What are carbon credits?

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 your company purchases a carbon credit from ecommit, we register the carbon credit under your company's name. When you decide to announce to the public that you have offset carbon emissions, we record that the carbon credit has been used. This process is called retirement. It means the carbon credit becomes inactive and cannot be used again. By officially registering carbon credits in this manner, ecommit ensures that the offset is always attributed to the purchasing company, and that a carbon credit cannot be resold.

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 no carbon enters the air.