Risk is one of the most complicated but important considerations buyers must make when navigating the voluntary carbon market (VCM).

CEEZER’s Chief Impact Officer Dr. Carla Woydt spoke with Margaret Morales, Director of Carbon at Trellis Group, to discuss carbon credit risk, including:

• The three biggest risks facing carbon credit buyers
• Project- and credit-specific risk
• Considerations beyond risk that must be taken into account
• How carbon credit risk, particularly supply risk, will likely evolve over time

Finally, Carla discusses the best tools to mitigate risks, including:

1. Drafting a long-term purchasing strategy, informed by clear data points material to the specific strategy.
2.  Selecting different mitigation strategies to prepare for future shortages.
   1. Long-term offtake agreements today to secure both supply they need for their net-zero year and the best prices
   2. Spot purchases for credit and project types that may run into quality risks further down the line and be too risky for long-term offtakes.

The truth is this: Better data leads to better decisions. Buyers should always do as much research as possible across the different risks associated with carbon credits to ensure they’re making the most informed purchasing decisions possible. 

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If you’d like to dive deep into the topic of carbon credit risk, feel free to check out our recent whitepaper on the topic or reach out to us. We’d be happy to chat.

To learn more about CEEZER and how we can support your net-zero plans, schedule a demo today.