The minute
- Check that the credit has a traceable serial number in a recognized public registry (like Verra or Gold Standard) before anything else
- Assess additionality: the project only counts if the reduction or removal wouldn’t happen without the credit’s funding
- Consider project type and vintage: REDD+ and nature-based projects cost less than engineered removal, and older credits tend to be worth less
Why it matters: Most reputational problems with carbon offsetting don’t come from bad faith, they come from buying without a checklist and finding out about the flaw only when someone outside the company questions it.
Step 1: confirm the registry
Every real carbon credit has a traceable serial number in a public registry like Verra (VCS) or Gold Standard. If the seller can’t show that, it’s a red flag.
Step 2: ask about additionality
Additionality means the carbon reduction or removal wouldn’t happen without the credit’s funding. Projects that would happen anyway (like a hydroelectric plant already under construction) shouldn’t generate quality credits.
Step 3: understand the project type
REDD+ and nature-based projects tend to be cheaper, but also more questioned on quality. Engineered removal (direct air capture, biomass) costs more but has easier-to-prove additionality.
Step 4: check the vintage
Older credits tend to be worth less because verification standards have evolved, and some buyers prefer recent vintage credits for credibility.
Step 5: read up on reversal and permanence
Forest-based projects carry reversal risk (fire, future deforestation). Ask whether there’s a separate credit buffer to cover that risk.
Frequently asked questions
Is a cheaper carbon credit always worse?
Not necessarily, but a low price usually reflects lower project quality or an older vintage, so it’s worth investigating rather than assuming.
Where do I check a credit’s serial number?
On the registry’s own site (Verra, Gold Standard, among others), searching by project or credit ID.
What is reversal risk?
The possibility that stored carbon (in a forest, for example) gets released back into the atmosphere in the future, through fire or deforestation.
Read next: what a carbon credit is.
Read next: what REDD+ is.