Introduction
As the pressure on companies to address their climate impact intensifies, carbon credits have emerged as a vital component of corporate sustainability strategies. From multinational corporations aiming for Net Zero to small businesses beginning their climate journey, many are turning to the voluntary carbon market to compensate for emissions they cannot yet eliminate.
However, navigating this market can be daunting. The process involves complex terminology, varying standards, and risks related to greenwashing and credibility. Without a clear strategy, businesses may purchase low-quality credits or miscommunicate their efforts - potentially doing more harm than good.
This guide provides a comprehensive roadmap to help companies buy carbon credits responsibly, strategically, and with confidence in their climate impact. For a more generic overview of carbon credits, read our FAQ Guide about Carbon Credits.
Why companies buy carbon credits
Companies buy carbon credits as a way to take immediate, measurable climate action while working to reduce emissions at the source. For many, credits are used to address residual emissions that cannot yet be avoided due to technical, financial, or operational constraints. These credits are also a way to meet broader climate commitments, such as Net Zero targets, carbon neutrality claims, or alignment with the Science Based Targets initiative (SBTi).
Carbon credits play a role in regulatory and reporting frameworks as well. Many companies use them to strengthen their disclosures under the Greenhouse Gas Protocol, the EU’s Corporate Sustainability Reporting Directive (CSRD), or the U.S. Securities and Exchange Commission’s (SEC) proposed climate rules. Beyond compliance, the use of carbon credits signals responsibility to stakeholders—customers, investors, employees, and regulators—demonstrating that the company is not only measuring emissions, but acting on them.
According to Ecosystem Marketplace, the voluntary carbon market grew by over 60% in 2021, reflecting the growing appetite for credible, high-impact climate action from the private sector.
Before you buy: define your climate goals and boundaries
The first step for any company entering the carbon market is to define clear climate goals. This means understanding what portion of your emissions you want to offset, and within what framework or timeline. Under the GHG Protocol, emissions are categorized as Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from purchased electricity or energy), and Scope 3 (all other indirect emissions throughout the value chain). Some businesses may choose to begin by offsetting only Scope 1 and 2 emissions, while others aim to address all three scopes in line with Net Zero targets.
It is also important to consider your climate claims. Are you seeking to become carbon neutral, Net Zero, or even climate positive? Are you offsetting emissions from a specific project, product line, or fiscal year? Clarifying your intent at the outset ensures that the carbon credits you purchase are both aligned with your strategy and defensible to external stakeholders.
Understand what makes a high-quality carbon credit
Not all carbon credits are equal. The quality of a credit depends on several key factors that determine whether the underlying emissions reductions are real, additional, permanent, and verifiable. Additionality means the project would not have occurred without the revenue from carbon credits. Permanence refers to the durability of the carbon removal or avoidance—can the benefit be reversed, such as through forest fires or land-use changes? Leakage is another concern, where emissions are reduced in one area but simply displaced to another. Finally, independent verification by an approved third-party ensures the project has been implemented as claimed.
Reputable carbon credits are certified by standards such as Verra (VCS), the Gold Standard, Puro.Earth, and the Climate Action Reserve. These organizations apply rigorous methodologies to evaluate the environmental and social integrity of each project. The Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Markets Integrity Initiative (VCMI) are also working to improve transparency, comparability, and market oversight, with new guidelines expected to shape the next era of carbon markets.
Choose the right project type for your business goals
The type of carbon credit project you choose should reflect your company’s values and objectives. For example, if your business prioritizes nature-based solutions and biodiversity, then investing in reforestation, afforestation, or forest protection (such as REDD+ projects) may be the right path. These projects offer strong co-benefits, such as improving water quality and protecting wildlife habitats, alongside their carbon impact.
If your brand leans toward innovation and technological leadership, engineered carbon removals like biochar, enhanced rock weathering, or direct air capture may be more suitable. These approaches are often more expensive but offer higher durability and traceability, aligning with future-focused Net Zero pathways.
Alternatively, if social equity and development are core to your identity, you might prioritize projects like clean cookstove initiatives, safe water programs, or distributed renewable energy in developing regions. These projects not only reduce emissions but also deliver measurable health and economic benefits to local communities.
Understand the difference between credit types
Carbon credits vary not just by project type, but also by the nature of the emissions impact. Avoidance credits prevent emissions from being released into the atmosphere—for instance, by protecting forests or replacing diesel generators with solar panels. Removal credits, on the other hand, actively extract carbon from the air. Examples include reforestation, soil carbon sequestration, and technological removals such as DAC.
