Learn how you can compensate for your impact with carbon units

Carbon units, also known as carbon credits, are tradable certificates that represent the reduction or removal of 1 metric tonne of carbon dioxide emissions from the atmosphere through carbon projects. These units can be bought and sold on various markets, allowing companies and individuals to compensate for their carbon emissions and reduce their carbon footprints.

Nature-restoration projects, such as reforestation, afforestation, agroforestry, and improved soil management, capture and store carbon dioxide from the atmosphere. Our energy-efficient cookstove projects on the other hand reduce the amount of carbon emissions emitted from traditional cooking methods and deforestation for firewood purposes. The amount of carbon sequestered or avoided by these projects can be quantified and certified as carbon units.

We ensure integrity through rigorous third-party verification and certification processes, regular monitoring and reporting of the project's impact, and adherence to high standards that assess and ensure additionality, permanence, and avoidance of leakage (where reducing emissions in one area causes an increase in another).

Our nature-based carbon projects are verified by leading standards such as the Verified Carbon Standard (VCS) by Verra and the Gold Standard. These standards ensure that the carbon savings are real, measurable, permanent, and additional (ie, they would not have occurred without the project).

Compliance markets are regulatory schemes where companies or countries are mandated by law to reduce their emissions. They may use carbon units to meet part of their obligations and therefore trade in carbon allowances. 

The voluntary carbon market, also known as the verified carbon market, on the other hand, consists of entities voluntarily purchasing carbon units to meet sustainability targets and compensate for their emissions. DGB operates in the voluntary carbon market, providing verified carbon units to companies that want to address their carbon footprints. 

Besides carbon sequestration and reduction, our projects provide numerous social and environmental co-benefits. These benefits include job creation and education in local communities, additional revenue streams for local farmers, biodiversity conservation, habitat restoration, improved water quality, and enhanced resilience to climate impacts such as floods and droughts.

Our projects have a positive impact on local communities. They provide economic opportunities and ecosystem services. We actively engage and work with local communities in planning and decision-making processes to maximise community benefits like job creation, training, educational funds, and additional income streams. 

Yes, risks include the potential failure of projects due to ecological or socio-economic factors.

To mitigate these risks, all our projects are strategically designed to maximise resilience and minimise the risk of failure. For instance, we implement fire breaks to guard against fires, plant biodiverse native tree species to create forests resilient to diseases, and work closely with local communities to protect the projects from illegal logging. These measures are critical in safeguarding the success of our projects.

Additionally, our projects are certified by third-party standards, like the Verified Carbon Standard (VCS). VCS employs a mechanism known as a 'buffer pool.' Each project is required to allocate a certain percentage of its carbon units to this buffer pool, based on the assessed risk level of the project. For example, our reforestation project in Kenya needs to set aside 10% of its total carbon units into the buffer pool. This allocation means the project developer cannot sell these reserved units, as they are allocated to the buffer pool.

This buffer pool serves as a safety net for all carbon projects under this certification. Should any project fail, the buffer pool ensures that the committed carbon sequestration still occurs. This system provides an added layer of reliability and assurance to our partners and stakeholders.

Depending on the project and volume, prices range between €15–€40 per tonne of CO₂ (ex VAT). It’s important to note that carbon prices in the market vary based on various factors, such as location, verification, quality, and co-benefits. DGB’s carbon units are highly valued as they are generated by high-quality, verified projects that deliver many co-benefits.

Reducing emissions and compensating for the remainder go hand in hand as complementary strategies to minimise negative environmental impacts and maximise positive contributions towards sustainability. But the one does not need to precede the other.

Internal reductions are a critical component of your sustainability strategy. This involves optimising production processes, improving energy efficiency, and adopting cleaner technologies. However, it's often challenging to reduce emissions to zero due to technical and economic limitations. This is where compensation, typically through carbon units or investing in nature-restoration projects, becomes crucial.

Compensation allows individuals and organisations to compensate for unavoidable or past emissions by supporting projects that reduce or capture emissions elsewhere. This dual approach not only helps mitigate your total carbon footprint but also supports broader environmental and social goals, such as biodiversity conservation, community development, and resilience to climate impacts. By actively reducing and compensating for emissions, stakeholders can demonstrate a strong commitment to environmental stewardship and sustainability, thereby enhancing their reputation and fulfilling their social responsibilities. Together, these actions create a comprehensive strategy for addressing environmental degradation and contributing positively to our planet's health and future.

As of now, reporting carbon emissions is mandatory for certain large companies in the EU, and the scope of this requirement is set to expand significantly. The Corporate Sustainability Reporting Directive (CSRD) will require all large EU companies to provide detailed reports on their carbon emissions among other environmental impacts. This directive applies to large companies that meet specific criteria regarding their size, turnover, and employee numbers.

While it is not yet mandatory for small and medium-sized enterprises (SMEs) to report their emissions, the environment is changing. Large companies, under the CSRD, may start requiring their suppliers and partners in the value chain to report their emissions as well. This means that increasingly, more companies, regardless of size, will need to start reporting on their carbon emissions to maintain business relationships with larger firms. Considerations like Environmental, Social, and Governance (ESG) criteria are also becoming more key for all stakeholders. 

Starting early with carbon reporting can be beneficial. Early adoption allows your company more time to develop efficient processes for data collection, establish baselines, and implement improvements in environmental performance. It also positions your company as a responsible and forward-thinking partner, ready to meet upcoming regulatory requirements and stakeholder expectations. Thus, even if not yet mandatory for your business, beginning the process of reporting and addressing carbon emissions can provide strategic advantages and help smooth the transition as regulations evolve.