For nearly 30 years, ACR has operated in global, national and state compliance and voluntary carbon markets, issuing more than 300 million project-level emission reductions and removals credits. All projects must be validated and verified in compliance with an ACR-approved methodology.

ACR methodologies support emission reductions and removals across various sectors, including forestry and wetlands, carbon capture and storage, industrial sources, and waste handling and disposal.

Super Pollutants

The following methodologies guide activities for emission reductions and removals from a variety of industrial processes and waste handling and disposal projects.

• Advanced Refrigeration Systems
• Certified Reclaimed HFC Refrigerants, Propellants, and Fire Suppressants
• Destruction of Ozone Depleting Substances and High-GWP Foam
• Destruction of Ozone Depleting Substances from International Sources
• Plugging Orphaned Oil and Gas Wells
• Capturing and Destroying Methane from Coal and Trona Mines in North America
• Landfill Gas Destruction and Beneficial Use Projects

Nature-based Solutions

The following methodologies support emission reductions and removals from land use, land use change and forestry projects.

• Afforestation and Reforestation of Degraded Lands
• Active Conservation and Sustainable Management on U.S. Forestlands
• Improved Forest Management on Canadian Forestlands
• Improved Forest Management on Non-Federal U.S. Forestlands
• Improved Forest Management on Small Non-Industrial Private Forestlands
• Restoration of Pocosin Wetlands                            

Carbon Capture and Storage

This following methodology supports emission reductions and removals from carbon capture and storage projects.

•  Carbon Capture and Storage Projects

To ensure ACR methodologies are grounded in the latest science and the resulting credits are of the highest integrity, ACR’s process for the development and approval of methodologies is led by our highly qualified technical team with input from external stakeholders and subject matter experts.

To help organizations and stakeholders better understand and communicate the diverse portfolio of scalable climate action available through ACR, we’ve created an infographic that summarizes the methodologies we manage.

You can download the infographic here.

ACR operates a transparent registry system to record the issuance, retirement and cancellation of serialized, independently verified carbon credits to emission reductions and removals projects.

The ACR registry includes a range of credit labels that are based on credit attributes and eligibility for use in different markets.

To help stakeholders better understand and communicate what the credit labels mean, ACR created an infographic that simply and accurately explains each:

1. CORSIA eligible. Credits eligible for use by airlines for their compliance targets in the appropriate phase of the U.N. ICAOʼs Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
2. CCP approved. Credits issued under methodologies that have earned Core Carbon Principles approval from the Integrity Council for the Voluntary Carbon Market (ICVCM).
3. Verified removal. Credits that have been separately quantified and independently verified to have removed and durably stored CO₂ from the atmosphere.
4. Sustainable Development Goal(s). Credits that support specific U.N. Sustainable Development Goals (SDGs).
5. Ecology eligible. Credits eligible for use in Washington State’s Cap-and-Invest program.
6. ARB eligible. Credits eligible for use in California’s Cap-and-Trade program and in WCI-linked markets.

To promote clarity, consistency, accuracy and impact in the marketplace, we encourage ACR stakeholders to use the infographic in communications.

You can download the infographic on ACR credit labels here.

SOCIAL MEDIA GRAPHICS TO SHARE BELOW.

Dear Future Carbon Credit Buyers:

Carbon credits are essential climate solutions because every business has an unavoidable carbon footprint. That is why “net zero” is a pragmatic goal in line with the Paris Agreement¹, while “absolute zero” is unrealistic, now and until there are drastic advancements in decarbonization at scale. 

Now is the time for companies to take greater responsibility for the emissions they cannot reduce by purchasing and retiring high-quality carbon credits. Reduce and invest is a new strategic mantra for every business leader.

Companies that are already utilizing carbon credits are 1.8 times more likely to be decarbonizing year-over-year², a key to achieving net-zero emissions by 2050. There are two reasons for this: Companies using credits likely have a diverse portfolio of climate actions, including decarbonization. And by purchasing credits, companies put a price on their carbon emissions, which creates further incentive to decarbonize. 

The world will only meet the goals of the Paris Agreement (and public expectations) if all businesses take comprehensive climate action. This means prioritizing emissions reductions within their value chains while also investing in additional mitigation activities to take responsibility for residual emissions, including through the use of high-quality carbon credits. 

Corporate climate action is largely voluntary, however many companies are already committed, setting Paris Agreement-aligned targets and decarbonizing their scope 1, 2 and 3 emissions to the greatest extent possible. Yet even among committed companies only 18% are on track to achieve their targets, according to Accenture³.

