Investing in high-quality carbon credits can be a valuable tool in your climate action strategy, but it's important to understand the role of your investments:
- At net zero: Reaching net zero emissions according to current definitions requires both reducing your own emissions significantly and addressing the unavoidable emissions through investing in emissions removals beyond your value chain. Carbon credits from removals projects can "counterbalance" these remaining emissions, but these investments are not a substitute for significant emission reductions.
- Focus on reduction first: Priority should always be on lowering your company’s emissions as much as possible. Set ambitious reduction targets and work towards halving emissions before 2030 for a clear path to net zero.
- High-quality carbon credits: If you purchase carbon credits, choose verified projects that are aligned with Sustainable Development Goals (SDGs). Only buy certified credits based on clear methodologies for tracking impact. Look for relatively new credits, as these often represent more impactful solutions.
At net zero, any residual emissions that cannot technically be avoided should be counterbalanced by durable carbon removals. Until this state is reached, companies cannot claim to be net zero.
See Gold standard for the industrial principle of investments in carbon credits.