Credits cover what you cannot yet cut.

Carbon credits are a tool for residual emissions after a genuine reduction effort, not a substitute for one. We advise on sourcing and structuring them within that discipline.

In short

Carbon credit advisory helps companies identify, evaluate, and procure carbon credits from verified registries such as Verra or Gold Standard to offset emissions that remain after direct reduction measures have been applied. Prakrti advises Indian companies on credit quality, registry selection, and how offsets fit into a broader decarbonisation plan, without issuing or verifying credits itself.

Where credits fit — and where they do not

Buying credits before reducing emissions is the fastest route to a greenwashing accusation, and increasingly to a regulatory or buyer-side rejection of the claim. Credits make sense for the emissions that remain after realistic operational and technological reduction — hard-to-abate process emissions, for instance — not as a way to avoid making those changes.

We only advise on credit strategy alongside, or after, a reduction pathway is in place. If a company's inventory and reduction plan are not built yet, that comes first.

A four-stage sequence diagram, drawn on one shared scale. Stage one, Measure: build the verified inventory. Its bar spans the full one hundred per cent of the footprint, because measuring attributes emissions but removes none. Stage two, Reduce: named levers against named streams — energy efficiency cuts Scope 1 by fifty-five per cent, renewable power cuts Scope 2 by ninety per cent, supplier engagement cuts Scope 3 by twenty-four per cent and process and materials change cuts it by a further sixty-eight per cent. This is the only stage that removes a tonne, and it leaves twenty-seven per cent of the baseline. Stage three, Residual: that same twenty-seven per cent, what real reduction cannot yet reach — process emissions, high-temperature heat, freight outside your control. Stage four, Offset: credible credits, retired against the residual only. It is drawn nested inside the residual stage rather than as a fourth equal option, and it is by far the smallest element in the diagram, because credits are sized to the residual and to nothing else. The order is load-bearing: offsetting before measuring and reducing buys a claim rather than a reduction, and it is the greenwashing failure mode this practice argues against. Percentages illustrative of a typical manufacturing profile — not Prakrti client data.

ORDER OF OPERATIONS

Measure, reduce, then price what is genuinely left.

Four stages on one scale. The sequence is the argument — each stage is only valid on the output of the one before it.

BAR LENGTH = SHARE OF THE MEASURED BASELINE · ALL FOUR STAGES ON ONE SCALE

  1. 01MEASUREBUILD THE INVENTORY100% ACCOUNTED

    Metered fuel, purchased power, supplier invoices and freight, attributed to Scope 1, 2 and 3. Measuring removes nothing — it tells you which tonnes are yours and where they sit.

  2. 02REDUCENAMED LEVERS, NAMED STREAMS27% REMAINS

    Energy efficiency on Scope 1, renewable power on Scope 2, supplier engagement and process change on Scope 3. This is the only stage that removes a tonne. Every cut traces to a line in the inventory.

    • −55%ENERGY EFFICIENCYON SCOPE 1
    • −90%RENEWABLE POWERON SCOPE 2
    • −24%SUPPLIER ENGAGEMENTON SCOPE 3
    • −68%PROCESS & MATERIALSON SCOPE 3
  3. 03RESIDUALWHAT REDUCTION CANNOT YET REACH27% OF BASELINE

    Process emissions, high-temperature heat, freight you do not control. Real, measured, and still there after the levers are pulled. This is the only quantity an offset may be sized against.

    APPLIED TO THE RESIDUAL ONLY

    04OFFSETCREDIBLE, RETIRED CREDITS≤ 27% OF BASELINE

    Credits sized to the residual and retired against it. A credit is a purchase, not a reduction — it is the last line of the sequence, never the first.

THE ORDER IS NOT INTERCHANGEABLE

Offsetting before measuring and reducing buys a claim rather than a reduction. Without an inventory there is no residual to size credits against, and without reduction the number being offset only grows. That sequence is the greenwashing failure mode — it is not this pathway.

Percentages illustrative of a typical manufacturing profile — not Prakrti client data.

What credit quality means in practice

Not all credits represent the same thing. Registry (Verra, Gold Standard, Gold-standard equivalents), project type (renewable energy, forestry, methane capture, engineered removal), vintage, and additionality all affect whether a credit represents a genuine, permanent emissions reduction or a paper claim. Buyer and regulator scrutiny of credit quality has increased sharply; a credit that would have passed unremarked five years ago may now draw direct questions from an ESG assessor or investor.

What we advise on

Credit strategy sized to your actual residual emissions, registry and project type selection matched to your sector and risk appetite, and due diligence on specific credit opportunities before purchase. We do not issue, verify, or register credits — that is the function of the registries and their accredited verifiers.

Common questions

Should we buy carbon credits before reducing our own emissions?

No. Credible practice is to reduce emissions directly wherever feasible first, and use credits only for the residual emissions that cannot yet be eliminated. Buying credits ahead of reduction effort is a common trigger for greenwashing criticism and is increasingly scrutinised by buyers and regulators.

What is the difference between Verra and Gold Standard?

Verra (Verified Carbon Standard) and Gold Standard are both carbon credit registries that certify emissions reduction or removal projects, with different methodologies, project type coverage, and co-benefit requirements. Credit quality and pricing vary by registry, project type, and vintage rather than by registry brand alone.

Does Prakrti sell carbon credits?

No. Prakrti advises on credit strategy, quality assessment, and sourcing, but does not issue, sell, or verify carbon credits. Purchase and verification happen through the relevant registry and its accredited project developers and verifiers.

Can carbon credits help with CBAM compliance?

No. CBAM requires certificates tied to the actual embedded emissions of imported goods, purchased through the EU's own CBAM system. Voluntary carbon credits do not substitute for CBAM certificates or reduce a declared shipment's embedded emissions figure.

Get a credit strategy sized to your actual residual emissions

This starts after — or alongside — a reduction plan, not instead of one. Tell us where your inventory and reduction planning currently stand.

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