Purchasing carbon credits can help companies and the planet get back on track. Investing in a diverse portfolio of credits, including both nature-based and engineered solutions, can reduce nature loss and advance actions with immediate impact. Nature is essential for maintaining a thriving economy; 55% of global GDP depends on natural capital and ecosystem services⁴, making natural climate solutions an important part of a portfolio. Done well, both natural climate solutions and engineered solutions can also provide positive socio-economic benefits for Indigenous Peoples and communities local to project areas. Projects targeting super-pollutants that have much greater near-term harm, such as methane and refrigerants, have immediate benefits and buy the world time to address hard-to-abate sectors like heavy industry and transportation.

Carbon markets are not perfect. The science, technology, data and market expectations underpinning high-integrity climate action continue to evolve and become more consistently regulated. However, the fact remains that the urgency of climate change calls for action now, as broadly supported initiatives reinforce requirements for carbon market integrity.

A decision to buy carbon credits requires a strong case showing that the business benefits of buying carbon credits outweigh the risks.

Here’s how carbon credits bring value to your organization:

• Carbon markets allow companies to move fast. Markets let you act before you have access to all the tools you know you need. In a recent survey of 500 business leaders, the top benefit of carbon markets was that they allow “immediate climate action while working to reduce emissions in the longer term.”⁵ Buying carbon credits from projects with verified emissions reductions and removals creates immediate impact, even as companies prioritize supply chain decarbonization.

• Carbon markets move capital efficiently at scale. Buying carbon credits is efficient, lowering economy-wide costs of decarbonization and raising ambitions and impact, according to research from Environmental Defense Fund⁶. Carbon markets can also move capital at scale. For example, more than $100 billion was invested in carbon markets in 2023, which is a record according to the World Bank⁷. By comparison, all climate philanthropy was estimated to be $7.8 – 12.8 billion in 2022⁸. To achieve net-zero emissions by 2050, more than $3.5 trillion in additional average annual spending will be required, according to McKinsey⁹. Only private markets can move capital at that speed and scale.

• Carbon markets measure impact. Carbon markets are laser-focused on measuring emissions reduced or removed. For most companies, scope 3 emissions account for more than 70% of their total emissions and most companies with Paris Agreement-aligned targets are not meeting their scope 3 targets¹⁰. Carbon markets offer ways to quantify progress and contributions beyond value chain emission reductions, with rigorous measurement, monitoring, reporting and independent verification, alongside work to decarbonize. 

• Your stakeholders expect action. 90% of employees engaged in their company’s sustainability work say it enhances their job satisfaction¹¹ because people want to work for responsible businesses. Consumers expect companies to act. Carbon credits show a level of maturity in your decarbonization journey, which is why 8 of the 10 most valuable brands in the world already are using carbon credits or have pledged to do so¹². 

• Carbon markets are the future. All companies are likely to participate in carbon markets at some point in the future¹³. Acting now offers “first-mover” benefits as markets develop. To address material business risks, as a defensive posture against future regulation, price increases, and reporting requirements, and as a proactive investment in new business systems and opportunities, buying carbon credits now helps to future-proof your company. 

Here’s why now is the time to act:

• Carbon market integrity is converging on a clear definition. Across civil society and governmental bodies and private organizations, definitions of “high-integrity” are now widely shared and integrated into carbon markets. While there is more work to do, a clear framework is emerging for companies to engage. Demand inherently pushes markets towards integrity and rewards quality. With a clear definition in place for high-integrity carbon credits, your company’s support means engagement and improvement in the local communities in which you’re invested — in a measurable, third-party-verified way.

• Climate change is an urgent issue. It is already affecting all parts of our economy, from supply chain disruptions to employee health. In the climate fight, speed matters.

This letter is a call for pragmatic action now. 

We, the undersigned, know from experience that carbon markets have a critical role to play alongside supply emissions reductions. We have seen how carbon credits can help companies decarbonize faster, with greater efficiency that increases ambition. 

We encourage you to take the next step by including carbon credits in your sustainability strategy now. We stand ready to support your efforts. Don’t hesitate to contact us if we can be helpful in sharing our own experiences. 

Sincerely,

Share the Letter & Graphics

Want to share this message? Download a .zip file with the open letter (.pdf) and graphics files for use on social media here.

Learn More

Want to dig into the research behind the open letter? ACR developed a white paper to support business leaders who are making a case that the business benefits of buying carbon credits outweigh the risks. Download the white paper here.

