Removal Crediting Period
The time frame over which a carbon removal project can issue credits.
What is a Removal Crediting Period?
A removal crediting period is the defined duration, typically set by the carbon crediting standard, during which a carbon removal project is eligible to generate and issue carbon credits for its verified atmospheric CO₂ removals. This period is distinct from the total permanence period for which the carbon must remain stored.
Why is a Removal Crediting Period important?
The removal crediting period is important because it defines the commercial lifetime over which a project can recoup its investment through credit sales. It's a critical factor for financial viability and planning for project developers, balancing the need for long-term climate impact with practicalities of project financing and monitoring.
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Frequently asked questions
Crediting periods vary significantly by standard and project type. They can range from 10-30 years for some nature-based solutions, with possibilities for renewal, while some engineered removal projects might have longer initial periods.
After the crediting period, the project is generally no longer eligible to issue new credits, but it is still often obligated to maintain the carbon storage (permanence obligation) and continue monitoring for the full permanence duration.
Yes, while distinct, the crediting period is set with consideration for permanence requirements. Standards often require assurances or buffer pool contributions for storage significantly beyond the crediting period.