Buildings account for about 40% of global CO2 emissions, so it’s no wonder why so much focus goes toward green building systems and reduced emissions from corporate structures. Reducing this structural carbon footprint can help counter climate change and push us toward the goals outlined in the Paris Agreement and other climate action pacts.
To help you plan and work toward lowering emissions from corporate buildings, you can look to a GHG emissions reduction audit checklist for building owners. These audit checklists and GHG inventory management can all help you reach your carbon emissions goals.
Continue reading for more about these audits and the actions you can take to reduce your building’s emissions.
How Do You Reduce GHG in Buildings?
Reducing greenhouse gas emissions (GHG emissions) in buildings starts when construction begins and continues throughout the building’s lifespan. Let’s review how to reduce emissions in both stages to minimize a building’s environmental impact.
GHG Emissions Reduction Audit Checklist for Building Owners During Construction
Starting on the right foot regarding GHG emissions reductions for building owners begins at the construction phase. Of course, none of this will apply if we’re talking about an existing building. However, if you’re constructing a new building, these tips can help lower the carbon footprint of erecting a new building.
Reuse Old Buildings
Instead of commissioning a new building, you can reduce emissions by reusing an old building. In fact, by doing this, you can save 50% to 75% of the embodied carbon emissions — the emissions associated with the materials and construction process — relative to new construction.
So, when considering a new building, think to yourself, “Is there an existing building we can renovate to fit our needs?” If so, you can reduce carbon dioxide (CO2) emissions by rehabilitating the old building. Plus, you can use some of the character in older commercial buildings to your advantage in the design phase.
Remember, that when reusing older buildings, you’ll likely have some extra work for efficiency improvements, but the emissions savings will easily offset that need.
Use Low-Carbon Concrete
Concrete production isn’t known for its GHG emissions, but its sheer weight and the amount that goes into a new building make it the most significant embodied carbon source in many projects. In fact, cement accounts for a whopping 7% of all global emissions and 50% to 85% of the embodied carbon in a building project.
You can reduce your building’s carbon footprint by opting for lower-emission concrete, such as those with fly ash, slag, or calcined clays. You can even opt for lower-strength concrete where it makes sense.
Limit Carbon-Heavy Materials
Materials with big carbon footprints, such as metals, plastic, and foam, can be a part of the construction process but seek low-carbon alternatives where possible to help with the decarbonization of your project.
So, consider a wooden instead of a steel structure to reach your building’s GMG emissions reduction goals. Or maybe opt for wooden siding instead of vinyl.
Reuse Materials
During the construction or renovation process, don’t immediately scrap all the old materials. Many of those materials, such as metal, bricks, concrete, and wood, are reusable. And each item you reuse directly reduces your project’s emission factors. Plus, it’s a more cost-effective way to build.
Focus on Recycled Materials
Recycled materials can help greatly lower the GHG emissions in your building or renovation project. For example, new steel can have five times the carbon footprint of recycled steel. On top of lowering your carbon footprint, recycled materials are often less expensive than new materials.
Minimize Finished Materials
Finishings like vinyl flooring or carpeting add to the carbon footprint of your project. Instead of going with these finishings, choose materials that don’t need finishings, such as polished concrete for the floors.
GHG Emissions Reduction Audit Checklist for Building Owners After Construction
After construction, you are still responsible for keeping the ongoing building emissions as low as possible, whether through improved energy efficiency, reduced waste, or improved sustainability. Let’s review some action plans building owners can take to ensure they improve their energy conservation and the building’s ongoing GMG emissions remain low.
Update Heating and Cooling
Heating, ventilation, and air conditioning (HVAC) make up 40% to 60% of all building carbon emissions, so this area is ripe for cutting. First, ensure you have an efficient system installed, such as some of the newer passive heating and cooling setups.
It’s also a good idea to have a programmable system. You can program it to a warmer setting during off-hours and a comfortable setting during occupancy hours.
