misconceptions

about
 Introduction

Many businesses that pledged to participate to global carbon

neutrality can’t fully eliminate their emissions, or even lessen them

as quickly as they might like. Carbon credits are then necessary to

offset emissions they can’t get rid off by other means. The

voluntary carbon market also permits direct private financing to go

to climate-action projects that would not otherwise get off the

ground.

The history of the Voluntary Carbon Market (VCM)

Carbon trading started formally in 1997 under the United Nations’

Kyoto Protocol on climate change which had more than 150 nation

signatories.

The Voluntary Carbon Market has grown since the Paris agreements

in 2015, reaching more than $2 bn in 2021. This level has more or

less stabilised in 2022, despite a difficult macro-economic context.

According to various studies, the market could grow 10 to 20 times

by 2030.

Riverse’s role in the Voluntary Carbon Market

Riverse is a standard for the certification of carbon credits on the

voluntary carbon market. Riverse offers its own carbon credit

methodology and a carbon measurement, verification and

monetisation platform for Greentech and circular economy

projects in Europe.

What to expect in this handbook

The Voluntary Carbon Credit market is often misunderstood and

underestimated, plagued by numerous misconceptions and

misguided assumptions. This handbook explores the 10 most

recurring misconceptions we have experienced at Riverse, to shed

light on the carbon credit mechanism and increase transparency

on the market.

2
 Carbon credits contribute
#1 to greenwashing

Carbon credits are a right

#2 to pollute

Carbon credits are

#3 useless

Companies that buy

#4 carbon credits pollute

more than the others

Carbon credits are not an

#5 efficient financing tool

Carbon credits are not

#6 trustworthy

Only Verra and Gold

#7 Standard issue certified

carbon credits

Avoidance carbon credits

#8 are useless

If I buy carbon credits, 


#9 I can be carbon neutral

We don't need carbon

credits to finance the
#10 transition to a low-
carbon economy

3
 #1
Carbon credits contribute to
greenwashing

Not true!

Carbon credits are a tool, they isn’t innately good or bad -

there are only good or bad ways of using them.

The voluntary carbon market requires

high-quality projects and transparent

communication
Carbon credits are first and foremost a carbon monetization tool

between GHG-issuing companies and projects who capture or avoid

GHG emissions.

When effectively implemented, carbon credits allow projects to reinvest

Mega

corporate resources into their development, thereby amplifying their

166 tons
positive impact on the environment.

The following list outlines the primary criteria set forth by ADEME

(Agence de la Transition Écologique):

Additionality: Without the money from carbon credits, the project

of carbon emissions were
could not have existed.
covered in 2022 by
Measurability: We need to know precisely how many emissions the
retirements (BCG), which
project avoids or captures.

covered only 4% of global Permanence: The avoidance or capture must last over the long term.

CO2 emissions of that same Uniqueness: The same carbon credit can only be sold once.

year. Transparency and verifiability: Each avoidance and capture carbon

credit must be verified by a qualified third-party auditor, and be

subject to a regular and transparent monitoring process.

Communication around carbon credits must be as clear and transparent

Source: iea.org (2023)

as possible. Terminology is also paramount: "carbon neutrality" is used

less frequently, as it fails to acknowledge that every activity, regardless of

compensation efforts, generates carbon emissions. Instead, the phrase

"beyond value chain mitigation" should be used as it encompasses all

impactful actions taken to mitigate climate change.

4
Scams occur when the above conditions
are not transgressed
Certain market participants have unfortunately misused the carbon credit
mechanism.

"Phantom credits", deforestation-related carbon credits that do not

reflect emissions reductions, are present on the market and violate the
criteria of "measurability" and "additionality". For example, Delta Airlines
claimed its flights were ‘carbon neutral’ using non-deforestation
(phantom) carbon credits. They are thereby going against international
guidelines and undermining the integrity of the voluntary carbon market
as a whole.
Fig 1. Biomethanizers use organic matter to
create energy or heat.

Riverse’s role is to ensure the best

possible projects are financed to
accelerate the transition
At Riverse, we have based our methodology on ADEME and other
international standards to create an impeccable standard.

