FAQs

About Carbon Credits

What is a Carbon Offset?

A carbon offset, or a carbon credit, represents the certified removal or avoidance of one tonne of carbon dioxide equivalent (tCO2e) from the atmosphere. To put this in context, one tonne of CO2 is equivalent to the average monthly carbon footprint of someone living in Europe and can be offset by 50 trees grown in a year.

It is issued by a board or government authority and comprises carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons, and perfluorocarbon.

Carbon offsetting can take many forms, including:
- Capturing greenhouse gases for use or destruction.
- Reducing greenhouse gas emissions by lowering the quantity of fuel or electricity required to carry out certain tasks.
- Greenhouse gas capture and storage.
- Reducing Carbon emissions by switching from fossil fuels to renewable energy sources such as solar and wind.

What determines the price?

ACT4 sells carbon offset certificates, which are carbon credits enabled and generated by local project developers. Project developers usually follow the market prices but are free to choose what price they wish to sell their credits. The price of a carbon credit depends on factors such as quality, vintage, standards, type, size, and geographical location of the project.

Why should I offset my emissions?

Climate change caused by humans is one of the greatest challenges of the 21st century. It's best to avoid creating greenhouse gases (GHG) in the first place. However, due to the fact that the most important thing for the climate is to reduce the amount of emissions worldwide, we recommend also to offset unavoidable emissions.

All activities in life like travelling, buying groceries, manufacturing, using electricity, heat and other products emit some GHG emissions. These activities add up to one’s carbon footprint. By supporting climate actions like purchasing verified carbon credits from certified project developers that generate credits from avoided or removed emissions, you will be able to offset your carbon footprint as well as support crucial climate action.
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Several human activities are the sources of GHG emissions, but the main ones are fossil fuel use, deforestation, intensive livestock farming, use of synthetic fertilizers and industrial processes. The principal GHGs are Carbon Dioxide (CO2), Methane (CH4), Nitrous Oxide (N20), Fluorinated Gases.

What are the carbon markets?

There are two different types of carbon markets: compliance and voluntary markets.

The compliance market, also known as the regulatory market, allows governments, private companies, and other entities to purchase carbon offsets to comply with the predetermined regulatory targets. In these cap-and-trade programs, the participants are allowed to trade their allowances to take advantage of the unused allowances. The markets are created by national and international treaties such as the Kyoto Protocol and the EU Emissions Trading Scheme.

On the other hand, the voluntary carbon market allows participants to purchase carbon offsets to mitigate their greenhouse emissions resulting from manufacturing processes, electricity use, transportation, etc. Both types of carbon markets can complement each other and work towards the overall goal of reducing greenhouse gases in the atmosphere.

In other words, the voluntary carbon market enables individuals, investors, governments, non-governmental organizations, and businesses to purchase carbon credits to offset their greenhouse gas (GHG) emissions.

Companies that would like to complement their carbon insetting or are unable to further reduce their emissions can purchase carbon offsets from verified suppliers to offset their emissions. The revenues collected are used to finance carbon reduction projects. Voluntary offset buyers are often driven by certain considerations from "top-down" to "bottom-up", such as safeguarding against the legislation, policies, requirements, or company reputation, ethics, corporate social responsibility (CSR), or Environmental Social Governance (ESG).

What is Verra?

Established in 2007, Verra has grown to be one of the world’s largest and most Influential voluntary programs. Today, Verra is a global leader who works with investors, governments, NGOs, and businesses to address contemporary sustainable development challenges. Verra’s overarching goal is to tackle intractable environmental and social challenges by providing and managing trustworthy standards and frameworks. Verra’s standards and programs are internationally trusted by stakeholders. The active role of Verra in facilitating solutions to environmental and social problems has earned them a reputable name as an organization that delivers true benefits to communities and their surrounding environments.

