Despite what its name suggests, the voluntary carbon market is not a single, integrated global marketplace but a hodgepodge of different standards, platforms and jurisdictions that share certain common features.
Although market players and advocates perceive the voluntary carbon market as a vital climate action tool that can help slash emissions cost-effectively, the current reality is very different. Most carbon credits available on the market are of low quality, have negligible to little positive climate impact and are too often used to greenwash corporate images rather than spearhead decarbonisation efforts.
With proper, principled reform, Carbon Market Watch is convinced, the VCM can complement and supplement decarbonisation efforts but the primary overwhelming focus must be on deep, rapid and sustained emissions reductions.
When it comes to the VCM, Carbon Market Watch focuses on:
“The voluntary carbon market cannot be used as a tool for offsetting ambition. The primary focus must lie on rapid emissions reductions. Carbon credits should only be used to support climate action.”
Inigo Wyburd
Expert on global carbon markets
“The voluntary carbon market cannot be used as a tool for offsetting ambition. The primary focus must lie on rapid emissions reductions. Carbon credits should only be used to support climate action.”
Inigo Wyburd
Expert on global carbon markets
Ending the practice of offsetting emissions and replacing it with more sustainable options, such as the so-called ‘contribution model’
Prioritising deep and rapid emissions reductions
Enhancing the quality and climate impact of carbon credits by improving the methodologies used by standards and project developers and the quality of carbon projects
Putting in place effective mechanisms to ensure that local communities and indigenous peoples are consulted about climate projects, benefit from them and have adequate recourse to grievance mechanisms
Allowing coal-fired power plants to generate carbon credits as a way of financing their early retirement sounds better in theory than it would work in practice if the proposed methodology
The fruits of voluntary carbon market projects are rarely shared fairly with local communities and indigenous peoples. A project in Sierra Leone has come up with a more equitable benefit
CMW commissioned research to analyse the rigour of Verra’s methodologies for the retirement of coal-fired power plants. In Carbon Market Watch’s view, the results of this research demonstrate weaknesses in
‘Questioning the integrity of the voluntary carbon market’ is a new series of Carbon Market Watch video explainers that answers your question on this neglected topic.
Our latest report discusses how carbon credits from renewable energy projects are in oversupply and fail to deliver additional climate benefits
Nine out of 10 intermediaries operating in the voluntary carbon market do not disclose their fees or profit margins
jonathan.crook[at]carbonmarketwatch.org
benja.faecks[at]carbonmarketwatch.org
inigo.wyburd[at]carbonmarketwatch.org
lindsay.otis[at]carbonmarketwatch.org
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