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What is a carbon credit?

Carbon Markets 101


Level: Beginner

5 minute read

What's in the guidebook

Understanding the carbon market is not easy. So let's go back to the very beginning with the most fundamental question. What is a carbon credit? 

Carbon credits are mostly used in the voluntary carbon market (VCM), but are also playing a growing role in compliance carbon markets.

With clear answers to who creates carbon credits, how they're used, the types available, common rules, and what influences the price, our guide is a must-read for anyone looking to delve into this exciting and growing market.

We unpack key terminology such as: Additionality, permanence, carbon dioxide equivalent, emission avoidance, emission removal, nature-based, technology-based, carbon methodology, regulator, registry, project proponent and more. 

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