Mechanism: Avoidance vs Removal

Learn what is the carbon credit mechanism, what type of mechanisms exist and which is the difference between avoidance and removal credits.

Carbon Credits

A carbon credit is a tradable permit that represents a reduction in greenhouse gas emissions. It’s essentially a unit of measurement that signifies a reduction in one ton of carbon dioxide or its equivalent greenhouse gas emissions. These credits are created through projects that reduce, capture, or avoid emissions, such as renewable energy projects, afforestation initiatives, or energy efficiency improvements.

Several key characteristics define the quality and value of carbon credits. Permanence refers to the long-term nature of the emission reduction, ensuring that the environmental benefits are enduring. Leakage is the risk that emission reductions achieved through one project might lead to an increase in emissions elsewhere. Additionality ensures that the emission reductions achieved through a project would not have occurred anyway. You can read more about carbon credit characteristics in the following lesson.

The methodologies are used to quantify and verify carbon emissions reductions. These methodologies ensure that the credits are generated accurately and in accordance with recognized standards. Registries and third party validators ensure these methodologies are followed and when that’s verified then the credits are issued.

Mechanism

Carbon Credits represent the reduction of one ton of carbon dioxide in the atmosphere. The way how the ton of CO2 will not reach the atmosphere is called the credit mechanism. It can be avoidance, which avoids that a new ton of CO2 goes into the atmosphere; or removal, which removes an already existing ton of CO2 from the atmosphere.

The carbon credit mechanism is critical in defining the type of project that is implemented and the specific targets that are achieved. For instance, the Science Based Targets Initiative (SBTI), which aims to set ambitious emissions reduction targets aligned with the Paris Agreement, often requires companies to include removal projects in their strategies to achieve net-zero emissions. On the other hand, achieving carbon neutrality can be accomplished through avoidance credits alone, as long as the total emissions of an entity are offset by equivalent emissions reductions.

Avoidance

Avoidance credits are carbon credits generated through projects that prevent new greenhouse gas emissions from entering the atmosphere. These projects typically involve implementing measures that reduce or eliminate emissions from existing activities or prevent new emissions from occurring altogether.

Renewable energy projects: Installing solar panels, wind turbines, or other renewable energy systems can replace fossil fuel-powered generation, thereby avoiding the release of carbon dioxide and other greenhouse gases.
Energy efficiency improvements: Implementing energy-saving measures in buildings, factories, or transportation systems can reduce the overall energy consumption, leading to lower emissions.
Sustainable agriculture practices: Adopting farming methods that reduce emissions, such as crop rotation, cover cropping, and reduced tillage, can help to avoid emissions from agricultural activities.
Waste management and recycling programs: Improving waste management practices and increasing recycling rates can reduce emissions associated with landfill methane and the production of new materials.
Forest conservation and restoration: Protecting existing forests and restoring degraded forests can prevent deforestation, which releases stored carbon into the atmosphere.

Removal

Removal credits are carbon credits generated through projects that capture and remove existing carbon dioxide from the atmosphere. These projects typically involve technologies or natural processes that can sequester carbon and store it in long-term reservoirs.

Here are a few examples of removal projects:

Direct air capture (DAC): This technology involves using specialized equipment to capture carbon dioxide directly from the atmosphere. The captured carbon can then be stored underground or used to produce products like synthetic fuels or building materials.
Carbon capture and storage (CCS): This technology involves capturing carbon dioxide emissions from industrial processes, such as power plants and steel mills, and storing them underground in geological formations.
Reforestation and afforestation: Planting trees in areas that were previously forested or deforested can help to absorb carbon dioxide from the atmosphere. Forests act as natural carbon sinks, storing carbon in their biomass and soils.
Biochar production: Biochar is a charcoal-like material produced from the pyrolysis of biomass. When added to soil, biochar can help to sequester carbon and improve soil fertility.
Ocean-based carbon capture: This involves using natural processes or engineered solutions to enhance the ocean’s ability to absorb carbon dioxide from the atmosphere. Examples include promoting ocean alkalinity or deploying artificial upwelling systems.
Enhanced weathering: This method involves accelerating the natural weathering process of rocks to capture carbon dioxide from the atmosphere. By crushing rocks and spreading them over land, they can react with atmospheric carbon dioxide and form carbonate minerals.

Mechanism: Avoidance vs Removal

Carbon Credits

Mechanism

Avoidance

Removal

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