The Portuguese government has launched the voluntary carbon market, an increasingly relevant instrument in the transition to a green economy. But what exactly does this new market mean, and why are so many companies and citizens paying attention to it?

What is the voluntary carbon market?
The voluntary carbon market is a system that allows greenhouse gas (GHG) emissions to be offset on a non-mandatory basis. In other words, companies, institutions, or even individuals can buy carbon credits to compensate for the emissions they cannot eliminate directly.

Each carbon credit corresponds to one tonne of CO₂ equivalent (tCO₂e) that has been avoided or removed from the atmosphere—usually through sustainable projects such as reforestation, ecosystem conservation, renewable energy, or regenerative agriculture.

Unlike the regulated market, which is mandatory and managed by public entities (such as the European Union Emissions Trading System – EU ETS), the voluntary market operates more flexibly, based on ethical and environmental commitments.

It allows companies, institutions, or individuals to offset their CO₂ emissions voluntarily—because they want to make a difference, not because they are legally required to.

How does it work?
Each carbon credit represents one tonne of carbon dioxide that has either not been emitted or has been removed from the atmosphere through projects such as:

• Planting and preservation of forests;
• Renewable energy (solar, wind, biomass, etc.);
• Sustainable agriculture;
• Protection of natural ecosystems.

By purchasing these credits, entities that emit pollutants (such as companies involved in transport or industrial production) can offset the environmental impact they cannot directly eliminate.

What is the Portuguese government implementing?
The Government of Portugal recently announced the creation of a national voluntary carbon market, which aims to:

• Certify national carbon sequestration projects (in forests, soils, oceans, etc.);
• Increase transparency in the buying and selling of credits;
• Support rural and environmental development by channeling funds into sustainable projects;
• Position Portugal as a reference point in Europe’s green economy.

This system will be supervised by public authorities to ensure that credits are reliable, traceable, and have a real impact, combating so-called “greenwashing” — when the environmental benefits of an action are exaggerated.

Main benefits

1. For the environment
The most direct benefit is the net reduction of global carbon emissions. Supported projects help restore ecosystems, protect forests, and encourage more sustainable agricultural practices.

2. For companies
Participating in this market is a concrete way to take climate responsibility and strengthen a sustainable image. In addition, companies can:

• Offset unavoidable emissions;
• Achieve carbon neutrality goals;
• Stand out in the market among increasingly conscious consumers.

3. For local communities
Carbon offset projects can create green jobs, add value to rural areas, and foster innovation. In many cases, the invested funds remain in local regions, directly benefiting the population.

4. For the country
The voluntary market contributes to national and European climate objectives, attracts sustainable foreign investment, and boosts the Portuguese green economy.

Challenges and next steps
Despite its potential, the voluntary carbon market faces challenges such as:

• Ensuring project credibility and independent verification;
• Avoiding double counting of emission reductions;
• Creating attractive economic incentives for participants.

The Portuguese voluntary carbon market represents an important step toward a more sustainable and competitive economy. More than just a financial mechanism, it is an instrument of environmental responsibility that turns the fight against climate change into an opportunity for development and innovation. A green future is being built now — and every carbon credit can be an investment in that future.

Andreia Arenga
30.10.2025

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