Are Carbon Credits Greenwashing? How to Support Nature-Based Projects With Integrity

Greenwashing is seen as the carbon markets’ biggest problem. But, to be clear, greenwashing in carbon markets is not inevitable.

Your company can avoid these claims if it supports nature-based solutions that are built on verified data, credible methodologies, and independent assessments.

Learn to use these projects to reduce carbon emissions and mitigate climate change - without overstating their impact or falling into integrity traps. 

This article will help.

As companies race toward net zero emissions targets and regulators tighten sustainability disclosure requirements, the stakes for getting carbon strategies right have never been higher. One misstep in carbon offset claims can trigger regulatory scrutiny and stakeholder backlash. 

Keep reading to avoid these scenarios and learn how Sylvera helps ensure integrity.

Why Carbon Credits Get Linked to Greenwashing

The voluntary carbon market (VCM) faces a credibility challenge.

The media has exposed companies that purchase low-quality credits, use questionable methodologies, and make inflated impact claims to deflect attention from their own emissions.

Skepticism only grows when these same companies claim to achieve carbon neutrality by offsetting greenhouse gas emissions, but total GHGs emitted remain the same. This leads people to believe the VCM is about vanity metrics, not reducing humanity's carbon footprint.

The fossil fuel industry, in particular, has faced criticism for business carbon offsetting strategies that appear to prioritize image over genuine climate action.

But let's get one thing straight: carbon credits aren't the problem. The issue is integrity and communication. Credits represent real climate action when projects deliver verified, additional, and permanent carbon reductions. The challenge is identifying which projects meet these standards and communicating company involvement accurately.

At Sylvera, we help the market prove genuine climate impact with data— using advanced remote sensing technology including satellite imagery, multi-scale LiDAR, machine learning, and field validation to assess project quality accurately and independently.

Understanding Greenwashing in Carbon Offsetting

Carbon credits greenwashing happens when companies exaggerate, misreport, or misuse credits. Why would they do this? For some, it may be a veiled attempt at positive PR spin, and  how they care about the environment - while maximizing profits. 

However, genuinely well-intentioned companies stumble into greenwashing too. 

Common carbon greenwashing patterns include:

• Claiming "carbon neutral" without cutting emissions. Companies use offsets as an excuse to maintain business-as-usual, not as a complement to genuine decarbonization.
• Using low-quality or unverifiable credits. Not all carbon offset programs deliver equal impact. Some projects lack additionality. Others are far from permanent. Still others suffer from inflated baselines that overstate the carbon emissions they prevent.
• Relying on outdated project data or opaque methodologies. For example, forest projects can suffer from degradation, fires, and/or over logging since their verification. Without ongoing monitoring, legitimate credits become worthless pieces of paper.
• Inaccurate carbon accounting. Double-counting occurs when multiple entities claim the same emission reductions. This undermines the entire premise of carbon markets.

High-profile companies have faced backlash because of their carbon claims. For instance, an airline has faced a lawsuit alleging its "carbon neutral" marketing relied on questionable offsets. And a global food manufacturer has been criticized for overly vague environmental commitments.

The Case for Nature-Based Climate Solutions

Despite quality concerns, nature-based projects remain vital for achieving global climate goals.

This is because forests, mangroves, peatlands, and regenerated soils represent powerful tools for removing carbon dioxide from the atmosphere.

Plus, nature-based solutions contribute beyond carbon sequestration. They protect biodiversity, support local communities, maintain water systems, and build ecosystem resilience. A mangrove restoration project doesn't just capture carbon, for example. It protects coastlines from storms, provides a nursery habitat for fish, and creates sustainable livelihoods.

The problem isn't the concept of nature-based climate solutions. The challenge lies in quality assurance and credible claims. Thankfully, technology can help. 

Sylvera's Biomass Atlas uses field-validated multi-scale LiDAR technology to deliver the world's most accurate forest biomass measurements. By providing annual carbon estimates at 30m resolution with 25 years of historical data, Biomass Atlas enables unprecedented accuracy in assessing carbon stocks - significantly more precise than conventional allometric estimation methods. 

