To limit global warming, historical emissions and hard-to-abate residual emissions must be removed from the atmosphere. This process, known as Carbon Dioxide Removal (CDR), is also referred to as negative emissions.
Not all carbon credits represent negative emissions. Projects that avoid emissions, such as renewable energy or improved cookstoves, or that reduce emissions through efficiency gains do not remove CO₂ from the atmosphere. These activities prevent future emissions but do not reverse past emissions.
Only projects that generate a net physical removal of carbon dioxide, such as afforestation, enhanced forest management, biochar, or direct air capture, qualify as CDR or negative emissions.
Key distinction: Avoided or reduced emissions ≠ negative emissions. Only a durable or temporary net CO₂ uptake counts as a negative emission.
Negative emissions have an essential role in any IPCC scenario in which global warming is kept below 2 degrees of warming. The reason is limited reduction potential and slow decarbonization as well as high residual emissions in key, energy-intensive industries.
Lastly, negative emissions, or CDR, are key to addressing historical emissions.
All projects are developed in accordance with ISO 14064-2 and ISO 14064-3 and are validated and verified by Control Union Certifications Germany GmbH. The Control Union is accredited by the German national accreditation body (DAkkS) to validate and verify climate protection projects and is also recognized by the Federal Office for Agriculture and Food (BLE).
Biomass is, by definition, a temporary carbon sink. That’s why we verify storage annually to ensure performance is delivered. Through yearly renewal of carbon credits, long-term storage is continuously maintained.
Durability refers not only to the duration of storage but also to the risk of reversal, that is, the risk of the re-release of CO₂ during the storage period. OXO Earth minimizes this reversal risk by renewing the entire carbon storage annually. This creates a continuous sequence of one tonne stored over time, verified each year.
At any time, a transition to permanent removals via geological storage remains possible.
Under current forest management practice, our partner forests typically undergo annual harvesting. That is the baseline or business-as-usual scenario. If forest owners choose to defer part of that harvest by at least one year, trees that would otherwise have been removed stay in the forest and continue to absorb CO₂. That pause leads to additional biomass growth, which in turn increases net CO₂ uptake vis-a-vis the baseline.
All project forests are located exclusively in Germany.
To limit global warming, historical emissions and hard-to-abate residual emissions must be removed from the atmosphere. This process, known as Carbon Dioxide Removal (CDR), is also referred to as negative emissions.
Not all carbon credits represent negative emissions. Projects that avoid emissions, such as renewable energy or improved cookstoves, or that reduce emissions through efficiency gains do not remove CO₂ from the atmosphere. These activities prevent future emissions but do not reverse past emissions.
Only projects that generate a net physical removal of carbon dioxide, such as afforestation, enhanced forest management, biochar, or direct air capture, qualify as CDR or negative emissions.
Key distinction: Avoided or reduced emissions ≠ negative emissions. Only a durable or temporary net CO₂ uptake counts as a negative emission.
Negative emissions have an essential role in any IPCC scenario in which global warming is kept below 2 degrees of warming. The reason is limited reduction potential and slow decarbonization as well as high residual emissions in key, energy-intensive industries.
Lastly, negative emissions, or CDR, are key to addressing historical emissions.
What can my company do with negative emissions?
Negative emissions, also referred to as carbon dioxide removal (CDR), can be used to address the share of corporate greenhouse gas emissions that cannot be eliminated through direct reductions. Companies can:
- Neutralize residual emissions: Use verified CDR to balance unavoidable emissions in your operations or value chain, in line with the Science Based Targets initiative (SBTi) Net-Zero Standard.
- Fulfil climate claims with integrity: Under ISO 14068 and related standards, only the removal of CO₂ can counterbalance residual emissions for a credible “net-zero” or “climate neutral” claim.
- Support beyond-value-chain mitigation: Invest in removals outside your own value chain to contribute to global climate goals, while preparing for future regulatory or market requirements.
- Strengthen supply chain relationships: Implement CDR as an insetting measure, e.g., through forestry-based projects with suppliers, improving both climate impact and supplier resilience, ultimately reducing supply chain risk.
Why should my company remove carbon?
Carbon removal is a necessary complement to emissions reduction.
- Scientific necessity: The IPCC confirms that limiting global warming to 1.5°C requires large-scale removals in addition to rapid decarbonization. CO₂ remains in the atmosphere for centuries; removal actively reduces the concentration already accumulated.
