The Outlook for Carbon Credits and Offsets: An EY Net Zero Centre Report

Carbon credits are a way for businesses to reduce emissions by investing in offsets or low-emissions options. Credits have an essential role in offsetting hard-to-abate emissions from products which lack low or zero emissions options. Carbon credits are an essential part of the business toolkit, providing flexibility, control and significant cost savings. The best role for credits depends on business context and strategy. Emissions-intensive businesses should generally prioritise reducing direct emissions, with the use of credits focused on emissions which stakeholders agree are difficult or very expensive to reduce. Businesses with lower emissions intensity can make stronger carbon commitments and use credits with co-benefits to reinforce their brand values and positioning.

In their report, EY examines the outlook for credit prices, the outlook for the credit market structure, as well as implications for business leaders and strategy.