What will it take to create a confident carbon market? New research reveals what businesses need to make the case for investment
London, United Kingdom, 17 July 2025: New research commissioned by VCMI shows that clear, aligned, and stable rules on how and when to use carbon credits are critical to securing business confidence and an uptick in investment in the carbon credit market.
The report, A Confident Carbon Market: Business Perspectives, reveals that there is latent demand for carbon credits from businesses across sectors and geographies, but that concerns about quality, integrity, and reputational risks, along with a lack of clarity amongst regulatory and voluntary climate initiatives, are holding businesses back from investing. The result is that participation in carbon markets has stalled at a time when increased flows of climate finance are urgently needed to help close the $1.3 trillion climate finance gap.
The research reveals that businesses need clear, aligned, and stable rules on how and when to use carbon credits to scale engagement and create a confident carbon market. Businesses stress that developing a 10-25-year investment strategy is challenging if there is no confidence in what rules will still be relevant by 2040, or even 2030.
Commenting on what the research reveals about the state of play in carbon markets today, Mark Kenber, Executive Director of VCMI, said: “Significant strides have been made in addressing integrity gaps, including the work of both VCMI and ICVCM, but we now need confidence and investment to flow back into carbon markets. To achieve that, governments and voluntary frameworks for corporate climate action must redouble efforts towards increasing business participation. Carbon markets can and must complement corporate value chain decarbonization efforts if we are to reach our global climate goals. To unlock this action, businesses need clear rules aligned across regulations and voluntary commitments – that is the strong message from this research.”
Governments and voluntary initiatives have an important role to play in creating the enabling environment for a confident carbon market. Whether regulatory or voluntary, clear rules, including direct requirements, were seen by businesses as critical for justifying investment in the market, especially to internal stakeholders.
Reflecting on the findings, Philippe Varin, Chair of the International Chamber of Commerce (ICC), said “Businesses are keen to scale up their support for voluntary carbon markets, not only for meeting climate targets but also for important co-benefits, such as social impact and biodiversity conservation.
“But businesses also need to confidently make the case for investing in carbon markets. Clearer guidance on how and when to use carbon credits would create a positive feedback loop — to build greater confidence and drive business engagement in high-integrity carbon markets.”
Businesses say examples of poor practice coupled with media scrutiny and public scepticism have contributed to a decline in market trust, and a weakened business case for participation. Carbon credit use is no longer seen to significantly enhance brand reputation, and carbon credit quality remains a top concern.
However, businesses recognize ‘making progress towards climate goals’ as the top opportunity of carbon market participation. Alongside the introduction of clear, aligned, and stable rules on how and when to use carbon markets, businesses also called for clearer frameworks and stronger assurances that credits will deliver measurable and enduring climate benefits, as well as clear endorsements from governments, NGOs, and standard setters, and collective action from peers, to build business confidence to act now, not later.
The research is based on a qualitative, in-depth study involving more than 65 businesses, 20 experts, and 60 market reports to explore perceptions, barriers, and opportunities around carbon market participation. ICC and the World Business Council for Sustainable Development (WBCSD) supported the research by reaching out to businesses in their networks to promote participation in the focus groups to ensure strong cross-sectoral and global engagement.
“This report found continued appetite among the business community for high-integrity carbon markets to deliver much-needed climate finance, but businesses need clear, stable and aligned guidance to unlock greater participation. In addition, businesses also need a supportive environment that recognizes and endorses early adopters of high-integrity carbon markets to build confidence and encourage collective action at the scale needed,” said Jon Williams, Global Financial Services Lead for Sustainability Services and UK, Ireland & Africa Sustainability Services Lead, Accenture.
Peter Bakker, President of WBCSD, said, “This new report from VCMI reinforces the findings of WBCSD’s 2025 Business Breakthrough Barometer. It is no longer a question of ‘if’ businesses will move to decarbonize their operations, but rather ‘how’. Many sectors are already working hard to decarbonize their supply chains, and carbon markets play a vital role to complement these efforts in the near-term. However, to fulfil this potential, clear and business-aligned guidance is critical. This report offers valuable insights as to how this can be delivered.”
The research indicates that businesses see carbon markets as a critical tool to deliver climate action. The full report details the main barriers faced by companies seeking to engage in the market, along with actionable insights on what is needed next to give businesses the confidence to invest.
Leading governments are already taking action: The Coalition to Grow Carbon Markets, led by the governments of Kenya, Singapore, and the UK and launched at London Climate Action Week in June 2025, brings together ambitious governments committed to advancing climate action through credible business use of high-integrity carbon credits alongside deep corporate decarbonization.
To find out more about the report, join an in-depth exploration of the findings by signing up to the launch webinar. The webinar will feature insights and expertise from VCMI, Accenture, ICC and WBCSD.
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Notes to editor
- VCMI commissioned Accenture to deliver a qualitative, in-depth research study involving more than 65 businesses, 20 experts, and 60 market reports to explore perceptions, barriers, and opportunities around carbon market participation.
- The findings, interpretations, recommendations, and conclusions expressed in the report are a result of a collaborative process facilitated and endorsed by VCMI and Accenture, but whose results do not necessarily represent the views of VCMI and Accenture.
- ICC and WBCSD – including the Natural Climate Solutions Alliance (NCSA) – supported the research by reaching out to businesses in their networks to promote participation in the focus groups to ensure strong cross-sectoral and global engagement.