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How Carbon Credits Work
February 3, 2026 7 min read
A plain-language guide to registries, methodologies and retirement.
A carbon credit represents one tonne of CO2 either removed from the atmosphere or avoided. Credits are issued by registries such as T-VER, Verra and Gold Standard against approved methodologies. When a buyer wants to offset emissions, the credit is retired so it can never be used again. This article walks through each step of that lifecycle.