Verra operates in the Voluntary Carbon Market (VCM) with the goal of providing finical incentives for activities that reduce greenhouse gas (GHG) emissions. Verra encourages the process of carbon offsetting by creating a safe and transparent environment for entities that wish to participate in the VCM. Verra creates a set of rules and requirements that must be met by any project that requests to be certified under their framework. Verra’s certified projects undergo thorough methodologies of approval when documenting avoided or removed GHG emissions and converting them to tradable carbon credits in the VCM.

What is the Verra Registry?

In 2020 Verra moved from a multi-registry system to a single registry administered directly by Verra. The registry operates as a transparent database to display all pieces of information and documentation relating to certified projects and carbon credits. An account on the Verra Registry is required for any entity that wishes to register their project or issue/transfer/retire carbon credits. The Verra Registry is currently the home of over 1,700 active accounts, +2,100 listed projects, and, over 9 million verified carbon credits.

Nordic Waves Group (NWG) is officially verified as a Verra retailer. Being part of the Verra Registry, NWG is able to provide transparent and trustworthy credits that are approved by the Verra standards.

What are project Standards/Carbon Offsetting Programs?

To ensure the credibility of any GHG emission offsetting project, a project must adhere to certain protocols/methodologies that enforce accounting rules and provides monitoring, verification, and certification. Certain programs sometimes referred to as standards, provide these protocols/methodologies to assess a project’s eligibility, additionality, and baseline methodology of the project. In other words, Carbon Offsetting Programs establish specific criteria and requirements that a project should meet in order to qualify for generating credits.

Examples of such programs are:
‍VCS (Verified Carbon Standard): The VCS Program is the world’s most widely used voluntary GHG program. The VCS works to ensure the credibility of emission reduction projects by only certifying projects that fulfill its rigorous rules and requirements. At Verra, only with the VCS certification are projects eligible for issuing carbon credits. Projects subject to the VCS are expected to comply with independent auditing, and accounting methodologies and to be in the registry system.

‍REDD+ (Reduced Emissions from Deforestation and Land Degradation): REDD+ is a framework established by the United Nations. The overarching goal of REDD+ is to provide a framework for projects tor educe emissions from deforestation and forest degradation. Moreover, REDD+ projects must adhere to the positive management of forests and the conservation and enhancement of forest carbon stocks.

‍Social Carbon Standard: This standard was developed as a methodology that focuses on biodiversity and the enhancement of local participation in carbon offsetting projects. The Social Carbon standard does not provide an independent process of quantifying or verifying carbon credits, and therefore is usually used in alignment with other offsetting programs such as VCS.

Are carbon credits just permissions to pollute?

Absolutely not. Carbon credits should be viewed as an investment toward a transition to a low-carbon economy and as an additional tool for making the company’s own supply chain more sustainable. Despite the clean energy movement gaining momentum globally, there is still a long way to go to reach the 2°C target of the Paris Agreement. Companies that set Science Based Targets and then go beyond the goals by supporting offsetting projects are representing the best practices. By choosing ACT4 projects for your carbon credit purchases, you are also helping to bring sustainable development benefits – like access to energy and water, new jobs, and better health – to communities around the world.

How do you calculate carbon emissions?

The path to achieve carbon neutrality starts with accurate carbon accounting. We understand that this first step can sometimes be a struggle, that's why we have created our carbon calculator. We want to make it as easy as possible for our customers that are interested in offsetting or lowering their emissions. Our calculator follows the UK Government GHG Conversion Factors for Company Reporting and Greenhouse Gas (GHG) Protocol segmentation typically used in ESG reporting.

It takes into account your company’s direct emissions (scope 1) such as emissions from combustion in owned or controlled boilers, furnaces, and vehicles; and your company’s indirect emissions related to purchased electricity, steam, heating and cooling for the industry’s own use (scope 2).

All organizations have to quantify scope 1 and 2 emissions when reporting and disclosing their GHG emissions.

