Carbon credit readiness
What it takes before a project can produce credible carbon credits.
Six stages
Different stages, different owners
What are our emissions today?
Activity data such as fuel, electricity and process inputs is collected, emissions are calculated by scope using recognised methods, and assumptions and data gaps are documented.
Outcome: An emissions baseline for reporting and planning.
- Led by
- Project owner, with SustainAI support
- SustainAI's role
- Leads the assessment
- Important limit
- A baseline is a measurement. It does not create credits on its own.
| Stage | Question | Led by | Outcome |
|---|---|---|---|
| 1. Measure | What are our emissions today? | Project owner, with SustainAI support | An emissions baseline for reporting and planning. |
| 2. Reduce | Where can we cut emissions? | Project owner, with SustainAI support | A prioritised decarbonisation plan with indicative costs. |
| 3. Assess | Could this activity generate carbon credits? | Project owner, with SustainAI support | A clear view of whether a crediting route is feasible, with risks and indicative ranges labelled as estimates. |
| 4. Prepare | Are we ready for independent review? | Project owner, with SustainAI support | A gap register and action plan to close gaps before validation. |
| 5. Validate | Does an independent body confirm the project? | Independent third party | An independent conclusion on the project design and, later, on monitored results. |
| 6. Connect | How do we reach the market? | Registries and market participants | Market engagement on the basis of issued credits and transparent evidence. |
Commonly confused
Five terms that are often treated as the same thing
Stage 1: Measured emission reduction
Valuable in its own right for cost, reporting and targets
Stage 2: Potentially eligible
Passes the tests of a specific standard and methodology
Stage 3: Validated and verified
Confirmed by an accredited independent body
Stage 4: Issued credits
Serialised in the standard's registry
- 01Emission reduction
- A measured decrease in emissions against a baseline. It has value for cost, reporting and compliance even when no credits are involved.
- 02Credit eligibility
- Whether a reduction could qualify under a specific standard and methodology, including tests such as additionality. Many genuine reductions are not eligible.
- 03Validation and verification
- Validation checks the project design. Verification checks results from monitoring. Both are performed by an accredited independent body, not by SustainAI.
- 04Registry issuance
- The creation of serialised credits in the standard's registry after successful verification. Only issued credits can be transferred or retired.
- 05Commercial sale
- A transaction in which issued credits are sold. Prices depend on the market, credit type and buyer requirements, and no sale is guaranteed.
Readiness assessment
Six areas we review before independent validation
01
Project definition
Boundaries, activities, baseline scenario and the applicable methodology.
02
Rights and ownership
Who holds the rights to the emission reductions, and whether this is documented.
03
Data and monitoring
Availability, quality and continuity of the data needed to monitor results.
04
Evidence and records
How evidence is stored, whether it is traceable and whether it is ready for review.
05
Stakeholders and safeguards
Community engagement and environmental and social safeguards.
06
Host-country requirements
National rules and any authorisations that apply to the project.
| Area | Example status |
|---|---|
| Project definition | Advanced |
| Rights and ownership | Developing |
| Data and monitoring | Developing |
| Evidence and records | Early |
| Stakeholders and safeguards | Advanced |
| Host-country requirements | Developing |
Transparency
What SustainAI does not do
Frequently asked questions
Can SustainAI guarantee that my project will generate carbon credits?
No. Credits can only be issued by the registry of a standard after an accredited independent body has validated the project and verified its monitored results. We help you understand eligibility and prepare, but we do not guarantee issuance, volumes, prices, buyers or revenue.
Does SustainAI validate or verify projects?
No. Validation and verification are carried out by independent bodies accredited or approved under the relevant standard. We support project owners in preparing for those reviews and responding to queries.
What is the difference between a feasibility assessment and a readiness assessment?
A feasibility assessment asks whether an activity could generate credits under a recognised standard, and what the main risks are. A readiness assessment applies to a project with a credible route and asks how prepared it is for independent validation, recording gaps and an action plan.
My organisation has reduced its emissions. Can we sell carbon credits?
Not automatically. A reduction must pass the tests of a specific standard and methodology, such as additionality, and then be validated, verified and issued before any credits exist to sell. Many genuine reductions are not eligible. The reduction still has value for cost, reporting and targets.
Which assessment is the right next step?
Describe your project and we will tell you whether an eligibility and feasibility assessment or a readiness assessment is the more useful starting point.