The carbon credit lifecycle: What CPAs and purchasers need to know
Many organizations are looking to carbon credits in Voluntary Carbon Markets to offset GHG emissions—here's what decision-makers should consider.
This first paper in our Voluntary Carbon Markets (VCMs) series is an essential read for new participants in VCMs, providing base-level knowledge with an overview of the process for generating a carbon credit and considerations for purchasing carbon credits. It also examines existing carbon markets to promote best practices that can increase confidence in carbon markets and encourage investment in credible GHG emissions reduction projects. A glossary of terms empowers market participants with the language of VCMs.
Key takeaways:
- key terminology to understand differences between voluntary and compliance carbon markets
- breakdown of the Voluntary Carbon Market ecosystem
- key considerations for purchasers
- how carbon credits are valued and priced
This article is a collaboration between Chartered Professional Accountants of Canada (CPA Canada), the International Federation of Accountants (IFAC) and the Institute for Sustainable Finance (ISF).