Also, most buildings have outdoor air ventilation to keep the inside fresh, but the issue is this system runs constantly and always needs to be heated or cooled. You can counter this by installing air-quality sensors that detect when ventilation is necessary and activate this system only when needed.
This will help reduce your energy consumption, lower overall energy costs, and shrink your building’s footprint.
Perform Lighting Upgrades
Up to 40% of a commercial building’s energy consumption goes toward lighting, making this another prime target for reducing building emissions and adding in some cost savings.
Some ways to immediately lower the carbon footprint of your lighting is to install smart lights that only turn on when an area is in use and to replace all inefficient incandescent lights with more eco-friendly LED lighting. You can also add some daylighting to certain areas of the building, taking advantage of the greenest of all lights — the sun.
Install Renewable Energy
Offset some or all of your buildings’ energy use by installing renewable energy, such as solar panels. These energy efficiency measures may have significant upfront expenses, but federal and local government incentives and overall electricity savings can help make up for this cost.
By installing green appliances, you can lower energy consumption and increase energy savings. For example, you can replace old and inefficient boilers and water heaters with more efficient solar water heaters to lower electricity or natural gas usage when generating hot water. You can even swap old hard-wired ventilation fans with solar-powered ones to improve energy performance.
Reduce Water Waste
Sustainable water use can also go a long way in reducing your environmental impact and cutting operational costs. Some ways to help lower water use and waste include retrofitting low-flow water fixtures, reclaiming water systems for non-potable water recycling, and collecting rainwater for use in on-site irrigation and decorative water features.
How Do You Conduct a GHG Inventory?
First, what is a greenhouse gas (GHG) inventory? According to the U.S. Environmental Protection Agency (EPA), it is “a list of emission sources and the associated emissions quantified using standardized methods.”
The EPA outlines the GHG inventory development process in four steps: scope and plan, collect and quantify data, create a GHG inventory management plan, and set targets, track, and report. Let’s review these four steps in more detail.
Step 1: Scope and Plan
To conduct a GHG inventory, you start by reviewing the organization’s GHG accounting methods and how it reports on these emissions. The organization and its stakeholders must then determine the organization’s emissions boundaries, select a base year to start from, and consider bringing in a third party to verify the improvements.
Step 2: Collect and Quantify Data
In the second step, you’ll identify all the GHG data required and the preferred data-collection methods. Then, you’ll develop procedures, tools, and guidance that adhere to these requirements. After that, gather and review all the facility data, such as electricity and natural gas consumption from the baseline year you chose, and use estimation to fill in any data gaps. From there, you can calculate your emissions.
Step 3: Create a GHG Inventory Management Plan
Next, you‘ll create formal data collection procedures and document processes in the inventory management plan. This will include all institutional, managerial, and technical arrangements made for data collection, inventory preparation, and implementation of steps to manage inventory quality.
This management system ensures a systematic process is in place to help prevent and correct errors and identify where investments net the greatest improvements in inventory quality. However, this system’s main focus is to ensure the credibility of the organization’s GHG inventory data using five key GHG accounting principles, which we’ll cover later.
Overall, your inventory management plan will have seven key steps:
- Create an inventory quality team.
- Create a quality management plan.
- Perform generic quality tests.
- Perform source-specific quality tests.
- Review final inventory estimates and reports.
- Institutionalize formal feedback loops.
- Report, document, and archive data.
Step 4: Set Targets, Track, and Report
With the process in place, it’s now time to set your building-emissions-reduction targets relative to the base year you selected and, if you like, bring in a third party to verify your targets are attainable and helpful. You’ll then report all data as needed, publish a public GHG target report, and track your progress toward effective energy management and emissions reductions.
What Is the Standard for GHG Accounting?
Greenhouse gas emissions accounting and reporting must be based on five key principles. The principles are as follows:
- Relevance: The GHG inventory must appropriately reflect the company’s GHG emissions and serve internal and external users’ decision-making needs.