We apply 14 criteria, based on the ICVCM guidelines, to all our projects,

ensuring that
We only work with European industrial Greentechs, who have
accurate and measurable data to provide for our in-house comparative
LCAs.
We have a Riverse registry, which securely tracks and manages carbon
credits as digital assets throughout their lifecycle. This ensures that
there is no double-counting and that our carbon credits are fully
traceable.
Our business model is centered on the sale of carbon credits,
enabling small-scale projects to generate and trade carbon credits.

We have also made partnerships with the best-in-class sustainability

and carbon credit specialists in the market, like Ceezer, Sweep or
ClimatePartner. We can be assured of the corporate buyers’ quality when
they have collaborated with these partners.

Infographic 1. Main regulatory organizations in the Voluntary Carbon Market

5
 #2
Carbon credits are a right to
pollute
Not true!
Carbon credits are not a right to pollute, this is a concept
associated with the EU-ETS system. The VCM is different for
the EU-ETS system.

83%
of National Determined
Contributions (a country’s plan
to reduce its emissions) state
The EU ETS market, the trading platform
for carbon emission quotas
The Regulated Carbon Market (EU ETS) imposes a restriction on the
quantity of carbon dioxide (CO₂) emissions that heavy polluters can
release. Companies that remain within their emission quotas have the
option to sell their carbon allowances, while those that exceed their limits
can purchase additional allowances.

the intent to make use of

The EU-ETS system can be perceived as a right to pollute. Nevertheless, it
international carbon markets remains a commendable mechanism as it compels the heaviest industries
to reduce GHG emissions. (accounting for 55% of total EU emissions) to rapidly reduce their
emissions.

Source: United Nations Development Programme


6
The VCM, a financing mechanism for

virtuous projects

The Voluntary Carbon Market enables organizations engaged in carbon-

emitting activities to voluntarily undertake climate action by privately

supporting certified projects that remove or avoid CO₂ emissions. Each

carbon credit represents the avoidance or capture of one metric tonne of

CO₂ and is bought by corporations.

The VCM is completely different as it is a financial mechanism for virtuous

projects that need money. Corporates who voluntarily purchase carbon

credits cannot reduce their carbon footprint with it , only

counterbalancing the emissions they could not reduce. This market is

therefore not a right to pollute, but a separate contribution lever working

toward the global net zero.

Riverse supports the global transition

F ig 2. An electric devices reconditioning

thanks to the voluntary support of workshop.

corporates

At Riverse, we work with companies that have a carbon footprint and a

credible decarbonization strategy, where they voluntarily participate in

the VCM market.

We support the transition by opening up certification verticals for

Greentechs in need of resources so they can access the carbon market

and increase the reach of their activity. Circular economic models are

complex and costly to deploy, despite their high environmental and social

impact. Therefore, they need as many resources as possible, and carbon

credits can help them grow without adding debt or relinquishing equity.

The EU-ETS mechanism The VCM mechanism

Infographic 2. The EU-ETS market imposes a quota on Infographic 3 . The VCM allows organisations to voluntarily undertake

heavy-emitting industries: companies exceeding their climate action by supporting certified projects that remove or avoid

limits have purchase allowances from lesser-emitting CO2 emissions.

companies.

7
 #3
Carbon credits are useless
Not true!
Carbon credits are not useless, they are a crucial tool to
finance virtuous projects in need of fundings to develop.

Carbon credits accelerate the financing

of the transition
Carbon credits have gained recognition as a complementary financing
mechanism for driving the ecological transition, as acknowledged by
The VCM is the

3rd
Carbone4, ADEME, and WWF.

Funds generated from carbon credits support

decarbonization projects that may not have come to fruition
out of 10 otherwis
the expansion of carbon sinks, acting as reservoirs absorb and
answers required to sequester carbon over extended periods
accelerate the fight against
climate change. Additionality, an eligibility criteria,
ensures that projects benefitting from
carbon credits need these resources to
grow
Source: Antonio Gutteres’ closing speech at the
COP27 Additionality refers to the crucial notion that without the resources
created by carbon credit revenues, the mitigation activity leading to
greenhouse gas (GHG) emission reductions or removals would not have
taken place. For carbon credit buyers, additionality ensures that
emissions are genuinely reduced through the positive influence of
projects financed by carbon credits.

