Australia, Policy, Renewables

Carbon Credits: Corporate support rises, clarity lags

The Carbon Credit Outlook 2025 reveals that more than half of companies plan to scale their engagement with carbon credits by 2030, even as environmental, social and governance (ESG) frameworks face political and economic headwinds.

Once clouded by scepticism, carbon credits are now emerging as a credible tool to strengthen climate resilience and satisfy stakeholder expectations. But a recent survey shows corporate companies require regulatory frameworks to evolve.

Maturity despite ESG turbulence

SE Advisory Services, Schneider Electric’s new global consulting arm, surveyed corporate leaders and sustainability professionals around the world. The results show that organisations increasingly view carbon credits not as optional add-ons, but as core components of long-term decarbonisation strategies.

Two-thirds of respondents now use ICROA-endorsed standards, and 55 per cent apply the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles (CCPs) when assessing project quality. These findings indicate that a strong verification and quality-assurance infrastructure are already in place, and are helping build corporate confidence.

Nearly 4 in 10 organisations say they already engage directly with high-integrity carbon credits through purchasing, investment or project development to manage climate risk, bolster supply chain resilience and build strategic value.

Looking ahead, 55 per cent plan to expand their engagement by 2030, while only 12 per cent report no strategy at all.

Mathilde Mignot, Group Director of Nature and Technology-Based Solutions at SE Advisory Services, believes it is fundamental for companies to change their approach to carbon credits.

“When nearly one in five respondents is developing their own projects, it’s clear the market is gaining momentum. These companies recognise that owning their carbon strategy means owning their climate story,” she said.

Portfolio composition shifts

The report shows corporates are taking a more deliberate, diversified approach to portfolio design, balancing immediate climate impact with long-horizon innovation.

Nature-based removal credits include afforestation, reforestation and ecosystem restoration. These credits remain the top priority for 50 per cent of respondents. These projects offer measurable emissions removals alongside biodiversity and community co-benefits.

Avoidance and reduction credits, such as forest protection, renewable energy and energy efficiency projects, are prioritised by 34 per cent of organisations.

Importantly, 16 per cent now prioritise technology-based and hybrid removals, such as direct air capture (DAC), bioenergy with carbon capture and storage (BECCS) and biochar.

This evolution shows a growing corporate appetite to pair global net-zero pathways with future-oriented technology that can deliver large-scale solutions over time.

Policy uncertainty remains

The most significant barrier identified by 46 per cent of organisations is the unclear guidance on how carbon credits integrate with existing climate frameworks and compliance schemes.

Another 40 per cent cite government policy uncertainty, reflecting the mixed regulatory signals emerging across global markets.

William Theisen, Commercial Director at SE Advisory Services, noted that the recent United Nations Climate Change Conference in November 2025 signals the time is right for corporate companies to comply with carbon credits.

“Corporate leaders are growing confident in today’s quality infrastructure, but they need clear guidance on how voluntary carbon credits complement compliance systems,” he said.

“Creating transparent pathways between voluntary action and government-endorsed frameworks is the next step in enabling large-scale, credible corporate action.”

The report notes that 37 jurisdictions now integrate carbon crediting or pricing systems into national policy. This suggests that carbon pricing instruments are poised to become central to decarbonisation efforts.

Meanwhile, the new governmental coalitions introduced earlier this year aim towards strengthening voluntary market mechanisms and harmonise quality standards.

“We have a critical opportunity to establish these frameworks. The world will be watching for mechanisms that unlock private capital at the scale climate science demands,” Mignot said.

“As global decarbonisation demands unprecedented investment, with developing countries alone needing $1 trillion annually by 2030, carbon credits offer a proven mechanism for organisations to support verified climate action while building strategic value.”

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