Buy Carbon Credit Exchanges
The carbon credit market allows people to trade permits that allow businesses or other entities to emit a certain amount of greenhouse gases. This trading occurs on a variety of markets, some regulated, like in Europe with the European Union Emissions Trading Scheme, and others voluntary. It is the latter that provides companies the opportunity to offset their emissions by paying for projects that reduce or avoid them. There are several carbon credit exchanges that are currently operational, but one stands out from the rest, and it is our number 4 pick.
carbon credit exchange are online platforms that list a variety of environmental commodities, including carbon credits. They work closely with registries to enable transactions and have a variety of services for both the voluntary and regulated carbon markets. Most are located in North America and Europe, but a few exist elsewhere.
They also provide information on how to develop and register a carbon project. These projects are then categorized as either verified emission reduction (VER) or certified emission reduction (CER). The main difference is that the CER is vetted by a third-party, which increases the credibility and quality of the credits. VER is generally a more common option for compliance carbon markets, while CER is typically used in the voluntary markets.
Why Would You Buy Carbon Credit Exchanges?
Many of the same players are involved in carbon credits exchanges, including retail traders and brokers, as well as registries and project developers. These companies buy credits from a registrant or developer, bundle them into portfolios that may contain hundreds to thousands of carbon credits and then sell them to end buyers, often charging some type of commission in the process. The registrants and project developers may also participate in the carbon credit exchanges themselves, allowing them to take part in the trading directly.
Traders and financial players tend to prefer exchanges that offer standardized products for the forward delivery of carbon credits. These products can be easier to trade and more efficient. However, they can also limit opportunities for offsetting and other innovative uses of carbon credits. End buyers that need credits to offset their own emissions, on the other hand, often favor non-standardized options because they can see a deeper level of detail and ensure the quality of the credits being purchased.
The global carbon market is growing rapidly. By 2020, it is projected to reach a value of more than $2.4 trillion, thanks to new corporate zero-carbon goals and interest in meeting international climate goals set in the Paris Agreement.
As carbon credits continue to be in high demand, it is important to choose the best carbon credit exchange for your needs. The four top-rated choices, highlighted below, each offers a unique benefit to its members.