While all types of carbon credits are important tools in helping to achieve a net zero future, the technical differences between carbon removal credits and other carbon credits are important to note.
Carbon avoidance projects contribute to climate action by preventing carbon that would have been released into the atmosphere. This could be building a wind farm to lower reliance on fossil fuels or preventing deforestation.
In buying carbon offsets, a company invests in reducing their emissions via an external project.
Carbon removal projects, as the name suggests, remove carbon from the atmosphere – thus creating negative emissions. Broadly speaking, they are split into 2 categories: natural carbon removals, like tree planting which sequesters carbon as the trees grow, and technological carbon removals, for example, point source CO2 capture and storage via mineralization, like neustark does.
In investing in carbon removal credits, a company counterbalances their hard to abate emissions – in additional to own drastic emission reductions.