Carbon Credit Brokers: How it Works & Why You Should Beware

Georgette Kilgore headshot, wearing 8 Billion Trees shirt with forest in the background.Written by Georgette Kilgore

Carbon Offsets Credits | December 9, 2023

Carbon credit brokers woman standing behind two men shaking hands to show how brokers work with carbon credit companies and carbon commodities to help people learn how to invest in carbon credits.

Looking to learn more about carbon credit brokers and what they do? Carbon credit brokers work by connecting businesses with other businesses that need to offset their emissions, but it’s not always easy to see the potential dangers.

Most people understand to be wary of investment schemes, but might turn to a carbon credit broker to help them learn how to invest in carbon credits, or to explain KRBN stock, carbon capture technology stocks, or some other green companies to invest in.

And while most carbon credit brokers are trustworthy, it never hurts to do your own research.

Carbon Credit Brokers: What They Do and Why

Carbon credit brokers are companies that work with groups and individuals to help them purchase carbon credits.

The way it works is a business will buy credits from another business that has already offset its emissions (for example, through reforestation). The company then sells those credits to other businesses and collects a fee for each sale.

The process is simple. Once a business finds an opportunity to offset their emissions by buying carbon credits from another business (or purchasing them directly from the government),2 they simply make an appointment with carbon credit brokers to discuss the purchase and receive instructions on how much money they will need to pay for this process. The cost depends on how many years’ worth of offsetting will be needed – the more years it takes, the more expensive it will be.

There are various scams that claim to invest in helpful projects. The money never goes when you intended it to. Deal with credible brokers that work with reliable projects.

How Do Carbon Credit Brokers Earn Money?

Carbon credit brokers earn money by buying carbon credits. They can be used to offset greenhouse gas emissions,3 which significantly cause global warming. However, carbon credit brokers can also be a scam.

If the company that sells you your credits isn’t legitimate, you could lose thousands of dollars without realizing it.

How Do Carbon Trading Companies Work?

Carbon credit trading companies work by offering credits that can be purchased, sold, or traded as part of a carbon offset program. These credits are issued for reducing greenhouse gas emissions from carbon-based products’ production, use, or disposal.

The credits offset your emissions, reducing the atmosphere’s greenhouse gases. The buyer receives these credits and uses them to reduce their emissions.

Carbon trading has been a relatively successful way to reduce greenhouse gas emissions,5 but it’s not without problems.

As you might expect, carbon trading can be expensive, and there’s a lot of uncertainty surrounding the future prices of different types of carbon credits. This makes it difficult for businesses to plan and invest in their operations based on what they think they’ll be able to sell their carbon credits for in the future. Instead, they have to wait until they know exactly what they’ll get paid before making any decisions about expanding or reducing their operations.

The good news is that there are ways around this problem. For example, some countries have implemented programs allowing companies to offset emissions with renewable energy sources such as wind farms or solar panels instead of buying permits from overseas companies.

How Do You Define a Carbon Commodity and What Is Its Relevance?

Carbon commodities are any products that can be traded to offset carbon emissions. This can include things like carbon credits, which are given to businesses or individuals who reduce their emissions, and carbon offsets, which are paid by businesses or individuals to offset their emissions.

The goal of carbon trading is to encourage businesses and individuals to reduce their emissions by making it financially beneficial to do so. Carbon commodities are a key part of this system, as they provide the incentive for businesses and individuals to reduce their emissions. While some argue that carbon trading is ineffective, it is an important tool in the fight against climate change.

How To Become a Carbon Credit Broker

A carbon credit broker helps companies meet their carbon footprint reduction goals by selling them carbon commodity credits. These credits are typically based on reducing greenhouse gas emissions, such as carbon dioxide and methane.

A company that wants to reduce its use of fossil fuels will pay a carbon credit broker to purchase these credits from another company that has already reduced its emissions by selling them. The business selling the carbon credits will be able to keep more profits and avoid paying taxes.

Becoming an accredited carbon credit broker can be a long, complicated process; however, it’s not impossible. The first step is registering with the United Nations Framework Convention on Climate Change (UNFCCC). This step is handled by the UNFCCC, which requires you to submit a sample project proposal and pay a small fee.

Arc entrance for the UN Climate Change Conference (COP27) in Egypt with the sky in the background.

