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
What is a carbon credit, as traded in voluntary and compliance carbon markets?
Answer: A certificate representing one metric ton of CO2 equivalent reduced or removed from the atmosphere
A carbon credit represents one metric ton of CO2 equivalent (CO2e) that has been reduced, avoided, or removed from the atmosphere, and can be bought and sold in carbon markets.
Under the U.S. Regional Greenhouse Gas Initiative (RGGI), which sector is primarily regulated?
Answer: Electric power generation
RGGI is a cap-and-trade program covering CO2 emissions from fossil fuel–fired electric power plants with a capacity of 25 MW or more across participating northeastern states.
What distinguishes a 'compliance' carbon market from a 'voluntary' carbon market?
Answer: Compliance markets are legally mandated by regulation, while voluntary markets allow companies to purchase offsets by choice
Compliance carbon markets are established by law or regulation (such as cap-and-trade programs), obligating covered entities to participate, whereas voluntary markets are used by organizations choosing to offset emissions beyond legal requirements.
Which international framework governs the trading of carbon credits between countries under the Paris Agreement?
Answer: Article 6 of the Paris Agreement
Article 6 of the Paris Agreement establishes the rules for international carbon market cooperation, including bilateral trading (Article 6.2) and the new centralized crediting mechanism (Article 6.4).
What is 'additionality' as it applies to carbon offset projects?
Answer: The requirement that emission reductions would not have occurred without the carbon finance incentive
Additionality requires that greenhouse gas reductions attributable to an offset project would not have happened under a 'business as usual' scenario without the revenue from carbon credit sales.
Which voluntary carbon market standard is most widely used globally for certifying nature-based offset projects such as REDD+?
Answer: Verified Carbon Standard (Verra VCS)
Verra's Verified Carbon Standard (VCS) is the world's most widely used voluntary GHG program, certifying millions of tonnes of credits including REDD+ (Reducing Emissions from Deforestation and Forest Degradation) projects.