A new era in the carbon credit market: the end of greenwashing

This milestone marks a turning point for Hungary’s voluntary carbon market linked to emissions trading, as it represents a verifiable and measurable reduction in greenhouse gas emissions. It may also redefine how carbon credits are interpreted and traded in the future.

The renewable electricity generated by the Solar Markt Group’s Szihalom solar power plant – as well as by future developments (for example in Hódmezővásárhely) – will be sold to Hungarian companies through Power Purchase Agreements (PPAs) by Green Cloud.

“The carbon market has faced much criticism in recent years because in many cases there was no real emission reduction behind the credits. Certificate holders often could not prove beyond doubt that they were truly contributing to the fight against climate change. That is nothing but greenwashing,” – said László Pokol, CEO of Green Cloud.

Why is this unique in Hungary – and relevant globally?

This is the first renewable energy project in Hungary to generate carbon credits that fully comply with next-generation international standards – especially the principle of additionality, meaning genuine, measurable, and verifiable impact.

What makes the Szihalom model exceptional?

• Instead of overstating past impacts, the applied methodology calculates measurable, independently audited, and time-tracked CO₂ avoidance – factoring in the Offset Achievement Ratio (OAR), which shows how much of the promised reduction actually materializes. 
• The model is not only based on physical realities but is also regulation-proof: should the EU or UN tighten carbon market rules, the system will remain valid and functional thanks to its transparent data, traceable sources, and full methodological compliance.

The Szihalom project is therefore expected to generate revenue from the carbon market as well.

Although similar certifications exist globally – for example in Colombia, South Africa, or certain U.S. PPA projects – it is rare within the EU for a stand-alone, market-based renewable energy investment to generate carbon credits that are not just theoretical but deliver actual emission reductions, fully integrated into the electricity grid.

The Szihalom project’s carbon credits can be traded on the international Voluntary Carbon Market (VCM), but their significance is particularly relevant for Hungary’s carbon trading and corporate sectors. While Guarantees of Origin (GOs) have so far mainly addressed Scope 2 emissions, the Szihalom solar plant now provides Hungarian companies with an effective tool to offset their Scope 3 emissions as well.

Green energy as a financial asset

“Green electricity is not only an environmental asset but also a financial one – and carbon credit certification elevates this value to a new level. This project proves that there is no need to compromise between sustainability and competitiveness,”

said Miklós Mormer, Project Director of Solar Markt Group.

Green Cloud’s ambition is to bring not just quantity but quality innovation to the carbon credit market, creating real value. The Szihalom solar power plant, inaugurated last year, may thus set a new benchmark in Hungary – and internationally as well.