Learn more about carbon credits

What are Carbon Credits?

Carbon credits can be useful, but they work best when the role is clear. This page explains what a credit represents, how quality is established, and how to use credits without overstating the result.

What they are

A complement for emissions that remain after reduction work.

A carbon credit is created when one metric ton of greenhouse gas emissions is avoided, reduced, or removed under a recognized methodology.

Organizations use carbon credits to support verified projects while they continue direct decarbonization work. They are usually most useful for residual scope 1 and scope 3 emissions, not as a shortcut around operational change.

When this path makes sense

You are dealing with residual emissions

Credits are usually most defensible when they cover emissions that still remain after active reduction work.

You need help navigating project quality

The real work is not just buying a ton. It is understanding standard, methodology, verification, and retirement.

You want to stay precise in public claims

Carbon credits can support a strategy, but the messaging needs to stay specific and defensible.

Why teams use carbon credits

Useful when the role is clear and the quality bar stays high.

The strongest carbon credit decisions are usually the least inflated ones. Teams know what the credits are for, what they are not for, and what evidence they will need later.

They direct funding to verified climate projects

Carbon credits fund projects such as reforestation, methane capture, landfill gas, and other verified emissions reduction activities.

Verification is part of the value

Legitimate credits are quantified, documented, and independently verified under recognized standards and registries.

They fit best inside a broader reduction plan

Carbon credits should complement direct emissions reductions, not replace the work of decarbonizing operations and supply chains.

Lifecycle of a carbon credit

From project activity to a retired carbon credit

The credit only means something if the project is documented, reviewed, issued correctly, and retired so it cannot be claimed twice.

01

Project activity

A project avoids, reduces, or removes one metric ton of greenhouse gas emissions.

02

Registry enrollment

The project is registered under an established carbon standard or registry framework.

03

Quantification and verification

Emission reductions are measured and reviewed by accredited third-party verifiers.

04

Purchase and retirement

The credit is sold and then retired so a single buyer can make the associated claim.

Use them carefully

Carbon credits work better when the guardrails are explicit.

This is where teams often get nervous, and for good reason. A careful structure builds more trust than an ambitious headline.

Use credits as a complement, not a substitute

The strongest approach pairs carbon credits with direct operational reductions, efficiency work, and supply-chain action.

Review standard, methodology, and retirement evidence

Project type alone is not enough. The underlying standard, verification, and retirement controls shape whether the purchase is defensible.

Keep public claims narrow and specific

Say what was purchased, what it supports, and what was retired. Avoid broad claims that imply more than the evidence supports.

Ready to review carbon credit options?

Browse the catalog if you already know carbon credits belong in the mix. If you want help pressure-testing quality or claims first, talk to our team.