Here are a few explanations, often very simplified ...
Kiva Carbon can provide you with more information on request.

What projects can generate carbon credits ?
A project in a developing country will be able to generate carbon credits if it is possible to prove:
- that the project avoids CO2 emissions, or captures CO2
- that it will not take place unless the Carbon Offset mechanism is used (called “additionality”).

It is important for the project to have a Sustainable Development aspect, with positive impacts on the environment and populations (improvement in living conditions, income, etc.).

Here are a few concrete examples of projects which avoid carbon emissions:
- generation of biogas from organic waste (agricultural, household, etc.) and electricity production instead of a diesel generator;
- improvement in energy efficiency in a factory and reduction in petroleum product consumption;
- creation of a Jatropha plantation, and biofuel production in a factory, or simple production of crude oil by presses; here, the biodiesel or crude oil produced will substitute for diesel. Put simply, the emissions avoided correspond with the emissions which would have been produced if diesel has been consumed instead of biodiesel, less the emissions linked with growing Jatropha in the field and processing the seeds into oil. However, beware, there are still problems for these types of project which are not accepted at this time;
- manufacture and distribution of improved cooking stoves which reduce consumption of wood;
- more generally, any project involving the use of biomass to generate energy (electricity, heat), by substituting for the use of oil or wood.

As for projects which capture CO2, these are, of course, reforestation projects (or planting of perennial plants, or orchards in some cases). By way of information, it should be known that a forest only captures CO2 during its growth cycle. When it reaches maturity (which is extremely variable, according to the tree this can be after 70 years or just 7 or 8 years...), the forest is neutral from the carbon point of view: young trees which are growing obviously do absorb CO2, but decomposition of dying trees emits an equivalent quantity of CO2.

How Is a Carbon Credit Defined ?
The emissions avoided or captured are assessed in the equivalent of tons of CO2.
Equivalent of 1 ton of CO2 (1 tCO2e) = 1 carbon credit

Who Is the Owner of Carbon Credits ?
This will be the investor who finances the project.

Who Buys the Credits ?
In the final analysis, the purchasers will be companies in developed countries who want to “offset” their emissions. These might be companies subject to quotas in Europe. They might also be companies who do not have any regulatory obligations – for the moment - but wish to offset their emissions. We can reasonably forecast that regulatory obligations to limit CO2 emissions will be put in place in Europe in the middle term: this will increase the number of companies likely to purchase carbon credits.