How much does a carbon credit cost?
This seems like a pretty straightforward question, but the answer isn’t quite so simple.
Carbon credit prices can vary significantly, from $5 per carbon credit all the way up to $500. This is for a few reasons:
For a more detailed discussion of all these factors, head to our article: why does cost vary so much in carbon offsetting?
But what does all this mean for businesses looking at buying carbon credits – how do you budget for carbon offsetting when the cost of carbon credits varies so much?
The main thing to remember when considering the cost of carbon credits is that you should never opt for the cheapest offsets.
Cheap carbon credits = low quality = little or no real-world climate impact made.
But, of course, even if you’re choosing only from high-quality carbon projects there’s still variance in the cost of carbon credits – because of the costs of different types of projects we highlighted above.
So, a couple of approaches that may be helpful when factoring carbon credit pricing into budgets: