As climate commitments tighten and ESG expectations grow, many corporates are turning to carbon credits to include in their net-zero strategies. When used properly, carbon credits can help offset hard-to-abate emissions and demonstrate environmental leadership. However, the voluntary carbon market (VCM) remains complex, fragmented, and evolving. Here are five key tips for companies considering purchasing carbon credits: what to consider, what to avoid, and why collaborating with a long-established developer can make all the difference.
1. Align Credits with a Credible Climate Strategy
Carbon credits should supplement, not replace, internal emissions reductions. Buyers should, ideally, first focus on decarbonizing their own operations and supply chains. Only once clear, they should use carbon credits for their annual remaining emissions (i.e., the residual emissions that a company is unable to eliminate through its own reduction efforts within a given year). Credits should be used transparently, with clear disclosures about their role in the overall climate strategy. Misuse or over-reliance can lead to accusations of greenwashing and risk damaging brand reputation.
2. Prioritize Quality Over Price
Not all carbon credits are generated equally. High-quality credits originate from projects that are additional (i.e., the project and subsequent carbon credit generation would not have happened without the funding via carbon credits), permanent, verifiable, and avoid double counting. Focus on projects certified by respected standards like Verra, Gold Standard, ACR, and Climate Action Reserve). Low-cost credits may reflect low-impact or poorly managed projects. High quality projects often bring co-benefits such as biodiversity protection, community upliftment, or water conservation, all of which add socio-economic value to their environmental impact.
3. Consider the Type and Location of Projects
Different carbon projects serve different purposes. Nature-based solutions, such as reforestation or improved forest management, offer substantial co-benefits including increasing biodiversity and climate resilience. Tech-based removals, such as direct air capture or biochar, have a longer permanence, but the technology is often significantly more expensive and at an earlier-stage, resulting in a much smaller carbon credit generation capacity at present.
Companies may prefer to support projects in regions linked to their supply chain or where climate justice and community benefits are most needed. Geographical alignment can enhance reputational impact and stakeholder engagement.
4. Vet the Developer’s Track Record
Given the technical and financial complexities of carbon projects, it is crucial to collaborate with a developer that has long-term experience in project development, as well as policy, risk, market mechanisms, and commercial structuring. A carbon project developer like Anew, with over 20 years of experience in the field, brings proven expertise in project design, monitoring, risk mitigation, and certification. Such partners are more likely to deliver high-integrity credits and can provide transparency, impact data, and third-party verification. They have likely weathered market fluctuations and are committed for the long haul, key traits when futureproofing one's sustainability strategy.
5. Stay Ahead of Evolving Regulation and Market Standards
The VCM is undergoing rapid change. Nowhere is this more evident than in Europe, where regulators are exploring increased oversight through frameworks like the Carbon Removal Certification Framework (CRCF) and the integration of removals into compliance markets such as the EU ETS. Globally, standards are also tightening, seen in the rise of the ICVCM, VCMI Claims Code, and growing scrutiny from investors and watchdog groups.
Staying informed on emerging rules, such as the EU's Corporate Sustainability Reporting Directive (CSRD), is critical. Even companies outside the EU may be affected if they operate or report in Europe. Collaborating with experienced developers and advisors helps organizations anticipate regulatory changes and maintain climate credibility across regions.
Take Action
When used wisely, carbon credits are a valuable tool. Quality, transparency, and alignment with long-term climate goals are essential. By partnering with an experienced carbon developer, companies can avoid common pitfalls, support meaningful climate action, and build trust with stakeholders in an area of growing interest and attention.
Whether you’re operating in Europe or beyond, policy is shifting fast. Connect with an Anew carbon advisor to discuss how to how to futureproof your carbon credit approach.