This means companies can verify project performance with confidence, catching issues like biomass overestimation or pre-project forest loss before investing.*

5 Ways to Support Nature-Based Projects Without Greenwashing

1. Demand Transparent, Verified Project Data

Projects should demonstrate clear methodologies, robust MRV (measurement, reporting, verification), and accessible documentation. If a project can't explain its baseline assumptions, demonstrate additionality, or provide evidence of ongoing monitoring, it’s a risk

Red flags include projects with outdated baselines, unverifiable claims about forest protection, and vague documentation. Generic statements about "protecting rainforests" without specific data on hectares, carbon density, or deforestation threats signal potential quality problems too.

Sylvera's independent data helps validate project performance beyond registry data. While registries perform important certification functions, they don't always provide the granular, up-to-date information buyers need for confident decision-making. 

Our Integrity Ratings and monitoring tools give buyers visibility into project quality. Plus, our platform assesses projects for carbon accounting accuracy, additionality, permanence, and co-benefits to fully determine if a project delivers what it promised it would.

2. Use Independent Assessment

Registry certification does not equal independent verification. Registries establish minimum standards, then determine which projects meet them at specific points in time. But they don't provide ongoing, independent assessments to help buyers judge project performance.

ESG teams need third-party intelligence to confirm credit integrity and avoid reputational risk. Developer marketing materials naturally present projects in the best light. Independent assessments provide the objective evaluation needed to make confident investment decisions.

Sylvera provides quality assessments using satellite imagery, multi-scale LiDAR, field validation, and advanced analytics to verify carbon storage and permanence. And since our analysis occurs independently of project developers and registries, you never have to worry about biases in regard to project quality.

3. Support Long-Term Impact, Not Short-Term Offsets

Prioritize projects with measurable permanence and community engagement. Carbon stored in forests or soil doesn't help if the project fails three years in. Permanence—ensuring carbon stays removed from the atmosphere for decades—is fundamental to project integrity.

Also, fund programs that create ecosystem restoration capacity. The best projects don't just protect existing forests. They allow for long-term stewardship, create economic incentives for conservation, and develop monitoring systems that survive beyond initial carbon finance.

Sylvera's Delivery and Value modules track project execution and long-term viability, helping buyers pick projects with strong permanence traits and monitor performance over time.

4. Communicate Climate Claims Accurately

Avoid terms like "carbon neutral" or "offset 100%" without proof.

These absolute claims require comprehensive verification of both your emissions and the offsets you purchase. As such, most companies can't defend these kinds of statements.

Instead, be transparent. Say "We invest in verified nature-based projects" or "Our portfolio contributes to long-term ecosystem resilience." Both statements are accurate, not overstated.

Also, be specific about what you're claiming. If you've offset only Scope 1 emissions, say so. If you're supporting projects as part of a Beyond Value Chain Mitigation strategy rather than claiming neutrality for your own emissions, make that distinction clear.

Sylvera's guide "How Corporations Can Avoid Greenwashing" will help you communicate accurately. The key is to match your claims to your actual carbon accounting.

5. Start With In-House Emission Reduction

Greenwashing starts when carbon offset credits replace genuine abatement. So, before purchasing a single credit, ensure your company follows the "reduce first, offset second" principle.

This means prioritizing energy efficiency improvements, transitioning to renewable energy, redesigning supply chains to minimize emissions, and implementing low-carbon technologies wherever feasible. Only then should companies turn to offsets.

The Science Based Targets initiative (SBTi) provides guidance on Beyond Value Chain Mitigation- actions companies take to reduce emissions outside their direct value chain. This framework helps companies balance decarbonization with carbon offset claims.

Also worth mentioning, companies that use Sylvera's Market Intelligence have the data they need to benchmark their strategies and make sure their carbon investments complement rather than replace emission reduction efforts. This helps build a comprehensive climate strategy.

‍

Each trap is a shortcut that companies often take. Projects with weak permanence protections may deliver short-term carbon sequestration that - worst case - disappears through fires, pests, or deforestation. But, even in better-case scenarios, the carbon sequestered over medium and long-term isn’t accurately monitored.

Post-purchase monitoring matters because project conditions change. A highly-rated project can deteriorate if funding lapses, management fails, or external pressures increase. Without monitoring, you won't know your investment has lost value until it's too late.

Why Biomass Atlas Is the Antidote to Carbon Footprint Greenwashing

Sylvera's Biomass Atlas transforms how companies assess forest carbon project integrity.

