What is Carbon Offset?
Carbon offset, also known as voluntary carbon credit (VCC), is a credit that is said to be earned by implementing a green project that successfully removes one tonne of carbon dioxide or its equivalent of greenhouse gases from the atmosphere.
These credits can then be sold in voluntary carbon markets to organizations looking to reduce their carbon footprint or reach a net-zero goal.
The applicant must be a project developer.
Project Design Document (PDD) with at least the following sections completed:
- Description of project activity including baseline emissions, emission reductions that the project activity expects, monitoring plan etc.
- Application of selected approved baseline and monitoring methodology
- Duration and crediting period
- The certification process involves three key stakeholders: the project developer, third-party reviewers, and the certifying agency
- To begin, choose a methodology available under the CDM or approved by a certifying agency to prepare the PDD
- Get PDD validated by an Independent Expert
- Register the project and submit it to the certifying agency for review, along with the application fees
- Third Party Reviewers accredited by the certifying agency conduct an audit that includes a desk review, a field visit, and stakeholder interviews to confirm that the project meets the requirements and will achieve the planned emissions reductions if the project is implemented
- Following approval, the project needs to be implemented so that it is ready for use
- Third Party Reviewers collect monitoring data on a regular basis throughout the project, which is used to calculate project level emissions
- The final verification report and monitoring report are submitted to the certifying agency, and carbon offsets are issued based on the difference between project level emissions and baseline emissions
The following are some of the certifying agencies in charge of certifying emission reductions: