Carbon credits, also known as carbon units, have become a cornerstone in the global effort to reduce greenhouse gas emissions. For individuals and companies alike, they offer a practical way to take responsibility for unavoidable emissions by supporting projects that actively remove or prevent the release of carbon into the atmosphere. But here’s the catch: not all carbon credits are created equal.
Drone photo of newly reforested land in Kenya. Hongera Reforestation Project, DGB.
While some credits are backed by rigorous science, verified by reputable third parties, and deliver long-term benefits for both ecosystems and local communities, others fall short—lacking transparency, credibility, or meaningful environmental impact.
This blog breaks down the key differences between high-quality and regular carbon credits. It will give you the tools to understand what makes a credit truly impactful, how to evaluate its trustworthiness, and why the standard you choose matters—not just for emissions goals, but for real, measurable change on the ground.
Understanding carbon credits
Carbon credits is a mechanism that enables organisations and individuals to compensate for their residual emissions by supporting projects that reduce or remove greenhouse gases from the atmosphere. Each carbon credit represents 1 metric tonne of carbon dioxide-equivalent (CO₂e) that has been avoided or sequestered.
Carbon credits illustration.
These credits play a critical role in global sustainability strategies. While emissions reduction at the source remains the priority, carbon units serve as a complementary tool to accelerate the transition to a lower-emissions future. They help fund environmental initiatives such as forest conservation, reforestation, renewable energy, and soil restoration—initiatives that may not be financially viable without such support.
Read more: How do carbon footprints work?
Broadly, carbon units operate within two types of markets:
- Compliance markets: These are regulated by national or international laws and frameworks. Entities are required by law to offset a portion of their emissions to meet regulatory thresholds.
- Voluntary carbon markets (VCMs): In this market, entities choose to offset emissions proactively as part of corporate sustainability commitments or environmental responsibility strategies. These units are not required by law but are driven by values, stakeholder expectations, and ESG goals.
Understanding the context in which carbon credits are used is the first step towards evaluating their quality. As the market matures, the distinction between high-quality and low-quality credits becomes increasingly important—not just for reputational reasons, but for the integrity and effectiveness of any emissions mitigation strategy, and the health of the carbon market.
Characteristics of high-quality carbon units
The level of benefit is different when it comes to high-quality carbon credits vs regular carbon credits. The value of a carbon unit lies in its credibility—its ability to represent a real, measurable, and lasting reduction or removal of carbon emissions. High-quality carbon units adhere to strict criteria that ensure both environmental integrity and market trust.
1. Additionality
A fundamental principle of high-quality carbon units is additionality. This means the project generating the unit must result in emissions reductions or removals that would not have occurred in the absence of the project. In other words, the environmental benefit must be additional to what would have happened under a business-as-usual scenario.
Without additionality, a carbon unit risks representing a non-impactful or even misleading contribution to emissions mitigation.
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2. Permanence
Another key attribute is permanence—the assurance that the carbon removal or avoidance is not easily reversible. For example, reforestation projects must demonstrate long-term land management practices that protect carbon stocks for decades. Mechanisms such as buffer pools or insurance arrangements are often used to safeguard against potential reversals, such as natural disturbances or human activities.
3. Robust verification
High-quality carbon units are always verified by independent, third-party auditors operating under recognised standards. This verification process ensures that all aspects of the project—baseline calculations, monitoring, reporting, and emissions reductions—are grounded in reliable methodology and scientific rigour.
Leading verification bodies include:
These standards have developed stringent protocols to assess project validity and ensure the environmental claims associated with each carbon unit are defensible.
Local woman preparing a meal using a cookstove. Hongera Energy Efficient Cookstoves Project, DGB.
4. Transparency and traceability
A credible carbon unit must be traceable from issuance to retirement. High-quality registries maintain public records of every unit issued, along with details about the project, its verification history, and the final beneficiary of the credit. This transparency is crucial for preventing double counting and for building trust among buyers and stakeholders.
Read more: How are carbon credits issued?
5. Co-benefits
While the primary function of a carbon unit is to address carbon emissions, the most impactful projects deliver co-benefits beyond carbon. These may include biodiversity conservation, watershed protection, job creation, and the empowerment of local communities. High-quality carbon units often originate from nature-based projects that integrate ecological restoration with social development, creating a broader positive footprint.
