Who is Buying Carbon Units (and Why)?

The carbon market is growing staggeringly, drawing in buyers from a wide range of industries, each with their own motivations and strategies. Whether driven by regulatory requirements, corporate sustainability goals, or long-term financial benefits, these buyers shape the demand for carbon units and, in turn, influence the way nature-based projects and carbon credit initiatives evolve.

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Beyond Compliance: The Expanding Market of Carbon Buyers

A decade ago, the primary buyers of carbon units were entities operating under compliance markets—governments and large corporations legally obligated to offset their emissions. This is still true today for regions with cap-and-trade systems, such as the EU Emissions Trading System (EU ETS) or California’s carbon market. But the biggest shift in recent years has been the rise of voluntary buyers—companies and investors that are not legally required to purchase carbon credits but do so as part of their broader sustainability strategy.

Graph showing the projected growth of VCM demand.

Corporations with high emissions footprints have been at the forefront of voluntary carbon credit purchases. From tech giants to global retailers and aviation industry players, companies are integrating carbon offsets into their sustainability roadmaps. For many, this is part of a wider environmental, social, and governance (ESG) framework, responding to investor demands, regulatory pressure, and consumer expectations. Customers are more aware than ever of the environmental impact of their purchases, and businesses that fail to take responsibility for their emissions risk losing market share to more proactive competitors.

Yet, while corporate buyers dominate the market, financial institutions and investors are increasingly seeing carbon units as a strategic asset class. Banks, hedge funds, and pension funds are beginning to view carbon credits not just as a compliance tool but as an investment vehicle with high return potential. The carbon market’s pricing dynamics—where demand is projected to outstrip supply in the coming years—make it an attractive long-term bet.

Strategic Buyers: Why Carbon Units Are an Investment Play

For financial players, carbon credits are no longer just an ESG checkbox—they are one of the fastest-emerging commodities. The logic is straightforward: as net-zero commitments tighten and carbon reduction targets become more ambitious, the scarcity of high-quality credits will drive prices up. Investors who secure large positions in verified carbon projects now are poised to capitalise on future price increases.

In the voluntary carbon market, high-quality nature-based solutions, such as reforestation, afforestation, and regenerative agriculture projects, attract particular attention. These projects don’t just mitigate emissions but also contribute to biodiversity, soil restoration, and community development—factors that enhance their desirability and longevity in a world increasingly focused on holistic sustainability.

A close-up of a biodiverse African meadow with elephants and zebras in the background. AI generated picture.

Multinational corporations are also entering the space, sometimes as buyers of credits and other times as direct investors in projects. Instead of just purchasing offsets, they are securing long-term supply agreements, backing large-scale conservation efforts, or even launching their own initiatives to generate credits in-house. This shift from passive purchasing to active participation signals a maturing market—one where companies want more control over credit quality, pricing, and impact narratives.

The Push for Transparency and High-Quality Credits

One of the critical trends shaping carbon buying is the increased scrutiny of credit quality. The days of indiscriminate offset purchases are fading. With new guidelines from organisations like the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Science Based Targets initiative (SBTi), buyers are under pressure to ensure their credits meet the highest standards.

This has created a divide between those who see carbon units as a genuine environmental tool and those who use them for reputational gains without addressing their core emissions. The latter group—often accused of greenwashing—is being called out more frequently, pushing serious buyers toward credits with verified co-benefits and robust impact reporting.

Companies that truly want to integrate carbon units into their long-term sustainability strategies are going beyond simple offsetting. They are combining credit purchases with direct emission reduction efforts, investing in decarbonisation technologies, and supporting the development of scalable carbon removal solutions. The credibility of carbon markets depends on these buyers—those who treat offsets as a complementary tool rather than a primary excuse for inaction.

What’s Next for Carbon Unit Buyers?

The landscape of carbon buyers is evolving rapidly. As regulation tightens and demand for high-quality credits grows, the profiles of buyers are shifting. Institutional investors are treating carbon as a speculative commodity, companies are embedding credits deeper into their business models, and consumers are becoming more discerning about the offsets tied to the brands they support.

The market is also seeing a wave of innovative financing models. Carbon-backed loans, forward contracts for credits, and tokenised carbon assets are reshaping how credits are traded and valued. This financialisation of carbon has the potential to drive more liquidity into the market, attracting even broader categories of buyers.

Close-up of many newly planted tree saplings in a forest. AI generated picture.

Ultimately, the expansion of carbon markets depends on trust—trust in the quality of credits, trust in the verification process, and trust in the sincerity of the buyers. As the market matures, those who engage early and strategically are not only mitigating their carbon footprints but positioning themselves at the forefront of a major economic shift. Whether motivated by compliance, reputation, or financial opportunity, the buyers of carbon units are shaping the future of the carbon economy.