Carbon credit retirement is the permanent cancellation of a carbon credit in a registry so that it can no longer be sold, transferred, or double-counted, formally claiming the underlying emission reduction or removal. Retirement is the terminal step that converts a tradable credit into a fulfilled offset claim against a specific buyer’s emissions. It is fundamental to carbon market integrity because it guarantees that each tonne of avoided or removed CO2 is claimed only once.
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- On-chain carbon markets tokenise credits and execute retirement via smart contracts, emitting an immutable retirement record that prevents resale or double-counting. Robust retirement accounting, with serial-number tracking and beneficiary attribution, is the linchpin of credible offset claims.