CCA Carbon Offset & Credit Markets

Question 1

What is a carbon offset credit typically equivalent to in terms of greenhouse gas reduction?

Accepted Answer

One metric ton of CO2 equivalent (tCO2e)

Answer

One kilogram of CO2

Answer

One pound of methane

Answer

One gigaton of GHGs

Question 2

Which of the following is a leading voluntary carbon market standard used in the United States?

Accepted Answer

Verified Carbon Standard (Verra VCS)

Answer

ISO 14001

Answer

SASB Framework

Answer

GRI Standards

Question 3

What distinguishes a compliance carbon market from a voluntary carbon market?

Accepted Answer

Compliance markets are mandated by regulation; voluntary markets are optional

Answer

Voluntary markets are government-run; compliance markets are private

Answer

Compliance markets only trade renewable energy credits

Answer

Voluntary markets have higher credit prices than compliance markets

Question 4

The concept of 'additionality' in carbon offset projects means that:

Accepted Answer

The emission reductions would not have occurred without the project

Answer

The project adds more carbon to the atmosphere

Answer

Credits are sold in addition to regulatory allowances

Answer

The project must add renewable energy to the grid

Question 5

What is 'double counting' in the context of carbon credits?

Accepted Answer

When the same emission reduction is claimed by more than one entity

Answer

When a company counts emissions twice in its inventory

Answer

When credits are issued in two different currencies

Answer

When an auditor verifies a project two times

Question 6

Which term describes the risk that a carbon offset project's reductions may be negated by increased emissions elsewhere?

Accepted Answer

Leakage

Answer

Permanence risk

Answer

Baseline shift

Answer

Reversal