Carbon-offset is an important step for companies, municipalities and the state to minimize future costs due to climate change.
Verified carbon-credit from Icelandic forests
The production of verified carbon credits pending at Klappir goes through a special process that is done to ensure their value and traceability. The process is based on international standards and methodologies, which is a key element in building a responsible carbon market in Iceland. Offering verified carbon credit is a major and important task for us to meet the climate challenge and restore land quality.
Iceland's greenhouse gas emissions
Iceland is at a crossroads in climate matters at the moment, but with international flights and shipping, Iceland's total emissions were a total of 15.8 mtCO2-ig. Of this, greenhouse gas emissions from land and forestry are 9.1 mtCO2-ig (LULUCF).
Iceland has two binding challenges which are:
- A reduction in greenhouse gas emissions of 55% by 2030 compared to 1990 in cooperation with the European Union.
- Carbon neutrality 2040, which means that greenhouse gas emissions do not exceed the greenhouse gas emissions in the country.
Restoration of land quality
If emissions from land are to be stopped, a national effort must be launched to restore land quality. If such an effort is well done, it can be made profitable for all those involved in the effort as well as creating a basis for innovation e.g. in agriculture, industry and finance. Bear in mind that if Iceland does not meet its obligations under the Paris Agreement (as happened under Kyoto period) it is clear that the country will have to pay significant amounts as early as 2030 due to fines and the purchase of carbon units/credits.
Collaboration on a certified process
One of the basic preconditions for launching such an effort in Iceland is that we establish a common system so that it is possible to produce valuable carbon credit that are recognized by parties in Iceland, in international carbon markets, at the European Union and United Nations.
We have set up methodologies, procedures and systems around our software that manages the production of carbon units through a certified process. The system manages the process from planting a forest to the delivery of certified carbon credit, in line with international practices that are recognized by Icelandic and international parties. Although we are starting to look at forestry, our intention is to add wetland restoration and land reclamation along with other recognized carbon projects.
Anyone who buys carbon credit through Klappir MarketPlace can buy as many units as they want, regardless of the ESG report. All the units we put into production will be registered in the name of the person/company in question in the Climate Register. Those units will be in the Climate Register as the buyer's property that can be used when the binding becomes actual and the units have been activated. Requirements and methodologies that will be worked on in forestry projects are based on Forest Carbon, which the Icelandic Forestry has developed according to an international model.
Reliable carbon market
Klappir and many other stakeholders have committed themselves to working together to develop a transparent, reliable carbon market in Iceland that is based on internationally recognized methodologies and standards.
Digital technology to help solve environmental and climate matters
Klappir considers the development of digital technology to be one of the most important prerequisites for achieving success in environmental and climate matters. In recent years, Klappir has built up a digital ecosystem for sustainability in Iceland and abroad. Today, there are about 600 people, companies, municipalities and institutions that use it in one way or another. This has created unique value for Icelandic society.
Ecosystem restoration is a resource for future generations. If we agree on this, Icelandic nature will benefit and we will build up a forest resource and restore ecosystems for future generations.
It can be assumed that the price of certified carbon units will rise sharply in the coming years and may well be well over ISK 30,000 / tCO2_ in the year 2040. It can therefore be said that forests and other land improvements will be a resource for future generations that is important to build and preserve in Icelandic ownership.
Our strength so far has been collaborating on the goals (Global Goal # 17). We have built wonderful things so far, now we take the next step.
Here you can find explanations of the key terms that appear on this page.
Carbon offsets are defined in the Climate Act: "When a party intervenes in another party's actions to reduce greenhouse gas emissions and / or sequester carbon from the atmosphere and uses confirmation of such contraction or sequestration to offset its own emissions in part or in full degree".
To put it simply, carbon offsetting involves individuals or legal entities compensating for their own greenhouse gas (GHG) emissions by financing projects that a) prevent the emission of the corresponding amount of GHG elsewhere or b) remove the corresponding amount of GHG from the atmosphere.
Source: Carbon Offset Guide
Approved carbon offset criteria
When a decision has been made to offset carbon emissions in part or in full It is important to choose projects that have real climate benefits. Environment Agency recommends that the following criteria be taken into account in all cases when purchasing carbon credit for public entities (governmental agencies, municipalities etc).:
- Actual results - a project is verifiably successful and has the required results.
- Measurable performance - performance can be measured using approved methods.
- Lasting success - the success of a project is lasting and irreversible.
- Is a supplement - success would not have been possible without the purchase of carbon units.
- Measures to prevent double counting - the results of a project are only used once for carbon offsets.
- A project does not lead to carbon leakage - success is not based on emissions being shifted elsewhere.
- Independent certification - an independent certification body confirms the success of a project.
Source: Carbon Offset Guide
The CO2 equivalent, or carbon dioxide equivalent, is the unit of measurement used to keep track of greenhouse gas emission figures. Thus, one tonne of CO2 equivalent corresponds to one tonne of carbon dioxide or the amount of other greenhouse gases (eg methane, mercury or F-gases) that have comparable global warming potential.
There is talk of the warming power of different greenhouse gases. Because carbon dioxide emissions are many times higher than those of other greenhouse gases, they are the most important greenhouse gas. Nevertheless, it is important to take into account the different effects of different gases when assessing total greenhouse gas emissions. To this end, each gas is given a specific coefficient based on these different global warming effects, and all emissions are then converted to CO2 equivalents.
Carbon dioxide equivalent (CO2 equivalent)
One tonne of carbon dioxide equivalent corresponds to one tonne of carbon dioxide or the amount of greenhouse gases with comparable global warming potential.
Verified carbon unit pending (PIU)
A verified carbon unit pending (PIO) is a carbon unit that is listed in the Climate Register as a verified unconfirmed carbon unit that will be activated after a certain time when the binding has been confirmed.
In order to verify a carbon unit, the certified standards must be followed and the verification body must determine whether the manufacturer complies with the standards in the production of carbon units, ie. meet the obligations required to obtain certification.
It is also important that there is no double-counting of carbon units when it comes to using carbon sequestration to offset emissions, so that there is no doubt about carbon neutral claims. This is ensured by registering carbon units in a separate carbon register. The carbon register keeps track of credits, transactions and delistings of certified carbon units.
Carbon projects must ensure that carbon sequestration is certified according to recognized standards, e.g. Carbon, VERRA - Verified Carbon Standard (VCS) or Gold Standard. These are independent standards that have been drawn up by independent third parties. Certification is a rigorous process that provides independent confirmation of emissions and ensures that your carbon offsets are real and lasting. The quality of carbon units will therefore not be guaranteed without certification from such a party. When choosing carbon sequestration, look for either certified or a.m.k.a. confirmed projects to ensure the quality of your investment and that there is genuine carbon sequestration.
Voluntary carbon offset
Trade in carbon units is largely conducted in so-called voluntary carbon markets. Sellers in such markets may be e.g. companies, funds and institutions that mediate in providing funds for projects in the field of carbon offsets. It is also common for carbon units to be purchased directly from project developers. The purchase of carbon units through an voluntary carbon market is a so-called optional carbon sequestration, or optional, unconfirmed or unverified carbon unit. These units are not registered in the Climate Register and are therefore not registered with international organizations.