All termsRWA Asset ClassesWorth knowing
Carbon Credit Retirement
Carbon credit retirement is the process of permanently removing a carbon credit from circulation after it has been used to account for emissions or meet another recognized purpose. Once properly retired, the same credit should not be available to be used again.
Why it matters to you
A carbon credit being tokenized does not remove the need to track its real world status. If an onchain token continues circulating after the underlying credit has already been retired elsewhere, the digital representation may no longer accurately reflect the underlying asset. This is why reliable registries, records and verification are important.
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