FAQ

WHAT ARE CARBON CREDITS?

One carbon credit is equivalent to one metric ton of greenhouse gases removed from the atmosphere.

A carbon credit is a unit of exchange that can be used to offset greenhouse gas emissions or to reduce carbon tax liabilities.

Carbon credits and a carbon offset are synonymous terminologies.

WHY WE BOAST ABOUT DEVELOPING QUALITY CARBON CREDITS?

We have more than ten years of experience in the global carbon funding market and so have a great view of what works and how we should align with the objectives of the Paris Agreement.

We have developed a unique global solution to ensure the Carbon Credits we develop for your project are of the highest standard and therefore, valuable to Carbon Financiers. In the end the better the quality, the easier we can unlock Carbon Funding for your project.

The quality of the Carbon Credits we develop is underpinned by:

1. Independently audited Carbon Credits based on an approved ISO standard (14064/65).

2. Impacts the Carbon Credits make in terms of one or more of the 17 Sustainable Development Goals.

3. Warranty on the quality of the Carbon Credits developed.

We are not the only ones who believe we have developed great mechanisms to unlock Carbon Funding:

WHAT ARE THE SDGs?

The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. Learn more and take action.

WHAT IS NET ZERO?

WHAT IS THE PARIS AGREEMENT AND HOW DOES IT WORK?

WHO IS BUYING CARBON CREDITS?

Some prospective Buyers looking to buy Carbon Credits may do this to:

1) reduce their tax liability; or

2) achieve net zero emissions.

WHAT STANDARDS ARE USED TO VERIFY CREDITS?

We validate and verify carbon credits based on ISO 14064, through independent auditors.

WHO VERIFIES AND VALIDATES CARBON CREDITS?

Verification and Validation Bodies (VVBs) assess projects against ISO 14064.

Our VVBs are qualified, independent third parties that verify and validate carbon projects and the credits that will ultimately be issued. This independent assessment process ensures the integrity and quality of the carbon credits registered with and issued by SACxR.

Only approved VVBs that have been accredited for ISO 14064 can verify and/or approve the carbon credits that will be issued from a SACxR carbon project.

To become an approved VVB with SACxR, CONTACT US.

WHY IS TRADING IN CARBON CREDITS A CONCERN?

Rather than aiding the vital reduction of greenhouse gas emissions, it creates a system in which companies delay meaningful action on the false basis of having 'cancelled out' their emissions with the credits they purchase. Credits have the appearance of being a relatively cheap quick fix.

We prefer responsible trading where the carbon credits we develop are traded directly (and consequently retired) with companies looking to offset their carbon taxes or who are looking to achieve Net Zero.

CAN YOU REFER US TO AN ESG CONSULTANT?

A list of ESG consultants in South Africa can be accessed HERE.

THE JARGON

Adaptation	Preparing for new environmental conditions.
Additionality	A project must demonstrate that more carbon than normal is retained.
Cap-and-Trade	A government-regulated carbon market that places a limit on GHG emissions.
Carbon credit	A standardized unit that equals one metric ton of CO2e from a carbon offset project.
Carbon cycle	The way carbon moves through the atmosphere, oceans and land.
Carbon dioxide (CO2)	The most important GHG. Industry, electricity, and transportation are major sources of this gas.
Carbon dioxide equivalent (CO2e)	Amount of any GHG with similar warming to an amount of CO2.
Carbon flux	The fluctuations of CO2 in the atmosphere, oceans, and land.
Carbon footprint	The total amount of GHGs caused by a person or organization.
Carbon Credit Methodologies	is a framework document that defines the quantification and parameters that are required to issue carbon credits.
Carbon market	A system to reduce GHGs by putting a price on carbon and trading carbon credits.
Carbon offset	Reducing sources of GHGs, or increasing storage of GHGs, to compensate for other GHG emissions.
Carbon registry	Independent authority that approves, lists, and tracks a carbon credit’s ownership.
Carbon sequestration	Storage of carbon for a long time.
Carbon sink	A source that removes CO2 from the atmosphere.
Carbon source	A source that places CO2 into the atmosphere.
Carbon tax	A fee for GHG emissions.
Climate change	Changes in weather trends over time.
CO2 emissions	Release of CO2 into the atmosphere.
Greenhouse effect	The process warms the planet from the sun by trapping heat in the atmosphere.
Greenhouse gases (GHG)	Molecules in the atmosphere retain heat, resulting in the greenhouse effect.
IPP	Refers to Independent power producers (IPPs) who are non-utility generators (NUGs) that are typically not owned by the national electricity company or public utility. IPPs generate electricity for sale to the national electricity network.
ITMO	Article 6 of the Paris Agreement describes the use of Internationally Transferred Mitigation Outcomes (ITMOs). An ITMO is a Carbon Credit (offset) produced by projects in a country that have registered the project in the country in which the project operates. ITMOs can be used where a country (usually developed) can lower the cost of meeting its own NDC by supporting less costly emissions reductions in another country. ITMOs are designed to decentralise the global origination of projects and carbon credits to the benefit of the nation where the project resides, allowing that country to finance emissions projects. Regulated entities within the buyer country would purchase (and surrender &retire) qualified ITMO’s and register this with its government. The so-called ‘seller’ nations are then able to finance domestic mitigation obligations (projects) beyond what can be achieved with their existing resources, with the proceeds achieved from the sale of emission credits. To register large projects with large annual issuances of ITMOs, an electronic registry is essential.
Leakage	A project must demonstrate that carbon is not being released somewhere else.
NDC	Stands for National Development Contributions, relevant to the design and use of carbon markets in the context of Article 6.2 in which countries communicate actions they will take to reduce their Greenhouse Gas emissions in order to reach the goals of the Paris Agreement. Countries also communicate in the NDCs actions they will take to build resilience to adapt to the impacts of rising temperatures.
Mitigation	Reducing sources of greenhouse gases (GHG) or increasing storage of GHGs.
Paris Agreement	The Paris Agreement is a legally binding international treaty on climate change that seeks to limit global warming to well below 2 degrees, in order to halt the adverse impacts of global warming. It was adopted by 196 Parties at COP 21 in Paris, on 12 December 2015 and entered into force on 4 November 2016.
Permanence	A project must demonstrate that carbon is retained for a long time.