What are carbon credits and why are they important?

CO2 is a greenhouse gas, like methane and nitrous oxide. All greenhouse gases can be converted to CO2 equivalents. This conversion is called CO2-equivalent. For instance, 1 kilogram of methane is equivalent to 28 kilograms of CO2. By converting all greenhouse gases of an organization to CO2 equivalents, you obtain a total carbon footprint. This allows comparisons of sustainability performance between companies.

When you financially support a project that removes carbon from the air or reduces carbon emissions, you receive a carbon credit. One carbon credit equals one tonne (1,000 kg) of removed or prevented carbon.

Yes, there are various types of sustainability projects across different countries. These projects employ different methods to offset carbon emissions. Some projects focus on agriculture, agroforestry, or reforestation to offset carbon. There are also blue ocean projects that utilize opportunities from seas and oceans. Biochar projects involve converting organic waste materials into biochar, a substance that can sequester carbon. Direct Air Capture projects use machines to remove carbon from the air. REDD+ projects aim to prevent deforestation and forest degradation.

When you purchase carbon credits from ecommit, we register the carbon credits in your company's name. The moment you purchase carbon credits does not have to be the same moment you use them. The act of actually using your carbon credits is called retiring. When you retire your carbon credits (now or in the future), the carbon removal is attributed to your company. Once retired, carbon credits can no longer be used or sold.

When you contribute to a sustainability project, you need to trust that everything is done correctly. Certification ensures this. Certification involves thorough monitoring of the project from its initial planning stages through to implementation. For instance, in a reforestation project, details such as tree species, trunk diameter, growth process, and total carbon capture, also known as carbon dioxide removal (CDR), are carefully documented. If everything complies with the rules, the project can issue valid carbon credits.

No. Offset is always realized in solid sustainability projects. There, a so-called holding pool ensures that offsetting is guaranteed. The holding pool contains carbon credits that are deliberately set aside each year to cover the shortfall in carbon uptake in the event of a fire, but also in the event of drought or insufficient carbon storage, for example. The size of this holding pool is included in the project plan.

The European Union Emission Trading System (EU ETS) is called the mandatory carbon market. It targets 15,000 European companies and 1,500 airlines responsible for 45% of the EU's total carbon emissions. These companies must compulsorily buy emission allowances. For every tonne of carbon emissions, they must surrender one allowance. Each year the number of allowances is reduced, forcing the companies to produce more sustainably. The voluntary carbon market is for companies not covered by the EU ETS. They buy carbon credits from projects that take carbon out of the air or ensure that less carbon enters the air.

Your company’s carbon emissions can be avoided, reduced, and/or offset. Avoiding and reducing emissions involves changing, limiting, or stopping certain activities altogether. Offsetting, on the other hand, means contributing financially to sustainability projects that remove the carbon emissions you cannot eliminate from the atmosphere, either partially or entirely.

Offsetting (part of) your carbon emissions is not the only step towards sustainability. However, it is an action you can implement quickly. Measures to permanently reduce your company’s emissions often take more time to implement, but they are crucial. Consider sustainability actions such as switching to renewable energy sources, adopting electric vehicles, improving insulation, and reducing waste. You can also optimize business processes, upgrade equipment, and implement recycling programs. The more you manage to reduce your emissions, the less you will need to rely on offsetting.

CDR stands for carbon dioxide removal. Other terms used to describe this process include carbon offsetting, carbon capture (and storage), and CO2 capture. These terms refer to the same concept: the removal of carbon dioxide from the atmosphere after it has been emitted.

You can mitigate, reduce, and/or offset the carbon emissions of your company. Mitigation and reduction involve choosing not to perform certain activities in your business, altering them, or limiting them. These changes require adjustments, investments, and time. Offsetting involves paying to remove (part of) the carbon you have emitted from the atmosphere. This action can be initiated promptly.

Ecommit can advise your company on any questions regarding carbon emissions. We only sell carbon credits from certified and registered projects. This ensures that the project is constantly monitored and that it effectively contributes to carbon offsetting. Ecommit neutralizes the carbon credits and provides your company with all necessary documents for accounting and reporting. All transactions are tracked by blockchain.

Carbon offsetting involves removing CO2, or carbon dioxide, from the air that you (currently) cannot avoid or reduce. Sustainability projects aim to either capture carbon from the air or reduce the amount of carbon emitted into the atmosphere.

Carbon offsetting is absolutely meaningful. In fact, it is essential for achieving the goal of limiting global temperature rise to 1.5 degrees Celsius by 2050, as outlined in the Paris Agreement. Research* indicates that solely avoiding and reducing carbon emissions will only achieve about fifty percent of the necessary reduction level. Carbon offsetting is seen as the only way to bridge that gap.
* Source: The State of Carbon Dioxide Removal (2023)

Every person, every company emits carbon. Driving cars, using electricity, sending emails - almost all our actions result in emissions. Scientists have determined that carbon levels in the atmosphere are increasing, leading to global warming. To mitigate this warming, many initiatives have been developed to remove carbon from the air. These include projects that harness the potential of plants, trees, and oceans to store carbon. There are also machines designed to capture carbon directly from the atmosphere. However, these projects require investment to operate. Issuing carbon credits is a way to finance these initiatives.

Ecommit collaborates with climate projects both domestically and internationally that offset carbon or that ensure that less carbon is released into the air. Before investing in any project, thorough research is conducted. The project must be certified, and its carbon credits registered. Subsequently, ecommit offers carbon credits in any desired quantity.

A climate project removes carbon from the air. Nature provides various opportunities for this, including plants, trees, and oceans storing carbon. There are also technological solutions, such as machines that capture carbon from the air or water. To implement these groundbreaking initiatives, funding is required. Ecommit invests in diverse climate projects carefully selected based on rigorous criteria. Your company can purchase carbon credits from one of these projects. This way, you offset carbon emissions and promote sustainability within your business.

Reducing or even preventing emissions is the best course of action. However, this is not something that can be achieved overnight. Your company needs to explore feasible alternatives, which involves significant investments and adjustments to business processes. To achieve climate goals, Oxford University advocates for companies to start offsetting emissions now. By reducing emissions, the reliance on offsetting can be gradually reduced in the future. However, there will always be residual emissions, necessitating ongoing carbon offsetting efforts.

Although carbon offsetting and carbon removal are often used interchangeably, the terms do not mean exactly the same. Carbon removal involves removing carbon that is in the atmosphere. There is also carbon reduction, which involves ensuring that less carbon is released into the air. Carbon offsetting means taking emitted carbon out of the air elsewhere (removal) or emitting less carbon elsewhere (reduction). Other terms often used are: CDR or carbon dioxide removal, and carbon capture.