The environmental impact of production activities is an increasingly central topic, especially in light of climate change. Companies today are called not only to produce but also to measure and manage the environmental effects of their operations.
But what happens when, despite efforts to optimize and improve efficiency, there are emissions that can't be eliminated in the short term?
To achieve carbon neutrality or significantly reduce their impact, companies can rely on carbon credits. But what exactly are they? And most importantly: where and how can they be purchased?
What are carbon credits and what are they for?
A carbon credit is a certificate that attests to the reduction or removal of one ton of CO₂ from the atmosphere thanks to an external project (i.e., not directly related to the company's operations).
Companies purchase carbon credits to offset emissions that cannot yet be eliminated at the source. Even after implementing energy efficiency measures, adopting renewable energy sources, and optimizing production processes, there are always residual emissions that are difficult to eliminate in the short term.
Credits do not replace internal emission reductions, but complement them. An effective approach follows the "measure-reduce-offset" logic, in this precise order: first, emissions are quantified, then efforts are made to reduce them internally as much as possible, and finally, the remaining emissions are offset.
Offsetting emissions is not only an ethical matter but also a competitive advantage. Large companies increasingly require measurable climate goals from their suppliers to enter their supply chains, while investors and consumers, especially younger ones, reward businesses with credible environmental commitments. In this context, offsetting residual emissions with verified carbon credits represents a differentiating factor in the market.
Where to buy carbon credits? The difference between regulated and voluntary markets
There are two types of carbon markets:
- Regulated market
- Voluntary market
Only the latter allows companies to voluntarily offset their emissions, and it is therefore the one to focus on for purchasing credits.
The regulated market
The regulated carbon market is created by legal obligations. In Europe, for example, companies operating in specific high-emitting sectors fall under the EU ETS (Emissions Trading System), which sets a cap on the maximum amount of emissions allowed. If they exceed their allocated limits, they are required to purchase emission allowances. In this case, it is not about voluntary offsetting, but rather a regulatory compliance mechanism.
The allowances are standardized, their prices are determined by the market, and they must be returned to authorities based on actual emissions. This market mainly concerns high-emission sectors (energy, steel, cement, aviation) and is not relevant to most SMEs that are not subject to these obligations.
The voluntary market
The voluntary market, on the other hand, is not imposed by law. Companies purchase carbon credits by choice, with the aim of offsetting their residual emissions.
In this market, it is possible to choose from credits generated by thousands of different projects, globally or locally, with varying types, impacts, and prices. Due to this wide range of options, it is essential to carefully assess the quality of the credits before purchasing, ensuring that they are certified by recognized standards (such as Verra or Gold Standard).
In parallel, the European Union is also working on a certification framework for carbon removals (CRCF), with the aim of increasing transparency and reliability in the voluntary market.
How to purchase carbon credits on the voluntary market
Step 1: Calculate the emissions to offset
Before purchasing credits, the first step is to accurately quantify your company’s CO₂ emissions. This means calculating the corporate carbon footprint by considering the following categories of emissions:
- Scope 1: direct emissions from owned or controlled sources (e.g., company vehicles, boilers, production processes);
- Scope 2: indirect emissions from purchased energy consumption;
- Scope 3: emissions from the value chain (often the most significant part of a company's impact).
This analysis can be done internally or by relying on an external consultant like Kyklos Carbon.
Step 2: Define budget and goals
Once emissions are quantified, it’s crucial to establish the strategic goal for offsetting. It’s not just about purchasing credits but deciding what message you want to send to the market. Do you aim to achieve an official Carbon Neutrality goal (covering 100% of your residual emissions), or do you prefer an approach based on Contribution, funding high-impact projects without necessarily offsetting the entire emissions balance?
Once the goal is defined, the budget must be established. It's important to know that the price of a carbon credit is not fixed, but varies significantly (from a few euros to over €100 per ton) depending on the quality and type of project.
The main factors influencing the cost are:
- tipologia del progetto (avoidance vs removal): i crediti di avoidance (es. protezione di foreste esistenti o energie rinnovabili) costano generalmente meno rispetto ai crediti di removal (es. riforestazione, biochar, cattura diretta dall’aria, bioenergia con cattura e stoccaggio del carbonio), che rimuovono attivamente gas climalteranti dall'atmosfera.
- Certification standards: credits guaranteed by more rigorous international registries have a higher market value because they offer greater security and traceability.
- co-benefits: projects that, in addition to capturing CO₂, generate positive impacts on local communities (e.g., health improvements, gender equality, biodiversity) have a higher price but offer much stronger reputational returns.
- Vintage (year of generation): credits generated more recently tend to have a higher cost compared to older ones left unsold for years.
A strategic choice: "Offsetting" or "Contribution"?
Once the goal is set, you must make a fundamental communication choice: aim for Carbon Neutrality or adopt the Contribution Model? This decision doesn’t change the credits you buy but dramatically alters what you can say to the market.
Let's explore them in detail:
- Offsetting (traditional compensation): with offsetting, a company uses carbon credits to balance its remaining (residual) emissions. If all residual emissions are offset, the company can claim to be “carbon neutral” under international standards such as ISO 14068, which provides guidance on how to account for and communicate emission-neutralization actions in a transparent and traceable way.
- Contribution Model (climate contribution): in the contribution model, a company finances certified climate projects without necessarily offsetting all of its residual emissions and without claiming to be “carbon neutral.” The goal is not to reduce the net emissions balance to zero, but to highlight the projects’ tangible impact, which may include CO₂e reductions or removals as well as additional environmental and social co-benefits such as biodiversity, local community health, or the creation of sustainable jobs.
Step 3: Choose the best purchase channel
In the voluntary market, there are various channels for purchasing carbon credits. The choice depends on the level of autonomy you want, the budget, and your objectives.
- Digital marketplaces
These are online platforms that allow you to explore certified projects, compare features and prices, and purchase credits. They generally offer transparency, complete documentation, and digital certificates.
- Brokers and specialized consultants
Operators who act as intermediaries between sellers and buyers of credits. They offer support in selecting projects and negotiating. They are especially useful if you have specific needs or high-volume purchases.
- Direct purchase from project managers
This solution is suitable for those who want a direct relationship with the project manager. However, it requires more expertise for due diligence and contract management.
Start your journey towards Net Zero: why it’s not just a click
Carbon credits are a powerful tool, but they are not a "one-size-fits-all" solution. As we’ve seen, there are many variables: from the quality of projects (avoidance vs. removal) to the strategic choice between Offsetting and Contribution Models, to proper reporting in the Sustainability Report.
The most effective approach, therefore, is not a one-off purchase but a long-term integrated strategy: rigorously measure, reduce where possible, and manage the residual intelligently. Given the technical nature of these steps, leading companies don’t act alone but rely on specialized partners.
Kyklos Carbon is not just a supplier; we are your strategic consultant. We guide you through every step of the process:
- analysis: precise calculation of your Carbon Footprint;
- strategy: Selection of the best certified credits and defining the safest communication model for your brand;
- reporting: integration of results in official reporting to ensure maximum transparency to stakeholders.
If you want to build a solid climate strategy based on reliable data and free from reputational risks, let's talk.
Carbon credits: what are they and how to purchase them?