Businesses deepen use of voluntary carbon credits

Business leaders and sustainability specialists are increasing their use of voluntary carbon credits, as new research from SE Advisory Services points to growing trust in recognised market standards despite regulatory uncertainty.

The Carbon Credit Outlook 2025 report finds that two-thirds of surveyed companies now rely on standards endorsed by the International Carbon Reduction and Offset Alliance. More than half use the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles when they assess project quality.

SE Advisory Services is Schneider Electric's global consulting arm. It surveyed professionals across almost 30 countries and a wide range of sectors, including manufacturing, finance, consumer goods and the public sector.

Four in ten respondents say their organisations are already active in the voluntary carbon market. These organisations buy credits, invest in projects, or develop projects themselves.

Respondents say they use carbon credits as part of climate risk management. They also use credits as part of supply chain resilience planning. Some see credits as a source of long-term strategic value.

Growing engagement

The survey suggests that engagement will deepen over the rest of this decade. More than half of respondents plan to expand their use of carbon credits by 2030. Only 12% say their organisation has no carbon credit strategy.

Many respondents now view credits as a strategic investment instrument. They say credits support the achievement of climate commitments and internal targets. They also say credits form part of their response to stakeholder expectations.

Mathilde Mignot, Group Director, Nature & Technology-Based Solutions at SE Advisory Services, said carbon finance is becoming more important in the context of global decarbonisation needs.

"As global decarbonisation demands unprecedented investment, with developing countries alone needing $1 trillion annually by 2030, carbon credits offer a proven mechanism for organisations to support verified climate action while building strategic value," said Mathilde Mignot, Group Director, Nature & Technology-Based Solutions, SE Advisory Services.

Mignot said corporate attitudes are shifting as more firms move beyond buying credits and into project development.

"Something fundamental is changing in the way companies approach carbon credits. When nearly one in five respondents is developing their own projects, it's clear the market is gaining momentum. These companies recognise that owning their carbon strategy means owning their climate story," said Mignot.

Portfolio shift

The research also tracks how companies design their carbon credit portfolios. It finds that nature-based removal projects remain the leading focus.

Half of respondents say nature-based removal credits are the most important category for their organisation. These include afforestation, reforestation and ecosystem restoration projects. Respondents say these credits deliver near-term emissions impact. They also say such projects support biodiversity and local communities.

Avoidance and reduction credits rank second. These include forest protection, renewable energy and energy efficiency projects. Thirty-four per cent of respondents give priority to these credits over technology-based removals.

Technology-based and hybrid removal credits now sit in third place. Sixteen per cent of respondents say they prioritise methods such as direct air capture, bioenergy with carbon capture and storage, and biochar. This indicates that some firms are starting to factor engineered removal options into wider climate strategies.

Policy uncertainty

Despite rising confidence in standards, many respondents still identify policy and guidance as major constraints. Forty-six per cent say the lack of direction on how carbon credits sit alongside existing climate frameworks is the main barrier to scale.

Government policy uncertainty ranks as the second biggest concern. Forty per cent of respondents highlight this issue.

William Theisen, Commercial Director, Nature & Technology-Based Solutions at SE Advisory Services, said corporate buyers now trust the quality infrastructure of the market but face structural questions.

"Corporate leaders are growing confident in today's quality infrastructure but need clear guidance on how voluntary carbon credits complement compliance systems. Creating transparent pathways between voluntary action and regulatory or government-endorsed frameworks is the next step in enabling large-scale, credible corporate action," said William Theisen, Commercial Director, Nature & Technology-Based Solutions at SE Advisory Services.

Regulatory landscape

The report notes a rapid evolution in national and regional policy. It states that 37 jurisdictions now integrate carbon crediting or pricing systems into law or regulation. These include carbon markets, taxes and other pricing instruments.

SE Advisory Services expects carbon pricing to become a core element of both corporate and governmental decarbonisation plans. It also points to new governmental coalitions that aim to strengthen voluntary carbon markets and harmonise quality rules across borders.

The firm says this shift in public policy runs alongside a strong appetite in the private sector for climate-related investment. It argues that alignment between governments, standard-setters and investors would unlock greater flows of private capital through carbon markets.

The survey sample includes executives, sustainability managers, consultants, governance and risk specialists, and finance professionals. Many hold roles that influence climate and sustainability decisions inside organisations.

SE Advisory Services concludes that confidence in standards and infrastructure is now widespread among engaged companies. It states that clearer rules on how voluntary markets interact with compliance regimes will shape the next phase of growth in global carbon trading.