- Completeness: The organization must account for and report all sources of GHG emissions and activities within the chosen boundaries. It must also disclose and justify any GHG emissions it excluded.
- Consistency: An organization’s methodologies must remain consistent to allow accurate and meaningful GHG emission comparisons.
- Transparency: Address all relevant issues factually and coherently using a clear audit trail. If relevant assumptions are used, the organization must disclose them and make appropriate references.
- Accuracy: Ensure the GHG emissions quantification is neither over nor under the actual emissions and that uncertainties are reduced as much as possible. The organization must also ensure sufficient accuracy so users can decide based on the reported information’s integrity.
How Do You Measure GHG Emissions in a Building?
Emissions from a building can come in all three scopes: scope one, scope two, and scope three. When calculating GHG emissions from a building, you must consider all three scopes, which can make it tricky.
Scope one emissions are relatively simple to track, as these are direct GHG emissions, such as burning fossil fuels. To calculate GHG emissions in this scope, review resource consumption on utility bills, and use a calculator to determine the GHG emissions that amount of consumption made.
Scope two emissions are indirect GHG emissions that stem from the building’s energy usage from the electrical grid. So, if your company’s electricity comes from a coal-fired plant, this would include your building’s share of that plant’s emissions based on your energy consumption.
You can estimate your scope two emissions using a GHG emissions calculator and the building information, such as square feet. Keep in mind, getting a precise number is generally not possible because many power grids include multiple energy sources, including coal, natural gas, nuclear, and solar.
Finally, scope three emissions include GHG emissions from all other sources, including the supply chain and other business operations that are not within the organization’s control. In terms of a building, this can include all embodied carbon too.
Scope three emissions are difficult to track and are generally not in the organization’s control, for this reason, organizations normally aren’t required to report on them. However, monitoring, understanding, and reducing scope three emissions can help you create a green building.
Help Fight Global Warming by Auditing and Reducing Your Building’s GHG Emissions
Global warming and climate change are critical, and it’s time for everyone to chip in and do their part. This includes building owners reducing their buildings’ carbon footprints. Fortunately, GHG emissions reduction audit checklists for building owners can help in this process by giving you firm steps to follow and the data you need to successfully reduce your structural carbon footprint.
If you’re not yet ready to take on the task of reducing building emissions or already have and want to further decrease your corporate carbon footprint, we have options for you at Terrapass. Check out our voluntary carbon credits, and see how they can help offset any remaining corporate emissions, helping you attain or get closer to being a net-zero carbon emitter.
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Carbon Footprint
Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance
Indigo Carbon announced it has now passed 2 million metric tons of verified climate impact from U.S. croplands. The company reached the milestone after issuing its fifth U.S. “carbon crop.” The new issuance includes 1.1 million independently verified carbon credits issued through the Climate Action Reserve (CAR).
Indigo describes the milestone in its announcement as a sign that soil-based carbon programs can scale. It also points to rising corporate demand for credits that meet stricter quality rules.
Indigo’s latest issuance is important because it is linked to a major registry method that now carries an additional integrity label. Max DuBuisson, Head of Impact & Integrity, Indigo, remarked:
“Indigo continues to set the standard for high-integrity soil carbon removals that corporate buyers can trust. Soil carbon is uniquely positioned to scale as a climate solution because it captures and stores carbon while also improving water conservation and crop resilience. By combining world-class science and technology with farmer-driven practice change, we’re proving that agricultural soil carbon is an immediate, durable, high-integrity solution capable of helping global companies meet their climate commitments.”
Inside the 1.1M Credit Issuance and CCP Label
Indigo says its fifth issuance includes 1.1 million carbon credits verified and issued through CAR. These credits come from Indigo’s U.S. soil carbon project, listed on the Climate Action Reserve under the Soil Enrichment Protocol (SEP) Version 1.1.
