Contact Info

2600 Technology Drive, Suite 100
Plano, Texas, 75074
United States

Noodoe App

Region:   US | AUS | Global

Cycle of sustainable energy and fossil fuels

Carbon Credits and EV Charging

Last Updated: June 1st, 2023 | Sustainable Business

In May 2023, researchers predicted a 66% chance that the world will pass the 1.5°C global warming before 2027. This news can kickstart action for reducing carbon emissions and push investment in environmentally friendly technology. Noodoe is dedicated to our electrification of transportation and empowering businesses to achieve their sustainability goals. That includes staying updated about new trends — for example, carbon credits. In this blog post, we will explore what carbon credits are, the generation process, how they relate to EV charging, and why they are important.

What Are Carbon Credits?

Carbon credits, also known as carbon permits or allowances, are not physical objects like certificates or credit cards. Instead, they are an intangible mechanism used to reduce carbon emissions. These credits represent greenhouse gas emissions reduced, avoided, or removed from the atmosphere. One carbon credit is equivalent to one metric ton (2205 pounds) of carbon dioxide (CO₂), or the equivalent in other gases such as methane (CH₄) or nitrous oxide (N₂O).

Examples of carbon credit owning businesses

These credits allow the owner to generate emissions under a specified cap. If emissions exceed this cap, they must purchase additional credits from the market. The transferable nature of carbon credits offers businesses the opportunity to participate in the market. 

How Are Credits Generated?

There are two methods for credit generation: new clean developments or upgrading existing technology to pollute less.  Both processes involve several steps.

First, establish a baseline for carbon emissions. This represents the greenhouse gas emissions that would have been produced without the sustainable activity. For example, the baseline for a wind farm would be the amount of greenhouse gas emissions that would have been produced if using coal instead.

Next,  the actual emissions from the sustainable activity are measured and verified by an independent third party. The difference between the baseline and the actual emissions represents the amount that has been reduced or avoided. That difference is converted into carbon credits.

Finally, the carbon credits are tracked on a registry. This keeps a record of its ownership and transaction history. Businesses can sell credits in special markets or use them to offset emissions from other activities, such as air travel or industrial processes.

How Are Carbon Credits Related To EV Charging?

Electric vehicles are more sustainable than gasoline-powered vehicles. However, the electricity to charge EVs is often generated from fossil fuels, which still contribute to carbon emissions. EV charging stations powered by renewable energy sources can reduce, or eliminate, the emissions from charging an EV. 

EVSE as Carbon Credit Generators

Noodoe partner Evansa is an Australian decarbonizing platform that calculates carbon credits. In 2023 they installed South Australia’s first carbon credit-generating EV charging station in Whyalla, a town over 100 kilometers away from any existing chargers. This is possible with the integration of the Evansa app which uses the Noodoe platform to run smoothly. Evansa is working to make it easier for Australian businesses to transition to new energy sectors. Their platform uses Verified Carbon Crediting (Verra) as its standard of measurement. The Verified Carbon Standard (VCS) program is the world’s most widely used greenhouse gas (GHG) crediting program.

Why Care?

Because carbon credits are a useful tool for reducing carbon emissions and mitigating the impact of human activity on the environment. By incentivizing individuals and organizations to reduce their carbon emissions, credits promote sustainable practices and encourage the adoption of renewable energy. They also provide a financial benefit for businesses to invest in renewable energy, reducing carbon footprints and saving on energy costs in the long run.
Additionally, carbon credits can be an important source of revenue for communities. For example, a town installs a wind turbine to generate carbon credits to sell on the market. This additional source of income can be reinvested in other sustainability initiatives.
According to the 2019 World Bank report, carbon initiatives cover about 20% of global emissions. Now is a good opportunity to make that percentage larger. World Bank valued the industry at 82 billion USD per year, it is expected to increase to 157 billion by 2030. This growing industry

Extra Terms


The use of carbon credits is a crucial mechanism in the efforts to combat carbon emissions. Understanding and caring about carbon credits can help individuals and organizations reduce their carbon footprint and promote sustainability. Utilizing EV chargers to generate carbon credits and contribute to the fight against climate change, there is a new opportunity to take significant steps toward a greener future.

Further Reading