Carbon credits are tradable certificates that represent the removal or reduction of one metric ton of carbon dioxide (or its equivalent in other greenhouse gases) from the atmosphere. They're part of a market-based approach to mitigating climate change by giving businesses and individuals a way to offset their carbon emissions.
Carbon credits originate from verified projects that reduce or remove emissions, like reforestation, renewable energy, or methane capture. Once a project reduces emissions, it earns credits, which can be purchased by organizations or individuals looking to offset their own emissions. These credits are then retired, ensuring they can’t be reused.
There are multiple types of carbon credits such as:
Carbon credit prices vary widely by region, project type, and certification body. For example, forest conservation in Canada may be priced differently than renewable energy in Europe. Additionally, regulatory requirements and market maturity affect availability and cost.
Here are a few examples:
Compliance markets are regulated by governments and require certain industries to offset emissions as part of legal requirements.
Voluntary markets allow companies and individuals to purchase credits proactively to meet internal sustainability goals or improve their environmental footprint.
Yes, Capso — which physically remove CO₂ from industrial emissions — can be eligible to generate carbon credits if they meet verification and reporting standards set by government or third-party certifiers.
Prices can differ based on project type, location, verification standards, and market demand. For example, credits from nature-based projects in developing countries may be priced differently than those from industrial capture projects in developed regions.
Legitimate carbon credits come from projects that have been verified by recognized certification bodies (like Verra, Gold Standard, or government programs). These credits are registered and tracked to ensure transparency and prevent double-counting.
Yes, when they’re high-quality and verified. Carbon credits support emission-reduction efforts that might not happen otherwise, from preserving forests to scaling technologies like carbon capture and utilization.
Both! Individuals can purchase carbon credits to offset personal emissions (like flights or daily energy use), while companies use them to balance operational footprints or meet regulatory requirements.
Capso’s carbon capture systems remove CO₂ directly at the source — making the reductions measurable and eligible for government-backed carbon credits. By installing Capso’s systems, companies may qualify for credits through applicable programs while also reducing their emissions footprint.
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