What are carbon credits and how do they work?

A carbon credit corresponds to 1 ton of CO₂ removed by natural or industrial projects. Among others, companies and organizations whose processes emit Greenhouse Gases (GHG) into the atmosphere can offset or neutralize their emissions by investing in carbon credits from forestry projects where CO₂ is absorbed.

Why do GHG levels need to be reduced?

There is now evidence to demonstrate a progressive intensification of the climate since the late 19th century. The fifth report of the IPCC (Intergovernmental Panel on Climate Change) establishes the influence of human activity as the main cause of global warming and urges the taking of measures against the risk of irreversible changes worldwide. Moreover, it asserts that the main cause of this warming is the increase in emissions of greenhouse gases (GHGs) resulting from human activities, with CO₂ being the most abundant gas of this type. These pieces of evidence result in serious consequences for the proper functioning of ecosystems, creating a state of ecological, economic, and health crisis.

What is a Voluntary Carbon Market?

Carbon markets are the space where the buying and selling of compensation or reduction units of GHG emissions take place. Their functioning is similar to that of financial markets, with the carbon credit being the currency used to trade in them. Participants within this market voluntarily decide to offset their carbon footprint by financing environmentally sustainable projects that contribute to mitigating climate change.

Why is it important to offset in nearby and localized projects?

Today, the most popular carbon projects are those focused on reforesting remote places in the world. On numerous occasions, companies or organizations do not know if their compensation and investment are actually being carried out, even falling into double accounting of credits and greenwashing. Often, this delocalization creates a sense of distrust and insecurity that calls into question the proper functioning of carbon projects as a tool for climate mitigation. That is why at airCO2, we try to encourage those compensation projects that are close to the emission source, making it a more positive owner-buyer interaction and ensuring at all times that they are true projects. In this way, companies that want to neutralize their emissions can see the good consequences of their investment in a much more realistic, tangible, and nearby way. airCO2 organizes meetings between companies and forestry projects in which they invest to carry out joint events.

How do airCO2 projects generate credits?

airCO2 generates carbon credits based on the annual growth of the forest, that is, we estimate how much the forest can grow during a year and that volume of wood is transformed into CO₂. To do this, we use growth models that vary according to the species and geographic area together with information from national LIDAR flights. We also make CO₂ sequestration estimates based on vegetation inventories.

Why compensate in Sustainable Forest Management projects instead of reforestation?

Sustainable Forest Management encompasses those practices and models in which forests are managed respecting regeneration cycles as much as possible and promoting the rural economy. Although reforestation is important for the reactivation of degraded areas, it is not the most effective way to absorb emissions On many occasions, companies offset very large carbon footprints in reforestation projects of very long duration in which, due to lack of preparation and maintenance, said calculation does not end up translating into actual absorption. The reality is that this absorption occurs after decades or periods of time that the tree mass does not even reach, either due to natural catastrophes or plantations in inappropriate places.That is why at airCO2 we try to take advantage of and promote existing forests, improving management practices, incentivizing the delay of the time of felling and carrying out work to prevent forest fires.

What requirements must the mountains meet to participate in the airCO2 marketplace

• Minimum area of 2 ha. Owners who want to participate in our marketplace must have a minimum area of 2 ha. This area can be given in two ways: a single plot that only reaches or exceeds 2 ha or several adjoining farms that together add up to said amount.
• Knowledge about the predominant species. When making the calculation, it is essential for us to know the type of species found in each forest. Therefore, it is necessary to know the main species of each registered plot. In the In the event that the surface presents more than one species, its exact distribution within the registered land will be required.

How are carbon credit transactions carried out in airCO2?

As soon as a company decides to offset its carbon footprint in an airCO2 forest project, it will carry out an economic transaction corresponding to the amount for the number of tons that they decide to offset. The forest owner will receive the transaction immediately. airCO2 retains a 20% commission per transaction.

What would happen if during the contract there is a reduction in forest cover?

In the event that during the duration of the contract the forest owner decides to cut down deliberately or does not comply with the stipulations, a readjustment of the assigned carbon credits will be carried out or the forest file will be deactivated in our marketplace, rescinding the contract. If a company has already paid to offset its footprint, they don't have to worry, their investment will be relocated to another forestry project.

What would happen if the forest mass suffered a fire?

Those forests with an absorption capacity greater than 1000 tons of CO₂/year will receive sales payments in two 50% installments: the first half at the time of sale and the second half at the end of the contract, to guarantee the owner's commitment to keep its wooded area standing during the term of the contract airCO2 also offers the option to these parcels to receive 100% of the corresponding amount at the time of sale, less a 5% discount for the guarantee fund of airCO2. In parcels with an absorption capacity of less than 1000 tons CO₂/year, airCO2 would assume the cost of emissions and relocate the project to another area.

In the case of sale of the property during the contract or lease, how to proceed?

Every mountain in our marketplace must have a defined owner at all times. In the event of a sale of the property, it will be necessary to notify us 1 month in advance to make the appropriate modifications to the contract In addition, the new owner must be aware of the contract with us and agree to comply with it. Otherwise, the respective mounts will be removed from our marketplace.

What types of certificates does airCO2 issue?

The Companies that bear the airCO2 emissions reduction seal guarantee that they have made an economic and trustworthy investment to nearby forest owners. The owners who sell their credits in the airCO2 market demonstrate that they carry out Sustainable Forest Management, that they manage their forests in an environmentally friendly manner, maintaining Carbon stocks and promoting their absorption, always in line with the UNE standard. -162002:2013 on Sustainable Forest Management.

Why do I have more than one invoice after purchasing carbon credits?

We provide several invoices to ensure fiscal transparency and in order to comply with applicable tax regulations and to ensure proper transparency in the transaction.

-Invoice issued by airCO2: includes a breakdown of the total price, including commission and VAT. According to tax regulations, the VAT on this invoice is the responsibility of your company and must be declared as part of your VAT return.

-Invoices issued by forest owners: this invoice reflects only the remaining amount, excluding VAT. The regulations on 'reverse charge transactions' state that the VAT on this transaction is the responsibility of you as the purchaser and must be declared on your tax return.