During our recent 2025 Carbon Market Recap: Data-Backed Insights webinar, we received a wide range of thoughtful questions from participants. To continue the discussion and provide further clarity on some of the key topics raised, we’ve summarized the audience Q&A below.
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Why are credits with no LoA considered part of the CORSIA supply?
Credits without an LoA can still be relevant to future supply because some countries are committed to developing corresponding adjustment mechanisms in the coming years. An LoA is an initial signal of intent to transfer credits internationally, but corresponding adjustments are the key step for robust accounting. In short: LoAs are an early step, and corresponding adjustments are the necessary next step for eligibility.
Daniel Blum, Carbon Policy Analyst
Do we see any trends in credit turnover rates (issuance to retirement), and what proportion of turnover appears to be swaps?
Turnover rates vary significantly by registry and sector. Some registries see issuance happen only when there is already a known buyer and expected retirement, while others issue more independently, this affects turnover. Newer registries (such as Isometric) have tended to show shorter turnover rates, while others (such as ACR) can be longer.
Maria Orsola Benzoni, Data Lead
Why is Microsoft buying such a large volume of carbon credits if its emissions are lower, and standards typically limit offsetting?
Microsoft’s Scope 1 and 2 emissions are relatively low, but its Scope 3 emissions are rising and may continue to increase as the company expands. Beyond that, Microsoft may be acting as an early mover to help scale removals markets, supporting developer scale-up and potential future price reductions, given the need for significant removals by 2050. Another potential driver is Microsoft’s aim to address its historical emissions over time.
Pranav Balaji, CDR Analyst
Why assume data center growth will drive increased carbon credit use if most emissions are Scope 2, and wouldn’t we see more EAC usage instead? Also, why did Scope 2 credit use decline in 2025?
One suspected reason for the decline in Scope 2 carbon credit use is that Scope 2 emissions have been falling across many sectors and countries, as more companies use renewable energy certificates, PPAs, and direct renewable grid supply, leading some to report zero Scope 2 emissions, reducing the need to cover those emissions with carbon credits.
On data centers: we expect a major rise in EAC usage, but it’s not yet clear how that will balance against carbon credit use. Grid supply may not scale fast enough to meet growing electricity demand from large data centers, while energy infrastructure can take decades to expand. There are also emerging requirements (e.g., attribute matching proposals for EACs) that may be difficult for the EAC market to deliver at scale, meaning carbon credits may be used to supplement emissions accounting.
Tiffany Cheung, Corporate Engagement Lead
What role do project ratings play today? Are any providers preferred? Do strong ratings help unlock transactions?
Ratings agencies still play an important role, but there is increasing movement away from project-by-project ratings toward broader, standardized quality signals such as CCP labelling and compliance eligibility (including CORSIA eligibility). This shift suggests the market is moving toward more standardization and “levelized” metrics, which can support liquidity.
Maria Orsola Benzoni, Data Lead
From a corporate perspective, what is the practical difference between buying lower-priced credits versus higher-priced credits if emissions are offset in both cases?
It depends on the company’s values and the impact it wants to achieve. Functionally, above certain vintages there can be confidence that projects deliver a ton per credit, so lower-priced credits may deliver similar climate impact at lower cost. Higher-priced credits are often associated with additional co-benefits and may carry quality signals such as CCP labelling. Another consideration is whether buying lower-priced credits enables purchasing larger volumes and covering a greater share of a footprint. In practice, confidence can vary across projects, which is why ratings and quality signals still matter.
Tiffany Cheung, Corporate Engagement Lead
How do you see the future supply-demand balance for ITMOs in compliance markets such as Japan and Singapore? Will there be an ITMO shortage, and can non-correspondingly adjusted voluntary credits fill the gap?
Supply for ITMOs (and Article 6-aligned credits more broadly) is tight, while demand is expected to rise. Ultimately, supply will depend on host countries and whether they can align their accounting systems with the Paris Agreement to provide corresponding adjustments for exported credits. Progress will likely become clearer over the next two to three years as countries build this infrastructure.
Daniel Blum, Carbon Policy Analyst
If you haven’t already, you can download the 2025 Voluntary Carbon Market Review here.