As for scope 3, which refers to the company's indirect emissions resulting from value chain activities, our calculator includes some of its most relevant categories, such as business travels and shipping. Although optional, reporting your company's scope 3 emissions adds further consistency and provides an opportunity to be innovative in your carbon emissions management.

Using the right and most updated data points has been an incredibly important step for us. Therefore, we have made sure to use, what's in our opinion, the most credible sources available. However, as with any carbon calculator, it will always include a margin of error due to the difficulty and imprecision inherent in measuring CO2e (carbon dioxide equivalent) output of business travels, shipping, etc.

How do you calculate web emissions?

Calculating a digital footprint (or website emissions) includes a two-step process. First, we analyze website traffic (i.e. annual or monthly visitors). Second, we calculate how many grams of carbon each visitor on average emits by using that particular website. For that, we look at geography, energy sources, and loading time. A high amount of content, or a low level of renewable energy sources, usually means a bigger footprint. By adding those two steps up, we can give our best estimations on an annual website emission footprint.

Frequently Used Terms

What does net-zero mean?

Net-zero CO2 emissions
‍Net-zero carbon dioxide (CO2) emissions are achieved when anthropogenic CO2 emissions are balanced globally by anthropogenic CO2 removals over a specified period. Net-zero CO2 emissions are also referred to as carbon neutrality.

‍Net-zero emissions
‍Net-zero emissions are achieved when anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period. Where multiple greenhouse gases are involved, the quantification of net-zero emissions depends on the climate metric chosen to compare emissions of different gases (such as global warming potential, global temperature change potential, and others, as well as the chosen time horizon).

For a full glossary of climate-related terms, please visit: Glossary — Global Warming of 1.5 ºC (ipcc.ch)

‍Source: Global Warming of 1.5 ºC — (ipcc.ch)

What is a digital carbon footprint, or going "web-zero"?

The digital transformation has brought many benefits that also have a positive impact on the fight against climate change and reduce CO₂ emissions. However, the production, use and data transfer of digital devices causes more CO₂ emissions than one might expect. These emissions are summarized under the terms “digital CO₂ footprint” or “digital carbon footprint”. ACT4 offers the service of calculating and offsetting our client's corporate digital footprint, earning our badge "Web-Zero"

What are scope 1, 2 & 3 emissions?

Scope 1 includes all direct emissions from the activities owned or controlled by the organization. These would be emissions from combustion in boilers, furnaces, company vehicles, etc.

‍Scope 2 involves indirect emissions that are generated by purchased and used electricity by the company.

‍Scope 3 is a voluntary reporting category that accounts for all other indirect GHG emissions from the company’s activities, occurring from sources that they do not own or control. This is often the scope with the biggest share of emissions as it includes, for example, business travel, shipping of goods and materials, waste, water, etc.

What is climate neutrality and where does offsetting fit into this?

Climate neutrality refers to the aim of achieving net-zero greenhouse gas emissions by balancing those emissions so that they are equal to (or less than) the emissions reduced by natural absorption; in simpler terms, it means we lower our emissions through climate action.

Climate neutrality refers to reducing emissions to zero, which can be achieved by both individuals and businesses. Many companies, however, will not be able to cut their emissions to zero immediately because they will need to invest in technology and modify their habits over time to achieve climate neutrality. If they don't want to wait, they can invest in emission reductions outside their company, known as offsets, in addition to the reductions they can do immediately.

This alternative aids in the global fight to reduce emissions by imposing a 'carbon price' on their own company, providing a financial incentive to cut their own emissions faster. Offsets aren't a long-term answer to the climate crisis, and they don't take the place of the requirement for you or your company to go to zero as soon as possible, but they can help you get there faster.

How can carbon neutrality be achieved?

Limiting global warming to 1.5°C requires organizations and governments to achieve net-zero CO2 emissions by 2050, according to the IPCC. Having a consistent climate plan is required to achieve net-zero CO2. As a result, businesses should be aware that net-zero solutions do not only entail carbon offsets, as many people believe. It necessitates important preparatory processes, such as measuring environmental consequences and understanding emission sources as part of a thorough investigation.