Traditional integrity assessments rely on static snapshots - a project verification from two years ago, an outdated registry certification. But projects are constantly evolving.

Biomass Atlas replaces uncertainty with precision through field-validated multi-scale LiDAR technology. This breakthrough approach provides:

• Annual carbon estimates at 30m resolution for any area of interest - whether a project boundary, jurisdiction, or custom polygon
• 25 years of historical data (2000-present) to validate baselines and detect pre-project forest loss
• Pixel-level uncertainty estimates that quantify confidence in every measurement
• Significantly higher accuracy than traditional allometric methods, helping catch biomass overestimation before credits are issued

For example, if historical data reveals unexpected biomass loss in the years before a project's claimed baseline, buyers receive concrete evidence. If current monitoring detects degradation that contradicts project reporting, buyers can act immediately rather than discovering issues years later.

The result: companies can fact-check carbon sequestration claims with unprecedented accuracy, protecting investments and avoiding greenwashing risks.

The Future of Nature-Based Investment Integrity

The Integrity Council for the Voluntary Carbon Market (ICVCM) has established Core Carbon Principles that define high-quality credits. The Voluntary Carbon Markets Integrity (VCMI) initiative provides guidance on credible corporate claims. And jurisdictions from the EU and States have created sustainability disclosure requirements that scrutinize carbon offset claims. 

So,, the market is showing a clear shift toward "transparent, verified impact." Many buyers have recognized the risk in low-integrity credits. As such, quality premiums have emerged, with highly-rated projects commanding higher prices that reflect their integrity.

Transparent, data-driven assessment will define corporate climate leadership. Companies that invest in robust carbon intelligence, verify project quality independently, and communicate claims accurately will be recognized as climate leaders. Those that don’t invest in the requisite data or due diligence risk facing backlash.

Sylvera helps companies avoid carbon neutral greenwashing and align climate investment with quality data and credits that make a defensible impact. Our platform combines scientific rigor with market intelligence, giving companies tools to support nature-based solutions responsibly.

How Different Players Use Biomass Atlas to Combat Greenwashing

Biomass Atlas serves as verification infrastructure for the entire carbon market ecosystem, helping reduce the risk of greenwashing:

Corporate Buyers

For companies purchasing carbon credits, Biomass Atlas provides the due diligence layer that protects against reputational and financial risk.

• Verify project claims before purchase - independently validating carbon stocks match developer reports
• Detect baseline inflation using 25 years of historical data to ensure forests weren't degraded before project start
• Monitor portfolio performance over time, catching degradation or reversal risks before they become scandals

Project Developers

For project developers, Biomass Atlas serves as a competitive advantage and credibility builder.

• Build investor confidence with independent, third-party verification of carbon stock estimates
• Differentiate high-quality projects from competitors using scientifically validated performance data
• Catch potential issues early - such as biomass overestimation - before they jeopardize credit issuance

Carbon Registries & Standard-Setters

For registries and standards bodies, Biomass Atlas provides the verification layer needed to ensure every credit represents real climate impact.

• Conduct independent verification of project claims during certification, catching inflated baselines
• Monitor permanence continuously rather than relying on periodic spot-checks
• Differentiate as "next-generation" registries using cutting-edge verification technology

Governments & Jurisdictions

For governments implementing Paris Agreement commitments and building domestic carbon markets, Biomass Atlas provides the measurement infrastructure for credible climate action.

• Build National Forest Monitoring Systems (NFMS) with independently verified coverage
• Track progress toward Nationally Determined Contributions (NDCs) with transparent, robust data
• Establish credible reference levels for jurisdictional REDD+ and Article 6 carbon accounting infrastructure

Avoid Greenwashing, Support Real Climate Action

Companies should support nature-based projects, but integrity is non-negotiable.

To build an effective carbon strategy and fight the climate crisis, companies  must pair climate goals with complete transparency. This means using independent, accurate datato validate impact, avoiding overclaiming in public communications, and treating carbon investments as long-term commitments rather than one-time purchases.

With Sylvera, companies can confidently fund projects that truly deliver -not just promise - climate benefits. 

Biomass Atlas provides the transparent and accurate verification needed to  invest in high-quality projects, monitor their performance over time, and navigate carbon markets with integrity. 

Request a free demo of our biomass data today.