COP28 has been a whirlwind of activity and it feels like this is finally the time that Voluntary Carbon Markets can move on from recent troubles and find new purpose and growth. A series of significant developments have signalled a pivotal moment, emphasising the theme that collaboration, rather than competition, is essential for scaling this market effectively.
These initiatives collectively aim to remove barriers for companies to responsibly offset emissions and contribute to keeping global temperature rise below 1.5C. They reflect a growing consensus on the need for high-integrity rules and a collaborative approach to meet global climate goals.
Prominent voices like UN Climate Change Executive Secretary Simon Stiell, World Bank President Ajay Banga, and US Special Climate Envoy John Kerry have underscored the importance of the VCM, especially for developing countries. Their statements emphasize that no country should be left behind in using the VCM and stress the need for developing countries to be compensated for climate benefits they provide.
This collective movement at COP28 is a clear message: The voluntary carbon market is a crucial tool for driving increased climate ambition and action. The emphasis is on integrity, clarity, and collaboration to ensure that the market scales effectively and equitably, supporting both technological and nature-based climate solutions.
In wider climate news, Over 60 countries signed the Global Cooling Pledge to cut cooling-related CO2 emissions by at least 68% by 2050.
The approval of Article 6 of the Paris Agreement at COP29 in Baku, marks a historic moment for global climate action. Article 6 introduces market-based mechanisms that enable countries to transfer emissions mitigations internationally to meet climate targets. After nine years of negotiations, nations have finalised the frameworks for its two main components, Article 6.2 and 6.4, fully enabling their implementation.
The UK’s newly released Principles for Voluntary Carbon and Nature Market Integrity represent a significant step forward in leveraging voluntary carbon markets (VCMs) to lower global emissions, attract climate finance, and restore nature. These principles reflect a growing international trend toward creating structured, transparent standards for market participation.
As the aviation industry navigates the first year of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Phase 1 (2024–2026), this week’s approvals of additional carbon crediting standards have influenced the market landscape, introducing both opportunities and complexities.