How Do Carbon Credits Work?

When an organisation buys a carbon credit in the Voluntary Carbon Market (VCM), they fund the reduction or removal of one ton of CO2 that was achieved elsewhere. The removals or reductions achieved by these climate projects can then be used to support the company’s own sustainability goals and strategies.

This system rewards project developers by directing more money towards projects such as afforestation and reforestation, biochar, and enhanced weathering. Thanks to income from carbon credits, these climate projects are becoming increasingly more profitable. This incentivises more climate-positive activities, which is why carbon credits are one of the best mechanisms we currently have to combat climate change.

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