8
For project developers, additionality allows them to expand and
advance their activities, thereby amplifying their positive impact. Many
commendable projects may not be financially viable or profitable in their
own right, and the sale of carbon credits enables them to sustain the
development of their initiatives.

Ultimately, additionality stands as a key criterion serving two fundamental

purposes
To exclude projects that do not require additional funding for scalin
To ensure that the funding derived from carbon credits is effectively
utilized to enhance the impact on combating climate change

Riverse certifies projects with the

biggest decarbonization challenges
At Riverse, our clients are European industrial players who provide cutting- Fig 3. The electric devices reconditioning process
edge decarbonization solutions. We stand as the sole standard capable
of granting them carbon credits within specific sectors such as IT
refurbishment and recycling. These credits serve as a catalyst for growing
their business and facilitating the transition towards a circular and
sustainable economy.

Additionality for the project’s emissions

Infographic 4. Additionality is
essential as it ensures that
tangible and verifiable climate
impact is conducted thanks to
carbon offsetting.

Additionality for the project’s costs

Infographic 5. Additionality is a
allows for projects to expand and
develop their activity by covering
their cost, furthering their positive
impact.

9
 #4
Companies that buy carbon
credits pollute more than the
others
Not true!
In general, companies that buy carbon credits pollute less than
those who don’t.

Carbon credits are now bought when

Companies that buy carbon companies have a strong
credits decarbonize their own decarbonisation strategy in place for

2x
activities at a rate that is
their own emissions
It cannot be emphasized enough: the purchase of carbon credits should
faster not be regarded as a substitute for reducing emissions within your own
operations!

than other companies Today, achieving 100% decarbonization in most industries remains
unattainable due to technological limitations. Until such advanced
technology becomes available, carbon markets serve as a powerful tool
that empowers companies to fulfill their net-zero reduction targets while
complementing internal strategies for emissions reduction.
Source: Sylvera

10
Companies are now forced to have

transparent contribution strategies

Buying carbon credits does not result in a lessening of a company's

emissions. Carbon credits are not a tool to e qualize the two sides of an
emissions e quation
The French law (Decret n° 2022-539) stops companies from buying
’
carbon credits if they don t reduce enough of their own emissions. The

“Code de l’environnement Article 102.1” also imposes the emission of

high -quality carbon credits
Additionally, the Science Based Target Initiative states that companies
are encouraged to make investments in mitigation offsetting activities

above and beyond their value chain. This will increase the likelihood

that the world stays within a 1.5°C carbon budget , but it can’t be a
’
substitute for a company s reduction of emissions.
Fig 4. Low-carbon materials can be used to reduce the

carbon footprint of the real estate market.

At Riverse, we work with virtuous

partners and are scrupulous in adhering

to the laws in place

At Riverse, we collaborate with prospective buyers of carbon credits who

have joined forces with trusted carbon measurement platforms. These

platforms play a crucial role in implementing robust , dependable, and

consistent decarbonization strategies. We can therefore trust that these

companies will adhere to all laws and regulations and prove to be

transparent and proactive partners in the fight against climate change.

We encourage corporates to set up an internal carbon price to finance

both reduction and inserting or offsetting projects, as advised by the

Sweep Contribution Guide.

Internal Carbon Pricing process

Infographic 6. Sweep suggests that companies set up an internal carbon price, so that every ton of CO2e emitted is

internally taxed to be invested in Greentech development initiatives.

11
 #5
Carbon credits are not an
efficient financing tool

Not true!
Carbon credits are an invaluable tool to finance projects
without adding debt or relinquishing equity.

Low-carbon projects need more upfront

resources than baseline projects

100%
of the project’s
project’sextra
extracost
costisis
Low-carbon projects often face challenges in gaining recognition
compared to their higher-emitting counterparts, primarily due to their
smaller scale and early development stage. As a result, securing funds to
foster their growth can be challenging. Moreover, as these projects
typically focus on technologically-advanced products, their costs tend to
covered up exceed those of industry-standard initiatives. Consequently, financial
covered upbybycarbon
carboncredits
credits
support from carbon credits becomes crucial for these projects to
procure the necessary funding required for the timely development of
their products. This funding ensures that their solutions gain market
traction and achieve broader adoption.

