Businesses are increasingly seeing carbon credits as a business investment opportunity rather than a compliance cost, research has found.

The research by Climate Impact Partners found that nine in ten carbon credit buyers say businesses are treating them as a positive investment to meet their green ambitions.

Carbon credits are tradeable certificates that represent the removal or avoidance of carbon dioxide or equivalent greenhouse gas from the atmosphere, through projects such as tree planning and solar farm investment. They are used by firms to comply with government pollution rules or to meet their own climate goals.

The survey, that involved more than 600 climate change decision makers in the UK and US, also found that more than four in five of those using carbon credits say they are important to meeting their organisation’s climate change ambitions.

Buyers are reporting benefits beyond tackling climate change. More than a third say buying the credits helps boost brand trust, revenue, reputation and acquiring new customers.

Business leaders are also becoming increasingly immersed in carbon credit decisions, with more than two in five chief executives involved.

“The data shows that carbon credits deliver real business value, from brand trust to revenue growth to customer acquisition,” said Climate Impact Partners chief executive Sheri Hickock.

“The most climate ambitious companies already understand this and are locking in high quality supply today to deliver against future targets.”

She added: “The market has matured to support that confidence. Clear frameworks and rigorous verification now exist to prove what a high-quality credit is, so businesses no longer need to define this individually.

“Our ambition, and the direction the whole market needs, is consistent quality with reliable delivery at scale, enabled through an infrastructure-style market that gives every buyer the confidence in what they're purchasing.”

---