- Residual emissions are unavoidable: Every business has emissions that cannot be fully eliminated with current technology or within feasible timelines — for example, in industrial processes, agriculture, or complex supply chains.
- Regulatory alignment: Frameworks such as the SBTi Net-Zero Standard, EU Corporate Sustainability Reporting Directive (CSRD), and GHG Protocol require or strongly recommend durable CDR to address residuals.
- Reputation and market access: Stakeholders increasingly expect credible climate action. Early adoption of high-quality, ex-post verified CDR can secure access to limited supply and strengthen brand trust.
In summary:
Removing carbon enables companies to meet science-based climate targets, comply with emerging standards, and demonstrate environmental leadership. When sourced from high-integrity projects, CDR is a measurable, verifiable, and essential part of achieving true net-zero.
OXO Earth is using a proprietary Improved Forest Management (IFM) / Extended Rotation Age (ERA) methodology, certified by the Control Union Certifications GmbH. Projects developed using this methodology generated Carbon Dioxide Removal (CDR) credits. Moreover, avoided emissions are also generated. However, credits for avoided emissions are not considered and thus not marketed.
The treatment of carbon sinks within national greenhouse gas inventories remains a legal and policy grey area. Some authorities, such as the German Environment Agency (UBA), view the use of carbon credits from German forest sinks by companies for their own climate targets as double claiming, since these sinks are already included in Germany’s national accounting under the Paris Agreement. Others maintain that no double claiming occurs, as corporate and national accounting follow separate purposes and operate on distinct ledgers.
Forthcoming EU legislation, notably the Carbon Removal Certification Framework (CRCF), and evolving national positions are expected to provide more precise guidance. Until such rules are harmonised, the Contribution Claim model offers both the highest integrity and the greatest legal certainty: it transparently documents a company’s financial support for additional climate action without offsetting or counting these contributions towards the company’s own emissions balance. This approach minimises the risk of misleading claims and aligns with current and anticipated EU consumer protection and sustainability disclosure requirements.
Contribution claims are a way for companies to finance additional, high-quality climate action beyond their value chain without using it to offset or “neutralise” their own emissions. They do not count towards the company’s carbon footprint or “carbon neutrality” claims, but transparently support mitigation activities that are additional, not double-counted, and scientifically robust.
Doing without a concrete compensation claim avoids greenwashing risks, increases legal certainty, and ensures that financed climate protection complements (rather than replaces) internal decarbonisation. Contribution claims can be communicated in sustainability reporting or marketing, provided the wording is transparent, verifiable, and does not imply that the company or its products are already climate-neutral. OXO Earth supports its clients in drafting and communicating individual company-specific contribution claims to maximize reporting and marketing impact without legal risks.
Biomass is, by definition, a temporary carbon sink. That’s why we verify storage annually to ensure performance is delivered. Through yearly renewal of carbon credits, long-term storage is continuously maintained.
Durability refers not only to the duration of storage but also to the risk of reversal, that is, the risk of the re-release of CO₂ during the storage period. OXO Earth minimizes this reversal risk by renewing the entire carbon storage annually. This creates a continuous sequence of one tonne stored over time, verified each year.
At any time, a transition to permanent removals via geological storage remains possible.
Under current forest management practice, our partner forests typically undergo annual harvesting. That is the baseline or business-as-usual scenario. If forest owners choose to defer part of that harvest by at least one year, trees that would otherwise have been removed stay in the forest and continue to absorb CO₂. That pause leads to additional biomass growth, which in turn increases net CO₂ uptake vis-a-vis the baseline.
All projects are developed in accordance with ISO 14064-2 and ISO 14064-3 and are validated and verified by Control Union Certifications Germany GmbH. The Control Union is accredited by the German national accreditation body (DAkkS) to validate and verify climate protection projects and is also recognized by the Federal Office for Agriculture and Food (BLE).
You need a forest management plan that is no more than 10 years old and shapefiles of your forest area.
OXO Earth Technologies analyzes ground-based measurements and remote sensing data such as satellite imagery. This process is supported by machine learning to precisely quantify the carbon content of forests.
At the end of the project term, each project is verified by Control Union Certifications Germany GmbH.
Forest owners are being paid at the end of the project period, after one year.
All project forests are located exclusively in Germany.
Biomass is, by definition, a temporary carbon sink. That’s why we verify storage annually to ensure performance is delivered. Through yearly renewal of carbon credits, long-term storage is continuously maintained.
