Once a trustworthy path to meet climate goals, carbon offsets are losing favor among many top corporations. Companies like Delta Airlines, Google, and EasyJet were once top buyers of these credits. But now they have stepped back or have completely stopped purchasing offsets related particularly to renewable energy projects.
Renewable-Energy Offsets Lose Steam
This change in mindset reflects that such carbon offsets do not deliver the environmental benefits they promise. Instead of buying offsets, many companies are trying to directly reduce their emissions. This process is tougher and costlier than buying offsets.
A Bloomberg Green analysis of public offset transaction records shows a significant sales decline for the second consecutive year. This clearly indicated a trend towards fewer offset purchases.
Lambert Schneider, a carbon markets expert from Öko-Institut in Germany, emphasized that scientific reports have repeatedly questioned the “credibility” of such offsets, casting doubt on their contribution to genuine emissions reduction.

A closer look at the carbon offset market shows a sharp decline in renewable-energy credits, which dropped 29% in 2023. Historically, these offsets funded wind, solar, and hydroelectric projects. However, critics argue that many of these projects would be financially viable without the credits. Thus, their additional environmental benefits are questionable.
These concerns prompted the Integrity Council for the Voluntary Carbon Market (ICVM) to refuse its “Core Carbon Principles” label to renewable-energy offsets earlier this year.
This decision labeled many of these credits as “junk” or ineffective for the environment and leading companies like Chevron, JetBlue, and BP withdrew from them.
New Carbon Markets Could Offer Renewable Offsets a Second Life
Bloomberg has come up with another interesting analysis. Despite dwindling interest in renewable-energy credits, these offsets could see a revival. They may still attract buyers in a new regulatory setting. This framework aims to standardize international carbon trading and hold companies accountable.
At the upcoming COP29 climate summit in Azerbaijan, discussions will revolve around establishing a UN-backed carbon trading market for countries and corporations with climate commitments.
New registries, such as Qatar’s Global Carbon Council are stepping in and regenerating interest in renewable-energy credits. However, many environmental experts warn that these registries may perpetuate “junk” credits that provide no meaningful climate impact. Consequently undermining the credibility of the offset market.
Big Names Step Back, but Not All Abandon Carbon Offsets
As Bloomberg highlighted the companies that ditched these renewable carbon offsets, a few companies still back these credits. TotalEnergies, Shell, and Engie still support renewable-energy offsets, expressing confidence in their effectiveness and investments.
New buyers like Japan’s Kobe Yamato Transport and Colombia’s Grupo Argos, have also entered the market despite the rising skepticism.
On the other hand, some companies are moving entirely away from offsetting and focusing on verified carbon-removal technologies, which draw carbon directly from the atmosphere.
For example, Jet2 is shifting its resources towards sustainable aviation fuel (SAF), while Ernst & Young is halting renewable-energy offset purchases altogether. As public scrutiny grows, more companies are choosing to invest in impactful sustainability solutions rather than cheap credits.
Danny Cullenward, a researcher at the Kleinman Center for Energy Policy, emphasizes the need for accountability. He said,
“The problem won’t disappear until there’s greater responsibility for misleading claims in the voluntary carbon market.”
The Future of Carbon Offsets: An Evolving Market
Due to opposition to renewable energy offsets, the largest public registries, such as Verra and Gold Standard, have stopped participating in the majority of renewable energy projects and are restricting the credits’ origins to the least developed nations.
As businesses reassess their sustainability plans, the future of carbon offsets is still unclear. The market for premium carbon reductions is expanding, but the demand for inexpensive credits is declining.
According to Bloomberg, only credits with verifiable environmental benefits will maintain long-term market interest. Some businesses, meanwhile, are clinging to the prospect that the carbon offset sector would eventually get credibility and order from UN-backed rules.
Until then, companies that value credible, science-based approaches to sustainability are increasingly stepping away from traditional offsets. On a positive note, they are setting more impactful and direct emissions reduction targets to fight climate change.
CONTENT SOURCE: Carbon Offsets See Falling Demand but COP29 May Open New Market – Bloomberg
The post Why Are Major Companies Abandoning ‘Cheap’ Carbon Offsets? Bloomberg Explains. appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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