Future carbon sourcing: The case for investing in early-stage projects

Ambitious companies are supporting carbon projects from the start to secure future credits and drive quality.

Jenny Hyndman

Jenny Hyndman

07 Apr, 2025

Future carbon sourcing: The case for investing in early-stage projects

Businesses are navigating the complexities of carbon reduction and offsetting, and are continually seeking innovative strategies to enhance and de-risk ESG initiatives. One such strategy -

future carbon sourcing

- is a proactive approach that not only secures future carbon credits at a fixed cost, but also aligns with responsible values and cements long-term sustainability goals.

Fixed-forward pricing on carbon credits

Traditionally, to compensate for emissions, companies purchase

carbon credits

that represent carbon that has already been sequestered. Future carbon sourcing involves committing to purchasing a certain amount of credits, for a certain period of time, at a fixed price. With a developing and fluctuating market, this can be a way to lower risk, improve forecasting and secure access to high-quality credits in the future. 

future carbon redits savings graphs

Project carbon credits price and fixed foward purchase savings

Early-stage project origination for future carbon credits

Another option for companies wanting to secure future credits and pricing is to invest in early-stage projects that are in their development stage, pre-verification. Early-stage project origination involves collaborating with developers to create new nature-based projects from inception and support them through the carbon credit verification process. This could mean planting a new

forest

, restoring an endangered

peatland

, or protecting a coastal

mangrove

ecosystem. By engaging in origination, businesses actively participate in the project's lifecycle, reaping carbon, social and biodiversity benefits as the initiative matures.

Why invest in an early stage project for future carbon sourcing?

Restoring degraded forests

Restoring degraded forest land affected by illegal logging and other human activities. Investing in early-stage projects creates long-term jobs and supports local livelihoods.

  • Leadership in climate action

    : By initiating new projects, companies position themselves at the forefront of environmental stewardship, driving innovation and setting industry benchmarks. Furthermore, early stage involvement allows for greater influence over project quality, ensuring that the carbon credits generated meet high standards and integrity.

  • Secured future credits

    : Origination reduces uncertainty in the future supply of carbon credits, ensuring that projects align with specific corporate preferences and compliance requirements.

  • Cost stabilisation and savings

    : Acting early allows businesses to secure cost-effective pricing, mitigating the impact of anticipated increases in carbon credit prices due to rising demand and limited land availability.

  • Enhanced project control and transparency:

    Early stage involvement grants companies greater control over project design and implementation, providing transparency and accountability in the carbon offsetting process. 

  • Direct impact and storytelling:

    Investing in origination enables businesses to directly contribute to tangible environmental and social outcomes. This provides rich storytelling opportunities for stakeholders, showcasing a company's commitment to sustainability.

The project origination journey

Embarking on a project origination journey involves several key stages between a business and Earthly:

  1. Define

    : We translate your unique business needs into specific project features, ensuring alignment with your climate strategy.

  2. Match

    : Identify projects that meet your volume requirements, timelines and corporate values. Earthly's partnerships with leading project implementation partners worldwide provide a diverse range of options.

  3. Engage

    : Navigate the contracting process to effectively secure future credits, with access to various contract options, purchase types and optional insurance tailored to your needs.

Why Earthly are positioned to help develop high-integrity projects

Community mambers employed to plant mangroves, Madagascar.

Mangrove restoration, Madagascar. Earthly's rigorous assessment ensures projects deliver holistic impact by sequestering carbon, supporting biodiversity, and improving livelihoods.

Earthly offers a distinct advantage to responsible businesses in the project origination landscape:

  • Comprehensive project assessment:

    With our rigorous project assessment criteria, we focus on carbon, biodiversity and social impacts across more than 100 data points, ensuring high standards are embedded in new projects and risk is lowered for investors. 

  • Alignment with corporate objectives:

    Earthly assists in identifying and developing projects that match a company’s values, compliance needs and preferred time horizons, ensuring a cohesive integration into your sustainability strategy. 

  • Simplified procurement:

    We streamline the procurement process for the new project with industry-approved legal templates and pricing guidance, and the opportunity to collaborate with other businesses to provide the necessary capital for project success. 

  • Deep project development expertise:

    Earthly provides extensive support throughout the project lifecycle, from initial concept to verification. Our team possesses deep expertise in nature-based solutions and carbon markets, ensuring projects are developed to the highest standards. 

  • Risk mitigation and due diligence:

    We conduct thorough due diligence on all projects, assessing potential risks and ensuring project feasibility. This helps protect your investment and build confidence in the integrity of the carbon credits. 

  • Access to diverse project portfolio:

    Earthly maintains a diverse portfolio of high-quality nature-based projects across various geographies and ecosystems. This allows businesses to select projects that align with their specific goals and priorities.

Taking the next step to invest in future carbon credits

Young trees

Young trees growing, planted to restore degraded forest land caused by illegal logging and other human activities.

Integrating

future carbon credit sourcing

into your corporate sustainability strategy saves costs, enhances your ESG commitments and lowers future supply risks. Crucially, it also demonstrates a company’s proactive approach to environmental stewardship. By partnering with Earthly on future carbon sourcing, you can lead climate action in your sector, secure future carbon credits and contribute to meaningful, lasting impacts on our planet.

Get in touch

with our origination team to discuss your business’ requirements.