The 5-Question Checklist Before Buying Carbon Credits

In the race to net zero, carbon credits have become a powerful tool for businesses and individuals looking to offset their footprint. But the carbon market can be a complex and sometimes murky space. Not all credits are created equal, and unfortunately, "greenwashing" remains a real risk.

How do you ensure your investment is actually helping the planet?

Based on the C² "5 Question Check," here is a simple due diligence framework to help you navigate the market and ensure your carbon credits are credible, impactful, and high-quality.

1. Is the project real and verified?

Before you spend a dime, you need proof of existence. A legitimate carbon credit must be linked to a tangible project that is actively reducing or removing emissions right now.

The Check: Look for projects that are verified by trusted, independent third-party standards (such as Verra or Gold Standard). Verification acts as a quality guarantee, ensuring that the project’s claims have been rigorously audited and aren't just empty promises.

2. Is the impact "Additional"?

This is perhaps the most critical concept in carbon markets. "Additionality" asks a simple question: Would this emission reduction have happened anyway, without the money from carbon credits?

The Check: If a project was already profitable, required by law, or "business as usual," it is not additional. Your funding should be the catalyst that makes the climate action possible. You want to fund extra help for the planet, not subsidize something that was already going to happen.

3. Is there a risk of "Leakage"?

Imagine squeezing a balloon; if you push down on one side, the air just bulges out the other. In carbon terms, "Leakage" happens when a project protects one area (like a forest) but simply displaces the deforestation to a neighboring area.

The Check: A high-quality project anticipates this. It will have safeguards and community programs in place to ensure that emissions aren't just shifting locations, but are genuinely being reduced on a systemic level.

4. Will the climate benefit last?

Climate change is a long-term problem that requires long-term solutions. "Permanence" refers to how long the carbon you paid to remove will stay out of the atmosphere.

The Check: If you are funding a forest, what stops it from being cut down in five years? Credible projects have mechanisms (like buffer pools or legal protections) to ensure the carbon remains locked away for decades or centuries. The benefit needs to be secure for the long haul to be meaningful.

5. What are the "Co-benefits"?

Carbon reduction shouldn't happen in a vacuum. The best projects recognize that climate health is tied to human and ecological health.

The Check: Look beyond the carbon metric. Does the project create jobs for local communities? Does it protect endangered wildlife or improve local water quality? Projects with strong co-benefits act as a multiplier for your investment, solving multiple global challenges with a single credit.

The Bottom Line

Buying carbon credits is an investment in our collective future, but it requires scrutiny. By asking these five questions—about verification, additionality, leakage, permanence, and co-benefits—you move from passive offsetting to active, high-quality impact investing.

Don't just buy carbon; buy credibility.