How does a carbon credit work?

A carbon credit works like this:

    “X” creates energy via a renewable process or reduces their GHG emissions,
    they are rewarded by receiving a credit;

    “Y” emits more carbon into the atmosphere than they are allowed,
    therefore "Y" is required to pay for a credit to offset their emissions.

Carbon credits are generated by activities that either create renewable energy, or other activities such as energy efficiency, bio-sequestration and methane destruction.

carbonreverse uses NSW Greenhouse Gas Abatement Certificates (NGACs). These credits are registered with NSW Greenhouse Gas Abatement Scheme, one of the first mandatory GHG emission trading schemes in the world. NGACs are subject to strict compliance regulations aligned with the Kyoto protocol.