Carbon Credits: How Verified Offsets Support Global Net Zero Goals

 Climate change initiatives are rapidly evolving. In 2024, the voluntary carbon market brought in funding of $16.3 billion. This demonstrates the seriousness with which the businesses are taking the necessary climate actions. Even more remarkable has been the increase in the percentage of high-quality retired credits. 

In 2024, 50 percent of retired credits met high-quality standards as opposed to 29 percent in 2021. This demonstrates the willingness of businesses to take the necessary steps to effect positive change to the environment.

How then do carbon credits facilitate companies in achieving their net-zero goals? In addition, why are verified emission reductions the most sought-after? Let’s unlock the truth!

What Are Carbon Credits and Why Are They Valuable?

Carbon credits are the currency of the climate change market. One carbon credit is equal to one metric ton of carbon dioxide. When a company purchases credits, its emissions are offset. This allows their emissions to be eliminated in one of a number of climate action projects, like reforestation or installing renewable energy.

The system is a win-win proposition. Businesses have their climate goals, and environmental projects receive the funding that is much needed. Most importantly, the planet needs additional emissions reductions.

More Focus on Quality

The market learned the hard way that not all credits are of the same value. In the beginning, concerns about the quality of credits produced skepticism. However, the conditions have lately changed.

Quality seems to be the new market focus. Companies are more interested in buying carbon offsets that have a real and lasting effect. The willingness to purchase high-quality credits demonstrates the maturity of the business sector in its climate responsibility.

Improving business culture around climate action is evident in the numbers: two-thirds of companies use ICROA-endorsed standards, and 55% use the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles to assess project quality.

Strategic Use of Verified Offsets

Smart businesses do not view carbon credits as a shortcut. Instead, they integrate them into a larger, more comprehensive climate strategy. Here’s what progressive companies are doing with verified emission reductions:

Bridging the Gap: Companies will first reduce internal emissions, then use credits for emissions that they are unable to eliminate. It is about progress over perfection.  

Meeting Stakeholder Expectations: Verified credits are one of the ways for companies to show that they are willing to take climate action and are doing so at the request of their investors, customers, and employees.

Encouraging Creativity: Investing in carbon offsets supports new, unproven technologies. Air capture, enhanced weathering, and biochar projects need funding. Your credits help make these projects a reality.  

Climate Change and Business: Poor climate change policies lead to business risk. Companies using high-quality credits improve their chances of business success. They are preparing for change instead of panicking.  

Efforts to Revamp the Carbon Market 

Rapid innovations are paving the way for the new verification and tracking system for all carbon projects. Blockchain encourages trust. Digital systems are automatic and provide the needed data and information in real-time.  

Fraud is easily detected and avoided with the use of AI. Overall, innovations are game-changers for the carbon credit market. They improve trust and safety for all system users.  

Looking Ahead  

Companies are opting for nature-based solutions. Carbon is removed, and local communities are positively impacted by forest restoration, wetland protection, and sustainable agriculture practices.

Carbon removal credits are starting to stand out. These are the only type of credits that go beyond preventing emissions, actually removing carbon from the atmosphere. With the removal of carbon being a necessity as we approach the 2030 and 2050 climate targets, it is only a matter of time before these credits become the norm.  

  

Making Your Climate Commitment Count 

Is it time for climate action rather than just ambition? The path is clearer than before, and it all starts with fully identifying your carbon footprint. Determine which emissions you can reduce directly and in a strategic manner. Use verified emission reductions for the remaining emissions.  

The choice is really about what projects capture your interest. Identify initiatives that align with your values and support necessary community co-benefits, such as protection of biodiversity and clean water access.  

Work with those who understand the technical requirements and the strategic opportunities. Quality guidance can truly mean the difference between greenwashing and real change.

Start Your Climate Change Solutions Today

The climate crisis requires immediate action, and every business can make a meaningful contribution, no matter the size. Businesses can't entirely rely on carbon credits and carbon offsets, but they can help. 

The time for inaction is over. Companies globally are demonstrating that profits can be made alongside climate action. With the CORSIA agreements set for 2027, the aviation industry will be the first to issue mandatory offsets, and the trend of verified climate actions will skyrocket. 

Is your business ready to make a net-zero commitment a reality? Earthood is here to provide confidence while navigating the carbon market. We connect companies to verified high-impact projects aligned with the company's sustainability goals. We help companies to not only speak on climate action, but also fund it, measure it, and reach it.