What makes a high-quality carbon credit?

The document establishes a framework for evaluating 'high-quality' carbon credits across six quality objectives: robust GHG impact determination, avoidance of double counting, addressing non-permanence, facilitating the transition to net zero, strong institutional arrangements, and positive environmental and social impacts. It details specific criteria for each, such as additionality, corresponding adjustments under the Paris Agreement, and the avoidance of carbon lock-in, to guide buyers in a complex market.

• The authors identify six primary quality objectives for assessing carbon credits: robust determination of GHG emissions impact, avoiding double counting, addressing non-permanence, facilitating the transition towards net zero emissions, strong institutional arrangements and processes of the crediting program, and enhancing positive while preventing negative environmental and social impacts.
• To ensure a robust determination of GHG impact, the report emphasizes 'additionality', meaning the mitigation activity would not have occurred without the incentive provided by carbon credits. It suggests assessing financial, economic, legal, or technological drivers and using 'corresponding adjustments' by host countries as a safeguard.
• The framework addresses four types of double counting: double issuance (multiple credits for one reduction), double use (one credit counted twice toward goals), double claiming with international mitigation targets (host country and buyer both claiming the reduction), and double claiming with domestic targets or emissions trading systems (ETS).
• To facilitate the transition to net zero, the report argues that credits should employ technologies consistent with a zero/low carbon economy to avoid 'carbon lock-in' and foster innovation. It also suggests that the host country's commitment to global temperature goals, such as maintaining a Nationally Determined Contribution (NDC), is a key quality indicator.
• High-quality carbon credits require strong institutional arrangements from the crediting program, including transparent governance, robust third-party auditing (validation and verification), and meaningful stakeholder consultation, such as 'free, prior, and informed consent' for affected indigenous people.
• The report highlights the risk of non-permanence, where emission reductions are reversed due to project mismanagement or natural disasters. Quality is assessed by the significance of these risks and the robustness of compensation mechanisms and liability establishment.

APA

Schneider, L., Healy, S., Fallasch, F., De León, F., Rambharos, M., Schallert, B., Holler, J., Kizzier, K., Petsonk, A., & Hanafi, A. (2020). What makes a high-quality carbon credit? WWF International. https://www.worldwildlife.org/documents/810/54su0gjupo_What_Makes_a_High_quality_Carbon_Credit.pdf

Chicago

Schneider, Lambert, Sean Healy, Felix Fallasch, Felipe De León, Mandy Rambharos, Brad Schallert, John Holler, et al. What makes a high-quality carbon credit? WWF International, 2020. https://www.worldwildlife.org/documents/810/54su0gjupo_What_Makes_a_High_quality_Carbon_Credit.pdf.

Wikipedia

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BibTeX

@techreport{schneider2020what, author = {Schneider, Lambert and Healy, Sean and Fallasch, Felix and De León, Felipe and Rambharos, Mandy and Schallert, Brad and Holler, John and Kizzier, Kelley and Petsonk, Annie and Hanafi, Alex}, title = {{What makes a high-quality carbon credit?}}, institution = {WWF International}, year = {2020}, month = jun, url = {https://www.worldwildlife.org/documents/810/54su0gjupo_What_Makes_a_High_quality_Carbon_Credit.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }