Sylvera outlined the five-stage lifecycle of a carbon credit, beginning with project development where developers design projects against registry-published methodologies. The process continues with validation and verification by accredited third-party auditors, confirming project design and auditing results before registries issue credits. Once issued, each credit represents one metric tonne of CO2e and carries a vintage year, becoming a serialized, tradable unit in the market. This framework enables companies to finance emissions reduction projects to compensate for unavoidable operational emissions.
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