What is the difference between avoidance and removal carbon credits?

The difference between avoidance and removal carbon credits explainedBelow are all the questions about Carbon markets: EU-ETS and Voluntary Carbon Market, regulations, rules for qualitative carbon credits, difference between avoidance and removal carbon credits and more!

An avoidance carbon credit represents one ton of CO2 not emitted due to the deployment of a project. These projects can issue avoidance carbon credits, also known as carbon offsets, to finance themselves. Here are a few examples:

  • A biomethanization unit produces biomethane with a very low carbon footprint and injects it into the gas network instead of fossil natural gas.
  • An electronic devices reconditioning center enables the introduction of devices with a very low carbon footprint into the market as a substitute for new electronic devices.
  • Low-carbon construction materials made of raw earth can replace cement and steel in many construction projects and prevent significant emissions.

A removal carbon credit represents one ton of CO2 removed from the atmosphere. These projects are mostly funded by carbon removal, and their price depends heavily on permanence, which refers to the duration of carbon storage. Here are some examples:

  • Reforestation is the most common removal project, with short permanence.
  • Storage in soil, thanks to biochar, for instance, is also growing in popularity with a medium permanence.
  • Geological storage with solutions like DAC is relatively new but has potential and the longest permanence.
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