Carbon Credits: Good or Bad and Are Businesses Warming Up to Them?

For years, carbon credits have carried a bit of baggage. Critics called them a “get-out-of-jail-free card” for companies looking to offset emissions without changing their operations. But lately, the story is shifting—and the market is starting to see carbon credits in a new, more positive light.

Take Microsoft, for example. In the first half of 2025, they accounted for over 90% of all technology-based carbon removal purchases. That’s not just a headline—it’s a signal that big players are treating credits as a serious tool in the net-zero toolkit, not a shortcut. Of course, these engineered removals are pricey, but the underlying message is clear: companies are willing to invest in high-quality solutions that actually make a difference.

Meanwhile, nature-based credits are evolving too. Standard Chartered’s initiative in Brazil is a great example. By selling jurisdictional forest carbon credits from the state of Acre and channelling the majority of proceeds to local and indigenous communities, they’re showing that carbon credits can do more than offset emissions—they can protect ecosystems and support people on the front lines of climate action. It’s ESG with substance, and businesses are taking note.

On the policy side, momentum is building for a global carbon pricing framework, led by countries like Brazil ahead of COP30. This hints at a future where carbon credits aren’t just voluntary gestures—they could become integrated into international climate strategy, giving the market more legitimacy and predictability.

So what’s the takeaway? Businesses are warming to carbon credits, but the embrace comes with conditions. Companies want credibility, transparency, and impact. They’re looking for credits that withstand scrutiny and align with broader sustainability goals. In other words, the market isn’t just buying offsets—it’s buying trust.

Carbon credits aren’t always perfect, and they’re certainly not a substitute for cutting emissions. But when done right, they’re becoming a powerful tool for companies serious about making a real difference for the planet—and for their stakeholders.