Emission reduction projects must be certified under a reputed and independent Standard and undergo an in-depth evaluation by independent third-party auditors that ensures that the carbon credits issued from such projects are real, measurable and have a high degree of permanence.
Clean Development Mechanism (CDM) is an International Carbon Offsetting Program in the Kyoto Protocol that allows GHG emission reduction projects in developing countries to help developed countries achieve their climate target by trading Certified Emission Reduction Credits (CERs). This mechanism provides rules, references, tools, and methodology for projects to verify the measurable reductions and generate carbon credits.
The CDM also allows developed countries to help low and middle-income countries by lending financial aid for carbon offset projects. It includes climate mitigation projects and projects that improve the livelihood and economy of the community to achieve SDGs.
The Gold Standard is an independent quality standard that recognizes high-quality carbon credits projects. It was established in 2003 by the WWF and other NGOs worldwide to ensure that projects meet the highest quality standards with respect to sustainable development and stakeholder engagement.
The VCS is a voluntary carbon standard managed by VERRA, a not-for-profit organization formed in 2005 and headquartered in Washington, DC. Projects developed under the VCS Program must follow a complete assessment process to be certified. These projects cover various sectors, including renewable energy (such as wind and hydroelectric projects) and forestry (including the avoidance of deforestation), among others.
Emission reductions certified by the VCS program are eligible to be issued as VCUs, with one VCU representing one metric tonne of greenhouse gas emissions reduced or removed from the atmosphere.
Global Carbon Council (GCC) is a Voluntary Carbon Credits Program initiated by the Gulf Organization for Research and Development to develop greenhouse gas reduction projects for organizations to reduce their carbon emissions and carbon footprint.
The GCC issues the Approved Carbon Credits (ACCs) for a validated and verified project activity for a fixed crediting period. In addition, GCC provides various standards for projects to deliver credible and measurable carbon credits and promote sustainable development goals.
TIGR stands for Tradable Instrument for Global Renewables. It is the gold standard for tracking corporate renewable energy purchases outside North America. APX created the TIGR Registry as an online platform for tracking and transferring Renewable energy certificates (RECs), enabling developers to generate, verify, and sell RECs.
RECs track all environmental attributes of 1MWh of renewably generated power, allowing companies to demonstrate their sustainability achievements as tangible and verifiable. It primarily works in the US Market, although it can be developed anywhere globally and from any renewable power plant regardless of size.
An international renewable energy certificate (I-REC) represents transferrable proof that one MWh of electricity was produced from renewable energy sources. Purchasing an I-REC allows the buyer to claim the consumption of one MWh of renewable energy.
I-RECs can be generated from wind, solar, ocean energy, biomass, hydropower, landfill gas, geothermal, and landfill gas projects. I-REC represents the environmental attributes associated with renewable energy.