Carbon credits are securities representing one ton of CO₂ avoided or removed from the atmosphere. There are two main markets for these credits:
- Regulated market: established by the Kyoto Protocol in 1997, which became operational in 2005.
- Voluntary market (VCM - Voluntary Carbon Market): allows companies to offset their emissions beyond regulatory obligations.
Credits can come from
forest conservation projects, renewable energy, regenerative agriculture, or carbon removal technologies. Companies purchase them to support climate actions outside their own value chain (beyond value chain mitigation) and improve their
ESG performance. However, it's important to note that the quality of the credits is crucial, as not all have the same real impact on the climate.