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CCP Carbon Markets & Offset Credits Flashcards

6 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CCP Carbon Markets & Offset Credits flashcards as text
  1. What does 'retiring' a carbon credit mean in market practice?

    Answer: Permanently canceling the credit so it cannot be resold or used again after an offset claim is made

    Retiring a carbon credit permanently removes it from circulation in a registry, ensuring that the associated emission reduction or removal is counted only once toward an organization's offset claim.

  2. Under California's Cap-and-Trade program, what percentage of compliance obligations can covered entities meet using offset credits (as of recent program rules)?

    Answer: Up to 4–6% of their compliance obligation

    California regulations limit the use of offset credits to a small percentage (generally 4–6%) of a covered entity's total compliance obligation to ensure that most reductions occur from actual emission cuts.

  3. What is CORSIA, and which sector does it regulate?

    Answer: Carbon Offsetting and Reduction Scheme for International Aviation, regulating airline emissions

    CORSIA is the ICAO-administered Carbon Offsetting and Reduction Scheme for International Aviation, requiring airlines to offset growth in international flight emissions above 2019 baseline levels.

  4. What is a 'baseline' in the context of a carbon offset project?

    Answer: The projected emissions that would have occurred without the project, used as a reference to calculate reductions

    A baseline scenario represents the 'business as usual' emissions trajectory that would occur in the absence of the project, enabling quantification of the actual reductions achieved.

  5. Which type of carbon offset project involves preventing the clearing of existing forests to avoid releasing stored carbon?

    Answer: REDD+ (Reducing Emissions from Deforestation and Forest Degradation)

    REDD+ projects generate carbon credits by protecting existing tropical or subtropical forests from deforestation and degradation, thereby avoiding the release of carbon stored in trees and soil.

  6. What does the term 'co-benefits' refer to in the evaluation of carbon offset projects?

    Answer: Positive social, environmental, or economic impacts beyond the primary GHG reduction goal

    Co-benefits are the additional positive outcomes that carbon projects deliver alongside emission reductions, such as biodiversity conservation, clean water access, local employment, and community health improvements.