A carbon project generates verified carbon credits by removing or reducing greenhouse gas emissions and quantifying those emissions. One carbon credit is a tradeable certificate that represents one metric ton of CO₂ (or greenhouse gas equivalent) that has either been removed from the atmosphere or prevented from entering the atmosphere. Organizations or individuals purchase, trade, and retire (remove from the market) carbon credits to meet climate targets and manage residual emissions.

Carbon projects come in many forms, ranging from nature-based solutions like Avoided Deforestation, Reforestation, or Regenerative Agriculture, to tech-based carbon dioxide removal (CDR) like Direct Air Capture. Green Diamond’s carbon projects are primarily Improved Forest Management (IFM) or Afforestation, Reforestation, & Revegetation (ARR) — both types of nature-based forest carbon credits that store carbon in forest ecosystems and long-lived harvested wood products.

Carbon registries are organizations that publicly manage the rules and regulations for producing carbon credits. They also issue carbon credits and keep the ledger for credits that have been issued, transferred, cancelled, and retired. Registries generally have governing guidelines — sometimes called “standards” — that apply to all projects developed under their methodologies. Each methodology developed by the registry further refines project eligibility, and how credits are calculated for a specific credit type — ex. Improved Forest Management projects calculate credits differently than Enhanced Rock Weathering projects. Registries do not develop projects themselves but rather provide frameworks for project developers to create carbon projects. Two of the carbon registries that Green Diamond works with include the American Carbon Registry (ACR) and the Climate Action Reserve (CAR).

All carbon projects must undergo Validation and Verification by a Validation and Verification Body — also known as a “VVB.” VVBs are third-parties distinct and independent from both the project developer (e.g. Green Diamond) and the carbon Registry (e.g. ACR). Verifiers who work for the VVB are trained to evaluate each carbon project against the standard and methodology under which it has been developed.

“Validation” is the process by which a VVB determines whether a project is being appropriately developed to the standard and methodology that it has chosen. Validation occurs once toward the beginning of a project either before or concurrent with verification.

“Verification” is the process by which the VVB reviews all project-specific calculations and documentation to verify that the carbon project developer is claiming to have produced the correct number of carbon credits per the methodology it is using. Verification usually happens every few years, or annually, depending on the methodology. Verification must occur each time before credits are issued.

After the VVB determines that a project has been both validated and verified, the registry does a final review of the project documentation before issuing credits into their public ledger system.

IFM projects increase carbon storage in existing forests by changing management practices relative to a baseline scenario. This can include reducing harvests or extending rotation ages, resulting in additional carbon sequestration on the landscape over time. Green Diamond’s IFM projects are third-party verified and registry-issued, generating credits from measurable increases in forest carbon while maintaining productive working forests. IFM projects are an essential near term climate change mitigation strategy.

ARR projects restore non-forested or degraded land to forest, creating new carbon sinks (systems that absorb more atmospheric carbon than they release). These projects deliver long-term carbon removal while supporting ecosystem restoration.

ARR projects draw on Green Diamond’s in-house land acquisition and reforestation expertise (~25K acres reforested annually) to restore degraded agricultural and pasture lands to productive forest ecosystems. These projects are designed for long-term carbon sequestration and sustained forest management while supporting recreation and conservation.

Forest carbon projects (IFM, ARR) generate many environmental and social co-benefits which can include:

• Improving soil and water quality
• Maintaining or augmenting habitat and biodiversity
• Supporting local forestry jobs and rural economies
• Providing recreational access for local communities

These co-benefits are a core component of nature-based climate solutions, alongside measurable carbon impact.

There are two main types of carbon markets:

• Compliance markets, where governments or NGOs require certain covered entities to offset emissions under law (e.g. California’s cap-and-invest system) or agreement (e.g. CORSIA for airlines).
• Voluntary markets, where companies or institutions choose to offset emissions as part of their climate, net-zero, carbon neutral, or ESG strategies.

Green Diamond supports both compliance and voluntary buyers across a range of purchasing structures, from spot transactions to multi-year agreements.

Additionality ensures carbon benefits exceed business-as-usual practices. Green Diamond carbon projects follow approved methodologies with defined baselines and conservative assumptions. Projects are evaluated against regulatory, financial, and environmental additionality criteria defined by each methodology and independently validated and verified by both third-party Validation & Verification Bodies (VVBs) and project registries. This ensures credits represent real, measurable climate impact.

Green Diamond develops projects under leading carbon standards and methodologies, including:

• California Air Resources Board (CARB) Forest Offset Protocol
• American Carbon Registry (ACR) IFM and ARR methodologies
• Verra’s VM0047 ARR methodology

These protocols define how carbon is measured, monitored, and verified to ensure consistent, high-integrity credit issuance. Exact standards and methodologies for each project are listed on their public carbon registry pages.

All projects undergo independent third-party validation and verification to ensure that reported climate benefits are accurate and credible. Projects are verified on a regular cycle defined by the applicable standard — typically every several years. Carbon stocks are measured and reported on a regular verification cycle, with results reviewed by the third-party Validation & Verification Body (VVB) and then further validated by the Registry before carbon credits are issued. Ongoing monitoring through both field measurements and/or remote sensing ensures performance and transparency over the project lifetime.

A buffer pool is a risk management mechanism used to ensure the long-term integrity of carbon credits. It functions as an insurance reserve against the potential loss or reversal of carbon that has been claimed in an issued carbon credit. To create the buffer pool, each registry takes a certain percentage of credits per issuance and contributes them to a reserve that is activated in the case of reversal. Each project calculates its own buffer pool contribution based on individual project risk factors. These are publicly available in the registry documentation.

Green Diamond’s projects are designed for long-term carbon storage.

• Compliance (CARB) projects carry 100-year permanence obligation
• Voluntary projects follow multi-decade monitoring requirements, usually 40 years

All projects include ongoing monitoring and safeguards like permanence buffer pools to support durable climate benefits. Individual permanence periods are dictated by each methodology, and available in the publicly available project documentation hosted by each carbon registry.

Reversal risk in forest carbon projects (e.g., wildfire, disease, or disturbance) is addressed through multiple safeguards:

• Buffer pool contributions required by each registry
• Active forest management and risk mitigation practices
• Geographic diversification across multiple regions

Together, these mechanisms help ensure that any losses are accounted for and that overall climate integrity is maintained.

The Integrity Council for the Voluntary Carbon Market (ICVCM) provides guidance about what they consider high-quality carbon credit methodologies that meet their Core Carbon Principles (CCP) requirements. Credits issued under CCP-eligible methodologies can carry the CCP label.

As of June 2026, Green Diamond’s voluntary IFM credits issued under the ACR IFM 2.1 methodology are CCP-eligible. Tagged removals credits issued under the ACR IFM 2.0 methodology are also eligible. The ICVCM is continuously reviewing and updating their guidelines — please visit the ICVCM website to learn about current eligibility.

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a market specifically for the aviation industry designed to tackle greenhouse gas emissions. It dictates requirements for the use of both sustainable fuels and carbon offsets. One key requirement for carbon offsets to be CORSIA-eligible is the project developer’s ability to procure a “Host Country Letter of Authorization” or “LOA.” As of June 2026, it is not currently possible to obtain such a letter from the United States, where all Green Diamond carbon projects are located. So, while many of our projects meet other requirements for CORSIA-eligibility, Green Diamond will be unable to sell carbon credits into the CORSIA market until a LOA process is developed in the United States.