ABSTRACT
Amajor variation between carbon credits is the origin of the offset. As noted in Chapter two, carbon credits can be generated via allowance-based or projectbased emissions reductions (offsets). With the exception of CCX credits or those retired from the regulatory market, all credits in the voluntary sector originate from offset projects. Offset projects can be categorized into two main categories: those reducing GHG emissions at the source and those that reduce GHG levels in the atmosphere by sequestration. Commonly used emission reduction and sequestration projects can then be further categorized, as illustrated in Figure A.1. There are other means of generating carbon credits than listed in this section. For example, developing technologies, such as the multiple forms of oceanic and geographic sequestration that may lead to GHG sequestration and carbon credits in the future are not discussed. Instead this section focuses on the most widely used sources of offset credits in the voluntary market.
