CCA Carbon Offset & Credit Markets 2

Question 1

What is the primary purpose of a carbon registry in voluntary markets?

Accepted Answer

To track issuance, transfer, and retirement of carbon credits

Answer

Carbon registries provide transparent tracking of credit issuance, ownership transfers, and retirement to prevent fraud and double counting.

Question 2

When a carbon credit is 'retired,' what does this signify?

Accepted Answer

The credit has been permanently cancelled and cannot be resold

Answer

Retiring a carbon credit means it is permanently removed from circulation, indicating that the associated emission reduction has been used to offset a specific emission.

Question 3

The California Cap-and-Trade Program is an example of which type of carbon market?

Accepted Answer

Compliance market

Answer

California's Cap-and-Trade Program is a mandatory compliance market regulated by the California Air Resources Board (CARB) under AB 32.

Question 4

What does 'permanence' refer to in carbon offset project evaluation?

Accepted Answer

The long-term durability of the carbon sequestration or reduction

Answer

Permanence ensures that carbon stored or reduced will remain out of the atmosphere for the long term, typically 100 years, without reversal.

Question 5

Which methodology is commonly used to establish a project baseline in carbon offset accounting?

Accepted Answer

Business-as-usual (BAU) scenario modeling

Answer

The business-as-usual (BAU) scenario estimates what emissions would have been without the project, serving as the baseline against which reductions are measured.

CCA - Certified Carbon Auditor Practice Test

CCA - Certified Carbon Auditor Practice Test

CCA Carbon Offset & Credit Markets 2