As we move towards carbon neutrality, there is a need for a proper way to track and verify created carbon credits, so it can be traded for financial value that will allow businesses to reduce their carbon emissions in the short term via offsetting and incentive individuals, communities and organisations to reduce or capture CO2 from the atmosphere (eg. avoidance, removal and efficiency methods). This is done by something called a Carbon Registry.
A carbon registry is actually a very simple ledger that takes into account many complex things, which is:
(i) an accreditation organisation that verifies and certifies the creation of quality carbon credits;
(ii) it is also a ledger that tracks the credits whether it is either claimed or retired;
(iii) it issues carbon credits based on a methodology that is unique to the organisation’s Offset Project Development (OPD) in relation to environmental uplift.
So individuals or companies may create carbon credits via their carbon offsetting activities (eg. use of renewable energy). Also anyone can buy these carbon credits and retire them to offset their CO2 emissions.
Carbon registries play an important role in the carbon market as it verifies and tracks the creation of carbon credits and also monitors the retirement of such credits. Apart from this, carbon registries increase the confidence in the carbon market by preparing a reliable and transparent avenue to monitor environmental benefits of carbon offsetting activities.
Ultimately, carbon registries allow businesses and individuals to participate in the carbon market in hopes of incentivising climate change mitigation and promote impactful environmental uplift.