What is Carbon Credits?
A carbon credit (also called a carbon offset or carbon removal certificate) represents the verified removal or avoidance of one metric tonne of carbon dioxide equivalent (tCO₂e) from the atmosphere. Carbon credits are used by companies and governments to compensate for their greenhouse gas emissions as part of climate commitments under the Paris Agreement.
There are two principal carbon markets: the compliance market (EU ETS, currently ~EUR 65–75/t for allowances) and the voluntary carbon market (VCM, typically USD 3.50–15/t for standard credits). The EU Carbon Removal Certification Framework (CRCF, Regulation 2024/3012) creates a new premium tier — nature-based removal credits that meet stringent additionality, permanence, and quantification criteria. VERDANTIS targets this CRCF tier, with a pricing ambition of EUR 40–70/t.
Carbon credits generated from agroforestry — such as VERDANTIS's paulownia polyculture system — fall under the 'Carbon Farming' category of the EU CRCF. They must meet four quality criteria: quantification (ISO 14064-2 methodology), additionality (new carbon removal beyond baseline), long-term storage, and sustainability (no significant harm to biodiversity, water, soil). VERDANTIS is designed to satisfy all four criteria.
Quick Definition
A carbon credit (also called a carbon offset or carbon removal certificate) represents the verified removal or avoidance of one metric tonne of carbon dioxide equivalent (tCO₂e) from the atmosphere. Carbon credits are used by companies and governments to compensate for their greenhouse gas emissions as part of climate commitments under the Paris Agreement.
Frequently Asked Questions
What is the difference between carbon avoidance and carbon removal?
Carbon avoidance (or carbon offsets) prevents emissions that would otherwise occur (e.g., protecting a forest from deforestation). Carbon removal actively extracts CO₂ already in the atmosphere through processes like agroforestry, biochar, or direct air capture. The EU CRCF specifically focuses on carbon removal — the category VERDANTIS falls into.
What is the price of carbon credits in 2026?
EU ETS compliance allowances trade at approximately EUR 65–75/t. Standard voluntary carbon market credits range from USD 3.50–15/t. EU CRCF-aligned nature-based removal credits (the VERDANTIS category) are expected to trade at EUR 40–70/t, based on regulatory demand and scarcity analysis.
How are VERDANTIS carbon credits certified?
VERDANTIS carbon credits are verified to ISO 14064-2 (quantification and reporting for carbon projects) by TÜV Austria as third-party auditor. The methodology aligns with EU CRCF 'Carbon Farming' category requirements.
Can investors directly hold carbon credits?
VERDANTIS's fund structure monetises carbon credit revenue as one of four income streams (25% of total revenue), rather than holding physical credits. This provides investors with exposure to carbon market upside within a regulated Luxembourg RAIF framework.
VERDANTIS and Carbon Credits
VERDANTIS Impact Capital integrates the principles of Carbon Credits into its investment strategy. The fund — structured as a Luxembourg RAIF, Article 9 SFDR ("Dark Green") — combines paulownia agroforestry with EU-certified carbon credits to deliver measurable environmental impact alongside compelling financial returns: >20% target IRR, >9x MOIC, and >5% annual cash yield from year 2.
Our scientific foundation includes validation by the University of Bonn (Prof. Dr. Ralf Pude) and the bio innovation park Rheinland e.V., with carbon verification to ISO 14064-2 by TÜV Austria.