Carbon Credits

Core Principles of Carbon Credits

Carbon Intensity (CI):
The foundational measure for carbon credit eligibility and value is carbon intensity. CI is calculated using a cradle-to-gate lifecycle assessment, covering emissions from raw material extraction through production. Projects with lower CI scores generate greater credit value and qualify for stronger incentives.

Financial Incentive Mechanism:
Carbon credits improve the economic case for clean hydrogen and other low-emission technologies by converting environmental performance into revenue. This additional value reduces project risk, attracts private capital, and accelerates deployment at scale.

Trading and Market Structure:
Carbon credits operate within two primary systems: compliance markets, where regulated entities must meet statutory emissions thresholds, and voluntary markets, where organizations purchase credits to support sustainability commitments and emissions reduction strategies.

Overall Impact:
By assigning financial value to avoided greenhouse gas emissions, carbon credits narrow the cost differential between clean hydrogen and conventional energy sources. In doing so, they incentivize cleaner power generation and materially support the transition toward a net-zero emissions economy.

All cooperation under Article 6 is subject to strict accounting rules, including corresponding adjustments, to prevent double counting and ensure credible emissions reductions.

Paris Agreement – Article 6.1

Article 6.1 establishes the principle that countries may voluntarily cooperate in achieving their Nationally Determined Contributions (NDCs). This cooperation is intended to enable higher climate ambition, improve cost-effectiveness, and support sustainable development while safeguarding environmental integrity. It also encourages collaboration that mobilizes public and private sector participation in emissions reduction efforts.

The provision serves as the foundation for the Article 6 mechanisms, including

Article 6.2, which permits the transfer of internationally transferred mitigation outcomes (ITMOs) through bilateral or multilateral arrangements;

Article 6.4, which establishes a UN-supervised carbon crediting mechanism for generating and trading high-quality credits across public and private actors;

Article 6.8, which supports non-market approaches such as finance, technology transfer, and capacity building.

All cooperation under Article 6 is subject to robust accounting requirements, including corresponding adjustments, to prevent double counting and ensure the credibility of emissions reductions.

Gold Standard Verification

Gold Standard is a premier certification for carbon credits, designed to ensure projects deliver verifiable greenhouse gas reductions alongside measurable social and environmental benefits aligned with the UN Sustainable Development Goals. It is widely regarded as one of the most rigorous benchmarks in the voluntary carbon market.

Certified projects must demonstrate additionality, long-term impact, and avoidance of double-counting, and are subject to independent third-party validation and ongoing verification. All results are recorded in a public registry, with strong requirements for community engagement and grievance mechanisms.

Gold Standard credits are considered high-integrity and premium-quality, making them a preferred choice for organizations seeking credible, transparent, and impact-driven climate action that goes beyond emissions alone.