The carbon market is a trade-based platform where companies and individuals can buy or sell carbon credits. This exchange enables buyers to offset their unavoidable emissions by purchasing carbon credits from another source, thus neutralizing their impact on the environment.

Credits are issued to businesses under regulatory schemes in which carbon emission limits, or caps, have been set. Under these rules, a business with excess emissions is required to purchase carbon credits to offset its footprint and stay under the cap. This is what a carbon credit exchange allows, though it is also possible to buy or sell credits in the voluntary marketplace without being mandated to do so.

There are many different carbon projects, and the attributes of each project are what drive their price in a carbon.credit exchange. For example, the underlying project's location, methodology, vintage and delivery time may all affect its value to buyers. For this reason, it is important for any potential carbon buyer to understand how a credit's various attributes impact its price before making a purchase or sale.

Exchanges such as Xpansiv CBL and ACX have tried to simplify the process of buying or selling carbon credits by creating standard products which ensure that some basic specifications are respected. For instance, when a credit is traded under the label of CBL's Nature-based Global Emission Offset (N-GEO) or the ACX Global Nature Token, the buyer can rest assured that they are getting a high quality carbon credit from an accredited project.

Carbon credits are complex and have a number of attributes which influence their price, so for many potential buyers the best way to access this new asset class is through a carbon credit retail platform. These platforms allow buyers to buy or sell credits from a variety of projects by trading through an auction system. The platforms usually provide a comprehensive range of information on the underlying projects to help buyers make informed decisions.

For buyers looking to get involved early in the carbon credits lifecycle, a direct investment in a crediting project may be an option. This involves investing in the development of a project and then receiving rights to some portion of its credits once it is fully operational. This type of engagement is resource intensive and risky, but can be a good fit for organizations with a deep interest in a specific project activity.

For buyers who need to get involved in carbon markets quickly, it is often easier and more cost-effective to purchase or sell through a retailer. These firms will maintain an account on a crediting program registry and "retire" credits directly on a buyer's behalf, reducing the amount of work that needs to be done by each party. However, these retailers will generally charge a higher nominal price and can take longer to deliver. As carbon credit prices continue to increase, it is vital that buyers have a clear understanding of how this new asset works before they can determine the best strategy for acquiring and using it.