Compensation projects can meet different standards. The standards confirm the CO2 reduction and in some cases the local sustainable contribution for people and the environment. We invest in fair projects that contribute to better living conditions for the most vulnerable groups for the consequences of climate change.
In the voluntary offset market, the most widely used and known standards that a carbon reduction project can meet are the Verified Carbon Standard (VCS) and the Gold Standard. In addition, there is the Clean Development Mechanism (CDM) standard that is used in both the voluntary and compliance market.
View the table below for the differences between the various standards:
FairClimateFund offers companies and individuals in the voluntary offset market carbon credits that are certified by the highest international standards: Gold Standard (established by the World Wildlife Fund among others) and the Fairtrade Climate Standard. The Fairtrade Climate Standard is a relatively new standard, developed by Fairtrade International and Gold Standard in cooperation with FairClimateFund, and is based on the following principles:
Fairtrade minimum price
The end user pays a minimum price for the CO₂ credits or Fairtrade Carbon Credits. This minimum price covers all costs of the project.
Local households own the Fairtrade Carbon Credits which they use to pay off their cooking stoves.
A premium is paid on top of the minimum price. This premium is managed by the local cooperative and invested in climate adaptation activities.
Bottom-up capacity building
Local communities initiate the climate projects themselves, provide training, and take care of the monitoring and maintenance.
Reduction of CO₂ emissions by end users
Buyers of Fairtrade Carbon Credits have a CO₂ reduction plan.
Watch the video below for more information about Fairtrade Carbon Credits: