Carbon Credits

Carbon credits are Carbon Financial Instruments (CFIs). Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. A number of markets exist to facilitate this, principally the Chicago Climate Exchange, European Climate Exchange, Nord Pool,Power Next and the European Energy Exchange.. 

Danfonds structures CFIs to represent one metric tonne (2,200 lbs.) of CO2-equivalent emission reduction to the atmosphere. 

Danfond structured CFIs are designed to meet a defined set of scientifically-based rules  based on international protocols which define the emission reduction and how they are measured and quantified. 

Credits are issued when offsets occur based on a stringent set of protocols.  For instance, C-Questor has significant forestry acarage which captures carbon dioxide emissions. These are then handled according to the protocol’s definition and a CFI is created.