Source, Vet, and Purchase Carbon Credits
To make the most from your carbon credit program, conducting robust due diligence and developing effective purchasing structures is critical. In these final stages of the carbon credit process, your company should consider factors like risk level, operational needs, and expert third-party opinions.
The process of vetting and screening potential carbon credit projects is similar to an investment due diligence process. It is critical for your company to consider factors like risk level, project timings, and third-party opinions. Considering a mix of credit types, based on factors like geography and project type, to optimize your overall portfolio is also important.
Once an ideal portfolio is developed, your company can move to negotiating and contracting, and once purchases have occurred a registry of your credit will need to be maintained on an ongoing basis. Your company will need to decide whether each of these processes will be undertaken internally, or with support from external consultants.
The following action steps provide more insight on the primary considerations for your company as it sources carbon credits, executes purchases, and manages credit inventories.