Carbon credit

A transferable or tradable instrument that represents one metric tonne of CO2eq emission reduction or removal and is issued and verified according to recognised quality standards.

A CO₂ certificate is a tradable document that certifies the emission or avoidance of one ton of carbon dioxide (CO₂) or an equivalent greenhouse gas. It serves as an instrument for regulating emissions and supports the achievement of international climate goals. CO₂ certificates are divided into two main categories: emission allowances, which are granted under a "cap-and-trade" system, and compensation certificates, which originate from climate protection projects.

In the emission trading system, particularly within the European framework (EU ETS), companies receive a set number of certificates that authorize them to emit a specified amount of greenhouse gases. Companies that keep their emissions below the established limit can sell their excess certificates, while emission-intensive companies must acquire additional certificates. This market-based system creates incentives for investment in low-emission technologies.

Compensation certificates allow companies and individuals to actively offset their emissions. These certificates often come from projects such as reforestation or the use of renewable energy and provide a way to reduce one’s ecological footprint.The tradability of CO₂ certificates on specialized markets promotes competition and innovation in the field of climate protection.
Nevertheless, the system faces challenges, particularly regarding the credibility of projects and the risk of "greenwashing." Future developments, including the gradual suspension of new certificates starting in 2039, make the topic even more relevant for achieving climate neutrality.