By quantifying greenhouse gas emissions, they are transformed into carbon credits. This process allows an organization that reduced its GHG emissions, to take advantage of its green investment and a company wanting to compensate, to communicate its new strategic plan to its stakeholders.
For example, Company A has reduced its GHG emissions. Quantifying and completing a verification process of those reductions transform them into carbon credits. These credits are measured in tons of carbon equivalent.
Once the quantification of the carbon credit is verified, they must be registered on a recognized registry.
They can then be sold on the carbon market.
Company B did not reduce its emissions, but wants to compensate its emissions. Following the quantification of its emissions, it seeks to compensate by buying carbon credits. In this way, it allows the company to encourage an environmental project.
Both sides win: Company A acquires a financial gain from the sale of its product and company B has supported a project that reduces emissions.