Work out carbon credit revenue instantly with clear inputs, formula shown and shareable results.
Credits issued are verified reductions less a buffer pool deduction, which covers reversal risk in land-based projects. Net revenue subtracts validation, verification, monitoring and registry costs, which are largely fixed — so small projects often cannot reach the break-even credit price at all.
Credit revenue
Credits issued = reductions x (1 - buffer %); net revenue = credits x price - verification cost
Break-even
Break-even price = verification cost / credits issued
Carbon credit eligibility, additionality and verification requirements are set by the applicable standard and host country rules. Corresponding adjustment obligations may apply to international transfers.
Sequestration in forests and soils can be reversed by fire, disease or land use change. A buffer of 10-25% of credits is withheld as insurance against those reversals.
Demonstrable additionality, a conservative baseline, accurate and independently verified monitoring, permanence, and no leakage or double counting. Price differences between credit types largely reflect these attributes.