What Are the Important Terms for Carbon Credits?

Voluntary: There is no regulation or requirement to generate or purchase voluntary carbon credits; they are available for purchase by anyone who wants to fund carbon reduction, from individuals to businesses.

Additionality: A key concept in carbon credits; this means that the project wouldn’t have happened without carbon credit revenue, leading to a genuine reduction in emissions.

Reduction and Removal: Reduction (or avoidance) carbon credits are generated by projects that reduce a source of greenhouse gas emissions, like landfill gas capture. Removal carbon credits are generated by projects that remove CO2 from the atmosphere like forestry or direct air capture.