Identifying and evaluating the different types of carbon credits available can often be challenging, sometimes daunting. To help navigate the options within this market, however, a handy naming convention has emerged. Assigned to three separate colours - blue, green, and gold - carbon credits are now much easier to identify and select.
CFP Energy is home to a leading voluntary carbon team that supports global organisations with decarbonisation strategies, from ideation to execution.
In collaboration with trusted partners, we have established a rigorous process for ensuring the integrity of our project pipeline, helping you secure high-quality credits from the entire voluntary carbon market.Contact one of our carbon specialists today to see how you could use carbon credits to offset greenhouse gas (GHG) emissions by funding projects that reduce or remove emissions elsewhere.
Types of Carbon Credits
Blue Carbon Credits
Blue carbon credits refer to any credits that derive from projects that support marine ecosystems.
In practice, these are projects that are likely to involve at least one of the following:
- Mangroves
- Seagrass meadows
- Salt marshes
- Kelp forests
Each of these ecosystems helps absorb and store large amounts of CO₂, making them crucial for climate mitigation. Verra’s Blue Carbon Initiative, meanwhile, ensures that only projects that adhere to the strictest standards of accountability gain certification.
Example: mangrove conservation projects, particularly in places like Kenya, are ideal for securing Blue Carbon accreditation. Mangrove conservation helps store carbon, protect coastal communities from erosion and storms, and support biodiversity and local livelihoods.
Figure 1: Illustrates the steady decline in global mangrove forest area between 1990 and 2020 and the vital role that carbon credits play in restoring these areas to their original state.
Green Carbon Credits
Green carbon credits, typically based on land-based activities, make up the bulk of carbon credits.
These projects are likely to involve at least one of the following:
- Reforestation/afforestation
- Grasslands Regeneration
- Soil carbon sequestration
- Landfills and wastewater treatment
Example: forest restoration projects, like our project in Finca Amakella Forest, combine all the elements of a successful Green Carbon Credit system - from afforestation and reforestation to revegetation and co-benefits like economic development and the promotion of women into positions of power.
Gold Carbon Credits
Certified by the Gold Standard, an accrediting body formed in 2003 by the World Wildlife Fund (WWF), Gold Carbon Credits emphasise social as well as ecological improvements.
Gold Standard carbon credits can be issued under 3 different scopes - community services projects, renewable energy projects, and land use & forestry projects. All projects are subject to general protocols, complemented by specific requirements based on project type.
Across this broad range of climate activities, Gold carbon credits may cover:
- Promotion of public health
- Improved forestry management
- Renewable energy solutions
- Biodiversity protection
- Water security
Example: cook stove initiatives, schemes that replace old cook stoves with more energy-efficient replacements, are an established pathway to promoting public health and reducing carbon emissions. Clean cook stove initiatives meet Gold Standard requirements, including 7 of the Sustainable Goals for Development (SDGs), making them an ideal route for accreditation.
Figure 2: Credit retirement for cookstove projects. Source: Trove Research
The carbon market is evolving. With so many options to choose from – from marine projects to land-based initiatives - expert guidance has never been more important. At CFP Energy, we have established a rigorous process for ensuring the integrity of our carbon credits, helping you secure high-quality credits from the entire voluntary carbon market.
To buy carbon credits immediately, whether from our range of vetted global partners or via nature-based projects managed and nurtured directly by our team, contact our carbon specialists today.
