HomeCarbon CreditsCarbon Offset Transactions Continue to Increase

Carbon Offset Transactions Continue to Increase

Companies across the globe are racing to meet climate change targets. Their solution? Carbon credits, which have topped $748 million this year. If demand continues, carbon credits may even reach $1 billion by the year’s end.

If you aren’t familiar with the carbon credit industry, here’s how it works:

Credits are purchased through the carbon marketplace. One credit equals one ton of carbon offset through an environmental project.

The most active offset buyers are within the energy, consumer goods, finance, and insurance. Investors have increased speculative buying from those looking to profit from trading offsets as well.

Right now, offsets from forestry and land use are the most popular. Renewable energy is at a close second.

Carbon credits are a win for companies, and individuals, who can use these credits to offset their emissions. They also benefit those completing these projects, such as farmers in underdeveloped regions.

Some skeptics feel the carbon market doesn’t deliver what it promises. They are concerned about the lack of regulation and oversight. The former Governor of the Bank of England, Mark Carney, recognizes this and is working on designing new rules that can improve the system.

Other critics say that some offset projects, such as those focused on renewable energy, are unnecessary. Governments and companies worldwide are switching to cleaner forms of power even without the credit industry, which is why two market programs have stopped offering them.

While it is fair to say that some reforms to the system are necessary, renewable energy is still an integral part. The more investments being made into it, the better. Plus, the verification process is not a free-for-all. Procedures are in place to ensure that the market is accurate. And, with interest booming, operations will only get better.

The call to meet ESG demands is loud and clear. With the world seeking to reach carbon neutrality and net-zero emissions, it’s no wonder that interest in carbon offsets continues to grow.

Most Popular
LATEST CARBON NEWS

Brick by Brick: Lego Builds a Net Zero Future With Stricter Carbon Reductions for Suppliers

Lego, the world’s leading toy manufacturer, is taking significant steps to meet its net zero goals by mandating that its suppliers set near-term emissions...

Rimba Raya Resumes Operations in Borneo with Epic Legal Victory

Rimba Raya, the world’s largest carbon offset REDD+ project developer, has won a legal victory in Indonesia. This win is a significant step towards...

Lithium Markets in Limbo: Next Leg Up or Down?

In the quest for electrification and cleaner energy sources, all eyes are on lithium, a.k.a. white gold, and how the market strives with battery...

A Carbon Scam? BP-Owned and US Largest Offset Company’s Credits Are 80% Dubious

Some forest carbon offsets sold by Finite Carbon, the largest offsetting company in the US, offer minimal climate benefit, according to a satellite analysis...
CARBON INVESTOR EDUCATION

The Ultimate Guide to Understanding Carbon Credits

Everything you need to know about carbon credits, voluntary and compulsory carbon markets, and carbon investment...

Top 4 Carbon Stocks To Watch In 2024

Carbon stocks, credits and capture technology are getting a lot of interest from investors. Companies will attract even more capital in 2023.

What Is COP28? Key Issues to Watch Out at 2023 Climate Summit

After a record-breaking year of devastating effects of climate change, from record wildfires in Greece and Canada to floods in Libya, the United Nations...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...