Carbon Credits

Voluntary credits are generated by non-mandatory projects, often promoted by private or non- governmental organisations, which aim to reduce emissions through initiatives such as reforestation, the adoption of renewable energy, or energy efficiency. These credits are purchased by companies or individuals who wish to voluntarily offset their emissions.

Regulated credits are part of mandatory emissions trading systems, such as the EU EmissionsTrading System (EU ETS). In these systems, companies receive or purchase emission allowances and can trade credits to comply with the limits imposed.

The process of generating and using carbon credits involves several stages:.

Design: Identification and development of a project that reduces or removes greenhouse gas emissions.

Certification: A third party verifies and certifies the project, ensuring that the reductions are real, measurable, and additional.

Issuance: Once certified, the project generates carbon credits proportional to the emissions reduced or removed..

Trading: Credits can be sold or purchased on the market, allowing other entities to offset their emissions.

Retirement: Once used to offset emissions, the credit is retired from the market to avoid duplication.

To ensure the integrity and transparency of carbon credits, there are several internationally recognised standards and certifications:

Verified Carbon Standard (VCS): Managed by Verra, it is one of the most widely used standards for certifying emission reduction projects.

Gold Standard: Supported by several non-governmental organisations, it focuses on projects that offer environmental and social benefits.

Plan Vivo: Focused on community projects for sustainable land use and reforestation.

These standards ensure that credits are based on real, verifiable, and additional emissions reductions.

The voluntary carbon credit market allows entities that are not legally required to do so to purchase credits to offset their emissions. This market is growing, with companies seeking to improve their sustainability and respond to consumer expectations.

In the regulated market, companies subject to legal obligations must purchase credits to comply with emission limits. The EU ETS is an example of such a market, where companies can trade emission permits to optimize compliance costs.

The price of carbon credits varies based on several factors, including supply and demand, the quality of the project, and the type of standard used. In the voluntary market, prices can fluctuate significantly, while in the regulated market, such as the EU ETS, prices are influenced by climate policies and established emission limits.

The carbon credit market involves several players:

Project proponents: Entities or companies that develop emission reduction projects.

Buyers: Companies or individuals who purchase credits to offset their emissions.

Trading platforms: Markets where credits are bought and sold.

White Certificates (Energy Efficiency Certificates - EECs) and Carbon Credits are two fundamental tools in global environmental policies, aimed respectively at energy saving and the reduction of greenhouse gas emissions. Although they share environmental objectives, they differ substantially in terms of application, methodology, standards, and regulation.

White CertificatesTEEs are mainly applied in the field of energy efficiency, incentivising measures that reduce final energy consumption, especially in the industrial, civil, tertiary, and transport sectors. The entities required to comply are electricity and gas distributors with more than 50,000 customers.

Carbon Credits have a broader scope, including the reduction or removal of greenhouse gas emissions through projects such as reforestation, renewable energy, sustainable waste management, and low-impact agricultural techniques.

White Certificates The process of obtaining EECs requires the submission of projects to the GSE for prior approval, implementation of the measures, continuous monitoring of savings, and subsequent request for the issuance of certificates. Rigorous verification of energy savings is carried out using standardised, analytical, or final balance methodologies.

Carbon Credit derive from projects validated by third-party certification bodies according to international standards such as VCS or Gold Standard. The process includes: design, certification, monitoring of avoided or removed emissions, issuance, and trading of credits in the voluntary or regulated market.

White Certificates The value of EECs is influenced by the national market; in 2024, the average price was around €250/EEC, with fluctuations depending on supply and demand. The cost per tonne of oil equivalent (TOE) saved varies on average between €150 and €300.

Carbon Credits In the voluntary market, carbon credit prices fluctuate widely, generally between €5 and €50 per ton of CO₂ equivalent, depending on the project, certification, and market dynamics. In the regulated market (e.g., EU ETS), the price is influenced by EU policies and can reach values above €100.

White certificates Despite a 26% reduction (data referring to 2024) compared to 2023, the market is expected to recover thanks to new regulatory measures that simplify procedures and encourage industrial interventions with a high energy impact.

Carbon Credits The voluntary market is expected to grow steadily, driven by growing demand from companies to achieve net-zero targets and increasingly stringent regulatory policies.

Both White Certificates and Carbon Credits play crucial roles in environmental policies. EECs are particularly effective in the energy sector, while carbon credits offer greater versatility and a broader scope of application in the fight against climate change. For both, improving transparency, reducing regulatory complexity, and ensuring the reliability of certification processes are essential challenges for optimising their contribution to achieving global sustainability goals.