ISSUANCE

Issuance in the context of carbon credits refers to the process of officially creating and recording carbon credits in a registry after a project has successfully demonstrated that it has achieved verified emissions reductions. This step follows the validation and verification of the project’s emissions reduction activities by accredited third-party auditors. The issuance process ensures that each carbon credit is unique, traceable, and represents a real reduction in greenhouse gas emissions. 

The issuance of carbon credits is a critical step in the carbon credit lifecycle because it makes the outcome unit (tCO2e) tradeable and traceable in the registry. This process confirms that the emissions reductions have been achieved and verified according to established standards and methodologies. Issuance allows carbon credits to be tracked and traded with confidence, providing transparency and trust for buyers and sellers in the carbon markets. 

Before issuance, a carbon project must undergo rigorous validation and verification. Validation involves assessing the project design against the standards set by a carbon credit program, ensuring that the project can deliver the expected emissions reductions. Verification is the process of confirming that the project has achieved the claimed emissions reductions through monitoring and data collection. These steps are carried out by accredited third-party auditors. 

Once a project has been validated and verified, it can be registered with a carbon credit registry. The project proponent submits the required documentation to the registry, which reviews the information and, if satisfactory, issues the carbon credits. Each issued credit is assigned a unique serial number and recorded in the registry's database, ensuring traceability and preventing double counting. 

The issuance process in the carbon credit market involves several critical elements that ensure the credibility and integrity of the credits: 

• Market Transparency: Maintains publicly accessible records of issued credits, fostering transparency and trust in the carbon market.
• Certified Impacts: Ensures that credits meet the standards and regulatory requirements of carbon credit programs.