12
Current carbon taxes do not make up for

this difference

Circular mechanisms are inherently more complicated to establish, as

shown for example by the reconditioning process of electronic devices

This restorative process entails a greater number of steps and

logistical considerations compared to the production of a new

computer

On the contrary, purchasing a new imported computer is more cost-

effective for both the end consumer and the manufacturer.

This restrains the development of low-emission solutions, which therefore

need carbon credits as a financing alternative to develop their

activities. Fig 5. Biomethanation is environmentally interesting

because it does not only produce energy, it alsoproduces

organic fertilizer.

Carbon credits finance between 30%

and 100% of a Riverse-certified project

At Riverse, we maximise the value of funds allocated to projects through

carbon credits by minimizing intermediary costs.

By leveraging carbon credits, we aim to bridge a significant portion of the

resource gap required for the expansion and delivery of low-carbon

alternatives to the market. This, in turn, contributes to the reduction of

global greenhouse gas (GHG) emissions on a broader scale.

The VCM Greentech financing mechanism

Infographic 7. Carbon credits allow companies to gain access to

resources by valorizing their emissions reductions.

13
 #6
Carbon credits are not
trustworthy

Not true!
Most voluntary carbon credits are validated and verified by
ISO-accredited independent auditors.

Since 2015, ICVCM has been developing

99%
of overall voluntary carbon
credits are validated and
verified by ISO-accredited
a best-in-class framework for VCM
Since 2015, the ICVCM (Integrity Council for the Voluntary Carbon Market)
has been dedicated to developing a best-in-class framework for the
Voluntary Carbon Market (VCM) under the observation of the United
Nations, after the end of the Clean Development Mechanism (CDM). This
framework aims to establish a robust system for issuing high-integrity
carbon credits.

independent auditors.
The ICVCM has formulated 10 Core Carbon Principles, with one of the
most crucial principles focusing on robust independent third-party
validation and verification. This principle emphasizes the need for
rigorous independent validation and verification of mitigation activities
within the carbon-crediting program.

Besides, buffers are always put in place in the measurement phase to

avoid over-crediting and to account for a certain amount of uncertainty.

14
Third-party accredited and independent
auditors are integrated into the issuance
process
To fulfill the "independently verified" criterion outlined in carbon credit
regulations, carbon credits must undergo verification by accredited and
independent auditors, such as KPMG, DNV, Bureau Veritas, Verifavia, or
Finexfi.

The verification process for carbon credits is meticulous and

comprehensive, carefully designed to ensure the credibility and
authenticity of the credits

The project's data, previously checked for its accuracy serves as the
foundation for developing a comparative Life Cycle Assessment
(LCA)
This LCA determines the project's emissions reduction or avoidance in
relation to the industry baseline (average of emissions of the industry Fig 6. Low carbon materials develop solutions to replace
without the virtuous solution higher-emitting competitors.
The LCA is then submitted to a third-party validator who thoroughly
evaluates the dat
The validator looks for errors or inconsistencies in the data and checks
the accuracy of the project report, checking compliance with all the
requirements set forth by the designated carbon credit standard.

Riverse applies selective criteria to

choose its validators
Third-party validators at Riverse can only be accredited if they respect
the following criteria
Have the ISO 14065 accreditation or equivalent (i.e. COFRAC ISO:17029
- CSR
Have more than 5 years of auditing experience, including at least 2
years in environmental auditin
Sign Riverse’s Conflicts of Interest Policy

This accreditation is then valid for 3 years and must be renewed.

A robust emission process for carbon credits

Infographic 8. The carbon credit emission process is robust and science-based, accounting for third-
party verification and maximum traceability.

15
 #7
Only Verra and Gold Standard
issue certified carbon credits

Not true!
Verra and Gold Standard are not the only issuers of verified
carbon credits: Standards have emerged to certify a wider
variety of projects.

An increasing number of standards have

emerged in the VCM market
The Voluntary Carbon Market was created and based on the Clean
Development Mechanism. Verra and Gold Standard were among the very
first standards to be a part of this initiative, and have therefore stayed top

20
of mind in the general population when it comes to this market.

