The central idea behind a carbon credit is that it can substitute for GHG emission reductions. When people talk about the “quality” of a carbon offset credit, they are referring to the level of confidence one can have that the use of the credit will fulfill this basic principle. In short, quality carbon offset credits must be associated with GHG reductions that are Additional, Permanent, Verified, Transparent and Positive Impact (on local communities and environment). The carbon project developer is committed to ensure only quality carbon credit achieving the 5 mentioned criteria utilizing the VERRA Climate, Community and Biodiversity Standard (CCB) and/or the Sustainable Development Verified Impact Standard (SD VISta).

1. Confusion between carbon credits and carbon stock. Carbon credits are what is saleable.
2. Carbon stock can be converted to carbon credits by avoidance of disturbance, e.g., conversion to other land use or harvesting.
3. Atmospheric carbon dioxide (CO2 ) is reduced through absorption of CO2 in the growth of trees. This is known as carbon sequestration and can generate carbon credits.

Confusingly these 3 items can each be used to describe the carbon in biomass

• carbon is the amount of elemental carbon
• CO2 is elemental carbon with the addition of oxygen to form carbon dioxide

Carbon dioxide equivalents are CO2 with the other GHGs with global warming potential (mainly methane and nitrous oxide) added.