How Are Carbon Credits Issued?

It’s not clear to many how carbon credits come into existence. They don’t just ‘pop up’ in the way central banks increase the currency supply. In reality the process involves a complex series of steps, from a project proposal document, through to validation, monitoring, reporting and verification, and final issuance by a carbon standards group. In this Carbonwise Visual Learning asset, we help set out the sequence of steps needed to create a carbon credit.

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LATEST VISUAL LEARNING

This chart shows the total amount of man-made emissions created by the world's biggest polluters.
The amount of atmospheric CO2 has charted a steady climb higher. The Mauna Loa Observatory on the north flank of volcano of the same name
The European Commission proposed several important changes to the EU Emissions Trading System (EU ETS) in March after recent pushback from industry over rising costs.
Brown coal, also known as lignite or 'soft coal', is a combustible sedimentary rock formed of naturally compressed peat.
In February, the European Commission launched a consultation to seek views on the use of international carbon credits to help meet the EU climate target

24 March 2026

HIGHLIGHT
EC touts major carbon market changes after pressure from industry

The European Commission proposed several important changes to the EU Emissions Trading System (EU ETS) in March after recent pushback from industry over rising costs.

23 March 2026

GLOSSARY
Brown Coal/Lignite

Brown coal, also known as lignite or 'soft coal', is a combustible sedimentary rock formed of naturally compressed peat.

23 February 2026

HIGHLIGHT
EC seeks views on use of carbon credits to meet 2040 climate target

In February, the European Commission launched a consultation to seek views on the use of international carbon credits to help meet the EU climate target for 2040.

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