Green credits, with their emphasis on holistic impact and technological rigor, are poised to redefine how businesses approach sustainability. They are not a panacea, but they signal a future where environmental stewardship is a business advantage, not a cost center.
The carbon market laid the groundwork. Now green credits are poised to rectify their narrow focus and methodological flaws.
The pivot from carbon credits to green credits is not just a rebranding but a fundamental reimagining of how we incentivize sustainability. Where carbon credits were a reactive tool, offsetting emissions after the fact, green credits aim to be proactive, rewarding tangible actions that reshape business operations and environmental outcomes. To realize their potential, the green credit market must prioritize accessibility, scalability, and alignment with global sustainability goals, all while leveraging technology and fostering a mindset of long-term impact.
A core challenge for green credits is democratizing access. Carbon credits were often the domain of large corporations with the resources to navigate complex certification processes. Green credits must be inclusive, enabling small and medium enterprises (SMEs) and even remote facilities to participate. This requires frictionless systems. For instance, a factory in rural India shouldn’t need expertise in sustainability to upload water or energy data.
Scalability is another imperative. The carbon credit market, despite its global reach, was hamstrung by inconsistent standards and regional disparities. Green credits need harmonized frameworks that transcend borders. Yet, these frameworks must be flexible enough to accommodate local realities. The direction of green credits should also prioritize actionable outcomes over symbolic gestures. Carbon credits often rewarded projects with questionable impact, like forests that were never at risk of deforestation. Green credits must tie directly to measurable interventions: solar installations, water recycling systems, or waste-to-energy plants. For example, a paint manufacturer covering its facilities with solar panels and installing water meters across key junctions, as seen in some progressive companies, showcases the kind of real-world impact green credits should incentivize. These actions, driven by data insights, not only reduce environmental footprints but also enhance operational efficiency, proving sustainability can be a business advantage.
Collaboration is critical to this vision. No single entity can drive the green credit market alone. Partnerships between tech providers, research institutions, and industry players will be essential. Similarly, connecting companies with green financing partners can address budget constraints, turning intent into action. The ecosystem approach, where data platforms, clean energy researchers, and financial institutions converge, will create a virtuous cycle that accelerates adoption.
Finally, the green credit market must cultivate a mindset of curiosity and boldness. Sustainability is evolving rapidly; what worked five years ago may be obsolete today. Leaders must challenge conventional wisdom, question established practices, and take calculated risks. Green credits should empower this mindset, rewarding companies that experiment with new technologies or processes, even if the payoff is not immediate.
The path forward for green credits is clear: build systems that are inclusive, scalable, and outcome-focused, supported by technology and collaboration. In doing that, they can transform sustainability from a compliance burden into a strategic lever, driving businesses toward a future where environmental and economic goals are inseparable. The carbon credit era taught us what’s possible; green credits must show us what’s necessary.
This is the 2nd part of the column by Akash Keshav, CEO and co-founder of Sprih. The views expressed are personal
The 1st part can be found here
