Carbon credits are not all the same — understanding this difference is essential.
First of all, it is important not to confuse the type of credit with the market in which it is used.
The terms “compliance market” and “voluntary market” indicate where the instrument is applied — not necessarily what it is.
In compliance markets, for example, the main asset is usually an emission allowance, not a credit. In the European system (EU ETS), each unit represents the right to emit 1 tonne of CO₂e.
When we talk about carbon credits, the most relevant classification is linked to their climate impact:
- Avoidance: prevent emissions from occurring
Example: avoided deforestation (REDD+) and renewable energy use - Reduction: decrease emissions compared to a baseline scenario
Example: energy efficiency, forest management, and methane capture - Removal: remove CO₂ from the atmosphere and store it durably
Example: reforestation and technologies such as Direct Air Capture (DAC)
As the carbon market evolves, understanding these differences moves beyond a technical detail — it becomes strategic.
This is what ensures greater transparency, credibility, and real impact in decarbonization actions.
The RCGI–USP Carbon Registry operates precisely at this point: strengthening traceability and trust in the generation and management of carbon credits.