However, since the Paris Agreement, several sectorial standards have

emerged, including Puro, the Label Bas Carbone, Nori or Riverse.

standards are active in the

Voluntary Carbon Credit

ICVCM guidelines need to be respected
Market in Europe and
to certify high-quality carbon credits
internationally
Certification means respect of ICVCM
guidances
As witnessed by recent reports, including an article published by The
Guardian, it has come to light that approximately 90% of the carbon
Source: Ministère de la Transition Écologique
credits currently available in the market are phantom, despite their
certification by recognised standards.

16
 This signifies that these credits do not correspond to any actual
emission avoidance or capture efforts. Primarily comprising of older
credits emitted prior to the implementation of ICVCM guidelines, a
significant portion of the carbon credits available for sale fail to meet
established standards and are entirely untrustworthy.

BeZero Carbon, a carbon credit rating agency, grades most Verra and
GoldStandard carbon credits from CCC- to BB-, showing that these
credits have a low likelihood of achieving 1 tonne of CO₂e avoidance or
removal.

This situation exemplifies that the certification of a high-quality carbon

credit is linked to respecting the ICVCM guidelines, and not to a specific
standard.

Riverse-certified credits are compatible

with all the main Net Zero frameworks Fig 7. The electronics devices reconditioning process
guarantees the product lasts 3-5 more years.
and laws
Riverse has constructed its methodology to be compatible with all the
main Net Zero frameworks and laws in place for the Voluntary Carbon
Market. Our methodology corresponds to
the SBTi criteria, encouraging emissions abatement within company
value chains before offsettin
the ADEME’s ACT metho
Carbone 4’s Net Zero Initiative, which accompanies companies into
their decarbonation transition.

The ICVCM Carbon Credit Principles define high-quality carbon

credits marketwide

Infographic 9. Principles for high-quality carbon credits are set by VCM regulations bodies, like the
ICVCM. They are not defined by any particular carbon credit emission standard.

17
 #8
Avoidance carbon credits are
useless

Not true!
Both reduction and avoidance credits play an important role in
mitigating climate change. While reduction credits work to
reduce emissions from existing sources, avoidance credits
work to prevent emissions from occurring in the first place.

Afforestation credits are a majority but

By 2025, we must reduce our
not the only type of avoidance carbon

80%
emissions by
credits
Historically, voluntary carbon credits were primarily centered around
surpassing nature-based solutions, which encompassed conservation, restoration,
and land management projects aimed at avoiding or sequestering
the 24% decrease achieved
greenhouse gas (GHG) emissions. However, even though forestry projects
between 1990 and 2019. will be a capital contributor to achieving net zero emissions by 2050, they
are not the only way to reduce or store emissions.

Source: EU parliament

18
All economic sectors need to reduce
their impact by avoiding emissions
Other avoidance and capture solutions have emerged over the years due
to technological advances, replacing more polluting solutions. Industrial
greentech projects also allow for avoiding GHG emissions, through for
example the development of low-carbon energies, low-carbon materials
or reconditioning and recycling. It is therefore paramount to capitalize on
these virtuous alternatives and give them the tools to develop to
advance our society towards a circular economy functioning.

Riverse accelerates the scaling of key

emissions avoidance solutions
Riverse allows for the financing of these solutions by giving them access
to the carbon credit market. This is achieved through the mechanism of Fig 8. Biomethanation are a solution for the generation of
low-emissions energy.
avoidance carbon credits, as these are solutions that avoid the release of
carbon emissions. This financing solution allows these greener solutions
to grow and start replacing the higher-emitting baselines, advancing
our society to a circular model.

Emission reduction previsions for 2050

Infographic 10. Avoidance credits must be used for emission reductions to be on par with established targets

19
 #9
If I buy carbon credits, I can be
carbon neutral
Not true!
Carbon neutrality is a relevant concept only at a global scale.

Carbon contribution instead of carbon

neutrality
When discussing our actions towards the global net zero objective, it is
Annual climate finance needs
more exact to talk of contribution to global carbon neutrality, or beyond

8
to increase value chain mitigation instead of our own carbon neutrality. Aiming to
achieve carbon neutrality through offsetting is part of a terminology that
lacks scientific validity. Today, carbon neutrality at a corporate level is
times not feasible due to the absence of a clear definition and scientific
evidence. However, companies can still play a role in contributing towards
to meet climate objectives by the goal of global carbon neutrality.