CAR’s SEP is designed to quantify and verify farm practices that increase soil carbon and reduce net emissions. It covers changes in soil carbon storage and also includes reductions in certain greenhouse gases tied to farm management.
CAR’s SEP Version 1.1 has the ICVCM Core Carbon Principles (CCP) label. This means the method meets the standards set by the CCP framework.
Indigo’s disclosures also describe long-term monitoring rules. The company reports that its U.S. project includes 100 years of project-level monitoring after credit issuance, in line with CAR requirements. This mix of independent verification, registry issuance, and long monitoring periods is central to the case Indigo makes for credit quality.
Breaking Down the 2 Million Ton Milestone
Indigo says its total verified impact now exceeds 2 million metric tons of carbon removals and reductions across U.S. croplands.
In carbon markets, one credit equals one metric ton of CO₂ equivalent. Indigo’s latest issuance is very large by soil carbon standards. It also builds on earlier “carbon crop” issuances.
Indigo’s project disclosures include a quantified impact figure for its U.S. project. The company reports 927,367 tCO₂e reduced or removed through Dec. 31, 2023, for the project listed as CAR1459.
Indigo announced it has saved 118 billion gallons of water. It has also paid farmers $40 million through its programs so far. These points matter because many buyers now look beyond carbon totals. They also want evidence of farmer payments, monitoring rules, and co-benefits like water conservation.
Corporate Demand Shifts Toward Verified Removals
One reason soil carbon is getting more attention is the growing demand from buyers for removals. Many companies now focus more on carbon removal credits, not only avoidance credits.
Indigo’s largest recent buyer example is Microsoft. In January 2026, the carbon ag company announced a 12-year agreement under which Microsoft will purchase 2.85 million soil carbon removal credits from them.
- The soil carbon producer said this is Microsoft’s third transaction with the company, following purchases of 40,000 tonnes in 2024 and 60,000 tonnes in 2025.
The tech giant’s purchases show how corporate buyers may use long-term offtake deals to secure future supply of credits. This matters for soil carbon programs because credits are typically generated over multiple years. And they also depend on practice changes and verification cycles.
Indigo also says its program works across eight million acres, which signals how it is trying to scale participation across U.S. farms.
Soil Carbon Credits: Market Trends and Forecast
Soil carbon credits are gaining attention as buyers shift toward higher-quality credits and clearer verification rules. Ecosystem Marketplace reports that the voluntary carbon market is entering a new phase. This phase emphasizes integrity, even though trading activity has slowed down.
In its 2025 market update, Ecosystem Marketplace noted a 25% drop in transaction volumes. This decline shows lower liquidity as buyers are becoming more selective.
At the same time, demand for higher-quality credits is rising. Sylvera’s State of Carbon Credits 2025 reported that retirements dropped to 168 million credits in 2025, a 4.5% decrease.
Still, the market value climbed to US$1.04 billion due to rising prices. It also found that higher-rated credits (BBB+) made up 31% of retirements, and traded at higher average prices than lower-rated supply.
For soil carbon, buyers are also watching methodology quality. The ICVCM has approved two sustainable agriculture methods as CCP-approved. These are the Climate Action Reserve’s Soil Enrichment Protocol v1.1 and Verra’s VM0042. This can support stronger buyer confidence and may increase demand for soil credits that meet CCP rules.
Looking ahead, Sylvera projects compliance-linked demand will keep growing and could exceed voluntary demand by 2027. That trend may favor credits with stronger verification and compliance alignment, including higher-integrity soil carbon credits. However, integrity issues still occur, and this is where Indigo comes in.
Tackling Permanence and MRV Head-On
Soil carbon credits face a key challenge: carbon stored in soil can be reversed. A drought, land use change, or a shift in farm practices can reduce stored carbon.
This is why monitoring and reversal rules matter. CAR’s protocol is built to quantify, monitor, report, and verify practices that increase soil carbon storage.
Indigo’s project disclosure notes that projects are monitored for 100 years after they are issued. This shows the durability rules tied to their method and registry approach.
