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Carbon Credits

What are carbon credits and how do they work?

Leia em português → By contadoracriptooficial@gmail.com · Updated 11/08/2026, 00:32 · ⏱ readable in 64s
The minute
  • One credit equals one tonne of CO2e that was avoided or removed from the atmosphere
  • It only exists after independent verification and issuance in a registry such as Verra
  • When someone offsets with it, the credit is retired and leaves circulation for good

Why it matters: Understanding the lifecycle is what separates a defensible offset from a purchase that collapses under the first question.

How a carbon credit is created

A project (protected forest, biogas, fuel switching) measures how much it avoided against a baseline. An independent auditor verifies the calculation and the registry issues the credits, each with a unique serial number.

Who buys them and why

Companies offsetting residual emissions, event organisers, and increasingly companies covered by compliance markets. In Brazil, Law 15,042/2024 created the SBCE and brings domestic demand to supply that is almost entirely exported today.

What they cost

Roughly 7 to 24 euros per tonne for nature-based projects, and above 1,000 euros for engineered removals. Price follows project type, rating and vintage.

Frequently asked questions

Is a carbon credit the same as an offset?

No. The credit is the asset; the offset is the act of retiring that credit in the emitter’s name.

Who guarantees the credit is real?

Independent verification and the public registry, which holds the serial number and full history of each credit.

Can an individual buy carbon credits?

Yes, retail platforms sell fractions from a few kilograms of CO2e.

Read next: what a carbon credit costs in 2026.

Read next: the checklist before you buy.

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