How to Invest in Carbon Credits: Avoid Major Scandal of 2023 CCS

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

Carbon Offsets Credits | March 31, 2023

Man and woman standing in front of a tree looking at a large book on the left that explains how to invest in carbon credits.

Many people wonder how to invest in carbon credits. These type of green investment strategies are increasing in popularity because of the carbon credit price prediction models showing steady gains.

But, before you choose a carbon credit investment, understanding how to avoid the recent scandal is crucial.

You’ve come to the right place if you want to learn how to invest in carbon credits.1 This guide outlines carbon credits investment opportunities, the risks of carbon credit investing, and which carbon credit investment funds focus on carbon credit stocks ad removal programs.

It also explains ESG scores and how they impact your investment.

The Carbon Capture Storage (CCS) scandal has cast a shadow over the development of carbon credit investments and the future of these investments.6

As to environmental advocacy organizations, an Indian company has misled various communities from Congo and convinced them to give up their rights to sell the carbon credits they earned from reforestation, restoration, or even to avoid deforestation of their local forests.

These REDD programs do little to nothing to actually remove carbon emissions, and since the time frames are lengthy for results, afforestation projects can be very risky.

What can you do to avoid such scams? Do you know if your money is going into the right hands?

This is a major concern for investors in carbon credits because it shows how much risk there is in their investment, so avoid projects that claim to avoid deforestation but do not offset carbon. These projects stake their claims on already existing forests that are never threatened and do not do much on their own.

Look for projects that have a reputation of ACTUALLY saving the rainforests.

Why Is Investing in Carbon Credits Important?

The world is quickly approaching a point where it can no longer afford to ignore the need for action on climate change. The last few years have seen record-breaking temperatures, with the 20th century being the warmest in human history. Sea levels have risen rapidly, and ice caps are melting at an unprecedented rate.

A wide photo of a huge glacier with a small boat beside it.

(Image: Sarah N7)

There’s even less certainty about what will happen as global temperatures continue to rise – but one thing is certain: if we don’t change our ways, we’ll be in for some difficult times ahead.

That’s why investing in carbon credits is so important. These credits represent real reductions in emissions that have already happened rather than estimates for future reductions that may or may not happen. By investing in these credits, you’re supporting projects and businesses already doing their part to reduce carbon emissions and help keep us from reaching the tipping point of no return.

How To Go About Carbon Credits Investment

Carbon credits are a powerful way to invest in the environment, but they can be tricky to navigate. To make sure your carbon credits investment is as green as possible, consider these tips:

  • Do your research. Find out what types of companies have been awarded carbon credits and how they’re doing it. The more information you have, the better prepared you’ll be to choose a company committed to environmental sustainability.
  • Be transparent with your investment partner(s). It’s important to share information about what kind of projects you want your investments to support and ensure everyone involved knows exactly what needs to happen before the project is completed. The more transparent you are with your partner(s), the more likely it will be that both parties will be satisfied with the process once it’s done.
  • Don’t wait too long! Once a project has been approved by its governing body, it becomes more difficult for companies who want to sell their credits than those who don’t – so if you want in on this trend, now might be a good time!

How To Be Careful When Indulging in Carbon Credit Investing

Carbon credits are a way for companies or individuals who want to help the environment to purchase credits that can be used by other companies or individuals who want their environmental projects to go through. These projects could include things like planting trees or cleaning up landfills.

The goal is to prevent greenhouse gases from entering the atmosphere, which would contribute to global warming.

Carbon credit investing is not without its risks. The first risk comes from fraud: some companies will sell fake carbon credits for real ones, meaning that you could lose money if you place an order for fake carbon credits and receive real ones instead. There are also risks associated with investing in projects that have not been completed yet.

Researching and learning if a company has financial insurance is one of the ways how to be careful when indulging in carbon credit investing.

(Image: Vlad Deep11)

You may be investing in something that hasn’t hit its target yet. There are several things you need to know before investing in a carbon credit program.

  • First, make sure the company you’re investing with is trustworthy. Look for a company that has been around for a long time and one that has been in business for at least five years. You can also ask other customers whether they have had positive experiences with the company. This will give you an indication of how well they hold up under scrutiny.
  • Second, ensure there’s sufficient money in your account to cover potential losses. This should be covered by insurance policies provided by the company offering the credits. If there isn’t enough money set aside for potential losses, you could get into trouble with your investment company or, even worse…lose everything!
  • Third, consider how much carbon credit credits cost per tonne of carbon dioxide emissions reduction (CO2). The price can vary depending on how much CO2 is being reduced by each project/company and where that project is located.

What Are Carbon Credit Investment Funds Used For?

Carbon credit funds invest in projects that generate greenhouse gas reductions by offsetting emissions with tree planting, renewable energy installations, and other methods.