Read more: DGB’s cookstove projects: How they truly make a difference
The impact of quality on pricing
When considering high-quality carbon credits vs regular carbon credits, the quality of a credit is evident in its value, which plays a critical role in determining its market price, with several key factors driving valuation:
- Co-benefits: Credits that deliver additional environmental or social outcomes are highly valued and can command premiums above baseline prices. Buyers are increasingly seeking credits with such a holistic impact.
Close-up of a Bulindi chimpanzee eating fruit in its natural habitat. Bulindi Agroforestry and Chimpanzee Conservation Project, DGB.
- Location: Projects based in regions with unique environmental challenges or strong community engagement—such as Africa—often attract higher pricing due to their broader ecological and socio-economic contributions, despite operational complexities
- Vintage: Newer credits, referred to as having a ‘recent vintage’, are generally more expensive because they reflect current emissions reductions and align with active environmental targets and updated methodologies. Older credits, while still valid, may be discounted due to perceived lower relevance
- Certification: Verified and certified credits ensure environmental integrity and traceability. Such credits are trusted by buyers and often priced higher due to the added assurance they provide.
Read more: Cracking the code of carbon pricing: How does it work?
By the end of 2023, nature-based carbon units sold at a 40% premium over average units, and projects with at least one co-benefit certification had a 78% premium. According to the EY Net Zero Centre, verified carbon unit prices are forecast to rise 9.5%–15% per year towards 2035, followed by a 4%–6% annual increase from 2035 to 2050. Ultimately, high-quality carbon credits offer both tangible impacts and broader sustainable value, making them more attractive—and more expensive—in the growing global carbon market.
Limitations of regular carbon units
While carbon units as a concept offer an important pathway for funding emissions mitigation efforts, not all units on the market meet the same standards of environmental integrity. Regular or low-quality carbon units often lack the attributes needed to ensure genuine, lasting impact. Using such units may inadvertently undermine the credibility of sustainability commitments and erode trust in the broader carbon market.
1. Questionable additionality
A common shortfall among regular carbon units is the absence of true additionality. These units may be issued for projects that would have taken place regardless of carbon finance, such as infrastructure improvements or energy transitions already underway. In such cases, the units fail to represent a net positive contribution to emissions reductions.
2. Non-permanence risks
Many low-quality units are associated with projects where carbon sequestration is temporary or poorly protected. For instance, forest-based initiatives may lack long-term land tenure agreements, making them vulnerable to deforestation or land-use changes. Without safeguards or contingency mechanisms, these units carry a high risk of reversal, which compromises their long-term effectiveness.
3. Insufficient verification
Low-quality carbon units may be verified through outdated or weak methodologies—or, in some cases, lack third-party verification entirely. This raises concerns about the accuracy of emissions accounting and the authenticity of the environmental claims being made. Without rigorous oversight, there is little assurance that the credited reductions or removals have actually occurred.
4. Lack of transparency
Opaque recordkeeping and missing data are frequent issues in the lower-quality segment of the market. Without access to verification documents, project details, or issuance and retirement records, buyers have no way to assess the validity or provenance of the unit. This lack of traceability increases the risk of double counting and reputational exposure.
5. Minimal or no co-benefits
Finally, many regular carbon units are generated by projects that focus solely on emissions metrics without contributing to wider environmental or social goals. The absence of biodiversity protection, community engagement, or ecosystem restoration limits the overall value and long-term impact of the intervention.
Read more: Why we need to restore high-priority areas like Africa
The importance of adhering to best practices
As the carbon market evolves, so does the scrutiny applied to the integrity of carbon units. For buyers, investors, and project developers alike, aligning with recognised best practices is not only a matter of due diligence—it’s essential for ensuring that every carbon unit delivers real, measurable impact and earns the trust of stakeholders. The following factors are crucial when evaluating high-quality carbon credits vs regular carbon credits and making informed, proactive choices.
1. Safeguarding market integrity
The long-term success of the carbon market depends on credibility. High standards around additionality, permanence, verification, and transparency are designed to prevent misuse and promote accountability. By insisting on these principles, project developers and crediting bodies reinforce confidence in the value of carbon units as a tool for environmental responsibility.