(Image: Matthew TenBruggencate6)

After submitting your application, you’ll need to wait for approval before you’re ready to begin selling carbon credits.

Once approved as a registered carbon credit broker, your next step is to decide what kind of projects will be best for your business model. That means deciding how much time and money you want to invest in each project, what types of projects are most likely to succeed, and whether or not it makes sense for your company to specialize in certain kinds of projects (like renewable energy). It also means making sure that if there are any new regulations about selling carbon credits that affect your business, then you’ll be ready for them.

Finally, it means being aware of how many different kinds of projects there are to make sure that once you start selling credits, there isn’t anything you missed!

Where To Sell Carbon Credits

Selling your carbon credits is a great way to create a steady income stream. It’s also an intelligent way to diversify your portfolio, providing you with a source of income that can be used in many different ways.

If you want to sell your carbon credits, the first step is to find out where you can sell them. There are many ways to do this:

  • Talk with local businesses about selling carbon credits. If they’re willing to pay you, then, by all means, go for it!
  • Check out online marketplaces. These places provide an easy way for businesses and individuals alike to sell or buy their carbon credits online.
  • Search through online forums or groups explicitly dedicated to this topic. You’ll often find people willing to help each other out by posting information about specific places where they’ve found success selling their credits or just talking about how much money they made on their carbon credits!

Which Are the Best Carbon Trading Companies?

AirCarbon Exchange (ACX)Digital exchange platform created especially for airlines
Carbon Trade Exchange (CTX)Global carbon market trader
Toucan ProtocolInfrastructure developer for carbon markets
XpansivTrade data-driven, ESG-inclusive commodities

What Are the Benefits of Carbon Credit Trading?

First, it is a way to reduce your carbon footprint in a cost-effective way. Trading allows you to offset your emissions by purchasing carbon credits from other companies that have reduced or eliminated their emissions. You can use these credits to offset the emissions from your own business or home.

Second, it is an opportunity to support projects that address climate change by reducing greenhouse gas emissions. These projects include reforestation and forest conservation, energy efficiency retrofits for buildings, renewable energy projects such as wind farms and solar panels, methane capture projects, and more.

Aerial photo of skyscrapers and buildings in a city with lights switched on at night.

(Image: Andrea Piacquadio7)

Third, carbon credit trading gives businesses access to new markets where they might not otherwise be able to participate due to regulatory constraints. For example, many countries have stringent regulations on how much of a company’s total emissions can come from international sources like shipping or aviation.

But if your company trades in carbon credits instead of directly reducing its emissions (through measures such as efficiency improvements), then you may be able to avoid these restrictions altogether!

What Is the Current Carbon Credit Market Trend?

The carbon credit market is expected to reach US$ 2,407.8 Bn by 2027 at a CAGR of 30.7%. This has been the case since the beginning of 2019. The market has been growing steadily since then.

The reason for this consistent growth is a need for low-carbon projects supporting sustainable development. This demand has led to an increase in demand for green credits and a decrease in supply as more countries move towards carbon neutrality or zero emissions from their energy grids.

Are Carbon Credits for Individuals the Same as Industrial Carbon Credits?

Carbon credits are often confused with industrial carbon credits. Governments issue carbon credits to individuals or companies that contribute to reducing greenhouse gas emissions.1 Carbon credits can be bought and sold on the market, similar to industrial carbon credits.

The government gives industrial carbon credits to companies that have reduced their emissions below a certain level. For example, if an oil refinery reduces its emissions by 50%, it will receive an industrial carbon credit worth $50.

This is different from carbon credits because it’s not given out by a government; it’s given out by the company itself.

What Affects the Price of Carbon Credits Stock?

The price of carbon credits stocks depends on several factors, including the cost of producing and distributing the product, its effectiveness at reducing CO2 emissions, and what kind of market it has for trading.

The price of carbon credits stock depends on the cost of producing and distributing the product, which is affected by what kind of equipment is used to produce it. Producers with access to more efficient processes can reduce costs while still providing high-quality products.

Who Are Carbon Offset Retailers?

Carbon offset retailers are companies that buy and sell offsets to their customers. They often offer carbon credits, but they also offer other types of climate-change mitigation, such as renewable energy credits.

How To Sell Carbon Credits (How To Buy and Sell Carbon Credits)

Selling carbon credits is a great way to do your part in reducing the impact of greenhouse gases. It’s also a great way to get paid for the damage you’ve done, so you can start buying a new car or replacing your roof.