Endnotes

1.  UNFCCC, Unlocking Climate Ambition: the Significance of Article 6 at COP28, https://unfccc.int/news/unlocking-climate-ambition-the-significance-of-article-6-at-cop28

2.  Ecosystem Marketplace, New research: Carbon credits are associated with businesses decarbonizing faster; https://www.ecosystemmarketplace.com/articles/new-research-carbon-credits-are-associated-with-businesses-decarbonizing-faster/

3.  Accenture, Only a Fifth of Companies on Track for Net Zero, with Heavy Industry Key to Breaking Decarbonization Stalemate, Accenture Reports Find https://newsroom.accenture.com/news/2023/only-a-fifth-of-companies-on-track-for-net-zero-with-heavy-industry-key-to-breaking-decarbonization-stalemate-accenture-reports-find 

4.  PwC. PwC boosts global nature and biodiversity capabilities with new Centre for Nature Positive Business, as new research finds 55% of the world’s GDP – equivalent to $58 trillion – is exposed to material nature risk without immediate action, https://www.pwc.com/gx/en/news-room/press-releases/2023/pwcboosts-global-nature-and-biodiversity-capabilities.html#:~:text=More%20than%20half%20(55%25),is%20highly%20dependent%20on%20nature. 

5.  Conservation International & We Mean Business Coalition, Corporate Minds on Climate Action; https://www.conservation.org/docs/default-source/audio/download-the-report-here-.pdf?sfvrsn=eaece659_6

6.  Environmental Defense Fund, How carbon markets can increase climate ambition, https://www.edf.org/climate/how-carbon-markets-can-increase-climate-ambition#:~:text=An%20economic%20analysis%20from%20Environmental,with%20their%20Paris%20Agreement%20targets

7.  World Bank Group, Global Carbon Pricing Revenues Top a Record $100 Billion, https://www.worldbank.org/en/news/press-release/2024/05/21/global-carbon-pricing-revenues-top-a-record-100-billion

8.  ClimateWorks Foundation, Report: In Sharp Reversal, Climate Giving Flat in 2022, https://www.climateworks.org/press-release/report-in-sharp-reversal-climate-giving-flat-in-2022/

9.  McKinsey, The net-zero transition: What it would cost, what it could bring, https://www.mckinsey.com/capabilities/sustainability/our-insights/the-net-zero-transition-what-it-would-cost-what-it-could-bring

10.  World Economic Forum, It’s time for companies to take on ‘scope 3’ emissions to tackle the the full climate impact of their products, https://www.weforum.org/agenda/2023/01/climate-change-emissions-scope-3-companies-esg/

11.  Cloverly, 7 Benefits of Carbon Credits: How to Make the Business Case to the C-Suite, https://cloverly.com/benefits-of-carbon-credits-white-paper/

12.  Carbon Growth Partners & Bloomberg, Investing in Carbon Markets: Cleared for Take-off, https://www.bloomberg.com/professional/insights/trading/investing-in-carbon-markets-cleared-for-take-off/

13.  BloombergNEF, Long-Term Carbon Offsets Outlook 2023, https://spotlight.bloomberg.com/story/longtermcarbonoffsetsoutlook2023/page/2/2

ACR’s process for generating carbon credits using approved methodologies is central to our work. Each step plays an important role in ACR’s ability to create confidence in the integrity of carbon markets to catalyze transformational climate results.

But what is the life cycle of an ACR carbon credit?

The ACR Standard guides the process from start to finish. This ensures that ACR operates a transparent online registry system to record the issuance, transfer, and retirement of serialized carbon credits. ACR oversees the registration and independent verification of greenhouse gas emission reduction and removals projects, and every project submitted for listing must use an active, ACR-approved methodology.

ACR created an infographic to simply and accurately define the steps in the process:

1. Methodology development. ACR develops a carbon accounting methodology, detailing requirements for measurement, monitoring, reporting and verification, approved through a process of public consultation and scientific peer review.
2. Feasibility assessment. A project developer invests in a feasibility assessment based on the methodology.
3. Project listing. After ACR review and approval of the project listing form for completeness and alignment with requirements of the ACR Standard and methodology, a project can be listed on the ACR registry.
4. Public comment.The project developer submits project documents and initiates selection of a validation and verification body (VVB). The project is publicly listed on the ACR Registry for a 30-day public comment period.
5. Validation and verification. Following successful screening for Conflicts of Interest, an independent, accredited third-party validation and verification body (VVB) validates the project plan and verifies the emission statements, including review of any public comments received.
6. Review. ACR reviews the project and verification documents and provides feedback. ACRʼs review results in (a) acceptance, (b) acceptance contingent on requested corrections or clarifications, or (c) rejection.
7. Project registration. Upon ACR acceptance of VVB documentation, project documents, including the validated GHG Project Plan and verified monitoring report, are made publicly available.
8. Carbon credit issuance. ACR issues the appropriate quantity and vintage of verified Emission Reduction Tons (ERTs) as serialized emission reduction or removal credits to the project proponent for the reporting period.
9. Retirement. A carbon credit is permanently removed from the registry as a tradeable emission reduction or removal unit when it is retired. A retired credit may be applied toward an emission reduction target of the ACR account holder that retired the credit or on behalf of a third party.

