Enterprises often come to us asking: How do we even get started? Is it as complex as it sounds? (Spoiler: not always!)

We asked our Head of Carbon Finance, Michael Papi to break down some of the most common questions we’ve heard from climate entrepreneurs lately, in the hopes it helps others thinking about jumping in.

Q: I’m confused, as a small climate enterprise how do I even start to think about accessing carbon finance?

A: Starting on the path to carbon finance can be daunting, especially for small businesses that may lack the resources or expertise to navigate the complex process. Without dedicated staff or the budget for consultancy services, it can feel overwhelming. This can make it seem like small enterprises are at a disadvantage or even invisible in the market.

However, that shouldn’t discourage you! Many organizations are working to make the process more accessible for small businesses through targeted support, simplified methodologies, and collaborative platforms. The key is to start by understanding your project potential, seeking guidance from experienced organizations, that support small-scale carbon projects.

Q: What should be my first steps if I want to try to access carbon finance?

A: The first step is to educate yourself about carbon credits and understand how the process works. Learn what types of projects qualify, how credits are generated, and what standards and certifications are involved. This foundational knowledge will help you make informed decisions and set realistic goals for your project. We know this can be confusing, so we can definitely help you point in the right direction.

It’s highly advisable to work with experts who have experience in the carbon market. Our team at Nexus for Development, can guide you through the process, help you identify the most suitable methodologies, and ensure your project complies with international standards. Partnering with knowledgeable organizations reduces the risk of mistakes and saves you time and resources in the long run.

Q: How can carbon credits help a climate business grow and reach more people?

A: Carbon credits can provide additional revenue streams, enabling reinvestment into your enterprise. This financial support can help expand your project’s scale, improve technology or infrastructure, and increase your impact. Additionally, promoting your verified credits can enhance your credibility and attract more customers, investors, or partners who value sustainable practices, thus broadening your reach.

Here at Nexus for Development, we work with early-stage climate enterprises to help them scale their business and impact.  We have worked in partnership with TerraClear, a social business in Laos PDR dedicated to improving clean water access.  With the help of carbon finance TerraClear has grown from idea stage to reaching 130,000+ households.

Q: The monitoring and reporting seems like a headache, how do you navigate this?

A: Monitoring and reporting are critical components of accessing and maintaining carbon credits because they provide the proof needed to build trust with buyers, regulators, and stakeholders. Clear and accurate measurements, such as detailed reports showing how much emissions have been reduced, are essential to demonstrate that your project delivers real, verifiable impact. Good documentation not only helps meet standards but also reassures all parties involved that your credit is genuine.

At Nexus for Development, we pride ourselves on being recognized as some of the best in class in Southeast Asia. Our team has been working on the ground for over 15 years, side by side with local partners, helping projects navigate the complexities of measurement, verification, and reporting. This extensive experience means we know how to simplify the process, making it more manageable for small and medium-sized enterprises.

A few major successes highlight our expertise: we helped establish the largest biochar carbon projects in Vietnam and Cambodia, enabling those projects to produce high-quality, verifiable credits that have gained recognition in the market. These projects not only reduce emissions but also bring significant social and environmental benefits to the communities involved.

Q: Is it possible for a business to make money from carbon credits and still focus on helping vulnerable communities?

A: Absolutely!  Revenue from credits can fund community development initiatives, create jobs, and support local livelihoods, ensuring that vulnerable communities benefit directly from your project. It’s about designing projects that deliver both environmental and social value.  We are here to help you design projects which fight climate change and improve community well-being together.

Q: What changes are coming in the carbon market that we should be aware of?

A: The carbon market is evolving rapidly, with new rules and standards being introduced to enhance the trustworthiness and integrity of carbon credits.  To stay ahead in this dynamic environment, it’s crucial for businesses to stay informed about these changes. Joining relevant networks or industry groups, such as regional or international carbon market platforms, can provide valuable insights and opportunities. Learning from experts, whether through webinars, workshops, or professional guidance, can also help you understand how new policies and standards might impact your project and what advantages you can leverage.

Additionally, governments worldwide are increasingly using carbon finance as a strategic tool to meet their climate commitments under the Paris Agreement. Many are establishing national carbon markets, issuing climate policies, and incentivizing private sector participation. Recognizing these trends can open up new avenues for your projects, including participation in emerging voluntary or compliance markets tied to national targets.

Staying well-informed and adaptable will position your enterprise to capitalize on these opportunities, ensuring your projects remain relevant, compliant, and impactful in the global effort to combat climate change.

Q: Any other suggestions for us?

A: At Nexus for Development, we’re committed to supporting social enterprises, businesses and governments in accessing carbon finance. Our team offers comprehensive expertise, from helping you understand and navigate the market, to designing, monitoring, and verifying your projects, ensuring they meet international standards. We can assist with project development, regulatory compliance, and building trust with buyers by providing credible proof of your emission reductions.

We also have a deep network of partners, consultants, and experts across Southeast Asia, which means we can connect you with valuable resources, mentoring, and opportunities for collaboration. Whether you’re just starting out or looking to expand existing projects, our tailored support can help you unlock the potential of carbon finance to grow your business, fund community initiatives, or enhance your sustainability impact.

We encourage you to reach out and start a conversation with us. No matter where you are in your journey, we’re here to listen, advise, and help you succeed in this evolving market. Your project’s success not only benefits your business but also contributes to regional climate resilience and community development. Let’s work together to make a meaningful difference! Talk to us today.