Carbon credits where to buy

Occasionally, however, a buyer may identify a new project type that is particularly attractive e. This approach can be a risky and time-intensive strategy, however, and should only be pursued by the most sophisticated buyers.

One option for buyers is to invest in an offset project in return for rights to some portion of the carbon offset credits the project is able to generate. It can also give buyers access to offset credits at a lower cost than purchasing them through third parties. A commonly used purchasing option is to contract directly with a project developer for delivery of carbon offset credits as they are issued.

An ERPA provides project developers with an upfront assurance that they will be able to sell a reliable volume of offset credits. For buyers, the advantage is being able to lock in a price for offset credits that is typically lower than market prices. In some cases, project developers may have unsold offset credits for which they are seeking buyers. Purchasing directly from a project developer can avoid some transaction costs, and still affords good access to a project to understand its quality characteristics.

As is the case for most commodities, numerous firms act as brokers for carbon offset credits. Brokers can make it easier to identify a mix of offset credits from different project types, and facilitate larger transactions. Depending on the broker, they may also be able to provide details and their own analysis about the projects from which offset credits are purchased.

Some brokers sell offset credits from projects they have developed in addition to projects developed by others. This may provide efficiencies in pricing, but it can affect the ability of the broker to be impartial about offset quality. In these cases, it is important to heed the same caveats that apply to direct purchases from project developers. There are a number of environmental commodity exchanges — mostly in North American and Europe — that list carbon offset credits for sale and work with registries to enable transactions.

For buyers looking to acquire only a small number of credits e. Retailers often provide access to offset credits from a range of different projects and will provide at least basic information about the projects from which they buy. As with brokers, some retailers develop their own projects to generate offset credits for sale.

Buyers should carefully review the portfolio of projects that retailers have on offer, and closely scrutinize purchases from projects owned or developed by a retailer. Purchasing large volumes of offset credits generally requires establishing an account in the registry system of the carbon offset program that issued the credits.

Once the offset credits are acquired, they will be transferred to your account, where they can be retired and counted towards a GHG reduction target. For low-volume, retail offset purchases, sellers typically maintain accounts which they use to acquire and retire offset credits on your behalf see the table above. Understanding Carbon Offsets.

Download the Carbon Offset Guide. As a rule of thumb, campuses should look for offsets where the emission reductions took place in a similar timeframe to the emissions they are offsetting. Generally, offsets with a vintage year within years of the emissions to be cancelled out are most desirable.

Offsets with a vintage greater than 5 years in the past may be considered older, and less desirable. Gold Standard also provides a list of projects. Keep in mind that some of these projects may be completed and no longer issuing offsets. Carbon offsets issued through these standards will also have publicly available documentation on the project, emissions reduction calculations, and third-party verification.

The price depends on the type of carbon offset project, the carbon standard under which it was developed, the location of the offset, the co-benefits associated with the project, and the vintage year. Campuses may obtain a lower price per offset for larger volume purchases. Ecosystem Marketplace publishes yearly reports on the voluntary carbon market, which track information such as average offset prices and total global transactions.

Here is the most recent report. Co-benefits are positive outcomes from a carbon offset project, beyond the actual greenhouse gas emissions reductions. Co-benefits may be social, economic, or environmental. Examples of co-benefits include jobs created, health benefits, pollution mitigation other than carbon , supporting gender equality, renewable energy generation, biodiversity, and education.

Co-benefits are often the deciding factor in carbon offset purchases. Many carbon offset developers list the project co-benefits in terms of how they contribute to the UN Sustainable Development Goals. There are many types of companies and organizations that sell carbon offsets. Some project owners and developers sell offsets directly to the end buyer; campuses can reach out to contacts listed on project documents to inquire about this.

There are also a number of offset providers that serve as intermediaries and can supply campuses with offsets from multiple projects depending on campus needs. These intermediaries may be retailers that purchase and resell offsets or brokers that facilitate transactions but do not own offsets.

Our offsetting guide provides more information on why offsetting is urgently needed, the positive difference it can make, and how to take climate action. Did you find it helpful? Yes No. Home Solutions. Enter your search term here