Are you a business looking to reduce your carbon footprint and achieve your net-zero goals? Or a landowner or farmer with assets that could be used for carbon offsetting?
It’s a solution that increasing numbers of companies and organisations are using to enhance their green credentials and meet their sustainability targets. Investing in quality-assured carbon credits in environmentally-friendly projects is a way to confidently meet voluntary or legal obligations while actively contributing to climate change mitigation.
The government this year launched plans to strengthen its support of businesses in trading carbon credits as part of its aim to establish the UK as a global hub for green finance.
It says building up trust in carbon and nature markets – estimated to be worth up to $250 billion by 2050 – is crucial to their success in driving meaningful climate action. The government also notes that there have been widespread calls from businesses and organisations for greater clarity in how to use carbon credit trading as part of their plans to reach net-zero.
At CSX, we have helped countless companies to adopt carbon offsetting measures to achieve their targets. Here, our technical supervisor Mark Hopper explains how the process works…
Why would businesses look to introduce carbon offsetting?
When a company wants to reduce its carbon footprint – whether to reach net-zero goals, its own sustainability targets, or meet government regulations – it first tries to cut emissions from within the organisation. It might switch to using more energy efficient processes or reduce the number of lorries on the road, for example, to scale down the carbon footprint of an operation.
Often it will not be possible to completely remove or mitigate all emissions – and offsetting may then become necessary. This is where a business can look externally to buy the carbon benefits of environmental projects run elsewhere, such as tree planting or peatland restoration, to balance out their own emissions.
Renewable energy schemes are now being removed as an acceptable source of carbon credits in many instances. What businesses are doing in relation to renewable energy is installing more of it on their premises, such as solar PV, which reduces their carbon emissions through production of energy within their operations.
They are also beginning to invest in off-site renewable energy projects where the energy coming from that can be deemed to be ‘theirs’, reducing their carbon emissions as the energy they ‘use’ is coming from renewable sources.
Being able to demonstrate a commitment to sustainability is also a way for businesses to enhance their reputation with environmentally conscious consumers. However, companies need to be careful not to succumb to allegations of ‘greenwashing’ by making misleading claims to appear to be more environmentally friendly than they really are.
How does carbon offsetting work?
One of the most common examples of carbon offsetting is tree planting. As trees grow, they sequester carbon dioxide from the atmosphere through photosynthesis and store it as biomass in their trunks, branches and roots.
In this instance we can measure how much carbon is stored as above ground biomass in the trees, translating that information into carbon credits. These can then be sold to companies looking to boost their efforts to meet their net-zero targets, effectively funding the tree planting and carbon storage the trees have provided.
One carbon credit represents one metric ton of carbon dioxide equivalent (CO2e) removed from the atmosphere.
How does CSX work with landowners and farmers to offer carbon offsetting?
We work with landowners and farmers who are planting woodland or restoring their peatland, for example, and are beginning to see, through carbon sales, opportunities for environmental land management to also be financially sustainable.
We carry out a high-resolution drone survey to capture highly-detailed imagery which we use to build a digital twin model and permanent record of the entire project area.
These models are then run through CSX’s AI and machine learning algorithms to identify and measure the trees or peatland. This allows, through using allometric equations, an estimate of the woodland’s above ground biomass, and hence associated carbon credits.
Repeat drone surveys allow us to track the growth of the trees and the volume of carbon sequestered over time, increasing the robustness of the project audit trail.
We present our findings to the landowner or farmer, who can then sell those assets as tradable carbon credits to organisations wanting to offset their emissions.
How do landowners benefit from carbon offsetting?
It’s a great new income stream for landowners as an increasing number of businesses and organisations, including those in the food supply chain, wake up to the necessity of assessing and acting on their carbon footprint.
In the case of peatlands, for example, their main use has in recent history been for livestock grazing or for use as grouse moor. The livestock grazing activities having been encouraged by past government incentivised drainage schemes, which it’s now known lead to degradation of moorlands. By restoring the moor and raising the water table – which we can monitor daily with water table loggers – the large amounts of carbon stored within peatland can be protected, generating an income opportunity for landowners to fund and maintain the peatland restoration works. These revenue returns are becoming more profitable as demand grows for evidence-backed carbon credits and the value of these landscapes is realised.
How do carbon credits fit in with the Corporate Sustainability Reporting Directive?
Businesses using carbon credits as part of their decarbonisation efforts can disclose this as part of the CSRD reporting process, the EU law that requires large and listed companies to provide detailed information on their environmental impact to improve accountability.
Can using carbon credits be controversial?
There has been criticism of companies that rely too heavily on carbon offsets instead of reducing their own emissions or by using projects that don’t deliver what they claim to be -known as ‘greenwashing’. It can be difficult for some to prove their claims are genuine if the relevant data and audit trail hasn’t been produced.
At CSX, we produce a complete audit trail of recorded data and evidence, clearly setting out our processes to allow for full transparency and demonstrating our integrity – clients can trust our carbon credit reports.
In recognition of past concerns about the integrity of carbon credits, the British government funded the British Standards Institute to create the world’s first genuine quality assurance standards for nature-based carbon credits.
From this process, the BSI launched Flex 701 earlier in 2025, covering the overarching principles of credits from nature-based solutions. BSI Flex 703 covering carbon is due for final release early in 2026. This will significantly raise the integrity bar for nature-based carbon credits, for the first time introducing specific and relevant quality assurance to the process.
Why work with CSX on carbon credit strategies?
Partnering with a trusted carbon offsetting company like CSX that pioneers a scientific approach can help to ensure your strategy is credible and impactful.
We have wide-ranging experience of dealing with carbon credits – and have even partnered with a major company to ensure a decarbonisation event it organised was itself carbon neutral.
CSX partnered with global infrastructure consulting firm AtkinsRéalis to calculate the carbon footprint of the event, a gathering of industry leaders and sustainability advocates to discuss pathways to meet the UK’s net-zero targets.
After factoring in energy use, catering and travel to and from the event in Leeds, we were able to provide a 0.15 tCO2e carbon offset. Our donation of woodland carbon was possible because of our work on the Haithwaite project on the Barningham Estate in North Yorkshire.
The woodland, comprising over 25,000 trees and spanning 22 hectares, serves as a vital link between neighbouring woodlands, supporting biodiversity and enhancing the regional ecosystem. The innovative technologies we use in our carbon monitoring of the woodland ensures the accuracy and integrity of its offsets.
Call our experts today
A growing number of consumers expect businesses to take sustainability seriously. By engaging with CSX, firms can attract a new environmentally conscious audience and enhance their commitment to net zero.
Call our team today to find out how we can help your carbon credit strategy, by either calling 01609 786655, emailing us at contact@csxcarbon.com, or visiting our contact page.
Keen to know more? Discover the 8 top ways businesses can benefit from using carbon credits in our blog.