Common Carbon Credit Scams
Avoid fake offsets and I-RECs with a clean buy process. We verify serial ranges on program registries, confirm project status and ownership, check title transfer paths, and close through escrow with objective release conditions. If a deal fails basic checks, we say no. For a structured review, contact us here:
Carbon Credit Due Diligence.
Who We Serve
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Corporates with Scope 1, 2, or 3 commitments
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Funds, brokers, and traders needing clean title and provenance
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Project developers seeking bankable forward offtake terms
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Auditors and advisors validating inventories before reporting
Common Scams
- Resale of retired credits presented as “available” inventory
- Double selling of the same serial ranges to multiple buyers
- Forward sales from projects with no issuance track record
- Vintage washing or token swapping to misstate age or type
- Fake registry screenshots or PDFs with edited serials
- “Guaranteed buyback” schemes tied to unrealistic premiums
- I-REC misuse for carbon claims, or GOs sold as offsets
- Personal wallet crypto payments with no escrow or KYC
What Good Looks Like
- Live registry links for the project and batch level detail
- Exact serial ranges with current status and account history
- Seller proves legal right to transfer, not just a mandate
- Purchase contract with escrow and objective release triggers
- Clear claim type, program, methodology, and vintage
- Tax invoices, custody chain, and retirement instructions
- Screening against sanctions, PEP, and adverse media
Red Flags and Practical Checks
Serials and Registry
- Ask for serial prefixes and ranges before any payment
- Check status on Verra VCS, Gold Standard, ART TREES, ACR, or CAR
- Confirm not retired, not reserved, and not already transferred to another party
- Match program, methodology, and project attributes to the offer
Forward and Pre-Issuance Risk
- Demand monitoring reports, milestones, and step-in rights
- Use staged deliveries with price adjustments for slippage
- Escrow tied to issuance events, never all-upfront to the seller
I-RECs and Energy Certificates
- I-RECs certify energy attributes, not carbon reductions
- Use I-RECs for Scope 2 claims, not to offset emissions
- Validate issuing country, device ID, vintage, and redemption status
Payments and Escrow
- Pay to an escrow or settlement agent with clear release tests
- No personal wallets or anonymous pay-to-verify requests
- Use KYC, tax invoices, and clear title transfer documents
Standards and Programs
Carbon Credit Programs
- Verra VCS, Gold Standard, ART TREES, ACR, CAR
- Check project ID, methodology, monitoring period, and issuance history
- Note CORSIA eligible status where aviation use applies
- ICVCM Core Carbon Principles label helps with quality screening
Energy Attribute Certificates
- I-RECs, GOs, and North American RECs serve energy sourcing claims
- They do not replace carbon offsets and should not be marketed as such
- Match market location, device, and consumption period to the claim
Step-by-Step Verification
- Collect project ID, program, methodology, vintage, and exact serial ranges
- Confirm current status on the registry and compare to seller’s offer
- Verify the seller’s legal right to transfer and the custody chain
- Agree purchase contract, escrow agent, release tests, and delivery method
- Run KYC and sanctions checks on all counterparties
- Execute transfer or retire to buyer’s name, then release funds
Documents and Data to Request
Baseline Signals
- Direct registry account evidence or mandate from the account holder
- Inventory list with program, project, methodology, and vintage
- Clear claim type, such as corporate offset use or CORSIA
- Clean payment route with escrow and compliance pack
Checklist to Start
- Seller KYC, corporate documents, and bank details
- Project ID and registry links, serial ranges, and inventory status
- Draft purchase agreement with escrow and release conditions
- Tax invoice template and retirement wording if applicable
Pricing Reality
Prices move by program, method, co-benefits, vintage, delivery risk, and scale. Deep discounts against recent prints often signal title problems or stale inventory. “Guaranteed buyback” or fixed profit schemes are usually a sales ploy. Treat any premium or discount as a quality and risk signal and validate it with verifiable data.
Frequently Asked Questions
Can I buy without seeing serial ranges?
Do not. Use escrow. The seller shares serials to the escrow or a neutral verifier, and release follows a match between delivered and contracted ranges.
How do I avoid double selling?
Check live registry status and account history. Lock the ranges in the contract and escrow. Require the seller to warrant title and absence of prior encumbrances.
Are I-RECs the same as carbon credits?
No. I-RECs support energy sourcing claims and Scope 2 reporting. They do not offset emissions. Use carbon credits from recognized programs for offset claims.
Request Carbon Credit Diligence
Share your target program, project IDs, serial ranges, claim type, KYC, and proposed terms. We revert with a pass or fail view, risk notes, and a clean closing route with escrow and verifications.
Contact Us
Financely acts as advisor and arranger on a best efforts basis. We are not a bank. All mandates are subject to KYC and AML, sanctions screening, credit approval, legal documentation, counterparty capacity, and applicable laws. Nothing here is a commitment to buy or an offer of securities. Terms vary by program, jurisdiction, and documentary quality.