Articles on: General
This article is also available in:

Carbon economics and Toco

What are Carbon Mitigation Assets?

Carbon Mitigation Assets is the inclusive term for portfolios of carbon credits, carbon offets and avoidances. A carbon credit is a type of certificate that represents 1 tonne of carbon dioxide equivalent that was removed or kept out of the atmosphere. The purpose of a carbon credit is to provide a monetary incentive for the reduction of greenhouse gass pollution.

The Carbon Reserve purchases and verifies Carbon Mitigation Assets and then mints the equivalent amount of tocos.

What is a commodity-representative currency?

Commodity-representative money is any type of money that represents a fixed quanity of a commodity. The most well-known of these was the gold standard, under which the world operated until 1971, where the money supply was convertible into a fixed amount of gold. Unlike fiat money (the money we use today) that does not have intrinsic value, commodity-representative money, has its value derived from the assets it represents, for example tradable commodities such as gold, or in our case carbon mitigation assets.

What is the Carbon Reserve?

The Carbon Reserve is a Swiss-based not-for-profit foundation that verifies and mints tocos.

What are carbon markets?

Carbon markets refer to the markets in which carbon credits, allowances and other instruments are traded between countries,companies and individuals. The carbon market is made up of the volunatry market and the compliance market.

Updated on: 22/02/2024

Was this article helpful?

Share your feedback


Thank you!