When a company understands exactly where in its value chain the emissions are coming from, it will be able to create a sustainability strategy following 3 main steps:

1. Eliminating CO2 emissions sources across the entire value chain (scopes 1, 2, and 3). It entails lowering or eliminating CO2 emissions sources related to a company's operations and value chain until a consistent level of residual emissions is reached. Those emissions are those that cannot be reduced due to economic or technological constraints. Some businesses, such as agriculture and cattle rearing, will always have to consider residual emissions.

2. Neutralizing the carbon to offset the effect of releasing CO2 into the atmosphere by Carbon Dioxide Removal (CDR) operations like restoring natural carbon sinks or technology is referred to as neutralizing. This means simply that cutting-edge technology is used to redirect emissions that haven't yet reached the atmosphere by capturing them as soon as they're discharged and storing them in geological soils.

3. To achieve net-zero status, compensating, or contributing, can be utilized to address value chain residual emissions. Direct investment in emission reduction initiatives via the purchase of carbon credits on the Voluntary Carbon Market is part of it. These initiatives include environmental and social co-benefits for local people in addition to capturing or avoiding CO2 emissions. To sustain a net-zero condition, organizations must continue to support emission reduction efforts as long as they have residual emissions.

What does “additionality” mean in carbon offsetting and why is it important?

Additionality is one of the most important concepts in carbon offsetting projects. What it means is that the reductions that the project has achieved need to be additional to what would have happened if the project was not implemented. To clarify, the benefits of carbon projects are additional to the “business-as-usual” scenario.

Global Regulations

What is the Paris Agreement?

The Paris Agreement is created by the UNFCC with the main goal of mitigating climate change and adjusting to its effects. Article 2 of the Paris Agreement outlines the aims of the convention as:

‍1. Holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change;

2. Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emissions development, in a manner that does not threaten food production;

3. Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.‍

‍The Sustainable Development Mechanisms (SDM) programme is leading in the development and effective implementation of innovative approaches to broaden the engagement in and effectiveness of action to mitigate climate change and drive sustainable development. SDM supports the operationalization of the cooperative approaches established by Article 6 of the Paris Agreement and broader efforts to engage non-Party stakeholders in climate action. SDM manages the NAZCA (Non-State Actor Zone for Climate Action) platform, supports the COP Presidencies’ Climate Action Champions and supports the implementation of the three Kyoto mechanisms - the Clean Development Mechanism (CDM), Joint Implementation (JI), and International Emissions Trading (IET).

‍Source: The Paris Agreement (unfccc.int)

Does carbon offsetting impact our company's ESG rating?

Offsetting carbon emissions have a positive correlation with your company's Environmental Social Governance ratio. It is up to the methodology procedures of your ESG rating bureau of how the certificates are affecting your climate-related reporting.

What are Science-Based Targets?

Science-based targets give businesses a clear strategy to cut greenhouse gas (GHG) emissions, allowing them to avoid the worst effects of climate change while also ensuring future business growth.

‍Targets are considered 'science-based' if they are in accordance with what the most recent climate science deems necessary to accomplish the Paris Agreement's goals of keeping global warming well below 2°C and pursuing efforts to keep it below 1.5°C.

‍For more info: Science Based Targets

The Role of ACT4

What is your role?

Our role is to secure a stable, and collaborative environment that further incentivizes climate action. We bridge the project developers and organizations on-ground with clients wishing to offset their carbon footprint.

How does your business model work?

ACT4 is a registered and verified market retailer. We are a one-intermediary between project developers and clients. We link quality supply and demand, just as in other commodity markets. We screen and handpick our project portfolio, and sell carbon credit certificates with a margin. Due to our low administrative cost, we are able to screen partners, secure project quality, and provide customer service at competitive prices.

How do you "retire" carbon?

We retire carbon by not utilizing it. We obtain the right to emission reductions when we buy or support a carbon reduction project. We purchase carbon reductions and retire them, which means they are permanently removed from circulation.