The company also positions its program as “outcome-based,” meaning it pays for verified carbon outcomes rather than paying only for adopting a practice. This messaging is designed to reassure buyers that credits are not only modeled. It stresses verification and the registry process.
A Scale Test for High-Integrity Soil Carbon
Indigo’s fifth issuance lands at a time when voluntary carbon markets are placing more weight on integrity labels and independent verification.
Two parts stand out:
- First, volume. An issuance of 1.1 million credits through a registry is large for an agricultural soil carbon program.
- Second, method approval. CAR’s SEP Version 1.1 carries the ICVCM CCP label, which is meant to signal alignment with a global integrity benchmark.
That combination may make it easier for corporate buyers to justify purchases internally. Many companies now face stronger scrutiny from auditors, regulators, investors, and civil society groups.
At the same time, more supply does not automatically mean market confidence rises. Buyers still assess risks such as permanence, additionality, and measurement uncertainty.
Even so, the milestone shows how fast some parts of the removals market are trying to scale. Large buyers are also helping drive this shift through multi-year offtake deals, like the Microsoft agreement for 2.85 million credits.
For Indigo, the new issuance supports its claim that soil carbon is moving from small pilot volumes toward larger, repeatable issuances. For the market, it adds another real-world data point: a major soil carbon program has now completed five issuance cycles and passed 2 million metric tons of verified climate impact.
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Carbon Footprint
Meta, Amazon, Google, and Microsoft Dominate Clean Energy Deals as Global Buying Slips in 2025
For nearly a decade, global companies have been racing to buy clean energy from wind farms, solar parks, and other green power projects. But 2025 marked the first decline in this trend in almost ten years — a surprising shift that signals a changing landscape for corporate sustainability.
The latest report from BloombergNEF (BNEF) shows that corporate clean energy purchasing dropped about 10% in 2025, falling from roughly 62.2 gigawatts (GW) in 2024 to 55.9 GW last year.
Let’s break down why this happened, what it means, and how the market could evolve in the coming years.
Clean Energy Buying: The Big Picture
Corporate clean energy buying usually happens through power purchase agreements (PPAs). They are long-term contracts where companies agree to buy electricity directly from renewable energy projects, often wind or solar farms.
For years, this was one of the fastest-growing parts of the clean energy market. Companies like Google, Amazon, Meta, and Microsoft drove most of the demand, helping build huge amounts of renewable capacity. But 2025 interrupted that streak.
Even though 55.9 GW is still one of the largest annual totals ever, the fact that it is lower than the year before shows a real shift in how companies approach renewable energy deals.
Why Corporate Clean Energy Buying Fell
There are several reasons why corporate clean energy buying slowed in 2025:
Corporate buyers are sensitive to electricity market rules and government policies. In many regions, uncertain policy environments made it harder to finalize long-term clean energy contracts. In the United States, for example, uncertainty about future clean energy incentives and carbon accounting standards caused many smaller corporations to hold off on signing new deals.
In some power markets, especially in parts of Europe, there were long hours of negative electricity prices. This happens when supply exceeds demand and power becomes so cheap that producers pay buyers to take it.
These price swings make standalone solar and wind contracts less attractive, especially for companies that want predictable, long-term value from their clean energy purchases.
Dominance of Big Tech
Another key point in the BloombergNEF findings is that the market is becoming more concentrated. As said before, four major tech firms, like Meta, Amazon, Google, and Microsoft, signed nearly half of all clean energy deals in 2025.
Meta and Amazon alone contracted over 20 GW of clean power last year, including deals that cover not just solar or wind, but also nuclear power — something unusual in past corporate PPA markets.
While this heavy concentration helps maintain volume, it also means that smaller companies are scaling back, which lowers the total number of buyers and contributes to the overall slowdown.
- READ MORE: Clean Energy Investment Hits Record $2.3T in 2025 Says BloombergNEF: What Leads the Surge?