Another distinction lies in timing. Ex-post credits represent emissions reductions that have already occurred and been verified. Ex-ante credits are based on future reductions that are expected to happen but have not yet been realized. While ex-ante credits can support early-stage projects, they carry more risk and require careful scrutiny.
As Net Zero guidance evolves, many standards—including the Oxford Offsetting Principles—recommend that companies shift over time toward using primarily removal-based credits to address residual emissions.
How to buy carbon credits: step-by-step for companies
The process of buying carbon credits can be broken into several clear stages. First, estimate your company’s emissions. Platforms such as Regreener, ClimatePartner, or Normative offer tools to help you calculate emissions across Scope 1, 2, and 3 categories.
Once you have a baseline, set your offsetting strategy. Decide how many tons of CO₂ you intend to offset, over what time period, and for which business areas. This plan should align with your climate goals and reporting obligations.
Next, define your criteria for credit selection. Will you only purchase credits certified by Verra or Gold Standard? Do you prefer removal over avoidance? Is geography a factor? Do you want projects with biodiversity or social co-benefits?
With your criteria in hand, choose a provider. You can work with marketplaces like Regreener, Pachama, or Climate Impact X, or directly engage with project developers or brokers. Some companies also work through climate consultancies for deeper due diligence.
Before purchasing, perform a quality check. Review the project’s documentation, including the project design document (PDD), verification reports, and issuance data. Confirm that the project is listed on a public registry like the Verra Registry and that credits are available for retirement.
After making a purchase, ensure the credits are officially retired in your company’s name. Retirement means the credit is permanently removed from circulation, preventing double counting. A proper provider should supply a certificate with a serial number and proof of retirement.
Finally, communicate your impact with transparency. Include the details in your ESG reporting, marketing materials, and stakeholder updates—making sure your language is factual and supported by data.
Key questions to ask before purchasing
Before finalizing a purchase, ask whether the project is publicly listed on a reputable registry and which certification standard it uses. Determine whether it is an avoidance or removal credit and how recently the emission reductions occurred. Clarify whether the credit has been independently verified and whether the project delivers additional social or environmental benefits. Ask about the price per ton and understand what factors contribute to that pricing—such as technology, location, or impact.
You should also assess whether the project aligns with your company’s strategy. If these questions can’t be answered easily, consider choosing a more transparent or established provider.
Common pitfalls and how to avoid them
One common mistake is choosing credits based solely on low price. While affordability matters, unusually cheap credits often signal poor quality or outdated methodologies. Another pitfall is failing to retire credits, which means you haven’t truly offset your emissions. Purchasing from platforms that lack verification data or don’t provide registry links is another red flag.
Some companies also rely too heavily on offsetting without investing in reductions. This undermines credibility and risks accusations of greenwashing. Finally, vague or exaggerated climate claims—such as stating “carbon neutral” without specifying the methodology—can lead to public backlash or regulatory scrutiny.
For a thorough overview of what data buyers should assess, see RMI’s buyer’s guide to carbon credit data quality.
How to communicate carbon credit use transparently
To maintain trust and comply with emerging disclosure expectations, companies must clearly explain how and why they are using carbon credits. Otherwise, you risk being accused of greenwashing. This means stating which scopes of emissions are being offset, what types of projects are supported, and which certification standards are used. Include details such as the number of credits, their geographic location, and the retirement status.
Using frameworks like the Oxford Offsetting Principles or the VCMI Claims Code can guide your messaging. Avoid generic or misleading terms such as “climate neutral” unless you can back them with verified data and clear boundaries.
What to expect from the voluntary carbon market in the future
The voluntary carbon market is evolving rapidly. Demand is expected to increase significantly as more companies adopt Net Zero strategies and regulators tighten climate-related disclosure rules. In response, there is a growing focus on credit integrity, with initiatives like ICVCM and VCMI working to define standards for what constitutes a high-quality credit or responsible use.
Carbon removals—particularly technological solutions—are likely to dominate future portfolios, as companies shift toward more permanent and traceable offsets. Digital MRV (monitoring, reporting, verification) systems are emerging, using satellite imagery, IoT, and blockchain to enhance transparency.
Platforms like BeZero and Sylvera are also helping buyers assess credit quality, risk, and impact with third-party ratings.
Conclusion
Buying carbon credits can be a powerful way for your company to support global climate solutions—if it’s done with integrity. By understanding what you’re buying, choosing the right projects, and communicating transparently, you not only reduce your footprint but build trust with stakeholders and demonstrate real climate leadership.
Ready to take action? Start with our carbon credit calculator to estimate your needs, or explore certified climate projects through Regreener.
