For Companies: How to Participate in the Voluntary Carbon Market and Generate Value
The voluntary carbon market (VCM) has gained prominence as a strategic tool for companies aiming to offset their greenhouse gas (GHG) emissions and strengthen their commitment to sustainability. Over the next five years, the European Union will tighten climate regulations, especially by progressively increasing the price of emission allowances under the EU ETS (Emissions Trading System). Additionally, starting in 2026, the Carbon Border Adjustment Mechanism (CBAM) will require importers to purchase certificates equivalent to the emissions associated with non-EU products. The EU ETS will also expand to sectors such as transport and buildings, while new carbon taxes will be introduced to fund the energy transition and advance the European Green Deal.
Unlike regulated markets, participation in the VCM is voluntary. It allows companies, institutions, and even individuals to offset their emissions by purchasing carbon credits from verified environmental projects. This article explores how companies can engage in the VCM — both on the demand and supply side — and the benefits it can bring.
Demand Side: Offsetting Emissions
From a demand perspective, companies buy carbon credits to compensate for the emissions they cannot directly reduce. Each credit corresponds to one ton of CO₂ avoided or removed from the atmosphere. These credits are generated by projects such as reforestation, renewable energy, carbon capture and storage (CCS), methane reduction, and ecosystem conservation.
Portuguese companies — for example, a textile manufacturer in Guimarães or a logistics firm in Lisbon — can calculate their annual carbon footprint and, after taking steps to reduce it internally, purchase credits to offset the remaining emissions. This approach helps them meet voluntary sustainability targets, align with the Paris Agreement, and improve their reputation among environmentally conscious consumers and investors.
Supply Side: Generating Credits
On the supply side, companies or entities that develop environmentally impactful projects can obtain verified credentials and sell the resulting credits. A hypothetical example would be a farming cooperative in Alentejo that implements regenerative agricultural practices to enhance soil carbon sequestration or biochar-based forestry projects. After verification by an accredited third party, the cooperative or forest landowners can generate carbon credits and sell them on the VCM.
Another realistic example is a renewable energy company installing solar panels in rural Portugal. By displacing fossil fuel-based electricity generation, it can quantify the emissions avoided and convert them into tradeable credits.
Strategic Business Benefits
Engaging in the voluntary carbon market brings several strategic benefits. First, it enhances corporate reputation by showcasing a concrete commitment to environmental responsibility — particularly relevant for carbon-intensive sectors under growing public and regulatory scrutiny.
The average price of carbon credits in the EU has ranged between €80–€100 per ton of CO₂ equivalent in 2024–2025, depending on whether it’s the regulated or voluntary market. These prices compete directly with regulatory costs: the EU ETS has reached similar levels, and the CBAM will apply comparable costs to imports. For high-emission businesses, these regulatory costs represent an increasing financial burden — making offsetting emissions through credits a potentially more cost-effective alternative.
Moreover, the VCM helps companies meet voluntary sustainability goals such as those under the EU Green Deal or carbon neutrality commitments by 2050. It also fosters green innovation, stimulating new technologies and sustainable business models.
The voluntary carbon market in Portugal presents a unique opportunity for companies to meet environmental goals while creating both economic and reputational value. Whether as buyers or project developers, businesses can actively support the green transition and strengthen their competitive edge in a sustainability-driven market.
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