2030. Using climate contribution instead of carbon offsetting as a term is

derived from the recommendation of the Net Zero Initiative (NZI). The NZI
defines climate contribution as the support of emission reduction
projects, which is essential for achieving a net-zero future by the mid-
century to address climate change. Under this approach, a company,
Source: Reuters product, or service cannot be inherently carbon neutral per se, but can
play a role in contributing towards the global objective of carbon
neutrality.

20
With contribution, co-benefits are also
taken into account for carbon credit
emissions

The concept of climate contributions surpasses the mere environmental

advantages of carbon absorption or avoidance and takes into account

other equally significant co-benefits. Climate contributions also support

the achievement of the United Nations Sustainable Development Goals

(SDGs), which encompass social benefits, biodiversity preservation,

gender equality, and more. This showcases a comprehensive

sustainability vision that extends beyond the environment and

encompasses social well-being.

Fig 9. Electronics devices reconditioning maximizes

the value of products by refurbishing and repairing
operations.
Riverse is in line with NZI and
Contribution schema

Riverse is in line with the Net Zero Initiative and Sweep’s Contribution

playbook. Both these sources outline a revisited method for a new way of

using carbon credits. Sweep, in order to make the voluntary carbon

market more sustainable and efficient, wants to suggest to their

partnering companies a portfolio of certified carbon projects aligned

with their global climate strategy, and meeting the needs the needs of

the populations of the countries in which these projects are implemented.

Riverse provides these high-quality carbon credit to advance the fight

against climate change.

Fig 10. Better construction and use of buildings in the EU would reduce 42% of our final energy
consumption.

21
 #10
We don't need carbon credits to
finance the transition to a low-
carbon economy
Not true!
Carbon credits are an invaluable tool to finance decarbonising
projects in order to fight climate change.

The EU ETS market, the trading platform

for carbon emission quotas
20 40 bn€to
is the climate change
To act against climate change, companies need to drastically reduce
greenhouse gas emissions, halving them by 2030. It is also paramount for
companies, during their transition towards net zero emissions, to invest in
climate mitigation projects outside of the value chain. The UNFCCC
investment needed per year declared carbon offsetting as part of three steps that companies should
to respect the Paris follow: measuring their corporate carbon footprint, reducing as much
Agreement. as they can, and offsetting what emissions they cannot avoid.

Today, France’s present day emissions are 604MtCO2, and less than
0.05% of them are offset. It is vital to increase investments in voluntary
carbon credits to increase our impact and mitigate climate change.

Source: I4CE

22
ADEME stated that we are lacking
investments of 20-40bn € per year to
respect the Paris Agreement
Future investments into climate change should both go to companies’
decarbonation efforts of their own supply chain and to buy carbon
credits, taking a step further to accelerate our transition.

Companies should also learn to collaborate to solve this issue, and to do

so using carbon credits. It is more efficient if a group of companies co-
finance a new recycling center rather than each other develop its own
recycling units. Overall, the decarbonization global efforts would be 55% Fig 11. The construction and operation of buildings were
responsible for 38 % of global energy-related CO2
more cost-efficient with carbon credits rather than without, according emissions.
to EY.

Riverse certifies virtuous French

projects that contribute to the transition
With avoidance credits valued 30€/t market-wide, there is a capacity to
bring 18bn€/y to the transition in order to combat climate change.
Riverse contributes to this effort by emitting carbon credits for industrial
projects, slowly transforming our society into a circular model. These high-
quality verifiable carbon credits allow for companies to invest further in
global decarbonation initiatives, furthering our fight against climate
change.

Investment requirements to reach

Emission targets for 2050 2050 goals

Infographic 11. To reach our 2050 emission reduction target, there Infographic 12. To reach 2050 emission reduction targets, there
must be an increase in offset emissions. must be an increase in investments in carbon markets.

23
 We give value to impact
Riverse is a carbon credit certification standard for Greentech projects in
Europe. We measure, verify and monetize carbon avoidance and removal
of circular economy projects.

Ambitious, innovative solutions already exist to achieve a circular

sustainable transformation for our society. However, many need support
to scale up, become widely adopted and replace the status-quo.

Riverse’s mission is to promote circular economy solutions and mitigate

climate change impacts through carbon financing. This funding solution
will help accelerate our transformation to a circular economy and put us on
track to a global carbon-neutral future.