Ask Strathem: Do I Need a Legal Agreement to Sell Carbon Credits?

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Yes — and it needs to be robust.

Selling carbon credits isn’t just about planting trees or restoring peatland. It’s a contractual transaction. Buyers (and the codes that underpin the credits) need legal clarity around land access, monitoring, permanence, data rights, and ownership of the credit itself.

A good carbon project agreement will set out:

• Who owns the carbon rights

• How verification and reporting will be handled

• What happens if the project fails or land changes use

• The responsibilities of the landowner vs the project developer

Don’t assume a handshake deal or verbal agreement will suffice — especially if you’re stacking credits or leasing rights.

If you're entering a long-term agreement, it’s also important to review the tax and inheritance implications. Many projects span 30+ years. Make sure your legal structure supports your estate planning goals.

Always seek advice before signing — and ensure contracts are aligned with your long-term objectives.