These projects then sell the resulting emissions credits to other companies that want to reduce their emissions.5

Aerial photo of sollar panels in the middle of a wide, green field

(Image: Raphael Cruz8)

The potential benefits of carbon credit investment funds include:

  • Reducing your carbon footprint
  • Improving your local environment by planting trees or installing solar panels
  • Helping others reduce their carbon footprints by investing in their projects

What Is an ESG Score?

An environmental, social, and governance (ESG) score indicates how a company’s business practices affect ESG issues. The ESG score is calculated by considering both positive and negative impacts on the environment and society. A result is a number between 0 and 100, with higher numbers indicating better practices.

These metrics include:

  • The company’s energy consumption and carbon emissions.
  • The amount of waste the company generates.
  • The number of water sources that the company has polluted.
  • The number of people who have been exposed to harmful pollutants while working at the company (exposure can come from pollution or unsafe working conditions).
  • The number of endangered species killed by the company.

How To Invest in Carbon Credits ETF

Carbon credits are one of the most popular investments for environmental activists and investors. These certificates are issued by governments, companies, or other institutions committed to reducing their carbon footprint. The idea is that these organizations will be able to produce goods or services that emit less carbon dioxide (CO2) than they did previously, thereby reducing global warming and mitigating the effects of climate change.

Carbon Credits ETFs can be used to gain exposure to this asset class without taking on significant risk by investing directly in individual companies in this industry. The first step to investing in carbon credits ETFs is determining what you want to accomplish. Do you want to help the environment? Do you want an investment vehicle that will provide steady returns without worrying about the fluctuating price of fossil fuels?

Once you have determined your goals, look at the different types of funds available. There are three main categories: physical (oil), financial (stocks), and hybrid funds, which combine physical and financial investments.

A platform in the middle of the ocean showing cranes and other equipment needed for oil rigging.

(Image: Jan-Rune Smenes Reite12)

Physical funds invest in oil or natural gas, which can be converted into carbon credits later when refined into products such as gasoline or heating oil. Financial funds invest in stocks that are traded on exchanges around the world, and these funds can be converted into carbon credits through their dividends or share purchases.

Hybrid funds combine both physical and financial resources into one fund. They can be used by simply changing how much money goes into your account each month or quarter.

Are Carbon Credit Investment Funds Trustworthy?

The investment funds focusing on carbon credit investments were created to meet the needs of investors who want to protect the environment and have a high return on their money. The funds are run by private companies, which means any government agency doesn’t regulate them.

They’re also not overseen by any regulatory body.

Close up photo of a small two-leafed plant planted in a small glass full of bronze coins.

(Image: micheile henderson9)

As with any investment fund, these funds can go bust or fail to deliver on their promises – but we’ve done our research, and we think that’s unlikely with these particular funds. We’ve found that most of them offer relatively low returns on investment compared to other types of investments available in the market today, but they have excellent track records when it comes to environmental protection and conservation efforts around the world.

If you’re looking for a way to give back while still getting a good return on your money, then carbon credit investment funds might be right for you!

Are Carbon Credits a Good Investment?

Carbon credits are a good investment if you want to lower your carbon footprint and help the environment. Carbon credits are financial instruments that allow companies to offset their emissions by buying carbon offsets. The more emissions you produce, the higher the price of your carbon offset will be. Carbon credits can be bought and sold on an open market, making them an attractive option for investors who want to make money from their environmental impact.

If you’re interested in investing in carbon credits, there are several things you should keep in mind:

  • The markets for carbon credits are volatile and can change quickly.
  • There is no guarantee that you will earn any money from investments in carbon credits.
  • Carbon credits don’t necessarily reduce your ecological impact; they only compensate for one kind of impact (carbon dioxide) at a time.

How To Invest in Carbon Credits: UK Strategies

Investing in carbon credits is a great way to support the environment and can be done without leaving your home. Here’s how:

First, ensure you have access to a broker or exchange that deals in carbon credit certificates. This could be a stock market index, such as an ETF (Exchange-Traded Fund), or an exchange where you can buy these certificates directly.

Next, put together a portfolio of carbon credits you want to invest in. You can do this by scanning through various sites and looking at their list of available projects in which you could invest.

Finally, once you’ve found a project that interests you, buy the necessary certificates and sell them once they have reached maturity.

What Is the Carbon Neutral Royalty Stock Price?

The Carbon Neutral Royalty Stock Price is the average price a carbon-neutral energy producer is paid for their CO2 emissions. The stock price is based on how much money a company makes from selling its CO2 emissions and how much they pay to use CO2 emissions as fuel or feedstock.

A company that sells its CO2 emissions at a high price will have a high stock price because they’re paying a lot of money for the right to use its CO2 emissions as fuel or feedstock.

