If your company has set climate goals, you've likely encountered carbon credits. Typically, each credit represents one tonne of carbon dioxide either removed from the atmosphere or avoided prior to being emitted. They're a tool for offsetting emissions you can't yet eliminate directly.
Crucially, not all carbon credits are created equal. Durable carbon removal credits provide long-term, measurable climate impact by extracting carbon from the air. Traditional avoidance credits, while playing a role in emissions reduction, focus on preventing future emissions rather than removing existing carbon, which can lead to different levels of certainty in their long-term climate impact.
Registries are used for both types of credits. Below I’ll delve into what they are, who needs them and red flags to look for when choosing one for you.
Give me the high level—what is a carbon registry?
Carbon registries are crucial intermediaries in the voluntary carbon market responsible for building trust between buyers and sellers. They conduct monitoring, reporting and verification (MRV) on carbon projects, whether for removal or avoidance. After thorough checks, registries issue carbon credits that companies use to meet climate goals.
In the complex world of carbon dioxide removal (CDR), registries are essential for ensuring credit quality and project integrity, turning abstract climate action into tangible, trustworthy assets.
Who needs carbon registries?
Any company with a public climate commitment should be paying attention. Whether you're aiming for Net Zero or any other climate target, carbon credits are likely part of your strategy. Carbon registries help companies ensure they're buying high-quality credits that are scientifically credible, lasting and verified by a trustworthy third party.
How does it work?
Carbon removal is a bit like buying a house, but one that you can't see or touch—you're purchasing a tonne of carbon dioxide removed from the air.
Think of it like this:
- The CDR project is the house
- The CDR project developer is the house seller
- You're the home buyer
- The registry is your inspector, surveyor and record keeper all in one
Just as you wouldn't buy a house based solely on the seller's word, you shouldn't buy carbon credits without proper verification. The registry inspects the 'house', measures its 'size', and provides you with an official 'deed'.
Specifically, what do registries do?
- Set standards: create clear, science-based guidelines that define what counts as genuine carbon removal. These rules help project developers understand how to capture and store carbon and then prove they've actually removed one tonne of carbon dioxide from the atmosphere.
- Quantify: measure the exact net impact of carbon dioxide each project removes (after taking into account emissions created from the removal process).
- Issue credits: once verified, they issue credits representing tonnes of carbon dioxide removed.
- Track: maintain a public ledger of all credits to prevent the same credits being sold twice to different companies.
What should you look for?
First, verify the registry's scientific rigor and track record, as some have issued credits that were later invalidated due to their climate impact being overstated by the registry.
Second, look for transparency. A good registry should make it easy to understand the data that made up their calculations.
Lastly, consider how the registry makes money. Many are paid by suppliers—which makes about as much sense as letting a house seller choose and pay for your inspector. Look for registries that are paid based on the work done, rather than number of credits issued.
By considering these factors, you can choose a registry that helps you meet your climate goals effectively and responsibly, while safeguarding you against the reputational (and legal) risks that can come with invalidated credits.
Isometric stands apart as the only registry with zero financial relationship with the suppliers it credits, has the most scientifically rigorous standards for what qualifies as net carbon removal and presents calculation data in an intuitive and simple format for all stakeholders.
Cover image by Olena Bohovyk on Unsplash
