Carbon Removal Credit

Subtype

Definition: Carbon removal credits are carbon offsets that represent the removal of a certain amount of GHG emissions from the earth's atmosphere. Defined by material impact and additionality.

Description

Carbon removal offsets (a.k.a. “negative carbon offsets”) are understood as tradable representations of CO2 that have been removed from the Earth’s atmosphere over a long or permanent timeframe. According to an analysis, removal offsets are expected to represent 35% of the carbon offsets by 2030. Methods to remove carbon are generally classified as either nature-based, such as tree planting, or technology-based, such as Carbon Capture and Storage or Direct Air Capture.

Example

Toucan is building infrastructure for tokenized carbon markets.

CHAR is the latest Toucan's asset, which aggregates verified CO2 Removal Certificates from biochar projects issued by Puro.earth (“CORCs”) on one single platform. The carbon pool gives access to liquidity for project developers, while credit buyers can freely purchase projects of their choice from the available credit selection. CHAR helps young and established projects in the nascent biochar market to liquidate their credits to fund their growing operations and supports buyers by providing a transparent and efficient way to source credits.

CHAR | Liquid market for biochar creditsToucan Protocol