Durability refers not only to the duration of storage but also to the risk of reversal, that is, the risk of the re-release of CO₂ during the storage period. OXO Earth minimizes this reversal risk by renewing the entire carbon storage annually. This creates a continuous sequence of one tonne stored over time, verified each year.
At any time, a transition to permanent removals via geological storage remains possible.
Under current forest management practice, our partner forests typically undergo annual harvesting. That is the baseline or business-as-usual scenario. If forest owners choose to defer part of that harvest by at least one year, trees that would otherwise have been removed stay in the forest and continue to absorb CO₂. That pause leads to additional biomass growth, which in turn increases net CO₂ uptake vis-a-vis the baseline.
Structured recording, evaluation, and planning of the forestry use of a woodland area. Typically covers a 10-year period, defining goals and measures for stand density, maintenance, and harvesting. It forms the foundation for sustainable forest management and carbon accounting.
Systematic collection of forest-related data such as tree species, diameter, height, volume, and growth. It serves as the basis for estimating biomass stocks and CO₂ sink performance and is conducted terrestrially or via remote sensing. A detailed and accurate inventory is essential for any sound forest management plan.
The allowable cut, or felling quote is the volume of timber permitted to be harvested annually in a forest operation, based on the sustainable growth rate. It ensures long-term use of the forest resource without depleting the standing stock.
A damaging event in the forest, such as storms, bark beetle outbreaks, or drought. Calamities often trigger unplanned salvage logging and increase the risk of CO₂ emissions due to biomass loss.
A Festmeter (fm) refers to one cubic meter of solid wood (excluding air gaps and bark). It equals a cube of pure wood with one meter edge length and is the standard unit for timber volume in forestry. Variants include harvestable solid cubic meter and inventory solid cubic meter.
The time span between tree planting (or natural regeneration) and planned harvesting of a tree or stand. Longer rotation periods, up to a point, result in higher CO₂ storage potential and are relevant in CDR approaches such as improved forest management.
The total amount of carbon stored in a forest ecosystem, including aboveground biomass, deadwood, and soil carbon. Forests with increasing carbon stocks act as CO₂ sinks by removing more CO₂ than they emit.
The annual increase in living plant material (wood, leaves, roots). A key metric for quantifying CO₂ uptake and for determining sustainable harvesting levels.
Horizontal Stacking is an innovative model for temporally staggered carbon storage in forest-based CO₂ removal. It eliminates reversal risk by continuously renewing annually ex-post verified storage services, ensuring the highest environmental integrity.
CO₂ credits can be issued either ex ante or ex post. Ex ante means that the credit is based on future, expected CO₂ reductions, whereas ex post means that credits are issued retrospectively for actual, proven results. OXO Earth operates strictly ex post. In our view, only ex post credits should be issued, as they ensure greater environmental integrity.
A temporary harvest deferral or delay, refers to the contractually secured suspension of forest use, e.g. timber harvesting, over a defined time period. In CDR projects, it serves as a mechanism for temporary carbon sequestration by extending rotation periods. The reliability of the harvest delay depends heavily on monitoring and structuring of the crediting and reporting periods. For temporary storage, contractual renewal and replacement of temporary credits is essential to guarantee durability.
The baseline describes the hypothetical, counterfactual scenario without the climate action—for example, a regular timber harvest based on forest management plans. It forms the comparative foundation, the reference scenario, for climate impact assessment. Defining the baseline is methodologically demanding and critical for the credibility of the project.
Additionality is a core criterion of climate projects. A climate action is considered additional if it would not have occurred without revenue from CO₂ credits. It is a prerequisite for recognizing emission reductions. In practice, it must be supported and documented through technical, economic, or regulatory tests and barriers.
Leakage describes the unintended displacement of emissions outside the project area due to a climate protection measure. In the voluntary carbon market, two types are distinguished:
- Activity-shifting leakage: Occurs when activities like timber harvesting are relocated to a neighboring area.
- Market-shifting leakage: Results from market responses such as price changes (e.g. due to lower timber supply) that cause increased emissions elsewhere.
Both types can severely impact the effectiveness of a climate project. Serious methodologies quantify and compensate for leakage using conservative baselines, allocation adjustments, or deductions
Reversal risk describes the danger that already stored CO₂ is released back into the atmosphere, e.g. through forest fires, storms, pests, or logging. In nature-based solutions, this risk is immediate and high. Reversals can occur even years after credits have been issued and significantly diminish the project’s climate benefit.
