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
A term used to describe actions by organisations intended to create the impression of reducing emissions or improving sustainability credentials, but which lack verifiable environmental
Refers to the period – usually a calendar year – in which an emissions reduction, avoidance or removal takes place. Carbon credits are often listed

VER

Voluntary Emission Reductions or Verified Emission Reductions. A general term used to describe project-based carbon credits.

12 October 2026

GLOSSARY
Greenwashing

A term used to describe actions by organisations intended to create the impression of reducing emissions or improving sustainability credentials, but which lack verifiable environmental benefits.

24 September 2026

GLOSSARY
Vintage

Refers to the period – usually a calendar year – in which an emissions reduction, avoidance or removal takes place. Carbon credits are often listed as being of a particular vintage.

24 September 2026

GLOSSARY
VER

Voluntary Emission Reductions or Verified Emission Reductions. A general term used to describe project-based carbon credits.

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