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Offtake Agreements: What They Are and Their Role in Carbon Projects

With the development of carbon projects in agriculture and the growth of the voluntary carbon market, the term offtake—a pre-purchase or offtake agreement—is being used increasingly often. Although originating in the energy sector, this type of agreement is now gaining wider application in carbon credit markets, as it provides clarity and certainty from the early stages of a project. In simple terms, an offtake agreement is a contract under which a buyer commits in advance to purchase future carbon credits under