Carbon credits: a practical guide for project developers
103 matching capital sources on the ASFIP database · Last checked October 2026
A carbon credit represents one tonne of carbon dioxide (or equivalent) reduced or removed from the atmosphere, measured against a baseline and verified by an independent auditor under a recognised standard. Credits are issued into a registry and can be sold, then retired by the buyer to claim the reduction.
For project developers in Africa and developing countries, carbon revenue can turn a marginal clean cooking, forestry, renewable energy or agriculture project into a financeable one. But credits only have value if they are credible, and only bring finance if there is a buyer.
This guide covers how credits are made, what drives price, and lists the buyers, offtakers and carbon financiers on our database.
How carbon credits are created
1. Choose a methodology under a standard such as Verra (VCS) or Gold Standard, or a government programme. 2. Write the project design document setting out the baseline and how reductions will be measured. 3. Validation by an accredited third-party auditor. 4. Registration. 5. Monitoring, then verification of actual reductions. 6. Issuance of credits into the registry.
From design to first issuance usually takes 18 months to three years, and development costs often run into hundreds of thousands of dollars — which is why upfront carbon finance and pre-purchase agreements matter.
Types of carbon credits
Avoidance and reduction credits (renewable energy, clean cooking, avoided deforestation) and removal credits (afforestation, biochar, direct air capture). Removals usually sell at a premium. Credits may also carry co-benefit labels for community, biodiversity or gender impact.
What determines carbon credit prices
Project type, vintage, standard, co-benefits, quality labels such as the ICVCM Core Carbon Principles, and whether the credit is eligible for compliance demand such as CORSIA (aviation) or Article 6 transfers with a corresponding adjustment. Prices range from a few dollars per tonne for older avoidance credits to well over USD 100 for engineered removals.
Where carbon credits are sold
The voluntary carbon market (companies buying to meet climate pledges), compliance schemes, and government-to-government Article 6 deals. Most early-stage projects sell through an offtake or emission reduction purchase agreement (ERPA), often with an upfront payment.
The funders
Each profile shows mandate, instruments and sector appetite. Verified contacts and application routes are available to members.
- Microsoft Carbon Removal ProcurementCommercial Investor · United StatesOne of the largest corporate buyers of durable carbon removal globally, running annual procurement rounds that have included African cookstove, biochar, reforestation and BECCS suppliers.Carbon Credits / ERPAResults-based Finance
- Singapore Carbon Tax Article 6 ProcurementCarbon Finance Mechanism · SingaporeSingapore allows carbon-taxable companies to surrender authorised Article 6.2 credits, and has signed implementation agreements and MOUs with several African countries including Ghana, Rwanda and Kenya.Carbon Credits / ERPAResults-based Finance
- Symbiosis CoalitionCarbon Finance Mechanism · United StatesBuyers coalition of Google, Meta, Microsoft and Salesforce contracting high-quality nature-based restoration credits, with tenders open to African restoration projects.Carbon Credits / ERPAResults-based Finance
- BioCarbon PartnersCarbon Finance Mechanism · ZambiaZambia-headquartered, award-winning REDD+ project developer that structures and finances forest carbon offset projects across Zambia and Mozambique, channelling carbon credit revenue into community conservation payments and protecting over 2.1 million hectares of dryland forest through its flagship Luangwa Community Forests Project.Carbon Credits / ERPAResults-based Finance
- NextGen CDR FacilityCarbon Finance Mechanism · SwitzerlandJoint venture of South Pole and Mitsubishi Corporation aggregating corporate demand to buy durable carbon dioxide removal at scale, with African supply in its portfolio.Carbon Credits / ERPAResults-based Finance
- LEAF CoalitionCarbon Finance Mechanism · United StatesPublic-private coalition purchasing jurisdictional REDD+ credits at scale, with African jurisdictions among signed agreements.Carbon Credits / ERPAResults-based Finance
- Korea Article 6 / ITMO ProcurementGovernment Agency · South KoreaKorea uses internationally transferred mitigation outcomes towards its NDC and supports overseas mitigation projects, including African renewable energy and waste programmes.Carbon Credits / ERPAResults-based Finance
- Frontier ClimateCarbon Finance Mechanism · United StatesAdvance market commitment funded by Stripe, Alphabet, Meta, Shopify, McKinsey and others, pre-purchasing permanent carbon removal including from African biochar and enhanced weathering suppliers.Carbon Credits / ERPAResults-based FinanceProject Preparation
- Wildlife Works CarbonCarbon Finance Mechanism · United StatesREDD+ project developer and financier providing upfront capital and carbon credit monetisation for forest conservation projects, including Mai Ndombe in DRC.Carbon Credits / ERPAProject PreparationResults-based Finance
- Article 6.2 Bilateral Cooperation - KliK FoundationCarbon Finance Mechanism · SwitzerlandSwiss compliance buyer procuring ITMOs under Article 6.2 bilateral agreements, with signed deals covering several African countries.Carbon Credits / ERPAResults-based FinanceAdvisory
- Japan Joint Crediting MechanismCarbon Finance Mechanism · JapanJapanese bilateral Article 6.2 crediting scheme with partner agreements across Africa, funding low-carbon technology deployment.Carbon Credits / ERPAGrantsResults-based Finance
Showing 11 of 103 matching capital sources. The remaining 92 — including their verified routes and eligibility criteria — are reserved for members.
Common questions
- What is one carbon credit worth?
- One credit equals one tonne of CO2 reduced or removed. Prices vary widely — from a few dollars for older avoidance credits to over USD 100 for high-quality removals — depending on type, standard, vintage and co-benefits.
- How do I start a carbon credit project?
- Confirm an approved methodology fits your activity, estimate volumes and costs, choose a standard, and secure a project developer or carbon finance partner to fund certification — ideally with a buyer lined up.
- Who buys carbon credits?
- Corporates with net-zero targets, airlines under CORSIA, traders, and governments buying under Article 6 of the Paris Agreement. Buyers on our database are listed on this page.
- Are carbon credits legitimate?
- Quality varies. Look for independent verification, robust baselines, permanence safeguards and labels like the ICVCM Core Carbon Principles. Buyers increasingly pay more for credits that pass these checks.
Related guides
Official sources: UNFCCC Article 6 · Verra · Gold Standard · ICVCM Core Carbon Principles. Reviewed by the iSustain Global research team against funders' published criteria.