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Q: What are carbon credits? 

Carbon credits are mainly divided into cap and trade carbon credit and offset project carbon credit that can respond to the mandatory carbon market and voluntary carbon market respectively. Enterprises with no compulsory restrictions may, for instance, join the voluntary carbon market to catch up with the international trend and improve their corporate image. The following is a brief description, allowing enterprises to learn the different types of carbon credits! 



Mandatory carbon credits: The government controls the total amount of carbon emission. 


Voluntary carbon credits: reduction of carbon voluntarily and certified by a third party.

To develop voluntary carbon credits: to voluntarily start carbon reduction plans.

Purchase the voluntary carbon credits: to purchase/support other’s carbon reduction achievement. 

Q: Can enterprises participate in the mandatory carbon credit market? 

If the business operation is not set up in a country with a cap and trade system and non-restricted industries cannot participate in the mandatory carbon credit market, due to the difference between the mandatory carbon credits and voluntary carbon credits mechanisms, the credits cannot be circulated or traded.

Q: How to develop domestic and international voluntary carbon credits? 

The development of carbon credits requires an application for the project. The procedure includes selecting the methodology, planning the project, preparing additionality analysis and third-party verification, etc. The current mainstream carbon credit standards are Verified Carbon Standard(Verra) and Gold Standard, while in Taiwan the major standard is the EPA GHG Offset Program.

Q: Does voluntary carbon credit have an expiration date? 

Carbon credits are permanently in effect since their issuance date. 

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