There are several ways to sell carbon credits, but the most common way is through carbon credit brokers. You can also sell your credits yourself, but it will take more time and effort than making an appointment with a broker.

The amount of carbon you get for each offset is determined by how much greenhouse gas you emit that year and what sort of emissions you’re trying to mitigate. If you emit less than 100 tons of CO2, you can get a one-ton offset; if you emit more than 100 tons, you get two tons.

What Is the Average Carbon Broker Salary?

The average carbon broker salary is about $130,000 annually. The Bureau of Labor Statistics (BLS) reported that the median annual wage for registered brokers was $102,140 in 2012. This figure is based on a survey of about 900 employees in the field, including those who held positions such as accountants, engineers, and biologists.

The BLS also reported that the typical worker earned $62,940 annually in 2012 – or about $29 per hour.

What Is the Current Carbon Credit Market Price?

The current carbon credit market price is 3.37 USD per mt CO2e. Two main factors affect this price: the price of CO2 emissions reductions and the price of credits (looking at a carbon credit price chart can help). The former is based on what it costs to reduce greenhouse gas emissions, while the latter is based on how much money people are willing to pay for those reductions.

The cost of reducing greenhouse gas emissions depends on many things, including how much money an organization has available for these efforts, whether it’s a public or private entity, and whether it’s willing to spend that money in exchange for an allowance or a credit.

The main factor affecting the cost of credits is how high demand is for them. In other words, if there’s a lot of interest in purchasing a credit, its value will increase (and vice versa).

What Are the Benefits of Carbon Credit Exchange?

Carbon credit exchange is a way to reduce greenhouse gas emissions. Through carbon credit exchange, companies can offset their emissions by purchasing credits from other companies that have reduced them.

The company that issues the certificate for the offsetting activity receives monetary payment for each ton of greenhouse gas emissions reduced through its activities and sells these certificates on the market. The buyer of the certificate can use it to offset their emissions or reinvest in other projects that reduce those same greenhouse gases. The buyer can also resell excess credits to other buyers needing them.

Carbon credit exchange is a win-win solution: it helps businesses reduce their carbon footprint while providing a valuable source of revenue for them and other businesses involved in reducing greenhouse gas emissions.

How Can a Farmer Sell Carbon Credits?

To determine how many carbon credits a farmer can sell, you first need to determine how many credits each farm produces. This would, in turn, determine how much money the farmer would get.

Seedlings growing in a small glass container with coins on top of a marbled counter top.

(Image: Micheile Henderson8)

Farmers can then contact agencies or individual buyers and sell their carbon credits. Farmers should, however, be aware of the marketplaces and how they function before beginning the trading process.

How To Trade Carbon Credits

Carbon credits are the most effective way to reduce your carbon footprint, but they can be challenging to understand and use. To help you get started, here’s the guide on how to trade carbon credits.

There are two types of carbon offsetting: emission reduction and deforestation.

Emission reduction offsets are designed for activities like installing solar panels or buying a hybrid vehicle. They’re the easiest offsetting type because they don’t require you to do anything extra.

Deforestation offsets require you to plant trees in areas where they’re not native, which helps protect endangered species and preserve natural resources by stopping deforestation.

The first step in trading carbon credits is registering with an exchange. Several exchanges are available but are generally limited to large companies and government entities.

You’ll also need a bank account supporting carbon credit trading. The exchange will then provide you with a list of accredited financial institutions that can handle your transactions. You’ll usually have to pay a fee for this service and any other fees associated with the exchange.

Once you’ve registered with an exchange, you can trade your credits for other goods or services like carbon offsets or natural gas credits. This can help offset the cost of your purchase or reduce your carbon footprint by buying something else instead of fossil fuels.

Does Selling Carbon Credits Trees Make a Difference?

Selling carbon credits trees is a great way to help the environment, but does it make a difference? Selling carbon offset tree planting isn’t as simple as it sounds.

Many different types of trees can be sold for carbon credit purposes, each with its characteristics that must be considered when deciding whether or not they’re suitable to sell.

How To Deal With Air Carbon Exchange

Air Carbon Exchange (ACX) helps convert an economy into a carbon-negative economy. It trades high-quality, well-governed, transparent, and better-priced offsets. The ACX Exchange brings the best of both worlds to traders by offering an efficient and transparent trading platform with low fees.

