Who actually makes money from carbon credits?
A carbon credit is sold.
But who actually gets paid?
Behind every carbon credit is a value chain involving multiple participants.
Here’s who earns from it:
1. Project developers – Design and manage projects, earning development fees or a share of credit sales.
2. Investors – Provide project funding and may earn returns from future revenue.
3. Landowners – Receive payments for making land available for activities such as reforestation and conservation.
4. Local communities – May benefit through revenue sharing, employment and development initiatives.
5. Brokers – Connect buyers and sellers, earning commissions or trading margins.
6. Registries and verification bodies – Earn fees for registration, tracking and verification services.
7. Buyers – Purchase credits to support their carbon strategies and climate commitments.
But here’s what matters:
The selling price of a carbon credit is not necessarily what reaches the people creating the climate impact.
Costs, financing arrangements and intermediary margins influence how the revenue is distributed.
A successful carbon market should not just generate credits.
It should ensure meaningful economic value reaches the projects and communities behind them.
