# Carbon units: what they are and how they come into being

> A carbon unit confirms a reduction or removal of 1 t CO₂e. We follow a project's path from the baseline and monitoring to the issuance of units in a registry.

Source: https://7g.carbonplatform.asia/en/kb/carbon-units

A carbon unit (carbon credit) is a registry record confirming that a climate project has reduced or removed one tonne of CO₂ equivalent beyond what would have happened without it. A unit does not come into being at the moment of the reduction, but only after the result has been measured, checked by an independent body and entered in the registry of a program or a government.

## What stands behind one unit

One unit always equals 1 t CO₂e. To issue it, you need to answer three questions:

- **What would emissions have been without the project?** This is the baseline: the emissions scenario in the absence of the project. For more, see the article on the [project baseline](https://7g.carbonplatform.asia/en/kb/project-baseline).
- **What are they with the project?** These are the project's actual emissions according to monitoring data.
- **Would it have happened anyway?** If the project would have paid off and been implemented without revenue from units, the reduction is not considered additional (additionality), and no units are issued for it.

Reduction = baseline emissions − project emissions − leakage.

## Calculation example

A company replaced part of its gas-fired boiler plant with heat pumps. Monitoring data for the year:

| Indicator | Value |
|---|---|
| Gas in the baseline scenario | 500,000 m³ |
| Electricity used by the heat pumps | 900,000 kWh |

For this worked example, we take the following factors: gas, 2.04 kg CO₂e/m³; grid, 0.726 kg CO₂e/kWh (estimated):

- baseline: 500,000 × 2.04 = 1,020,000 kg = 1,020 t CO₂e;
- project: 900,000 × 0.726 = 653,400 kg ≈ 653 t CO₂e;
- reduction: 1,020 − 653 = 367 t CO₂e.

If there is no leakage and the verifier confirms the calculation, the project may qualify for up to 367 units. In practice, programs may withhold part of the units for a buffer or other purposes, depending on the rules of the specific program.

## From idea to unit

1. Idea and preliminary estimate of reductions.
2. Project design document (PDD): methodology, baseline, monitoring plan.
3. Validation: an independent review of the project before or at the start of implementation.
4. Registration of the project with a program or registry.
5. Monitoring: data collection for the reporting period.
6. Verification: a check of the actual results (see [validation and verification](https://7g.carbonplatform.asia/en/kb/validation-verification)).
7. Issuance of units to the owner's registry account.

Once issued, units can be transferred, sold or retired. A retired unit is permanently taken out of circulation, and that is the only way it can be used for a climate claim.

## Types of units

Units differ by the program under which they are issued: independent voluntary market standards (for example, Verra VCS and Gold Standard), the UN mechanism under Article 6.4 of the Paris Agreement, and national registries. The program determines the requirements for methodologies, verification and the permitted uses of a unit. For more on the differences, see [Voluntary and compliance carbon markets](https://7g.carbonplatform.asia/en/kb/voluntary-and-compliance-markets).

## How it works in the platform

- The MRV contour for climate project calculations (baseline, monitoring, reduction) and the Market contour are marked “Soon”: they are under development.
- In the GHG contour, you can already keep monthly records of gas, electricity and heat for each facility, with supporting documents ([Data entry](https://7g.carbonplatform.asia/data-entry)). You will need this data to substantiate the baseline of a future project.
- Units are issued by the registry of a program or a government, not by the platform.

## Frequently asked questions

### Are a carbon unit and a carbon credit the same thing?

In Russian-language practice, the two terms are used as synonyms. “Carbon unit” is more common in legislation, and “carbon credit” in business usage. Either way, it means a verified tonne of CO₂e recorded in a registry.

### Can a company issue units for reducing its own emissions?

Reducing emissions in a corporate inventory does not, by itself, create units. That takes a project under a recognized methodology, with a baseline, additionality, validation, monitoring and verification, registered with a program or registry.

### How much does one unit cost?

There is no single price: it depends on the program, the project type, the year of the reduction, any quality labels and demand. The price is set by the contract between the seller and the buyer.