Carbon Offset Credits

Carbon offset credits are earned by real estate projects reducing emissions, providing financial and sustainability benefits.

Carbon Offset Credits

September 29, 2025



What are Carbon Offset Credits?

Carbon offset credits in real estate are tradable credits earned by properties or developments that reduce greenhouse gas emissions through sustainable practices. Credits may be sold in carbon markets or used to offset a project’s emissions footprint.

Why Carbon Offset Credits Matter in Real Estate

Carbon offset credits matter in real estate because they incentivize sustainable building practices, improve ESG performance, and provide financial returns for green projects. They also align with government climate targets and corporate responsibility goals.

Example of Carbon Offset Credits in Action

A commercial developer installs a large solar array on a new office tower, earning carbon credits that can be sold to corporations seeking to offset their emissions.

Key Takeaways

  • Tradable credits earned by reducing emissions.
  • Provide financial and reputational benefits for projects.
  • Encourage sustainable real estate development.
  • Align with climate policy and ESG reporting.
  • May be sold or retained to offset emissions footprint.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

For Shopping Malls, Is Yorkdale’s “Snobbery” Simply A Sign Of The Times?

From Rolex, Tiffany & Co., and Van Cleef & Arpels, to new Chanel, Dior, and Gucci stores, Toronto’s Yorkdale Shopping Centre houses the world’s top luxury brands under one ever-evolving roof. It’s sleek, chic, and curated – a different world than the Yorkdale I knew growing up. And the now-luxury mall’s message is becoming loud and clear: Unless you’re one of us, you can’t sit with us. In a court ruling on February 9, Justice Jessica Kimmel blocked Fairweather-owned brand Les Ailes de la Mode from moving into Yorkdale’s former Hudson’s Bay Company (HBC) real estate.

According to court filings, Oxford Properties, Yorkdale’s landlord, said Fairweather stores “look and feel temporary and downmarket.” So, Oxford would rather lose millions in rent than cheapen the Yorkdale brand, which they call a “leading luxury retail destination.” Harsh? Maybe. But when we consider the future of Yorkdale, and of the shopping mall in general, the “mean girl” move makes sense.

Keep ReadingShow less
BC Raises Taxes, Adjusts Housing Investments, And Partners With Build Canada Homes

BC Minister of Housing & Municipal Affairs Christine Boyle and federal Minister of Housing Gregor Robertson. (Government of British Columbia)

This week, a series of announcements were made that will go a long way towards shaping what the near future of government investment in housing looks like in British Columbia.

On Tuesday, right after the long weekend, the Province unveiled Budget 2026, confirming what was widely expected to be a record-setting deficit. In 2022, the Province had a $1.3 billion budget surplus. A few years later, the Province is now projecting a deficit of $13.3 billion for 2026-2027.

Keep ReadingShow less
Hyde Park Homes Purchases Berkeley Church, Cites Plans To Reopen Fall 2026

The Berkeley Church at 315-317 Queen Street East in Toronto/Google Maps

More than two years after its parent company, Berkeley Events, was placed under receivership, Toronto’s Berkeley Church has been purchased by Hyde Park Homes, with the company revealing to STOREYS that they have plans to reopen the historic event venue later this year.

Built in 1871, the three-storey, brick-faced building at 315-317 Queen Street East in Corktown was initially a Wesleyan Methodist Church. In 1999, the space was converted into an event venue, used for weddings, corporate events, parties, conferences, and even some concerts (Tegan and Sara, Feist, and the Yeah Yeah Yeahs, just to name a few). The property was designated under the Ontario Heritage Act in 1997.

Keep ReadingShow less
CREA: Winter Storms Suppress January Home Sales
Max Sandelin/Unsplash

Canadian home sales started 2026 on a colder note, with activity dampened by severe winter weather across parts of the country.

According to new data released Tuesday by the Canadian Real Estate Association (CREA), home sales recorded over Canadian MLS® Systems fell 5.8% month-over-month in January. Actual (not seasonally adjusted) sales were also 16.2% lower than in January 2025.

Keep ReadingShow less
New (Free) Guide Shows Toronto Homeowners How To Tap Into ‘Missing Middle’

'Missing Middle' housing in Toronto

Liam Gill doesn’t describe himself as a developer, but that hasn’t stopped him from carving out a place in Toronto’s development landscape. Now, the lawyer and tech entrepreneur wants to help others do the same with his Citizen Developer’s Guide, released Wednesday morning in collaboration with More Neighbours Toronto.

The guide is designed for people like Gill — those without a formal background in real estate development, but with an interest in densifying their own home or investment property. Throughout the document, Gill walks readers through how to estimate build costs, cash flow projections, and ultimate market value, and go about the zoning, permitting, and financing processes.

Keep ReadingShow less
Eric Lombardi 'More Than Likely' To Cement Run For Ontario Liberal Party Leader: Q&A

31-year-old Lombardi feels there is "an appetite for generational change" in politics, and that young people should be leading the charge.

Ontario entered 2026 with the weakest housing conditions in the country, and Eric Lombardi believes that we can do better.

The 31-one-year old civic advocate is in the process of exploring a run for Ontario Liberal Leader, a slot that opened up after Bonnie Crombie announced her resignation in mid-January. The Party has said an election will be held in November.

Keep ReadingShow less
Moving Day: January 2026 Industry Hires And Promotions

From left: Thomas Fyfe, QuadReal; Kayleigh Johnson, Peterson; Jason Kraatz, Hopewell Residential; Jessica Arbour, Wesgroup; Wylen Wong, Translink; Karen Cvornyek, Arcadis

You like to be in the know. We know.

For your information, reference, and networking needs, here are the moves, hires, and promotions the real estate and development sector saw in January 2026:

Keep ReadingShow less
City Council Advances 3 Projects Under ‘Toronto Builds’ Framework

Rendering of 9 Shortt Street/CreateTO, Montgomery Sisam

Toronto City Council approved zoning for about a dozen housing projects at its February session — held last week — and of those, three will be rolled out under the new Toronto Builds policy framework.

Toronto Builds, approved in May 2025, consolidates the eligibility criteria and requirements of Housing Now, ModernTO, and the parking-to-homes and public developer initiatives. A CreateTO progress update from July identified 36 sites that will be developed under the unified framework, including the three that have just been green-lit by Council.

Keep ReadingShow less