additionality, baseline conservatism, MRV, permanence, safeguards, legal title, delivery and use-case eligibility. Registry certification is necessary but not sufficient for every claim.
Buyers should also distinguish spot inventory from forward supply. Forward contracts can finance project growth, but they carry validation, construction and delivery risk that should be reflected in milestones and remedies.
Carbon credits within a climate strategy
Credits should complement a measured emissions inventory and funded decarbonisation plan. Gross emissions and internal progress remain visible, while credit use is reported separately and transparently.
Explore Sentinel Earth's projects or our services for corporate carbon credit buyers.
