Welcome to our series on understanding carbon markets and carbon credits. In these posts, we’ll break down complex topics to help you gain a clearer view of (1) how carbon markets work, (2) the different types of carbon credits, (3) what makes a high-quality carbon credit - and why these tools matter for climate action. Let’s have a closer look at carbon credit quality!

What is carbon credit quality?

Since one carbon credit represents the same amount of carbon reduced or removed from the atmosphere, shouldn’t it be treated and priced the same?

In an ideal world, the answer would be yes, but in reality, the likelihood to achieve 1 tonne of CO₂e reduction or removal, will vary depending on the quality of the credit.

Imagine you have two different safes to lock away CO₂. The first is a wooden box that keeps the CO₂ secure for around 50 years before slowly starting to leak. The second is a high-tech vault made from a new and innovative material, designed to hold CO₂ securely for thousands of years. You can get the first box now and start storing away CO₂ at a time when we need it the most, you can wait several years for the high-tech vault - or perhaps a little bit of both?

Quality is the reason not all carbon credits carry the same environmental impact or price tag.

The variation in quality is the reason not all carbon credits carry the same environmental impact or price tag. Considering that there are many ways to remove or reduce CO₂ from the atmosphere - there are also large variations in the projects’ reliability, duration and environmental impacts.

What makes a carbon credit high quality?

What makes a high-quality carbon credit is not a simple question - especially since the voluntary carbon market lacks a uniform definition. Many different factors could, and should, be considered to answer this question, such as:

Type of mitigation activity: Does the project reduce emissions that would otherwise occur, remove CO₂ from the atmosphere and store it, or a combination?

Duration of carbon storage: If the credit involves carbon storage, how long will the carbon stay out of the atmosphere? Is it a temporary or a permanent solution?
Risk of reversal: What is the likelihood that the carbon will be released back into the atmosphere again, either due to natural events like forest fires, technological step backs or financial recession? What are the associated risks?
Project lifetime and impact: How long will the project run, and when will it start to make a measurable difference? What is the potential impact in this decade, and in the future?
Methodology and scientific basis: Is the project based on well-established science and mature methodologies, or is there any uncertainty around its effectiveness?
Cost per ton CO₂ reduced or removed: What is the approximate cost per ton CO₂ removed or reduced? And is it reasonable for the type of project and its projected impact?
Project developer and stakeholder involvement: Who initiated and developed the project, and what is their track record?
Certification and verification: Is the project certified by a recognized standard and issued through an international registry? How is the project validated and verified?
Monitoring and reporting: What level of and ongoing monitoring and reporting is involved?
Co-benefits: Are there positive side effects, like supporting biodiversity or local communities?

Navigating the complexities of the voluntary carbon market and understanding carbon credit quality can feel overwhelming. How do you compare the climate impact of the wooden vault versus the high-tech vault? And what claims can you make for each?

Frameworks for quality

Fortunately, the landscape is evolving, with robust efforts underway to establish clear quality criteria for carbon credits. Two key initiatives driving this change are The Core Carbon Principles(CCP) and The EU Carbon Removal and Carbon Farming (CRCF) Regulation.

The Core Carbon Principles (CCPs) are ten science-based principles for identifying high-quality carbon credits that create real, verifiable climate impact. Developed with input from hundreds of organisations, they set a global benchmark for high integrity in the voluntary carbon market to raise it to a consistent level of quality and ensure it accelerates progress towards the 1.5°C target.
1. Effective governance
2. Tracking
3. Transparency
4. Robust independent third-party validation and verification
5. Additionality
6. Permanence
7. Robust quantification of emission reductions and removals
8. No double-counting
9. Sustainable development benefits and safeguards
10. Contribution toward net zero transition
They are developed by the Integrity Council for the Voluntary Carbon Market (ICVCM).
The EU Carbon Removal and Carbon Farming (CRCF) Regulation was published in the Official Journal of the EU on 6 December 2024, creating the first EU-wide voluntary framework for certifying carbon removals, carbon farming and carbon storage in products across Europe. By establishing EU quality criteria and laying down monitoring and reporting processes, the CRCF Regulation will facilitate investment in innovative carbon removal technologies, as well as sustainable carbon farming solutions, while addressing greenwashing.

Source: European Commission

The Core Carbon Principles outline 10 essential principles for high-quality carbon credits. Projects meeting these, can issue CCP-approved carbon credits.

Similarly, the EU CRCF Regulation has introduced the first EU-wide voluntary framework for certifying carbon removals, carbon farming, and carbon storage in products. This regulation, still in development, mandates that activities meet four “QU.A.L.ITY” criteria: QUantification, Additionality, Long-term storage, and sustainabilITY.

Source: European Commission Factsheet - Certification of carbon removals

Together, these frameworks address many of the factors crucial to carbon credit quality, integrating them into comprehensive systems.

By defining quality benchmarks and implementing rigorous monitoring and reporting requirements, these initiatives are strengthening trust in the VCM, all while unlocking greater investments in carbon mitigation projects and helping deliver real climate impact.

Why does quality matter?

The quality of a carbon credit doesn’t just represent its impact on the climate; it’s also the key factor for most buyers when choosing where to invest. In the transition to net-zero, companies should take action to mitigate emissions beyond their value chains, and high-quality carbon credits can offer a credible way to do so.

However, quality must be backed by solid, transparent evidence. Without it, companies risk accusations of greenwashing, potentially violating existing anti-greenwashing laws and upcoming regulations like the EU Green Claims Directive (which requires that all claims related to carbon credits be substantiated). Carbon credits approved under the Core Carbon Principles (CCP) or certified units from the upcoming CRCF registry could serve as credible foundations for these claims.

Quality today

While the VCM is evolving to address criticism about inconsistent carbon credit quality, buyers have an opportunity - and a responsibility - to demand transparency. By seeking credits backed by transparent project documentation, rigorous monitoring and reporting as well as third-party verifications, companies are not only contributing to the integrity of the VCM, but they are making an intentional investment in a sustainable future.

At Noora, we are proud to be a part of unlocking a sustainable future - on nature's terms.

Noora empowers businesses to take meaningful climate action through certified carbon credits from Norwegian forests. By partnering with local forest owners and using advanced monitoring technology, we help protect and enhance nature’s role in removing CO₂ from the atmosphere - while contributing to local environmental responsibility and our shared, global climate goals.

Are you a forest owner interested in generating carbon income, or a business looking to make a measurable impact on climate? Get in touch with us to learn more!

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Carbon credit quality