2. Supporting strategic environmental goals
For companies integrating carbon units into their broader sustainability strategies to address their carbon footprint, quality is non-negotiable. Poorly vetted units risk undermining hard-earned reputations and falling short of internal environmental commitments. Adherence to best practices ensures alignment between the units purchased and the outcomes they are intended to support—whether restoring degraded ecosystems, protecting natural carbon sinks, or enhancing biodiversity.
Read more: Carbon project financing: why carbon finance is the smartest bet for future-proof investing
3. Anticipating regulatory developments
Governments and international bodies are increasingly moving to regulate carbon markets and require higher standards of disclosure, impact measurement, and traceability. Buyers who prioritise high-quality units today are better positioned to comply with evolving regulations tomorrow, avoiding the need to retire or replace outdated credits.
4. Avoiding greenwashing risks
In an age of heightened scrutiny, transparency and integrity are essential. Using low-quality carbon units can expose organisations to accusations of greenwashing—where sustainability claims are exaggerated or unsubstantiated. Best-practice carbon units are independently verified, traceable, and backed by solid evidence, helping organisations communicate their environmental contributions with confidence.
Our commitment to high-quality carbon units
At DGB Group, we believe that meaningful environmental action starts with integrity. That’s why every carbon unit we bring to market is developed, verified, and managed in line with the most rigorous international standards. We are committed to ensuring that our projects not only deliver measurable carbon outcomes but also contribute to the restoration of ecosystems and the wellbeing of local communities.
Local community participating in a tree seedling distribution. Hongera Reforestation Project, DGB.
1. Aligned with leading standards
All of our carbon units are verified under globally recognised frameworks such as Verra’s Verified Carbon Standard (VCS) and the Gold Standard. They are also aligned with the Climate, Community & Biodiversity Standard (CCB Standard) and the UN Sustainable Development Goals. These standards are widely regarded as benchmarks for environmental credibility, requiring thorough methodologies, independent audits, and robust monitoring protocols.
Read more: 100 Reasons carbon credits are the best thing that ever happened to improve conditions on our planet
2. High-integrity project design
We design and implement our projects with quality at the core, following seven stages of development. That means conducting rigorous baseline assessments, applying conservative carbon accounting methods, and ensuring that each intervention achieves clear additionality and long-term permanence. Our portfolio includes nature-based solutions with strong co-benefits—from habitat restoration to community development.
3. Full transparency and traceability
We prioritise transparency at every stage of the process. Our carbon units are registered in public registries, where buyers can access project documentation, verification reports, and issuance logs. This traceability gives our partners confidence in what they are supporting—and ensures their investment is making a genuine impact.
DGB team members and local community during cookstove project verification. Hongera Energy Efficient Cookstoves Project, DGB.
4. Continual improvement and innovation
The carbon market is dynamic, and we continuously refine our practices to remain at the forefront. We actively monitor and implement developments in science, policy, and technology to enhance the environmental and social value of our projects. Central to this is our deployment of advanced, disruptive technology—from satellite monitoring and AI-driven impact verification to GIS and cutting-edge MRV technology—that brings greater accuracy, speed, and accountability to every stage of our process. This forward-looking approach ensures that our carbon units consistently meet and exceed expectations.
Read more: Why carbon credits are a smarter investment than Bitcoin
DGB Group, turning purpose into performance
Understanding the difference between high-quality and regular carbon units is essential for anyone committed to meaningful environmental progress. In a growing market filled with varying standards, choosing units that meet the highest benchmarks ensures that your investments lead to real-world results—both for emissions reduction and for the ecosystems and communities that benefit directly from these projects.
Close-up of a newly planted tree seedling. Hongera Reforestation Project, DGB.
At DGB, we are not simply developing carbon projects—we are redefining how natural capital is valued and integrated into the global economy. Each carbon unit we generate is independently verified and designed to meet rigorous global standards, providing investors and partners with confidence and clarity.
Read more: From the ground up to space: seeing DGB’s impact in Uganda
From expansive reforestation programmes to local community-led sustainability initiatives, our portfolio is built to drive long-term ecological restoration. These efforts support companies and governments in achieving their offsetting targets while creating a measurable impact on the ground.
The transition to sustainable business is no longer a distant goal—it is a defining shift in the global market. When you purchase carbon units from DGB, you're choosing more than a reduced carbon footprint. You’re choosing transparency, scale, and real, lasting impact.
Discover how DGB can help you lead in sustainability—explore our Carbon Units Brochure and start making a direct, measurable difference.
