2. Removal projects: Projects that remove GHG emissions directly from the atmosphere, such as reforestation and afforestation projects, wetland management and tech-based projects like direct air capture or carbon capture and storage.
With more businesses setting climate and decarbonisation targets towards net-zero goals, purchasing carbon credits as a decarbonisation strategy to offset emissions is gaining more attention. Many types of carbon credit projects are available in the voluntary carbon market (VCM) for businesses to offset their greenhouse gas (GHG) emissions. According to S&P, carbon credits can be grouped into two broad categories:
1. Avoidance projects: Projects that avoid emitting GHG emissions, such as renewable energy projects, cookstove projects, and forestry and farming emissions avoidance projects.
