I’m sure I’m not alone in feeling that the start to this year has been unsettling. As is often the case on a personal level, the transition from the festive season to the new year brings a sharp reset, but this year the reset feels global and geopolitical, as well as personal – even if for many of us they are closely intertwined.

But disruption can also sharpen priorities. Rather than fragmenting climate action, 2026 should be a year to double down on what works. Two principles are critical: cooperation and consistency.

Cooperation on climate now matters more than ever

Multilateral cooperation remains central to delivering the Paris Agreement, but in today’s political context, plurilateral approaches can prove especially effective. Groups of willing governments can move faster, build confidence and demonstrate impact, even when consensus is difficult. Their leadership can then point the way to others who may initially be more reluctant. International carbon markets, including under the Paris Agreement’s Article 6, offer one of the most practical tools to do exactly this.

High-integrity carbon credit markets can lower the cost of mitigation, mobilize climate finance and unlock investment in critical technologies. This is widely recognized: over 70% of NDCs signal an intention to use Article 6. [1] The enabling conditions are also improving.

Quality is increasingly being rewarded, with price premiums emerging for credits aligned with ICVCM’s Core Carbon Principles and with high ratings from independent agencies. The finalization of Article 6.4 eligibility rules has strengthened confidence in supply. At the same time, government leadership is returning through plurilateral initiatives, notably The Coalition to Grow Carbon Markets, led by Kenya, Singapore and the UK, the Open Coalition on Compliance Carbon Markets, and the Article 6 Ambition Alliance.

Demand signals are also recovering. Large offtake agreements, such as Microsoft’s purchase of over 25 million carbon removal credits, alongside buyer coalitions like Symbiosis, point to renewed confidence. Recent research also indicates that 90% of existing buyers plan to continue purchasing carbon credits and expand their investments.[2]

To convert momentum into durable impact, clarity and consistency are essential

With the 1.5°C threshold at risk, effective carbon markets are no longer optional.

Confidence is the currency of these markets. Persistent uncertainty around integrity, accounting and reputational risk has constrained investment. That is beginning to change. The Coalition to Grow Carbon Markets has already established Shared Principles for high-integrity use. The priority now is embedding these principles into national policies and aligning them with voluntary corporate frameworks.

Encouragingly, 2026 should bring further convergence, with updated standards from SBTi, ISO and the Greenhouse Gas Protocol. Greater coherence will allow companies to act faster and at scale.

The road ahead

Despite global turbulence, plurilateral cooperation through carbon markets offers a realistic pathway forward. Coalitions of the willing are mobilizing finance, directing it to high-impact projects, and reinforcing trust in markets.

VCMI will continue working with governments and partners to support the high-integrity use of carbon credits. With coordinated, plurilateral action, 2026 can still be a turning point for climate cooperation.

[1] https://www.ieta.org/ndc-3-0-article-6-tracker

[2] https://www.morganstanley.com/content/dam/msdotcom/en/assets/pdfs/MS_ISI_Carbon_Markets_report_final.pdf

The post Carbon credit markets can anchor climate cooperation in 2026 appeared first on VCMI.

After growing strongly over five years from 2016, the voluntary carbon market shrank for the third consecutive year last year, weighed down by continuing concerns around quality and reputational risk, despite progress to improve integrity standards.

The downturn comes at a time when increased flows of new climate finance from the private sector are urgently needed, particularly with the Donald Trump administration pulling back its funding.

A series of studies have shown that carbon credit markets remain a powerful, underutilised mechanism for channelling private sector finance to climate change mitigation in many emerging markets and developing economies.

One suggests that the voluntary carbon market alone could grow to more than $50 billion by 2030, if companies begin investing more strategically today, and leverage impact of up to seven-fold.

This multiplier effect is all the more critical in closing the $1.3 trillion climate finance gap, especially as countries continue to scale up implementation of Article 6 under the Paris Agreement.

New market research from the Voluntary Carbon Markets Integrity Initiative (VCMI) found that despite concerns about quality, businesses still have strong appetite for engaging with carbon markets to support and accelerate their net zero commitments, in combination with efforts to decarbonise their operations and supply chains. Making progress on climate goals was the top-ranked opportunity that businesses see in carbon markets, based on a qualitative, in-depth research study involving more than 65 businesses.

The question now is: where do carbon markets go from here? While significant steps have already been taken to address quality and reputational concerns, three more key steps are needed to restore confidence and ensure carbon markets fulfil their potential to complement businesses’ efforts to decarbonise their value chains…

Read the full article in Reuters

The post Carbon markets can help fill the climate finance gap. Here’s how we can unleash their potential appeared first on VCMI.

As Latin America and the Caribbean (LAC) prepares for COP30 on home soil, the region’s leadership on nature-based and agriculture-aligned climate solutions is gaining traction. From forest protection to farm resilience, the opportunity to unlock high-integrity carbon finance has never been more urgent—or more achievable. At the recent Nature Summit in Panama, hosted alongside the UNFCCC’s inaugural Global Climate Week, the Partnership for Agricultural Carbon (PAC) and the Voluntary Carbon Markets Integrity Initiative (VCMI) co-hosted a high-level conversation to reflect on what’s needed next to unlock this potential. Here’s what we heard—and where we’re headed.

