Carbon credits are certificates representing the avoidance, or removal of one metric ton of CO₂. These credits are generated through projects that either prevent emissions—such as by using improved cookstoves—or sequester carbon, for example, by reforesting areas previously subjected to deforestation.
Why do companies use carbon credits?
Many organizations, both in Italy and globally, have increasingly ambitious climate goals. To achieve them, it is not enough to reduce emissions associated with their activities; it is essential to also finance external decarbonization projects to offset the remaining CO₂ that cannot yet be eliminated.
This is precisely where carbon credits come into play: reliable and transparent tools to achieve climate neutrality. Each certified carbon credit represents one ton of CO₂ avoided or removed thanks to a verified, registered, and internationally recognized project.
By using carbon credits in Italy and the global market, companies can concretely demonstrate to stakeholders that they have offset their emissions, without resorting to greenwashing or unverifiable claims.
Furthermore, credits allow financing of global decarbonization projects with significant environmental and social impact, particularly benefiting communities most vulnerable to climate change and least responsible for emissions.
But how much is a carbon credit worth? The value of carbon credits varies based on the certification standard, project type, and market demand. Understanding their value helps companies make informed investments aligned with ESG goals.
How do carbon credits work and how are they produced?
Each project generating certified carbon credits must adhere to specific phases based on rigorous international standards:
- Engagement with local stakeholders: Communities must be informed and supportive of the project.
- Approval by national authorities: In accordance with Article 6 of the Paris Agreement, obtaining the necessary authorizations in the host country is mandatory.
- Certification by a recognized standard (like Gold Standard or Verra) An independent third-party entity verifies the technical assumptions and environmental benefits of the project.
- Project implementation with Full Activity Traceability.
- Generation of carbon credits: Credits are issued only after at least one year of operation, following inspection and verification of results by an independent auditor.
- Registration in a public registry: This ensures transparency and traceability of the credits.
- Utilization or sale of credits: Each credit is retired once used, preventing duplication.
Companies aiming to produce carbon credits should partner with experienced entities capable of managing the entire project lifecycle, from the initial concept to final certification.
What characteristics should a carbon credit have?
REALI
CO₂ reductions must result from concrete, verifiable actions that have been genuinely carried out in the field.
MISURABILI
it must be possible to scientifically measure the avoided emissions.
ADDIZIONALI
without the financial support provided by carbon credits, the project would not have existed.
UNIVOCI
Each credit must be unique, assigned only once, and cannot be reused by other parties.
PERMANENTI
The reductions must be long-lasting, with no risk of reversal over the following 100 years.
VERIFICATI IN MODO INDIPENDENTE
an accredited third-party entity must verify the projects and the number of credits they generate.
Want to know more? Write to us!
"*" indicates required fields