Regional Differences: Where Things Slowed and Where They Didn’t
Corporate clean energy markets didn’t all move in the same direction last year. Bloomberg’s data shows clear regional patterns:
United States
The U.S. remained the largest single market for corporate clean energy deals, signing a record 29.5 GW of commitments. Much of this came from major technology companies looking to match their growing electricity needs with zero-carbon power sources.
Yet despite these high numbers, the number of unique corporate buyers in the U.S. dropped by about 51%, as many smaller firms pulled back from signing new PPAs.
Europe, Middle East & Africa (EMEA)
In the EMEA region, corporate PPAs fell around 13% in 2025, slipping back to levels closer to 2023. In Europe, in particular, rising negative prices and unstable policy conditions discouraged many new deals.
Asia Pacific
Asia had a mixed story. Some markets like Japan and Malaysia continued to attract corporate clean energy buyers, thanks to mature PPA markets and supportive regulations. But slower activity in countries like India and South Korea contributed to a drop in total volumes in the region.
The Rise of Hybrid and Firm Power Deals
One interesting trend that emerged in 2025 is that companies are looking beyond just wind and solar. Because of the limitations with standalone renewable deals, many buyers are now exploring hybrid power contracts that mix renewables with storage, or even nuclear and geothermal sources.
Hybrid deals like solar paired with battery storage give companies more reliable power and help manage price and supply risks. BloombergNEF tracked nearly 6 GW of these hybrid agreements in 2025, and expects this share to grow.
- According to a report by SEIA and Benchmark Mineral Intelligence, the United States added a record 28 gigawatts (GW) / 57 gigawatt-hours (GWh) of battery energy storage systems (BESS) in 2025. It reflected a 29% year-over-year increase.
Cheaper battery costs are part of this trend. Recent data shows that the cost of four-hour battery storage projects fell about 27% in 2025, reaching record lows. This makes storage-based renewable contracts more financially compelling.
Big Companies Still Push the Market
Even with the overall slowdown, corporate clean energy buying remains strong, especially among large technology firms.
In fact, while smaller companies took a step back, the major tech buyers helped keep total volumes near all-time highs. In other words, the market didn’t crash; it just shifted shape.
This becomes even clearer when we look at individual company progress. Microsoft reported recently that it now matches 100% of its global electricity use with renewable energy, an achievement that required decades of energy contracts and partnerships.
The Clean Energy Market Is Resetting, Not Retreating
The IEA projects that renewables will provide 36% of global electricity in 2026. This shows that the energy transition is moving forward, even if corporate clean energy purchases dipped in 2025. The slowdown does not signal failure. Instead, it reflects a market that is adapting as companies, technologies, policies, and economics evolve together.
Growth in corporate renewable deals is not always steady. A single year of lower volumes does not erase the gains of the past decade. Instead, it highlights the natural adjustments markets go through as strategies shift and conditions change.
In this transitioning phase, policy and regulation remain critical. Clear rules, incentives, and supportive frameworks encourage smaller companies to participate. Additionally, regions that provide stability, such as parts of the Asia Pacific, are seeing continued growth in corporate clean energy demand.
In conclusion, even with the dip in 2025, corporate renewable energy purchasing is far larger than it was ten years ago. The market is shifting rather than shrinking, and companies continue to find ways to power growth with clean energy. This slowdown may serve as a wake-up call, encouraging smarter, more flexible strategies that can sustain the energy transition for years to come.
- ALSO READ: Renewables 2025: How China, the US, Europe, and India Are Leading the World’s Clean Energy Growth
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“…Human subtlety… will never devise an invention more beautiful, more simple or more direct than does nature, because in her inventions nothing is lacking, and nothing is superfluous…”
The voluntary carbon market (VCM) has passed its inflection point. The volatility that characterized 2023 and 2024 has settled into a stark, data-driven reality: the market has bifurcated. As we look toward 2026, corporate leaders face two distinct markets. One is a liquid, low-price market of legacy credits facing increasing obsolescence. The other is a constrained, high-value market of high-quality assets. Specifically within Nature-Based Solutions (NBS), where demand is beginning to structurally outstrip supply.