To promote clarity, consistency, accuracy and impact in the marketplace, we encourage you to use the infographic in your communications.

You can download this infographic about the life cycle of ACR carbon credits here.

Ensuring carbon credit quality is central to ACR’s work. It is a fundamental reason ACR has been a trusted partner in carbon markets since 1996 when we were founded as the world’s first private greenhouse gas registry.

But what determines a high-quality carbon credit?

The ACR Standard and our portfolio of methodologies ensure that the carbon credits ACR issues represent emission reductions and removals that are real, additional, determined by robust quantification, net of leakage, permanent, independently verified, transparent, and that there is no double counting. These terms are typically used to define a carbon credit that is high quality.

To help stakeholders communicate about high-quality carbon credits, ACR created an infographic that simply and accurately defines the key terms:

• Real: Emission reductions and removals have been verified to have occurred (ex-post). Ex-post is the industry term for an emission reduction that has already occurred.
• Additional: Emission reductions or removals are beyond what would have occurred in the absence of the project activity and under a business-as-usual scenario.
• Robust quantification: Emission reductions or removals are measurable against a conservative baseline, accurate, and take account of uncertainty.
• Net of leakage: Emission reductions or removals take into account any increase in emissions outside the project boundary due to activities taken by the project.
• Permanent: Emission reductions or removals are permanent or there are binding measures to mitigate and compensate for reversals.
• Independently verified: Emission reductions or removals are validated and verified by a qualified, accredited, and independent third party.
• Transparent: There is publicly available information on the methodology, the projects, and credits.
• No double counting: There are protections to ensure credits are only issued and used once.
• Environmental & Social Safeguards: Develop and disclose an impact assessment and mitigate and monitor negative impacts and risks.

To promote clarity, consistency, accuracy, and impact in the marketplace, we encourage you to use the infographic in your communications.

You can download the infographic on high-quality carbon credits here.

Even as the world continues to release climate-changing gases into the atmosphere, there is a growing perception that carbon removals are more effective or preferable to emission reductions when it comes to carbon credits. This is a misconception, as both emission reductions and removals play a vital role in tackling climate change.

Understanding Carbon Emission Reductions and Removals

Think of carbon in the atmosphere like water in a sink. Reductions prevent emissions from entering the atmosphere—similar to turning down the tap to slow the flow of water. Removals extract carbon from the atmosphere—like opening the drain to let water out.

From the atmosphere’s perspective, emission reductions and removals are both vitally important. Removals alone won’t solve the problem. To prevent the “sink” from overflowing, we need both reductions and removals working together.

Why Both Carbon Reductions and Removals Matter

The Example of Natural Climate Solutions

Protecting and restoring forests are among the most effective natural climate solutions. Forest conservation can reduce emissions. Reforestation can remove carbon from the atmosphere over time – as the new trees grow.

Recent research published in Nature Climate Change (2024) reinforces this point, finding that tropical and temperate forest conservation (reductions) and tropical and temperate reforestation (removals) have the highest potential for impact as natural climate solutions. In other words, both reductions and removals are essential.

Immediate Action Yields Greater Impact

The urgency to cut emissions now cannot be overstated. Deforestation and forest degradation contribute 12-20% of total global emissions, while methane leaks are responsible for one-third of global warming to date. Additionally, nearly half of all species are in decline due to habitat loss.

Reducing emissions now is more cost-effective than removing emissions from the atmosphere later. In addition, removals—whether through reforestation or emerging carbon capture technologies—take time to scale up and deliver results.

A Balanced Approach to Climate Action

Focusing only on carbon removals overlooks the urgent need to prevent emissions from entering the atmosphere in the first place. A well-rounded climate strategy incorporates both reductions and removals for long-term climate stability.

At ACR, we advocate for a portfolio approach for credit buyers that integrates multiple solutions. Our methodologies support emission reductions and removals across various sectors, including forestry and wetlands (AFOLU), carbon capture and storage (CCS), industrial sources, and waste handling and disposal.

To help organizations and stakeholders better understand and communicate the critical role of both reductions and removals, we’ve created an infographic that illustrates their importance.

We encourage you to download and use the infographic here.