Frequently asked Questions
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A carbon credit is created when one metric ton of a greenhouse gas (GHG) is avoided, reduced, or removed. A carbon credit projects will be audited by an accredited, third-party verifier and meet specific criteria dictated by internationally-recognized standards bodies.
Purchasing carbon credits can support the development of carbon projects, as well as the ongoing monitoring, reporting and verification that is required to maintain the project on an ongoing basis. Carbon revenue creates incentives for unregulated, high carbon emitting industries to implement emission reduction or removal activities that go above and beyond “business as usual” practices.
Every carbon project is required to undergo periodic verifications, which includes an independent ex-post audit that evaluates the quantification of greenhouse gas emissions that have been avoided or removed by the project after the activity has taken place. Thallo only works with ICROA-accredited verification bodies.
Carbon credits are financial instruments. The owners of carbon credits can: hold the credit as an asset on their balance sheet; sell the credit to generate revenue; or retire the credit to offset emissions, or to contribute to nature repair
Once retired, the registry will note that the carbon credit has been used, and is taken out of circulation. This audit trail is important in making a robust environmental claim.
Each registry maintains a standard that provides guidelines for new and existing carbon projects and approves methodologies for specific project types. They also provide record when carbon credits are issued and then retired. Thallo's infrastructure integrates directly into the registries to ensure end-to-end traceability.
There are many reasons for the cost disparity for carbon credits from various projects including size, location, project type, and ongoing monitoring/verification expenses. Some projects that offer significant co-benefits often command a premium in the market, particularly benefits that align with contributions towards Sustainable Development Goals (SDGs).
Purchasing carbon credits is not a climate strategy on its own. It is critical for companies to first set and pursue both near and long-term science-based emission reductions targets. As a complement to this activity, carbon credits are an immediate tool for organizations to support emission reduction and removals activities that address Scope 1 and 3 emissions that cannot be mitigated in the near-term.
Thallo does not offer pre-financing options and/or forward off-takes. To guarantee delivery of the carbon credits and auditability of environmental claims, all credits listed on Thallo have already been issued by the relevant registry and/or standards body.
Carbon avoidance projects contribute to climate action by preventing carbon that would have been released into the atmosphere. Carbon removal projects, as the name suggests, remove carbon from the atmosphere.
When buying carbon credits, buying a ‘portfolio’ of carbon credits yields certain benefits. This includes: balancing risk, maximising impact, and balancing out costs.
Thallo alows project developers to list directly on the platform - setting their own price and volumes. This is our means of maximising the flow of capital to planet-saving projects on the ground.
Thallo does not charge any fees for supply-side entities - in line with our belief of maximising impact on the ground. On the demand-side, we charge a flat and transparent transaction fee, depending on the subscription.
Thallo has developed world-first, blockchain based infrastructure to enhance the traceability and auditability of carbon credit transactions and retirements. When enabled by the issuing registry (e.g. Puro.Earth), carbon credit retirements are published on a tamper-proof and public blockchain.
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