Carbon Credit FAQ

Human activity uses fossil fuel energy, which causes carbon pollution. We consume this fuel in commerce and industry and in our personal lives. This consumption is classified as Scope 2 or Scope 3 emissions.

Scope 2 emissions are indirect emissions arising (Indirectly) from power consumption. e.g. the energy transmitted by the grid.
Scope 3 emissions are indirect emissions arising (indirectly) through supply-chain/logistics/products purchased.

Carbon Credits are generated in the processes of clean energy projects. They are sold for financial sustenance.

Buying carbon credits takes responsibility as it supports clean energy. It prevents adding to carbon pollution. It does not eliminate your ‘carbon footprint’ and is ideally used to extend your efforts in resource use for profit.


  1. A Carbon Credit is an instrument for dealing with GHG emissions.
  2. It carries the value of minus 1 ton physical reduction from GHG emissions, generated from  (a) an energy optimization processes, (b) the generation of clean/renewable energy, and (c) the refinement procedure of chemical processes.
  3. For its buyer, represents the permission to emit 1T Co2E gases, and  mitigates the buyer’s Scope 1, Scope 2 and Scope 3 emissions.
  4. It also has a value that is financial, and imposes a price on GHG emissions for buying, selling, or trading otherwise.
  5. For its seller, it is sold to recover part costs of energy optimization, or the production of clean energy.


  1. Carbon Credits offer a standard. 
  2. They are the most commonly used instrument to offset carbon reduction.
  3. They have values that are established by market forces and can be bought and sold.
  4. Carbon Credits undergo thorough monitoring, verification and reporting processing, after any optimization of energy and elsewhere, applying parameters provided upon the United Nations Framework Convention on Climate Change. Only then, can they be certified.
  5. Each type of carbon credit certification has its own distinctive value.
  6. This value is determined by the Sustainable Development Goals.
  7. Typical certification standards are: Voluntary Carbon Standard, the Social Carbon Standard, the Gold Standard and the Renewable Energy Certificates Standard.
  8. Renewable energy projects such as solar and wind energy are more adaptable (and less invasive) to integration with the populace.
  9. Taken collectively, the use of Carbon Credits as Offsets helps improve economic, environmental and social conditions.


  1. Carbon Credits fulfil their purpose when they are retired to become Offsets. Their retirement, is permanent.  
  2. Once retired, the carbon credit can no longer be re-used, and they are accounted for at international registries.
  3. Carbon Credits are proof of action and are useable by any organization/individual to offset their carbon emissions footprint.
  4. Carbon Credits are best used as accompaniment with an organization’s efforts to optimize its own day-to-day reliance on activities with emissions byproducts.
  5. Carbon Resources Exchange International Pte Ltd is an legitimate member of various international registries.
  6. Our CRX Retirement Certificate is as an official record of retirement of carbon credits, and highlights the following:
  • The name of the party in whose name the certificates so retired, be it VCS, CERs or GS
  • The type of certificate
  • The unique serial numbers of certificates so retired.
  • The name of the organization that issued the certificate


  1. Carbon Credits began to be actively used from 1997. There is a 20 year track record in development.
  2. Since the consequences of changing weather patterns have been overwhelmingly linked to greenhouse gas emissions, countries worldwide are taking action to fight climate change, to alleviate poverty, and propel the economy.
  3. Post the COP21 Paris Agreement, where 190 countries have taken on targets to reduce emissions, carbon credits is now a standard measure of emissions reductions.
  4. Article 6 of the Paris Agreement provides for market measures to be rolled out globally.
  5. Carbon Credits are the leading mechanism for regulating climate change.


  1. Achieves carbon footprint reduction targets set by the company.
  2. This effectively puts a price on carbon.
  3. Creates brand differentiation and opens affiliations with sustainability-minded suppliers and clients.
  4. Supports sustainable development by financing clean energy projects. Many of these projects also prioritise community development focused on socio-economic development in the lesser developed countries (LDCs)
  5. Helps enhance Corporate Social and Environmental Responsibility initiatives.
  6. Achieves resilience against emerging governmental regulations, such as Singapore’s upcoming carbon tax.


  1. A greenhouse gas is any gaseous compound in the atmosphere that is capable of absorbing infrared radiation, thereby trapping and holding heat in the atmosphere. By increasing the heat in the atmosphere, greenhouse gases are responsible for the greenhouse effect, which ultimately leads to global warming. The primary greenhouse gases in Earth’s atmosphere are: Carbon dioxide, Methane, Nitrous oxide, Perfluorocarbons, Hydrofluorocarbons and Sulphur hexafluoride.
  2. Carbon Emissions are classified into 3 scopes:Scope 1 emissions are direct emissions resulting (directly) from your assets through power generation or chemical/mechanical processes. Scope 2 emissions are indirect emissions arising (Indirectly) from power consumption. e.g. the energy transmitted by the grid. Scope 3 emissions are indirect emissions arising (indirectly) through supply-chain/logistics/products purchased.