Assessing Credit Quality

Not all carbon credits are created equal—the quality criteria that matter

The Five Pillars of Credit Integrity

Voluntary carbon markets face quality challenges. These criteria separate high-integrity credits from junk:

Additionality

Would the emission reduction have happened anyway?

✓ GOLD STANDARD

Project wouldn't exist without carbon finance (e.g., early-stage DAC)

✗ POOR QUALITY

Activity already financially viable or legally required (e.g., solar in grid parity markets)

Permanence

How long does the carbon stay out of the atmosphere?

✓ GOLD STANDARD

Millennial-scale storage (geological sequestration, mineralization)

✗ POOR QUALITY

Short-term or reversible (forest subject to fire, soil carbon easily lost)

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Leakage

Does protecting one area just shift emissions elsewhere?

✓ GOLD STANDARD

System-level intervention with no displacement (DAC, waste methane capture)

✗ POOR QUALITY

Protecting forest while deforestation continues regionally

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Measurement & Verification (MRV)

Can reductions be accurately quantified and verified?

✓ GOLD STANDARD

Direct measurement, continuous monitoring, third-party audit (point-source capture)

✗ POOR QUALITY

Model-based estimates, infrequent checks, self-reported (behavioral projects)

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Co-benefits & Safeguards

Does the project generate broader social/environmental value?

✓ GOLD STANDARD

Biodiversity, livelihoods, health, FPIC compliance (community forestry)

✗ POOR QUALITY

No co-benefits or potential harms (monoculture plantations, land grabs)

🔍 Carbon Credit Quality Analyzer

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Rainforest Reforestation

Nature-based Removal · $12/tCO₂

Overall Quality
Medium
Quality Assessment:
additionality
6/10

Would land have been reforested anyway? Requires careful baseline setting.

permanence
5/10

Forests vulnerable to fire, disease, logging. Credits at risk for decades.

leakage
6/10

Deforestation may shift elsewhere. Needs regional monitoring.

verification
7/10

Satellite monitoring improving, but ground-truthing remains challenging.

co benefits
9/10

Biodiversity, watershed protection, local livelihoods—strong co-benefits.

Average Score:6.6/10
⚠️ Key Risks
  • Fire
  • Illegal logging
  • Drought
  • Non-permanence
Strengths
  • Ecosystem benefits
  • Cost-effective
  • Community support
  • Scalable

⚠️ The Integrity Crisis

Investigations have exposed widespread overcrediting in voluntary markets: projects that weren't additional, forests that were never threatened, carbon that was recounted. This erodes trust and undermines climate action.

Response: New integrity initiatives (ICVCM Core Carbon Principles, VCMI Claims Code) are raising standards. Buyers must conduct due diligence—not all credits are climate-aligned.

🎯 Buyer's Hierarchy

1. Reduce first: Abate your own emissions before offsetting
2. Prioritize removals: Tech-based > nature-based > avoided emissions
3. Demand permanence: Long-term storage trumps temporary sequestration
4. Verify rigorously: Third-party audit, transparent MRV, conservative crediting
5. Support co-benefits: Align with SDGs, respect rights, benefit communities