Buy Carbon Credit Exchanges
Carbon credit exchanges are online marketplaces that facilitate carbon trading. These exchanges link to registries and other market players that verify carbon credits for sale. They also offer buyers and sellers the option to purchase or sell credits that have been voluntarily reduced, recycled or offset. They are a key component of the growing global climate change conversation.
The world is moving from a fossil fuel-intensive economy towards renewable energy and low emissions technologies. This shift is not instantaneous. As businesses retool their operations to reflect this reality, they need a way to offset their remaining carbon footprint. That is why a number of companies are buying into carbon credit exchange.
However, it is important for companies to understand what they are paying for when purchasing carbon credits. Many of the current voluntary carbon markets (VCMs) are criticized for enabling greenwashing, which is the practice by some corporations to present themselves as environmentally responsible without actually making any meaningful reductions in emissions.
This criticism is rooted in the fact that VCMs allow companies to sell credits on the market for emission reduction efforts they would have undertaken anyway. In the case of carbon offsets, this could mean a company is taking credit for saving rainforest, while avoiding any responsibility to reduce its own emissions.
Why Should I Buy Carbon Credit Exchanges?
To avoid this, investors in carbon credits must ensure they are buying high-quality carbon credits. One of the best ways to do that is by purchasing carbon credits directly from the projects that generate them. This approach enables investors to get involved in project development and registration, which can support deeper engagement and ensure that the carbon credits are legitimate and verifiable.
In addition to allowing direct purchases from projects, some of the top carbon credit exchanges also operate spot exchanges in multiple global environmental commodity markets. These include carbon, Renewable Energy Certificates and water. One of the best-known is the Carbon Trade Exchange, which was established in 2009. Its London-based member-based spot exchange welcomes a wide range of market players from single brokers and project developers to multinational conglomerates. It allows the listing of credits that meet a variety of industry standards, including Gold Standard and Verra’s verified emissions reduction (VER) standard.
Another top-rated carbon credit exchange is AirCarbon Exchange. It utilizes distributed ledger technology (DLT) in an established commodities market framework to enable instantaneous T-0 trade execution, clearing and settlement. Its main market is for CORSIA (carbon offsets for international aviation) and other emissions-reduction programs.