For the capital-intensive, risk-averse organization, the strategy for 2026 cannot rely on the spot market procurement tactics of the past decade. The data from 2025 indicates that securing access to high-quality NBS is no longer just a corporate social responsibility objective; it is a balance sheet imperative driven by regulatory convergence and the tangible risk of stranded assets.
The End of Uniformity: The Quality Premium Widens
The most critical signal for your 2026 strategy is the decoupling of credit prices based on integrity.
In 2025, while total credit retirements marginally declined by 4.5% to 168 million tonnes, the primary market value actually grew by over 6% to $1.04 billion. This counter-intuitive dynamic—lower volume, higher value—proves that buyers are actively discarding low-quality inventory in favor of fewer, higher-quality assets.
This “flight to quality” has created a substantial price premium. In previous years, the spread between high and low-rated credits was negligible. By mid-2025, MSCI reported that credits rated ‘BBB’ and above were trading at a premium of approximately 360% over lower-rated credits. Specifically within NBS, Afforestation, Reforestation, and Revegetation (ARR) projects rated ‘BBB+’ averaged $26.10 per tonne, while their lower-rated counterparts (‘BB-‘ and below) languished at $14.50.
For the CFO, this presents a clear heuristic: the “cheap” option carries a hidden cost. Low-quality credits now face a high probability of becoming stranded assets. Credits that are technically issued but unusable for credible net-zero claims or compliance obligations due to reputational toxicity or regulatory exclusion.
The Supply Crunch in High-Quality NBS
As your organization forecasts its procurement needs for 2026, you must account for a deepening supply deficit in the specific assets you likely desire. While the overall market holds a surplus of legacy credits, the inventory of high-quality credits is shrinking.
For the third consecutive year, highly-rated credits (BBB+) experienced a market deficit in 2025, meaning retirements (consumption) exceeded new issuances. This scarcity is acute in Nature-Based Solutions. While forestry and land use, accounting for 68 million tonnes in 2024, remain the most frequently retired project category, the composition of that supply is changing.
Buyers are aggressively shifting away from legacy REDD+ (avoided deforestation) projects toward removal-based NBS, such as ARR and Improved Forest Management (IFM). In 2025, transaction volumes for IFM projects grew over 300%, while legacy REDD+ volumes fell by 52%.
The implication for your 2026 planning is scarcity. The lead time for new high-quality NBS projects to come online is significant. Consequently, we are witnessing a surge in early-stage offtake agreements. In 2025, the value of announced offtake deals totaled $12.25 billion… a massive leap from $3.95 billion in 2024. Sophisticated buyers, including major energy and technology firms, are locking in future supply at weighted average prices of $160 per credit for durable removals, effectively bypassing the spot market entirely.
Regulatory Convergence: The Compliance Floor
The distinction between “voluntary” and “compliance” markets is eroding, and this convergence will be a primary price driver in 2026. Regulatory bodies are increasingly creating a floor for credit quality that impacts voluntary buyers.
Two mechanisms are driving this shift:
1. CORSIA Phase 1
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) has entered its first mandatory compliance phase (2024–2026). The International Civil Aviation Organization (ICAO) has tightened eligibility, creating a “compliance-grade” stamp of approval. Sylvera modeling suggests that compliance demand could exceed voluntary demand as early as 2027, largely driven by the approaching CORSIA Phase 1 deadline. This will create direct competition for high-integrity credits between voluntary corporate buyers and regulated aviation entities, inevitably driving up price floors for eligible NBS credits.
2. Article 6 and Corresponding Adjustments
The operationalization of Article 6 of the Paris Agreement is accelerating. As of late 2025, 176 bilateral agreements were in place under Article 6.2. This mechanism allows countries to transfer carbon credits (Internationally Transferred Mitigation Outcomes, or ITMOs) to one another.
