What is REDD+ and how does it generate carbon credits?
REDD+ stands for Reducing Emissions from Deforestation and Forest Degradation. It generates carbon credits by quantifying the difference between how much deforestation would have occurred without the project (the baseline) and how much actually occurs under the project. Each tonne of CO₂ emissions avoided or sequestered can be issued as one carbon credit, which can then be sold on voluntary or compliance carbon markets. See also our Tree Leaves Calculator.
How do REDD+ and ARR projects differ?
REDD+ focuses on preventing existing forest from being cleared — the credits come from avoided emissions. ARR (Afforestation, Reforestation, and Revegetation) involves planting trees on land that was previously non-forested, generating credits from newly sequestered carbon. REDD+ projects tend to generate credits faster since large standing forests hold enormous carbon stocks, while ARR credits accumulate gradually as trees grow.
What are the buffer pool and leakage deductions?
The buffer pool is a percentage of credits withheld as insurance against future reversal events such as wildfires, disease, or illegal logging. If a reversal occurs, buffer credits are cancelled rather than issued credits being invalidated. Leakage accounts for emissions that are displaced outside the project boundary — for example, if logging activity simply moves elsewhere. Both deductions are subtracted from gross credits before net issuable credits are calculated.
What should I use as the baseline deforestation rate?
The baseline rate should reflect the historical rate of deforestation in and around your project area, typically calculated from satellite imagery over the past 5–10 years. Standard REDD+ methodologies such as VCS VM0015 require you to document and justify your baseline using reference region data. Rates commonly range from 0.3% to 3% per year depending on jurisdiction and land pressure. You might also find our Tree Age Calculator useful.
How should I choose a carbon price?
Carbon prices on voluntary markets vary widely — tropical forest REDD+ credits have historically traded between $5 and $20 per tonne, with high-quality, co-benefit-rich projects reaching $30–$50. Compliance markets (e.g. California, EU ETS) command higher prices. Use $10–$15 as a conservative estimate, and $25–$50 for optimistic projections. Always check recent market benchmarks from platforms like Ecosystem Marketplace or CBL.
What is the permanence coefficient and why does it matter?
Permanence refers to how long the sequestered carbon will remain stored. A coefficient of 1.0 means the storage is considered fully permanent over the project's crediting period. Coefficients below 1.0 apply a discount to reflect the risk that carbon may be re-released before the end of the project. Regulatory frameworks and third-party verifiers like Verra or Gold Standard assess permanence risk as part of project certification.
Does this calculator replace formal project verification?
No. This tool provides an educational estimate for planning and feasibility purposes only. Official carbon credits must be verified by accredited third-party auditors under recognised standards such as the Verified Carbon Standard (VCS/Verra), Gold Standard, or national REDD+ frameworks. Verification involves rigorous field measurements, remote sensing, stakeholder consultations, and documentation that goes well beyond this calculator's scope.
Can I use this calculator for projects outside the Amazon?
Yes — the core calculation methodology (baseline vs. actual deforestation, sequestration, buffer, leakage, permanence) applies to REDD+ projects globally. However, the forest type carbon stock values and regional coefficients in this tool are calibrated for Amazonian conditions. For projects in Congo Basin, Southeast Asia, or other regions, you should adjust the sequestration rate and forest carbon density to match locally validated figures.