Age: 1 year
Plants 1 new Olive tree
CO2 absorbed: 150 kg/year
Evo oil included:
Introduction - Carbon Credits: How They Work
Before you start reading, we’d like to remind you that you can learn what carbon credits are, what their benefits are, and what the main challenges are in our previous article,“Carbon Credits for a Sustainable Future.”
But back to the topic at hand: how do carbon credits work, and how does CO2 offsetting work?
We’ll explain it right away.
How Carbon Credits Work
The way carbon credits work is complex, but buying them is as quick as any online purchase: just a few clicks and you’ll receive your green certificate.
We can simplify the process by breaking it down into four steps:
1. Monitoring
This phase is the first and most critical step in generating carbon credits: it allows us to quantify and calculate how much (certified) CO2 the trees are capable of absorbing (read our article to find out right away how much CO2 an olive tree absorbs).
Olive trees can be monitored in two ways: through periodic satellite surveys conducted by one of the certifying bodies or through on-site visits.
In both cases, the health of the monitored trees and the actual absorption of CO2 will be verified.
2. Conversion ratio
Once the measurements are complete, the amount of CO2 that the trees are able to absorb is quantified and recorded on the blockchain, generating a conversion report for carbon credits.
In quantitative terms, each carbon credit will be equivalent to one ton of greenhouse gases or CO2 offset or absorbed.
3. Emissions Offsetting
The carbon offset capacity of olive trees recorded on the blockchain can be purchased at any time by companies in any sector.
By purchasing carbon credits, companies can offset their carbon debt to the environment by funding sustainable activities and projects with a significant environmental impact.
4. Certification and attestation
The purchase of carbon credits will be recorded on the blockchain, and within a few minutes, a CO2 Offset Certificate with the registration number, the company name, and the reasons
This is a genuine, internationally recognized certification that can be included in sustainability reports or ESG reports to demonstrate actual emissions offsetting.
The“Green Certificate”can also be used for marketing activities, to enhance the company’s image, and to connect with consumers who are environmentally conscious.
Voluntary market for purchasing carbon credits
Carbon credits are primarily used in carbon markets, where they are bought and sold as financial instruments.
There are essentially two types of markets: regulated and voluntary.
In the former, governments establish emissions regulations and allow companies to purchase carbon credits to comply with these regulatory requirements; in the latter, companies and individuals can purchase carbon credits to voluntarily offset their emissions and reduce their overall environmental impact, without any regulatory obligations or constraints.
Purchase our Italian carbon credits generated by new olive tree plantings in Salento through our spin-off,“Carborea.”
