What is a Carbon Credit?

The terms carbon creditemission offset, carbon offset, and offset credit can be used interchangeably, though they can mean slightly different things.

The definition Re(source) Energy uses is based on the Alberta Emission Offset System.

An offset refers to a reduction in greenhouse gas (GHG) emissions that is used to compensate for emissions that occur elsewhere.

An offset credit or carbon credit is a transferrable instrument certified by the Alberta Emission Offset Registry to represent an offset of one tonne (1,000 kg) of carbon dioxide (CO2), or an equivalent amount of other GHGs (carbon dioxide-equivalent or CO2e).

For solar, one carbon credit is equal to one megawatt-hour (MWh) of solar electricity that offsets fossil-fuel based electricity on the electricity grid.

Carbon credits and Renewable Energy Certificates (RECs) are not the same. Click here to learn more.