The Voluntary Carbon Market: What do Businesses Need to Know?

It's been a challenging couple of years for corporates who want to use carbon credits to offset their hard-to-abate emissions, following reports of greenwashing and over-crediting in the popular press. Despite this, the retirement of credits is at a record high and governments around the world are coming out in support of them.

At SEFE, we're helping organisations navigate this space with a pragmatic, transparent, and customer-first approach to carbon offsetting, and as part of this we're committed to providing up-to-date, relevant information. A recent SEFE webinar on the Voluntary Carbon Market outlined some of the key trends in the sector, alongside some of the ways that companies are using carbon credits as part of their decarbonisation strategy. If you missed it, you can find a recording here - and if you would like to find out more about the Voluntary Carbon Market and how you can participate, read on. 

The voluntary carbon market (VCM) is a decentralised market which allows organisations to buy and sell carbon credits (sometimes known as offsets) – certificates which reflect carbon dioxide (CO₂) being either removed from the atmosphere or prevented from being emitted in the first place, via verified projects. This mechanism provides a way for organisations to compensate for emissions that are otherwise hard to avoid, support global carbon mitigation beyond its own operations, and can be a valuable part of a broader strategy for decarbonisation.

Carbon credits can come from a vast array of project types, including environmental restoration and protection, renewable energy, and improved household devices. All these projects contribute to verifiable and quantifiable emissions reductions, but they can also have broader benefits for local communities and ecosystems as well. Organisations purchasing carbon credits will often look for projects that reflect their own priorities, such as enhancing biodiversity or supporting underserved populations; independent ratings agencies such as BeZero and Sylvera help to ensure that customers understand the quality and impact of credits from different projects.

At SEFE we provide our customers with the tools to make informed decisions about the type of credits they choose to use to achieve their climate goals. SEFE Energy can help you find the credits that are most aligned with your values, brand and offsetting needs through our extensive access to the voluntary carbon market. 

In a crowded and often complex market, organisations need simplicity, transparency, and value. When choosing a provider of credits, it is worth considering the following:

• Price Competitiveness - Buying carbon credits through an intermediary can sometimes result in inflated prices and hidden fees - and as many organisations simply do not have the resources to participate in the voluntary carbon market directly, this can be a common pain point. To ensure that you get the best value for money, look for a partner that sells close to secondary market rates, avoiding artificially high costs.
• Project Transparency - Not all carbon credits are created equal. While there is an increasing focus on quality in the voluntary carbon market, some projects may be compromised, whether through faulty methodologies or inadequate tracking of metrics. A good supplier of carbon credits will ensure access to independent project ratings, giving buyers confidence in their environmental impact and avoiding reputational risk.
• Sourcing Flexibility - Different organisations have different priorities for their carbon offsetting, and a one-size-fits-all approach for carbon credits therefore does not make sense. Suppliers offering inventory from a varied selection of project types can ensure that carbon credits can be bought in alignment with an organisation's values, rather than simply settling for what's available.

SEFE Energy is committed to making climate solutions scalable, verifiable, and economically viable. Our team of energy specialists are on-hand to help you select the right energy product for your organisation, whether that's for gas, electricity, carbon credits, or a combination of all three.