A voluntary carbon credit is a non-mandatory emission reducing credit that can be used offset one’s carbon footprint.
A voluntary carbon credit is a non-mandatory emission reducing credit that can be used offset one’s carbon footprint. These credits are tradeable products that are worth one tonne of carbon dioxide (CO2) emissions reduction per credit.
Carbon credits are issued by certifying institutions and generated by abiding projects around the world. International organisations and individuals purchase these credits to compensate for their emissions. They can be used for one’s Scope 1 and Scope 3 GHG scope emissions. Scope 1 emissions come directly from the operations and scope 3 are indirectly emitted from one’s supply chain. Carbon credits are able to be redeemed on an electronic registry once so no double counting is possible. They can be used as proof of offsetting one’s carbon emissions in a sustainability or environmental report.
Types of VER
There are several types of carbon offsetting projects:
- Emission Removal Projects: Extracting greenhouse gases out of atmosphere. Most of these projects are nature based (forestry) or Technology Based (Direct Air Capture)
- Emission Avoidance: Projects that prevent greenhouse gasses from being released into the atmosphere.
Purchasing carbon credits has more of an impact than just offsetting one’s emissions. The capital from the sale of credits can be used for developing communities, clean water, biodiversity, and welfare. Each project has wider benefits, they can contribute and meet the following UN Sustainable Development Goals (SDG) through social, economic, and ecological gains. Macht Renewables is partnered with several projects around the world and can offer unique and tailored carbon offsetting solutions.
Macht Renewables is a sustainable solution company based in London, serving clients across the UK and around the world. As experts in ESG and sustainability, we’re passionate about helping our clients achieve their sustainability goals.