As colleges and universities pursue ambitious climate goals, many are exploring carbon credits as a practical tool to accelerate their path to net zero. For higher education institutions where sustainability commitments are both strategic and values-driven, understanding how carbon credits fit into a holistic climate action plan is essential.
This blogpost provides a clear overview of what carbon credits are, how to be confident in their quality, and how they can complement on-campus emissions reductions. It also explores how purchasing carbon credits can respond to growing expectations from students, faculty, and the broader community for meaningful and measurable climate action.
What are Carbon Credits?
A carbon credit represents the reduction or removal of one metric tonne of carbon dioxide equivalent (tCO₂e) from the atmosphere. These credits are issued to projects that actively reduce or remove greenhouse gas (GHG) emissions, such as reforestation, methane abatement, or direct air capture, and can be used by institutions to compensate for their remaining emissions after reductions.
While some markets are compliance-based (e.g., cap-and-trade systems), most colleges and universities engage through the voluntary carbon market (VCM), a rapidly growing market that allows organizations to support high-quality climate projects that align with their mission and values.
Carbon credits are sometimes referred to as carbon offsets because they can be used to compensate for an equivalent emission elsewhere, with the goal of achieving carbon neutrality or meeting regulatory requirements. However, this term can be misleading as they don’t necessarily need to be used to offset emissions. Once a credit is used to offset emissions or meet compliance obligations, it must be permanently retired in a registry to ensure that it cannot be used again, preventing double counting of its climate benefit.
Why Carbon Credits Matter for Universities
Reaching carbon neutrality or net zero is a long-term goal for many higher education institutions. Yet achieving it solely through on-campus reductions is currently impossible, from legacy buildings to commuting emissions and energy infrastructure, not all sources can be eliminated immediately.
That’s where carbon credits come in. By supporting verified emission reductions and removals beyond campus boundaries, universities can:
- Accelerate progress toward climate commitments
- Bridge the gap between today’s operational realities and long-term infrastructure transitions
- Demonstrate visible action that aligns with student and stakeholder expectations for leadership on climate
- Support innovation in climate technologies and community resilience worldwide
Students increasingly expect their institutions to not only teach sustainability but also model it. Research shows that sustainability initiatives can influence student recruitment, retention, and alumni engagement. High-integrity carbon credits provide a tangible and transparent way to show that your institution is being accountable for the emissions that cannot yet be eliminated.
What Makes a Carbon Credit “High-Integrity”?
Not all carbon credits are created equal. For universities that value evidence-based decision-making, understanding credit quality is critical. A reputable carbon credit provider should evaluate credits across key dimensions and confirm that a project is low risk across all four pillars, ensuring that every tonne represents real, lasting climate benefit:
- Additionality: The project wouldn’t have happened without carbon credit funding
- Over-Crediting: The project must minimize risk of overestimating beneficial impact on emissions
- Durability: The emission reduction or removal is permanent or backed by safeguards
- Double-Counting: Each tonne of impact can only be attributed to one tonne of offset across all governance mechanisms
At CNaught, only about 15% of the projects we review meet our standards. Each project is cross-referenced against all four major independent ratings agencies (BeZero, Sylvera, Calyx Global, and Renoster) and undergoes a rigorous, multi-step due diligence process. This ensures our university partners can trust that their investment drives measurable climate impact.
Purchasing a Portfolio of Carbon Credits
Rather than purchasing credits from a single project or project category, universities can achieve greater impact and resilience through a diversified carbon credit portfolio, similar to a diversified financial portfolio.
A portfolio approach allows institutions to:
- Mitigate Risk: Reduce dependence on one project type or location
- Diversify Impact: Support multiple co-benefits including biodiversity, community health, and environmental justice
- Balance Budget and Ambition: Combine more affordable avoidance projects with cutting-edge removal technologies
- Build the Future: Support innovation that helps scale long-term carbon removal
For example, a portfolio might include a mix of forest conservation, methane abatement, and engineered removal projects like biochar, keeping credits affordable while helping a university both meet near-term goals and support the technologies needed for a sustainable future.
Integrating Carbon Credits into Campus Sustainability Strategies
Universities can integrate carbon credits into their sustainability frameworks in several ways:
- Operational Footprint Compensation: Offset unavoidable emissions from travel, campus operations, and procurement while continuing to invest in energy efficiency and renewable energy
- Curriculum and Research: Use carbon markets as a teaching and research opportunity. Faculty can explore market design, project verification, and climate economics through real-world case studies
- Community Engagement and Storytelling: Share the impact of supported projects with students and alumni to foster engagement and loyalty
- Transparency and Reporting: Align credit purchases with frameworks like AASHE STARS, Second Nature, or GHG Protocol standards to ensure credible, transparent reporting
Meeting Stakeholder Expectations
Students today are climate conscious and care deeply about making choices that reflect their values. They expect their institutions to be taking action on sustainability and to demonstrate that leadership through transparent reporting.
When universities invest in high-integrity, transparent carbon credit portfolios, they not only accelerate climate progress but also inspire confidence among students, faculty, donors, and alumni.
Taking the Next Step
Ready to explore how carbon credits can strengthen your university’s climate action plan?
Talk to the team at CNaught to see how your institution can lead with integrity, transparency, and measurable impact and stay tuned for our webinar with Calyx Global and Williams College on January 21, to hear directly about the role carbon credits play and how you can assess quality in the market.
About CNaught
CNaught is the easiest way for sustainability teams of any size to purchase and manage an affordable, science-backed portfolio of high-integrity carbon credits. As the carbon credit provider to universities like the University of Pennsylvania, Harvard Business School, and Stanford Law School, we offer a complete solution that simplifies the entire carbon credit journey – from backing every project with the CNaught Guarantee to providing AI-powered reporting and marketing tools. We’re here to help you share your climate story with confidence.