For corporate buyers, the critical development for 2026 is the “Corresponding Adjustment” (CA). A CA ensures that when a credit is sold abroad, the host country deducts it from its own national inventory, preventing double-counting. We project that credits with a CA will command a distinct premium and may become a requirement for companies making specific claims under the Paris Agreement framework. With countries like Singapore and Japan already executing trades, the infrastructure for this high-compliance market is solidifying.
3. The Role of Independent Assurance
In an environment of rising prices and regulatory complexity, “trust” is a risk management tool. Reliance on project developer marketing materials is insufficient for audit committees and risk officers.
The rise of independent rating agencies such as MSCI, Sylvera, Calyx Global, and BeZero, has fundamentally altered the due diligence landscape. These agencies now cover the majority of the market; Calyx Global’s ratings alone cover 70% of all retirements from 2021 to 2024.
Data indicates that utilizing these ratings is becoming a prerequisite for transaction security. Buyers are increasingly writing clauses into offtake agreements that allow them to exit the contract if a project’s third-party rating drops below a certain threshold (e.g., ‘BBB’). For 2026, we advise integrating independent ratings data directly into your procurement workflows to mitigate delivery and reputational risk.
Strategic Outlook for 2026
Based on the current trajectory, the role of Nature-Based Solutions in 2026 will be defined by three core realities:
- NBS as a Removal Mechanism: The market will continue to prize “removals” (sequestering carbon) over “avoidance” (preventing emissions). In 2024, removal credits commanded a 381% price premium over reduction credits, up from 245% the previous year. Corporations with net-zero targets must prioritize ARR and IFM projects to align with the Science Based Targets initiative (SBTi) guidance on residual emissions.
- Co-Benefits as Value Drivers: Buyers are no longer paying solely for the carbon molecule. They are paying for the verified impact on biodiversity and local communities. Projects with quantifiable co-benefits are achieving measurable price uplifts. In 2026, expect biodiversity monitoring to become a standard component of high-quality NBS due diligence.
- The Necessity of Long-Term Positions: The spot market for high-integrity NBS is thinning. If your organization waits to purchase 2026 vintage credits in 2026, you will likely face a restricted supply of “leftover” inventory at inflated prices. The $12 billion surge in offtakes signals that your peers are moving upstream to finance project development directly.
Recommendations for the C-Suite
To navigate the 2026 carbon market landscape effectively, we recommend the following actions:
- Audit Your Inventory: Assess your current holdings against independent ratings. Identify assets at risk of becoming “stranded” due to low integrity scores or lack of alignment with Core Carbon Principles (CCPs).
- Pivot to Offtakes: Move from spot purchasing to multi-year offtake agreements for high-quality ARR and IFM projects. This hedges against future price spikes and secures supply.
- Integrate Compliance Standards: Even if your purchasing is voluntary, align your quality thresholds with CORSIA Phase 1 or Article 6 requirements to future-proof your investments against regulatory creep.
- Demand Data: Require independent ratings and granular monitoring data (MRV) for all prospective NBS investments. Do not rely on issuer claims alone.
The era of cheap, opaque carbon credits is effectively over. The market of 2026 offers clarity and impact, but only for those willing to invest in integrity.
About Carbon Credit Capital
For over 20 years, Carbon Credit Capital has guided global organizations through the complexities of sustainability strategy and carbon finance. To discuss how these 2026 forecasts impact your specific net-zero roadmap, or to analyze the integrity of your current portfolio, connect with our sustainability experts.
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Greenhouse Gases2 years ago嘉宾来稿：满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
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Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
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Climate Change2 years ago
Spanish-language misinformation on renewable energy spreads online, report shows
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Climate Change2 years ago嘉宾来稿：满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
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Climate Change Videos2 years ago
The toxic gas flares fuelling Nigeria’s climate change – BBC News
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Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits