Carbon Credits, Carbon Markets and the Path to Responsible Net-Zero Action
I have been taking the time to get up to speed with the rapid changes across the climate and ESG landscape. COP30 has renewed the global focus on implementation. CSRD scope changes have shifted expectations for many companies while still reinforcing the need for credible and transparent sustainability information. Alongside all of this, interest in carbon credits and the role of voluntary carbon markets has continued to grow.
This growing interest is matched by an equal rise in scrutiny. Expectations around quality, integrity, verification and the responsible use of carbon credits are now more rigorous than they were even a few years ago. Many companies are exploring how carbon credits might fit into their wider net-zero planning. Some are hopeful. Some are unsure. Many are trying to navigate a complex and evolving space.
This makes it an important moment for clarity. Carbon credits can support a credible climate strategy, but only when understood and used in the right way. It’s important to have a clear perspective on the role of carbon credits, the emerging carbon market within Ireland and Europe, the principles of credit quality, and the considerations companies should reflect on when integrating credits into their wider sustainability journey.
Understanding Carbon Credits and Carbon Markets
A carbon credit represents one tonne of carbon dioxide or an equivalent greenhouse gas that has either been avoided or removed from the atmosphere. These credits can come from activities such as reforestation, peatland restoration, renewable energy projects or improved land management.
Carbon markets provide the structure that allows companies to purchase these credits as part of their voluntary climate action. In Ireland, this space is beginning to grow, with a focus on nature based projects that regenerate local landscapes, protect biodiversity and support rural communities.
These local markets are still emerging, but they offer real promise. They also reflect a growing trend. Businesses want carbon projects that resonate with them. They want to see real environmental and social value in the regions where they operate. They want to invest in projects that are tangible and meaningful. But this interest must be matched with a clear understanding of quality, credibility and integrity.
The Importance of Carbon Credit Quality
Not all credits are created equal. Credit quality depends on several factors. Would the project have happened without the carbon finance? How long will the emissions benefit last and what risks could reverse it? How accurately can the impacts be measured, monitored and validated? Could emissions increase somewhere else as a result of this activity (i.e., leakage)? Does the project support communities and enhance ecosystems?
This is why initiatives such as the Integrity Council for the Voluntary Carbon Market (ICVCM) and the evolving standards landscape are so important. These bodies aim to ensure that carbon credits meet a clear quality threshold and that buyers have confidence in what they are purchasing.
For companies exploring carbon credits, the question should never be “can we buy credits?”. The question should be “are these credits credible and do they represent real climate benefit?”.
How Carbon Credits Fit Into Net Zero Pathways
Frameworks such as the Science Based Targets initiative (SBTi), the International Sustainability Standards Board (ISSB) and the TCFD have made one thing very clear. Carbon credits cannot replace decarbonisation. They can only complement it. Companies navigating this space should focus on the following principles:
1. Reduce first.
The majority of emissions reductions must come from operational change, energy transition, efficiency measures and supply chain engagement.
2. Use credits to address residual emissions.
Credits should be used for emissions that are not yet technologically or economically feasible to eliminate.
3. Be transparent.
Companies should communicate clearly about what portion of their pathway is reduction and what portion is covered by credits.
4. Prioritise removals.
Over time, net zero frameworks increasingly encourage a shift from avoidance credits to removals, such as afforestation or restoration activities.
Using credits responsibly strengthens credibility. Using them without a reduction plan undermines it.
Why Local and Regional Projects Matter
One of the most encouraging trends in carbon markets is the interest in supporting regional projects. In Ireland and across the EU, nature based solutions are gaining traction because they create benefits beyond emissions reductions.
They can support:
healthier ecosystems
enhanced soil and water quality
improved biodiversity
stronger climate resilience
local economic opportunity
community engagement and environmental stewardship
When companies purchase credits from local afforestation or restoration projects, the climate impact is only one part of the value. The social connection and environmental co benefits often play an equal role.
In my view, this is where the future of carbon markets lies. Companies want to see the impact of their investment. They want to engage with the landscapes and communities they are supporting. And they want to contribute to the restoration of the natural environment in a way that feels responsible and meaningful.
What Companies Should Consider Before Purchasing Carbon Credits
If your organisation is exploring this space, ask yourself the following questions:
“Do we understand the quality of the credits?”. Ask for evidence. Ask about methodologies. Ask how verification is conducted.
“Do we understand the project itself?” Understand where is it located, what environmental outcomes it delivers, how is supports local people.
“Is our own emissions reduction plan clear?” Credits should only support what remains after reductions, not replace them.
“Do these credits align with recognised standards?” This includes SBTi guidance, ISSB expectations and the work of the Integrity Council.
“Are we prepared to communicate transparently?” Clear disclosure builds credibility and avoids greenwashing risk.
When approached with care, carbon credits can support resilience, climate responsibility and long term environmental value. But they must be used thoughtfully.
Where This Space Is Heading
As net-zero expectations mature, companies will need to combine reduction strategies with credible voluntary action. The standards landscape is evolving quickly. SBTi is revising its net zero standard. The ISSB has created clearer expectations for climate related disclosure. The TCFD has shaped mainstream governance and risk thinking.
Alongside this, carbon markets are being reshaped by the demand for integrity and transparency. Buyers are becoming more selective. Project developers are becoming more accountable. Quality is now the centre of the conversation and that is a positive shift.
The Irish market is positioned to play a meaningful role. We have the natural capital, the land stewardship traditions and the community structures to support high integrity nature based projects. As this market grows, companies will have local options that deliver measurable climate benefit as well as local economic and social value.
How I see It
Carbon credits are not a shortcut to net-zero. They are a tool that must be used carefully, responsibly and transparently. When used well, they allow companies to support climate action beyond their own operations. When combined with strong internal reductions, robust reporting frameworks and credible governance, they can be a powerful mechanism for positive impact.
This is an area where I see growing opportunity for collaboration. Many organisations want to understand how to approach carbon markets and how to align credits with their sustainability strategy. And many project developers want to ensure that the credits they generate are trusted and well understood.
This intersection is where advisory support can be incredibly valuable. If your organisation is exploring carbon credits or wants guidance on responsible use, I would be happy to discuss how I can support you.
