What are Carbon Credits



What Are Carbon Credits

In November 2021, negotiators at the Glasgow COP26 Climate Change Summit agreed to create a global Carbon Credit offset trading market.

Carbon offsets allow companies to reduce the overall global carbon footprint as they continue to implement sustainable protocols to reduce/capture GHG emissions. While we all strive to reduce our carbon emissions as much as possible, certain GHG producing activities (e.g. air travel, supply chain, agriculture, data centers) are still essential. Offsetting allows industries to mitigate their environmental impact of such activities by providing a source of finance for carbon reduction projects in various regions. One (1) Credit is the equivalence of one (1) ton of CO2e or the equivalent in other greenhouse gases. For example, a business that emits 1000 tons of carbon can purchase 1000 carbon credits to cancel/offset those emissions.

Verification Questionnaire
  1. An authorized signatory must fill this form and send it to us.
  2. This confidential questionnaire is designed to collect necessary information for scope and technical approach determination, as well as proposal generation. The Project Description Document (PDD) can be substituted for the questionnaire.
  3. You can send us the PDD/PIN/MR/GS Passport/Other relevant documents deemed necessary along with this form.
*CO2e – Carbon dioxide equivalent | *GHG – Green House Gases
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Carbon Credit Llifecycle

Carbon Offsetting Lifecycle

Project Planning Phase
Each climate project has a defined life cycle. The project developer reviews the general feasibility of the project, project design and financing. A Project Design Document is prepared, which contains the basic information about the project. Ex: the project objective, location, implementation date, and duration.
The Project Design Document and the information it contains are validated through independent audits. The accredited, neutral auditors must be approved by the standard’s registry as a Validation and Verification Body.
After a successful validation, the project can be registered with the standard, such as the Verified Carbon Standard or the Gold Standard.
After the project has been registered, it is time for the monitoring phase. The project developers monitor and record the data of the project activities and its progress. Duration of the monitoring phase varies with each project, which can be one to five years.
When the monitoring phase ends, a validation/verification body checks and assesses whether the values and project activities stated in the monitoring report are correct and verifies them.
Issuance of Verified Emission Reductions
The emission reductions achieved in the latest monitoring period can be issued ex-post as verified emission reductions after successful verification. They represent the emission savings that indeed took place in the past period. This can take one to five years. The steps of monitoring, project verification and issuance of verified emission reductions are repeated regularly and are thus to be considered as a cycle.
Retirement of Verified Emission Reductions
After a verified emission reduction has been used to offset emissions, it is required to be retired in the respective registry (e.g., Gold Standard, Verra etc.). Ensuring that each verified emission reduction is used only once. When an offset is booked via Carbon Free Zone the verified emission reductions are collectively retired periodically.
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Carbon Free Zone Credits


  • Purchase credits at wholesale rates, not readily available to the open market
  • Purchase directly from environmental Project Developers, for example, maybe you want carbon offsets from companies that plant trees
  • Market price transparency for credits
  • Project information and documentation via direct links to Verra, etc.
  • Ability to link with GEM Registry Accounts across the world
  • Adheres to Islamic Banking Principles Compliance
  • Access to carbon market data


  • Access to buyers all around the world
  • No interaction required with buyer
  • We give price guidance and comparisons
  • Ability to change price in one click, at no extra cost
  • Maximize buyer purchase

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Key Takeaways

  • Carbon Credits were devised as a mechanism to reduce greenhouse gas emissions.
  • Companies get a set number of Credits, which decline over time. They can sell any excess to another company.
  • Carbon Credits create a monetary incentive for companies to reduce their Carbon Emissions. Those that cannot easily reduce emissions can still operate, at a higher financial cost.
  • Carbon Credits are based on the “cap-and-trade” model that was used to reduce sulfur pollution in the 1990s.
  • Negotiators at the Glasgow COP26 climate change summit in November 2021 agreed to create a global Carbon Credit offset trading market.
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