Carbon credit: definition and how it works
A carbon credit represents one tonne of CO2 equivalent avoided or sequestered by a project (reforestation, renewables, etc.). It is traded on the voluntary market.
How it works
A certified project generates credits, bought by companies to finance emission reductions elsewhere. Quality is crucial: additionality, permanence, verification and no double counting. Not all credits are equal.
Using them well
Credits serve to finance the transition and neutralise residual emissions, after reduction, not instead of it. UltraCarbon prioritises measurement and reduction; offsetting is a complement, never an alibi.
Frequently asked questions
Carbon credit and allowance, the same?
No. A credit belongs to the voluntary market; an allowance (EU ETS) belongs to a regulated market mandatory for certain sectors.
Does buying credits make you neutral?
Not on its own. A credible claim first requires strong reduction; credits only cover the residual.