Retirement is a registry transaction that permanently takes a carbon unit out of circulation on behalf of a specific beneficiary. Only a retired unit can be used for a climate claim: as long as a unit sits in an account, it is an asset that can be resold, so it cannot be “counted” at the same time. Retirement is the final step in a unit's life.
How retirement works
- The company buys units and receives them in its registry account, or instructs the seller to retire them.
- A retirement transaction is completed in the registry.
- The registry publishes a retirement record, which can be attached to a report and checked.
The retirement record states:
- the beneficiary (who is making the claim);
- the purpose (for example, offsetting residual emissions for the year);
- the period the claim relates to;
- the serial numbers of the units.
For more on registries, see Carbon unit registries.
Example: how many units you need
In a worked example, a company calculated its emissions for the year as follows:
| Source | Quantity | Factor | Emissions |
|---|---|---|---|
| Natural gas (Scope 1) | 200,000 m³ | 2.04 kg/m³ | 408 t |
| Electricity (Scope 2) | 1,500,000 kWh | 0.726 kg/kWh (estimated) | 1,089 t |
| Total | 1,497 t |
After implementing energy efficiency measures, the company decided to offset the remainder. To claim that all of its Scope 1 and 2 emissions for the year have been offset, it has to retire 1,497 units. Retirement does not reduce the emissions themselves: the inventory shows them in full, and the units are reported on a separate line.
Reporting rules
- Emissions and units are kept separate. The GHG Protocol and ISO 14064-1:2018 require gross emissions to be reported without deducting units. Retired units are reported separately (see GHG inventory report).
- The periods match. Units are retired for the same period the claim relates to.
- No reuse. One retired unit supports one claim.
Which claims you can make
The right wording depends on what exactly has been done:
- Offsetting: units have been retired in an amount equal to the emissions of a defined scope and period.
- Contribution to climate finance: the company supports projects without claiming the reductions against its own balance. This wording is appropriate in particular for units without a corresponding adjustment (see corresponding adjustments).
- Carbon neutrality: requires more than retirement; an emission reduction program is needed, and the requirements for this claim are set by ISO 14068-1:2023.
The VCMI Claims Code of Practice v3.0 (April 2025) describes the conditions for credible corporate claims: the company must have reduction targets, publish its emissions data and use high-quality units.
How it works in the platform
- Gross emissions for the year are calculated in the GHG contour: facility data is entered month by month in Data entry, and the company's annual totals are shown in company analytics.
- An administrator creates the annual company report in PDF and DOCX on the organization's GHG page (Facilities). You can rely on it when calculating how much to offset.
- Retired units are tracked in the program's registry. The Market contour is marked “Soon” in the platform: it is under development.
Frequently asked questions
Can units from previous years be retired for the current year?
Technically, registries allow units from any reduction period to be retired, but buyers and quality initiatives look at how old the units are. Requirements on this depend on the program and the claims standard.
Does retirement reduce the emissions shown in the report?
No. Gross emissions are shown without any deductions, and retired units are reported on a separate line.
Can a retirement be reversed?
No, retirement is irreversible. So before the transaction, check the beneficiary, the purpose and the quantity.