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How clean energy turns into CO₂ savings

Renewables replace fossil-based electricity. The emissions avoided in this process are documented and form the basis for CO₂ certificates. Learn more about these projects

How CO₂ Savings Are Generated

Clean electricity from renewable energy projects replaces fossil-based power. The emissions avoided through this shift can be measured and form the basis for issuing carbon credits.

Renewable power changes the overall energy mix: every kilowatt hour produced by wind, solar or hydropower reduces the need for electricity from coal, gas or oil.

The amount of CO₂ emitted per kilowatt hour varies by country and by fuel type. These official grid emission factors make it possible to calculate how much CO₂ would have been released without the renewable energy project.

For each project, the expected fossil share is compared with the clean electricity actually delivered. The difference shows the verified emission reductions — the real CO₂ savings. These values are reviewed by independent auditors, updated regularly, and form the certified basis for carbon credits.

  • A solar park generates 1,000 megawatt hours (MWh) of electricity per year.

    Without the project, this electricity would typically come from a fossil power plant — for example coal or gas. Such plants emit on average 0.6 to 0.9 tonnes of CO₂ per MWh, depending on the country and fuel mix.

    For calculation purposes, a standardized average value is used — for example 0.7 t CO₂ per MWh.

    The CO₂ reduction is then calculated as follows:

    1,000 MWh clean electricity
    ×
    0.7 t CO₂ per MWh
    =
    700 t CO₂ saved per year

    This amount is verified, confirmed and issued as 700 carbon credits — one credit for each tonne of CO₂ that is demonstrably avoided.


    Note: This example explains the basic logic behind CO₂ savings. Whether a project is allowed to generate carbon credits depends on strict rules: recognised standards, detailed methodologies, independent audits and ongoing monitoring. Not every renewable energy project can or should be certified.

  • For emission reductions to be issued as carbon credits, they must meet specific requirements. They must be additional(the savings would not have happened without the project), measurable, verifiable and auditable. International standards such as Gold Standard or Verra define these criteria.

    These standards specify how emission reductions must be calculated and which data a project must provide. Independent auditors regularly check whether the project complies with these rules. Only when all evidence is complete and confirmed can a carbon credit be issued — always representing exactly one tonne of CO₂ avoided.

    This ensures that each carbon credit reflects a real, verified climate impact.

Which project types belong to this category?

Renewable energy projects appear in several forms. The eight most important renewable technologies include:

  • Hydropower

    Uses the force of rivers to generate electricity. These plants operate very reliably and provide CO₂-free energy over many years.

  • Onshore wind power

    Generates electricity from wind on land. The power feeds directly into the grid and replaces fossil generation such as coal or gas.

  • Offshore wind power

    Wind farms at sea benefit from strong and consistent winds. They deliver high volumes of clean electricity and significantly relieve the grid.

  • Solar energy (photovoltaics)

    Converts sunlight into electricity. PV systems are versatile and particularly effective in regions with strong solar conditions.

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  • Solar home systems

    Small-scale solar units supplying individual households. They replace kerosene lamps or diesel generators and noticeably improve local energy access.

  • Renewable mini-grids

    Compact electricity systems powered by solar, wind or hybrid solutions. They can supply entire communities and reduce dependence on diesel power.

  • Biomass from residual materials

    Uses organic waste or by-products to generate energy. Only sustainable residual materials are allowed — no energy crops.

  • Geothermal energy

    Extracts heat or electricity from natural geothermal sources. It is location-dependent but provides continuous and CO₂-free energy.

  • To ensure that the CO₂ savings of a project are reliable, they are monitored on a regular basis. Project operators record data on electricity generation, operating conditions and the actual displacement of fossil energy. The requirements for this monitoring process are clearly defined.

    Independent auditors verify this data on site and compare it with the rules set by recognised standards such as Verra or Gold Standard. Only when all evidence is complete and consistent is the confirmed CO₂ reduction documented and approved for issuing carbon credits.

    This creates a transparent process that ensures each carbon credit represents a real, measurable and verified climate impact.

What additional benefits can these projects create?

  1. 1

    More reliable energy supply

    Renewable energy installations can ease pressure on existing power grids, helping regions achieve a more stable and less interruption-prone electricity supply.

  2. 2

    Local economic benefits

    Planning, construction and ongoing operation create local jobs and services, ensuring that part of the economic value remains within the region.

  3. 3

    Reduced air pollution

    When fossil power plants generate less electricity, emissions such as particulate matter and nitrogen oxides also decrease, improving local air quality alongside CO₂ reductions.

  4. 4

    Technology transfer

    Modern renewable systems bring new technologies, training and technical know-how to the region, raising skills and infrastructure standards over time.

  5. 5

    Improved energy access

    In rural or remote areas, solutions such as mini-grids or solar home systems can provide reliable and affordable electricity for the first time.

  6. 6

    Conservation of natural resources

    Lower use of diesel, coal or firewood protects local resources and reduces transport needs as well as reliance on imported fuels.

Our climate action projects for your CO₂ offsetting.

Your offsetting creates real impact when the project is the right fit. We show you which verified project types are available — and what each of them delivers.

Zwei Männer begutachten Setzlinge in einer Baumschule im Wald.

Reforestation & social issues - Togo

PROJECT TOGO

Planting trees, building schools. In Togo, we do both at the same time. Because climate protection works best with people.

Hand pflanzt Setzling in kleinen Pflanztöpfen im Freien.

Combination project - Germany, India & Togo

Deutschland & TogoPlus

Here and there: German forest meets African reforestation. Better safe than sorry, even when it comes to climate protection.

Solarmodul auf sonniger Fläche

Renewable energy - India

Solar park Rajasthan

Sunshine galore in Rajasthan. Here, desert heat is turned into clean electricity. Climate protection that pays off.

Ältere Frau sitzt vor Haus und Kocht

Efficient technology - Uganda

Efficient cookers Uganda

Less wood, better air. New cooking stoves in Nigeria protect forests and lungs. Simply ingenious.

  • For everyone who wants to make compensation meaningful again.

    Time to give carbon offsetting its purpose back.

    01/20/26
    03:00 PM

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