Every carbon credit stands for one tonne of CO₂ equivalent, but not every tonne is the same kind. Some credits pay for emissions that never happened. Others pay for carbon dioxide pulled back out of the air. This page explains the difference, how long each kind lasts and how their prices compare.
New to the basics? Read what a carbon credit is first, or browse the Learn section.
What is an avoidance credit?
Avoidance credits, also called reduction credits, pay for emissions that would otherwise have happened. The Oxford Offsetting Principles group them into three broad kindsSource 1:
- avoiding or reducing fossil emissions, for example by replacing fossil fuels with renewable energy or improving efficiency;
- avoiding emissions from nature, by protecting ecosystems, soils and vegetation from damage;
- capturing and storing fossil carbon before it reaches the air.
Most credits in the voluntary market today come from emission reductions or avoided emissionsSource 1.
What is a removal credit?
Removal credits pay for carbon dioxide taken out of the atmosphere. The Oxford Principles define carbon removal as human activity that removes CO₂ from the atmosphere and durably stores it in geological, land or ocean reservoirs, or in products. Natural uptake that would have happened anyway doesn’t countSource 1.
Ecosystem Marketplace lists the main sources of removal credits: nature-based afforestation, reforestation and agroforestry, and technological removals such as direct air capture and biocharSource 2. Some nature-based projects produce credits that represent both reductions and removalsSource 2.
How long does the carbon stay out?
Durability is the main difference between removal types. All removed CO₂ has to be stored, and storage methods vary in how likely they are to release it again, which the Oxford Principles call the risk of reversalSource 1.
- Lower risk of reversal: storing CO₂ in well-selected geological reservoirs, or mineralising carbon into a stable form, for centuries to millenniaSource 1.
- Moderate risk of reversal: some nature-based removals can also store carbon for centuries, if the ecosystems are maintained and not destabilised by climate changeSource 1.
Permanence is one of the ICVCM’s ten Core Carbon Principles, which set a quality threshold for both kinds of creditSource 3.
Removal vs avoidance at a glance
Scrolls sideways to show every column.
| Aspect | Avoidance (reduction) | Removal |
|---|---|---|
| What the tonne is | An emission that didn’t happen | CO₂ taken out of the air and stored |
| Typical project types | Renewable energy, efficiency, ecosystem protection | Reforestation, agroforestry, biochar, direct air capture |
| Main quality question | Would the emission really have happened? | How long will the carbon stay stored? |
| Average price in 2024 | $4.05 per tCO₂e | $19.50 per tCO₂e |
| Volume traded in 2024 | 38.8 MtCO₂e | 4.2 MtCO₂e |
As of Oct 2026
Prices and volumes come from Ecosystem Marketplace’s survey of 2024 transactions; a further 22.8 MtCO₂e traded were credits representing both reductions and removalsSource 2.
Why do removal credits cost more?
In 2024, removal credits sold for an average of $19.50 per tonne, against $4.05 for reduction credits, which Ecosystem Marketplace reports as a premium of 381%, up from 245% in 2023Source 2. Only 5% of credits traded in 2024 came from removal project types, and Ecosystem Marketplace reports that supply growth has lagged behind demand, pushing prices upSource 2.
Which should you buy?
The Oxford Principles ask anyone using credits toward net zero to shift their mix toward removals over time, aiming for 100% removals by the global net zero date, and toward storage with a low risk of reversalSource 1. Avoidance credits still play a role in the short and medium term, for example in protecting carbon stored in vulnerable ecosystemsSource 1.
Where to go next
Whichever kind you choose, it only counts once it is retired in your name. See how carbon credit retirement works and how to check it, and why the credit vs offset distinction shapes the claim you can make.