How does my offsetting through ACT4 contribute to climate protection?

In ACT4 we only work with carbon offset credits that ensure additionality. This is the most essential ingredient of carbon offset quality. Our portfolio can range from fuel switch projects to biodiversity protection. Given our lack of time to respond to the climate emergency, these projects are essential on our journey to a net-zero future.

Does carbon offsetting solve climate change?

No, but like in every complex equation, there is no one-step solution. Carbon offsetting in the Voluntary Carbon Market (VCM) is a vital step to undertake for entities wishing to make a difference. However, it is important to note that for companies carbon offsetting is not a 'green light' to continue paths of deforestation and pollution. ACT4 encourages companies to take steps toward decarbonization and offset their footprint through our projects while also acknowledging that it must be accompanied by comprehensive strategies to reduce future GHG emissions. Companies seeking positive environmental change should also accept the responsibility to catalyze such change. Offsets are a vital step toward a positive change, but companies and private citizens need to put additional effort into reducing their GHG emissions and operate as an advocate for climate action.

Transactions

What does the purchase process look like?

On completion of an order, you will receive an email notification from Nordic Waves Group confirming your transaction. You will then receive a follow-up email with an ACT4 certificate that documents your purchase and retirement of carbon credits containing a serial number, project name, and its certification standards. Please check your spam folders if you don't receive these notifications.

You are welcome to use any information provided by us for marketing purposes. It is important to accurately state what has been achieved and NOT to over-claim or ‘greenwash.’

I haven't received any email confirmation. What to do?

If you purchase through our website you should receive an automized email confirmation from Nordic Waves Group. Please check your spam folders. If you haven’t received anything, please contact help@nordicwaves.org to request a new order confirmation.

Where does the money go?

ACT4 aims to increase the level of transparency and traceability when it comes to supporting emission reduction projects. Through close collaboration with project developers, we ensure fair pricing, clear margins, and direct contribution to local communities. The price of carbon credits are set by the project developers to maximize the financial contribution to the projects. 100% of our client contribution goes to project developers, where ACT4 charges a minimum of 15% contribution fee, all depending on the project, that is paid to cover our operational costs.

These earnings cover the variable foreign exchange fees and Stripe service, VAT, project screening, customer service, administrative costs, maintaining the platform, and registering and transparently retiring the credits.

How is my credit card information used?

Your transaction is safe and secure as it is handled by Stripe, one of the world's leading payment processors.

Can I deduct my offsetting from taxes?

That depends on your local tax legislation. In some places, businesses are allowed to deduct the cost of their purchase as a business expense or donation. Usually, individuals cannot claim a tax deduction for their carbon credit purchases. In any circumstances, we advise you to do your own due diligence on this matter.

Carbon Offsetting Projects

What defines a “good” carbon offsetting project?

We believe a good offset project leads to measurable removals or avoidances of GHG emissions. Such projects are verified through strong standards and methodologies, are monitored, and has concrete ownership. A good project ambitiously aim beyond the biophysical process of carbon offset, having positive spillover effects such as protecting biodiversity, improving air quality, and the improvement of livelihood for local communities.

How do you choose projects?

All of our projects must fulfill the highest quality standards for certified carbon offsetting and are validated by globally recognized verifying bodies such as Verra, or the Gold Standard. All of our projects contain additional benefits that are aligned with the United Nations Sustainable Development Goals. For example, these can be supporting local communities, combating poverty, safeguarding endangered species, encouraging female entrepreneurs, and improving access to healthcare and education.

What are Nature-based Solutions (NbS)?

NbS aim to support social development goals, ensure human well-being in a way that reflects cultural and social values, and improve the resilience, renewal, and capabilities of ecosystems. is. NbS are designed to address key social challenges such as food security, climate change, water security, human health, disaster risk, and social and economic development.