Buffer pools are central reserves into which a share of issued credits is deposited to compensate for future reversals. If a reversal occurs, credits from the pool are retired to maintain climate integrity. However, analyses show that buffer pools are often based on inadequate risk assessments and are therefore undercapitalized, making them insufficient to cover future reversals.
Durability describes the duration of CO₂ storage in climate projects, e.g. ranging from decades to centuries. Ideally, the CO₂ storage should be as long-lasting as possible.
The term permanence is often used interchangeably with durability. This is incorrect. Permanence also implies reversal risk and assumes a binary ideal. However, CO₂ storage is either permanent or not. From OXO Earth’s perspective, the flawed concept of “permanence” should be replaced by the two separate, continuous, and thus measurable metrics: durability and reversal risk.
Compliance markets are state-regulated carbon markets in which companies are legally obligated to comply with emission limits. CO₂ certificates are traded here within emission trading systems. The largest compliance market is the EU ETS. In the EU ETS cap-and-trade system, certificates are called allowances and represent the right to emit a certain amount of greenhouse gases. Market participants must regularly provide evidence of compliance.
The voluntary carbon market (VCM) enables companies or individuals to purchase CO₂ certificates to voluntarily offset emissions. The traded credits originate from climate projects that are certified according to recognized standards. The goal is to support emission reductions or removals beyond what is required by law.
Offsetting refers to the compensation of one’s own greenhouse gas emissions by purchasing and retiring CO₂ certificates. These certificates represent emission reductions or removals that have occurred elsewhere. The term “compensation” is often used synonymously with offsetting.
Insetting is the reduction or removal of emissions within one’s own value chain, typically through projects connected to the company’s core business. Its effect is similar to offsetting, but it occurs locally or within the supply chain. It is a valuable tool for reducing Scope 3 emissions. Insetting can be pursued voluntarily or as part of internal corporate climate strategies.
This term was introduced by the Oxford Principles for Net-Zero Aligned Offsetting and describes the targeted use of CO₂ certificates in line with scientifically grounded net-zero goals. It particularly emphasizes recommendations for removals, i.e., negative emissions or CO₂ removals for residual emissions, as well as the reduction of emissions along the value chain.
MRV describes the structured process for quantitative measurement, transparent reporting, and independent verification of CO₂ storage from projects. The goal is to ensure the integrity and traceability of climate mitigation efforts. MRV is central for the recognition of CO₂ certificates and mandated by standards. dMRV (Digital) and MRVL (Liability) are possible variations.
- Avoidance certificates are issued for projects that prevent potential CO₂ emissions, for example, through renewable energy or avoided deforestation (e.g., REDD+). They document that emissions expected under the baseline scenario did not occur. Avoidance measures deliver valuable climate benefits but do not neutralize existing atmospheric CO₂ and are thus not reducing global warming, just the increase in global warming.
- Reduction certificates confirm a decrease in emissions relative to a baseline, such as improvements in fuel or energy efficiency. They help shift from fossil-based to low-emission processes. However, existing CO₂ in the atmosphere remains unaffected and is not actively removed. This again, does not reduce global warming, just reduces the increase in global warming.
- Removal certificates document the actual extraction of CO₂ from the atmosphere and its storage for a defined, preferably long, duration. Removals include conventional (e.g., reforestation, improved forest management, soil carbon storage) and novel approaches (e.g., Direct Air Capture, enhanced weathering, biochar). Only removals can “neutralize” emissions by creating a net return of CO₂ compared to a baseline. This reduces global warming.
Synonyms for removal or Carbon Dioxide Removal (CDR) include: negative emissions, CO₂ removal, and CO₂ extraction.
Temporary storage means that CO₂ is retained for a limited period. Permanent storage refers to sequestration over periods exceeding 1,000 years, for example through mineralization or geological storage. This distinction is crucial for credit pricing and risk assessment. Nature-based and technology-based solutions differ in their storage media, which impacts the security and durability of carbon storage.
A carbon registry is a digital platform for the registration, issuance, transfer, and retirement of CO₂ certificates. It ensures transparency, traceability, and protection against double counting. Examples include Isometric, the International Carbon Registry, and Puro Earth.
