A carbon credit is a certificate that represents one ton of carbon dioxide cut or removed somewhere else. Companies buy them to balance emissions they cannot avoid yet.
How credits are made
A project, such as forest protection or a removal technology, shows that it reduces or removes emissions. An outside group checks the claim, and then credits are issued and sold.
Why quality varies
Some projects would have happened anyway, some cannot prove the savings, and some reverse later if a forest burns. Good credits are real, extra, lasting and checked by a third party.
How companies should use them
Cut your own emissions first. Credits work best as a small final step, not a replacement for real reductions. Be clear in public statements about how much comes from cuts and how much from credits.
Where to find guidance
The Integrity Council for the Voluntary Carbon Market publishes principles for high quality credits.
The takeaway
Carbon credits can help, but only with strong checks and honest wording. Pair them with a clear plan, as explained in our guide to net zero.
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