The International Union for Conservation of Nature (IUCN) has developed 8 principles regarding NbS. According to them, Nature-based Solutions:

‍1. Embrace nature conservation norms (and principles);
2. can be implemented alone or in an integrated manner with other solutions to societal challenges (e.g. technological and engineering solutions);
3. are determined by site-specific natural and cultural contexts that include traditional, local and scientific knowledge;
4. produce societal benefits in a fair and equitable way, in a manner that promotes transparency and broad participation;
5. maintain biological and cultural diversity and the ability of ecosystems to evolve over time;
6. are applied at a landscape scale;
7. recognize and address the trade-offs between the production of a few immediate economic benefits for development and future options for the production of the full range of ecosystems services; and8. are an integral part of the overall design of policies, and measures or actions, to address a specific challenge.

‍Source: Nature-based solutions | IUCN

Why are you focusing on forests, especially on regions of tropical forests?

Land usage has an immense impact on the planet's carbon balance. The unsustainable use of land is responsible for roughly 30% of human-generated emissions. Because of the quantity of carbon still stored in land-based ecosystems, this area has the potential to make a large contribution to slowing or speeding up climate change. Indeed, the Paris Agreement emphasizes the critical importance of carbon sinks like forests in meeting the goal of keeping global warming "far below 2°C."Additionally, forests contain more than 50% of the world’s biodiversity and sustainable land use represents the livelihood for billions of people. As the population is ever-growing, the importance of preserving forests and using land in sustainable ways is crucial.

Tropical woods have substantially higher biodiversity than temperate or boreal forests in many areas. As a result, tropical forest conservation or reforestation delivers greater advantages for carbon sequestration and biodiversity protection.

By preserving soils, decreasing erosion, and absorbing fertilizers and other forms of water pollution, all forests provide significant co-benefits. Tropical forest conservation will have significant water-protection co-benefits, particularly in locations with high rainfall and steep terrain.

What happens in the case of a Force Majeure (e.g. forest fire)?

Certification of our chosen projects guarantees climate integrity through five backstops designed to ensure that activities do not underperform and, should they do so, to address and resolve issues transparently. These are:

1. Stringent requirements for values and processes that comprehensively evaluate the project’s design;
2. Monitoring, reporting, and verification on a regular basis;
3. A compliance roadmap that outlines how underperforming activities can be brought back on track.
4. Under ACT4 Terms & Conditions, the project owner is responsible for any underperformance; and
5. Compliance Buffer mandates that projects set aside 20% of their Emission Reduction issuance if carbon sequestration is lost due to an incident such as forest fires or unforeseen removal.

How is forest carbon storage measured?

Geographic location, species mix, silvicultural management, soil type, and climate all influence the amount of carbon stored in a forest. The Afforestation/Reforestation (A/R) approach, which applies to projects that plant trees, necessitates the measurement of biomass in plantations via forest inventory. The following is a summary of the biomass measurement method leading up to the issue of a Verified Emission Reduction (GS-VER) certificate from an A/R project:

‍- Division of the project area in modeling units (MUs) that represent planted areas with homogenous characteristics.
- MUs are then sampled following a random sampling approach (sample points can be permanent plots) to measure tree biomass.
- Below-ground biomass is calculated based on root-to-shoot ratio coefficient obtained from literature sources demonstrated to be applicable to the project plantation.
- Above-ground and below-ground biomass is added at the sample plot level and expanded to the MU level. The sum of the total biomass in all MUs represents the biomass in the project area.
- Total biomass is converted to metric tons of CO2-equivalent (tCO2e).
- Baseline, leakage, and project emissions, both in tCO2e, are deducted from the tCO2e from total biomass. This gives the net tCO2e sequestered by the project.
- Net tCO2e in the project area is adjusted by discounting uncertainty above 20% error from the mean at 90% confidence level.- The resulting adjusted net tCO2e is used to issue GS-VERs. One (1) tCO2e represents one (1) GS-VER.

‍Source: Gold Standard