It is already one of the world’s most trusted exchanges in just three years! ACX’s new hybrid exchange offers an efficient, transparent trading platform with low fees and no delays. With the speed of blockchain technology for settlement as well!

How To Find the Best Carbon Credit Trading Platform

Carbon credit trading is a way to buy and sell credits that represent pollution reductions. Carbon credit trading platforms allow you to buy and sell these credits, which are created by projects that reduce carbon emissions. There are many different carbon credit trading platforms, but they all have one thing in common: they help you make money while helping the environment!

The first step in finding the best carbon trading companies is figuring out what kind of projects you want to invest in. For example, if you want to invest in renewable energy projects, it might be better for your wallet if you go with a green power provider rather than an oil company or coal industry.

Online brokerages are a great place to start if you’re looking for a way to get into the world of carbon credit investing without having to wade through all the details yourself. These carbon trading companies offer access to different kinds of investment vehicles, including ETFs (exchange-traded funds), ETNs (exchange-traded notes), and bonds. You can also choose between various hedging strategies like short selling or covered calls, depending on the investor you are and how much risk tolerance is involved.

How To Invest in Carbon Credits

Investing in carbon credits can be one of the best ways to help reduce your carbon footprint and contribute to the fight against climate change. Carbon credits are essential to the global effort to lower greenhouse gas emissions, and some countries have invested heavily in creating policies around them. By investing in carbon credits, you can help ensure that your money goes towards projects that are helping to reduce pollution.

Wide photo showing numerous wind mills with little greenery in the middle of a desert with some silhouette of the mountain.

(Image: Ricky Esquivel9)

It is essential to understand the market if you want to invest in carbon credits. There are many carbon credit trading types, ranging from simple, everyday transactions to complex derivatives. Understanding the market will help you choose the type of transaction that is right for your situation.

When investing in carbon credits, it is crucial to understand the market and how the prices of different types of credits change over time. These changes can impact how much money you’ll make or lose when investing in carbon credits.

There are multiple ways to trade carbon offsets, including open-outcry auctions and private transactions between brokers. Open-outcry auctions are typically used by large companies and organizations who want to purchase large amounts of offsets at once; however, they tend to be less transparent than private transactions between brokers (who may charge higher fees).

Knowing how carbon credit brokers operate within the carbon credit trading market can help you better invest in green solutions for the planet.

Information is not intended as actual financial advice but for entertainment purposes only. All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice.

Frequently Asked Questions About Carbon Credit Brokers

Does the Carbon Credit Price Chart Change Daily?

Yes, the carbon credit price chart changes daily. You can see this by looking at the chart for each day and seeing if there’s a new price for that day. If there is, you know that a new set of credits has been issued and accepted by the market.

What Is the Potential Carbon Credit Market Growth?

The potential carbon credit market growth is expected to be significant. The U.S. has taken the lead in developing and implementing a carbon credit system, but other countries have followed suit.4 The global demand for carbon credits is expected to grow significantly over the next decade due to the efforts of many governments and private organizations worldwide to develop similar systems.


1Crown. (2014, July 30). High Court orders carbon credit brokers Carbon Green Capital LLP and Agora Capital Ltd Into Provisional Liquidation. Retrieved August 16, 2022, from <>

2EPA. (2022, February 17). Emissions Trading Resources. EPA United States Environmental Protection. Retrieved August 16, 2022, from <>

3Mendelsohn, R. O., Litan, R. E., & Fleming, J. (2021, September 16). A framework to Ensure That Voluntary Carbon Markets Will Truly Help Combat Climate Change. Brookings. Retrieved August 16, 2022, from <>

4United States Government. (2020, January 1). Multi-Agents-Based Modeling and Simulation for Carbon Permits Trading in China: A Regional Development Perspective. National Library of Medicine. Retrieved August 16, 2022, from <>

5Virginia DEQ. (2022). Carbon Trading. DEQ Virginia Department of Environmental Quality. Retrieved August 16, 2022, from <>

6Matthew TenBruggencate. Unsplash. Retrieved from <>

7Andrea Piacquadio. Pexels. Retrieved from <>

8Micheile Henderson. Unsplash. Retrieved from <>

9Ricky Esquivel. Pexels. Retrieved from <>