10 Mistakes sustainability managers make when buying carbon credits (and how to avoid them)

The Voluntary Carbon Market (VCM) isn’t always straightforward. For sustainability managers, the pressure is to meet net-zero targets and secure high-quality projects, all while having to tighten budgets. But the market is complex, and carbon credit purchasing mistakes are easy to make, and costly to fix.

One wrong move can lead to accusations of greenwashing, wasted budget on low-integrity projects, or non-compliance with new regulations like the SBTi.

But it doesn't have to be this way. By understanding the common pitfalls, you can build a portfolio that stands up to scrutiny. In this blog, we’ll uncover the 10 most common mistakes sustainability leaders make and how to ensure your strategy delivers real climate impact.

Mistake 1: Buying cheap carbon credits without checking quality

It is tempting to snap up credits at €3-€5 per tonne to balance the books quickly. However, in the carbon market, the old saying usually holds true: if it seems too good to be true, it probably is.

Extremely low-cost credits often come from older projects with questionable baselines that generate credits without delivering additional climate benefits. Relying on these exposes your company to significant reputational risk.

Budgets are tight, but treating carbon credits solely as a commodity to be bought at the lowest price is a strategic error. When you prioritise price over integrity, you often end up with credits that fail to pass audits or satisfy stakeholder scrutiny.

Instead, shift the focus to high-quality carbon removal credits. These may command a higher price, but they offer the assurance of verified impact, robust methodologies, and legitimate carbon removal.

Mistake 2: Treating carbon offsetting as a box-ticking exercise

It is easy to view carbon credits as a line item to be minimized, a "tax" you pay to claim Net Zero. When you treat carbon credits as a simple box-ticking exercise, you stop looking for real climate outcomes and start looking for the path of least resistance. This leads to a portfolio that might mathematically balance your spreadsheet but fails to deliver high-integrity climate action.

Mistake 3: Ignoring additionality, permanence and carbon accounting

These are technical terms, but ignoring them is dangerous. A high-quality credit must meet strict criteria such as:

• Additionality: Would the carbon removal have happened anyway without the revenue from the credit? If yes, the credit is not "additional."
• Permanence: How long will the carbon stay out of the atmosphere? 
• Leakage: Does planting a forest here simply move farming to the forest next door?

Failing to vet projects for carbon credit additionality, leakage and permanence undermines the validity of your entire offsetting strategy.

Mistake 4: Buying through non-transparent intermediaries and paying hidden mark-ups

Historically, buying credits meant calling a broker or trader. The problem? Carbon credit transparency is often non-existent in this model. You rarely know how much of your money actually goes to the project developer versus how much is swallowed by broker/trader fees and mark-ups.

At Cawa, we believe in direct access. By using a platform rather than a traditional brokers and traders, you get full financial traceability, ensuring your budget funds real climate action, not middleman fees.

Mistake 5: Overlooking regulatory requirements and market standards

The days of the "Wild West" carbon market are ending. New frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD) are setting strict rules on what you can claim.

Ignoring these regulations is a major oversight. You need to ensure your credits are compatible with the reporting standards you are bound by. 

Mistake 6: Treating carbon credits as a substitute for reducing emissions

This is perhaps the most critical mistake. Carbon credits are not a "get out of jail free" card.

According to the Oxford Offsetting Principles, companies must prioritise cutting their own value chain emissions first. Carbon credits should only be used to compensate for residual emissions (emissions you cannot yet eliminate). Using credits to mask a lack of internal reduction efforts is a fast track to greenwashing accusations.

Mistake 7: Failing to retire credits and track retirement

Buying a credit doesn't offset your emissions, retiring it does.

A credit can be traded multiple times, but it can only be "used" (retired) once. An administrative error is purchasing credits but leaving them sitting in a registry account. To claim the carbon credit, you must officially retire the credit and document the retirement certificate to prevent double-counting.

Mistake 8: Neglecting long-term planning and offtake agreements

Many companies buy credits on the "spot market" (buying for immediate delivery) year after year. This exposes you to price volatility and supply shortages.

A better approach is to look at offtake agreements. These are long-term contracts where you agree to buy future credits from a project. This helps you hedge against future price hikes and secures a supply of high-quality credits for years to come.

Mistake 9: Ignoring the difference between removal and avoidance projects

Not all credits are created equal.

• Avoidance credits: prevent carbon from being released (e.g., forest conservation).
• Removal credits: actively suck carbon out of the atmosphere (e.g., Direct Air Capture, Biochar).

As we move closer to net-zero targets, the market is shifting. Reliance solely on avoidance is becoming a voluntary carbon market risk. A robust strategy should transition toward carbon removal vs avoidance over time to align with scientific targets.

Mistake 10: Using manual processes and outdated tools

Managing a complex carbon portfolio using spreadsheets and email threads is a recipe for error. It makes auditing difficult and reporting a nightmare.

Modern sustainability teams use digital platforms to centralize their data, track retirements, and visualize their impact in real-time.

Build a solid carbon credit strategy with Cawa

Avoiding these mistakes requires more than just diligence; it requires the right partner.

Cawa provides the infrastructure for high-integrity climate action. We replace opaque brokerage models with a transparent platform, giving you direct access to vetted projects, automated retirement tracking, and the data you need for compliance.

Ready to upgrade your approach? Speak to a Cawa expert

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FAQs about buying carbon credits

Why shouldn't I buy the cheapest carbon credits available?

Cheap credits often lack "additionality" or come from projects with outdated methodologies. Investing in these can lead to reputational damage if the project is later revealed to be ineffective. It is better to buy fewer, high-quality carbon credits than a large volume of low-quality ones.

How can I tell if a project offers additionality and permanence?

You should look for projects certified by ICROA endorsed registries and check their specific methodology. However, the best way is to use a modern day platform that pre-vets projects on quality aspects of carbon credits like additionality and permanence before they ever reach the marketplace. 

Is it okay to rely on avoidance credits rather than removal credits?

Currently, yes, but the balance is shifting. Best practice (aligned with the SBTi and Oxford Principles) suggests starting with a mix but transitioning your portfolio toward 100% carbon removal credits as you get closer to your net-zero target date. 

Do I need to retire my credits? What happens if I don't?

Yes. Until a credit is retired, it is still a tradable asset and has not been "used" to offset emissions. If you don't retire them, you cannot claim any impact at all, you can especially not claim the credits against your company’s footprint, even if they are high quality removal credits.

How can I secure a reliable supply of high-quality credits for the future?

Don't rely just on the spot market. Engage in offtake agreements to lock in price and supply for the next 3–5 years. This provides certainty for your budget and upfront finance for the project developer.

What tools can streamline carbon credit procurement and reporting?

Move away from spreadsheets. Platforms like Cawa allow you to source, purchase, manage, and report on your carbon credits in one place.

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