Carbon standards define the requirements that projects must meet to generate CO₂ certificates. They specify methodologies, MRV (Measurement, Reporting & Verification) criteria, and other conditions. Well-known standards include the Gold Standard, ISO 14064-2/3, and the Verra Carbon Standard.
A Validation & Verification Body (VVB) is an independent, accredited auditing entity that validates (checks and approves) climate protection projects and verifies (checks after implementation) whether the stated CO₂ reductions or removals are accurate. VVBs operate under recognized standards (e.g., ISO 14064-2/3) and are essential for the credibility of CO₂ certificates. Their audit reports form the basis for the issuance of certificates in carbon registries.
This term refers to independent, often multi-stakeholder-led organizations that develop guidelines, quality criteria, and governance frameworks for the voluntary carbon market (VCM). These include:
- ICVCM (Integrity Council for the Voluntary Carbon Market): Develops a global framework for “high-quality” carbon credits (the “Core Carbon Principles”).
- ICROA (International Carbon Reduction and Offset Alliance): Brings together leading offsetting providers and defines minimum industry standards.
- VCMI (Voluntary Carbon Markets Integrity Initiative): Provides companies with guidance for credible use of CO₂ certificates for target achievement, especially in the context of net-zero claims.
These organizations do not have regulatory authority, but they play a significant role in shaping the market. They contribute to the harmonization, transparency, and credibility of CO₂ certificate trading.
This term refers to independent, often multi-stakeholder-led organizations that develop guidelines, quality criteria, and governance frameworks for the voluntary carbon market (VCM). These include:
- ICVCM (Integrity Council for the Voluntary Carbon Market): Develops a global framework for “high-quality” carbon credits (the “Core Carbon Principles”).
- ICROA (International Carbon Reduction and Offset Alliance): Brings together leading offsetting providers and defines minimum industry standards.
- VCMI (Voluntary Carbon Markets Integrity Initiative): Provides companies with guidance for credible use of CO₂ certificates for target achievement, especially in the context of net-zero claims.
These organizations do not have regulatory authority, but they play a significant role in shaping the market. They contribute to the harmonization, transparency, and credibility of CO₂ certificate trading.
The vintage year refers to the calendar year in which the CO₂ reduction or removal actually took place. It is a key criterion for the temporal attribution of certificates.
Negative emissions refer to the net removal of carbon dioxide (CO₂) from the atmosphere. They are exclusively achieved through so-called Carbon Dioxide Removal (CDR) measures, where CO₂ is actively captured and stored. Negative emissions are necessary to offset residual emissions and achieve net-zero. They are a core element of 1.5°C and 2°C climate scenarios.
CDR includes all processes that remove CO₂ from the atmosphere. These include nature-based methods (e.g., afforestation, improved forest management) as well as technological approaches (e.g., direct air capture, biochar, and enhanced weathering).
The Science Based Targets initiative (SBTi) is a global initiative that defines and verifies science-based climate targets for companies. It sets out how quickly and to what extent companies must reduce emissions to stay aligned with the 1.5°C goal. Since 2021, SBTi also requires the use of removals to compensate for residual emissions in net-zero targets. Since 2024, SBTi recommends the use of removals even before reaching net-zero. The Science-Based Targets Network (SBTN) is an alternative to SBTi.
The Greenhouse Gas (GHG) Protocol is the most widely used global standard for accounting and reporting greenhouse gas emissions. It categorizes emissions into Scope 1 (direct), Scope 2 (indirect, e.g., electricity), and Scope 3 (up- and downstream emissions). The GHG Protocol forms the foundation for climate accounting, target setting, and emissions reporting.
Net-zero means that a company drastically reduces all avoidable emissions and neutralizes remaining residual emissions through CO₂ removal. Unlike “climate neutrality,” net-zero is scientifically grounded, long-term in focus, and defined by initiatives such as SBTi and SBTN. A key principle is that reduction must take priority over neutralization, though early compensation, for example in line with the Oxford Principles, is still encouraged.
Decarbonisation refers to the systematic transition of an economy away from fossil fuels. The goal is to reduce CO₂ emissions in processes, products, and supply chains by using renewable energy, improving efficiency, and promoting technological innovation. It is a prerequisite for any credible net-zero target.
ESG stands for Environmental, Social, and Governance criteria, which companies consider as part of sustainable business practices. These criteria are increasingly demanded by investors and stakeholders, and are incorporated into ratings, reports, and financial products. ESG serves as a guiding framework for responsible business conduct and risk management.
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