A company that sells its CO2 emissions at a low price will have a low stock price because they’re selling off something with very little value.

What Are Publicly Traded Carbon Offset Companies?

Publicly traded carbon offset companies have a set of policies and procedures to reduce the amount of CO2 emissions from their operations. The public nature of these companies means that they must disclose information about their emissions reduction activities to investors, preventing them from hiding the true impact of their operations on the environment.

It’s also possible for investors to hold shares in publicly traded carbon offset companies, which means they can participate in profits earned by reducing emissions and share losses when they occur.


KraneShares Global Carbon Strategy (KRBN) ETF offers various carbon allowances. It does so by tracking the most traded contracts of carbon credit futures.

Is KRBN a Good Investment?

KRBN is a good investment for many reasons. First, it’s an ETF that has been among the top ten since its inception. This is mainly due to its inflows. KRBN has also been trading at its NAV since launch day and has had no trading halts or other interruptions.3

What Is the KRBN Stock Forecast 2025?


What Precautions Should You Take When Investing in Carbon Credit Fund?

When you invest in carbon credit funds, it’s important to keep a few things in mind. Firstly, there are strict requirements for what constitutes a carbon credit. For example, if your investment is made through a fund and you want the money back when it matures, it must be returned in the form of credits that can be used to offset greenhouse gas emissions.

Secondly, when investing in a carbon credit fund, you must do so with a long-term plan in mind. Carbon credits take time to earn, and they’re not always easy to get hold of – even if they’re worth more than their face value. Therefore, don’t make rash decisions or investments based on short-term market fluctuations.2 Instead, invest with an eye toward long-term growth potential and diversification. This will help ensure your investment remains stable over time.

Finally, remember that many different kinds of carbon credit funds are available on the market today. Make sure you choose one that suits your specific needs by considering factors like legal requirements (such as minimum holding periods), investment strategies (such as risk management strategies), and tax implications (such as tax treatments).

Are Carbon Funds Worth Investing In?

In addition to tree planting carbon offset programs like Fashion Forward Hero Carbon Offset, yes, carbon funds are worth investing in especially when they are done correctly. Carbon funds are investments in companies that reduce their carbon footprint. These funds are used to support companies that are reducing their emissions by investing in them.

Carbon funds can be used for any investment, from stocks to real estate and everything in between.

Top view photo of a laptop with a phone and chart showing the common trading patterns in reversal, breakout and range.

(Image: Leeloo Thefirst10)

Carbon Funds have been around for a long time, but they have only recently been making waves in the investment world. They have become very popular because of their ability to help investors reduce their carbon footprint while also providing them with great returns on their money.

Carbon Funds can be very beneficial for anyone looking for an easy way to invest without worrying about other investments going bad or losing money due to market fluctuations. They are also great for people who want higher returns on their investments while still helping protect the future by decreasing global warming emissions and pollution levels within cities and communities.

Fortunately, carbon credit funds do offer the promise of environmental protection through an active, transparent financial market. If a company fails or cannot prove its successful efforts, the fund will suffer. In fact, many existing funds have been required to divest their holdings several years after initial purchase when they failed to conduct sound projects or maintain the integrity of their monitoring systems. Savvy investors are aware of this potential risk. They can use it to their advantage by supporting only established, legitimate trading pathways to offset carbon usage and achieve their personal and environmental goals.4

Knowing how to invest in carbon credits while avoiding recent scandals can help you diversify your portfolio and help the planet at the same time.


1Aiken, J. D. (2021, April 21). Ag Carbon Credits. N Agricultural Economics. Retrieved August 5, 2022, from <>

2U.S. Department of Agriculture. (2022). Carbon. USDA. Retrieved August 5, 2022, from <>

3U.S. EPA. (2022, February 17). Emissions Trading Resources. EPA United States Environmental Protection Agency. Retrieved August 5, 2022, from <>

4Wikipedia. (2022, June 15). Personal Carbon Credits. Wikipedia The Free Encyclopedia. Retrieved August 5, 2022, from <>

5Wikipedia. (2022, July 21). Emissions Trading. Wikipedia The Free Encyclopedia. Retrieved August 5, 2022, from <>

6Mongabay. (n.d.). Retrieved August 5, 2022, from <>

7Photo by Sarah N. Pixabay. Retrieved from <>

8Photo by Raphael Cruz. Unsplash. Retrieved from <>

9Photo by micheile henderson. Unsplash. Retrieved from <>

10Photo by Leeloo Thefirst. Pexels. Retrieved from <>

11Photo by Vlad Deep. Unsplash. Retrieved from <>

12Photo by Jan-Rune Smenes Reite. Pexels. Retrieved from <>