Key Takeaways

• The panel “Unlocking Carbon Market Opportunities in Latin America for Agriculture and Nature-Based Solutions on the Road to COP30” reinforced growing regional appetite for high-integrity carbon market implementation.

• Strong alignment emerged around the need for enabling frameworks—not just project-level finance, but aggregated or jurisdictional approaches and methodologies—to scale climate solutions in rural sectors.

• The pre-launch of PAC’s Latin America and the Caribbean (LAC) Ag Carbon Policy Tracker generated enthusiastic engagement—confirming demand for actionable, comparative policy intelligence.

• The PAC–VCMI partnership demonstrates how collaborative, regionally grounded efforts can pool and enhance local expertise to bridge gaps in market access and policy capacity.

• Calls from panelists highlighted the importance of capacity building to support the development of robust safeguards and equitable benefit-sharing—building on REDD+ lessons and tailored to agriculture.

• COP30 was widely recognized as a defining moment to position Latin America and the Caribbean as a hub for nature-positive and people-centered carbon finance.

Fertile Ground: Creating the Policy Conditions for Scale

Kicking off the discussion, VCMI’s Ana Carolina Avzaradel Szklo emphasized the need for harmonized global policy and jurisdictional readiness: “We’ve seen exciting government momentum—from the UK’s endorsement of VCMI’s Claims Code to France’s Carbon Credit Charter. But without interoperable frameworks and regional policy alignment, it will be difficult to meet the scale of climate ambition or unlock consistent investor confidence.”

Through its Access Strategies Program, VCMI is working directly with countries and regions including Panama, Peru, Brazil and the Mexican state of Yucatán, helping them design frameworks that allow high-integrity carbon markets to complement—not replace—national climate ambition. The Partnership for Agricultural Carbon (PAC) is one such outcome of this initiative—supporting governments to build the institutional conditions needed to effectively leverage high-integrity carbon finance mechanisms in support of sustainable agricultural solutions.

From REDD+ to Agriculture: Embedding Equity and Inclusion

The UN Environment Programme’s (UNEP) Judith Walcott brought an equally important lens to the discussion: equity and safeguards in carbon projects. With over 15 years of experience supporting countries under the UN-REDD Program, she outlined the importance of robust environmental and social safeguards—including equitable benefit-sharing systems, nesting strategies, and governance alignment—also applicable for the agriculture sector.

Scaling carbon markets without safeguards, she noted, risks reinforcing exclusion. If Ministries of Agriculture are equipped with the right peer-to-peer learning models, they can be empowered as full partners—rather than afterthoughts—in climate finance design.

This is precisely what PAC seeks to facilitate through its AgRAP initiative: a Rapid Acceleration Program that trains farmers to ensure fair and equitable participation in carbon markets and high-integrity project incubation.

Investing in Readiness and Regional Collaboration

CAF Development Bank’s Alicia Montalvo linked these themes to the bank’s broader climate finance strategy. CAF has committed to scaling its green agenda, including nature-positive agriculture and ecosystem finance. Alicia reminded the audience that markets alone won’t deliver outcomes—that to be most effective, they should be anchored in investment strategies that integrate public-private coordination and national priorities.

CAF’s support for early-stage readiness, particularly in policy and institutional development, will be critical. This aligns closely with PAC’s upcoming online course for Agricultural Carbon Policy Makers, designed to help governments translate carbon opportunity into bankable, implementable frameworks.

Innovative Tools for a Thriving Policy Landscape

The session saw the successful pre-launch of the LAC Ag Carbon Policy Tracker, a PAC-led tool designed to monitor country-level progress on enabling carbon markets in agriculture. With over 25 variables—spanning regulatory, institutional, and MRV readiness—the tracker aims to provide actionable insight for governments, investors, and development partners.

The enthusiastic reception of the tracker teaser and QR-based access confirmed an appetite for tools and coordination mechanisms that help countries engage more strategically—and equitably—with climate finance opportunities.

Looking Ahead to COP30: Leading with Integrity in Latin America and the Caribbean

From the panel discussion to hallway conversations, it was clear: COP30 in Belém will be more than a climate summit—it will be a call to action. Latin America has the ecosystems, the political will, and the innovation to lead. But its leadership must be matched with collaboration, and its ambition with action.

As Latin America prepares to host the world in Belém, the region faces a unique opportunity: to lead not only with ambition, but to foster carbon markets grounded in integrity, innovation, and inclusion. The work ahead must bring ministries, market players, and marginalized communities into the same conversation. And it must deliver results—not just promises—for agriculture and nature.

At PAC and VCMI, we are committed to continuing this collaboration. As the road to Belém unfolds, we invite others—governments, financial institutions, and civil society—to join us in scaling high-integrity carbon markets that deliver for people, for nature, and for the planet.

To learn more about PAC and stay updated on the latest outputs, click here.

To learn more about VCMI’s Access Strategies Program, click here.

The post From Panama to Belém: how Latin America and the Caribbean is unlocking high-integrity carbon markets for agriculture and nature appeared first on VCMI.

The Science Based Targets initiative (SBTi) closed its public consultation on its Corporate Net-Zero Standard yesterday. We are at a pivotal moment for GHG mitigation and climate finance and the question now is whether SBTi will rise to the occasion and embrace a more pragmatic, integrated approach that includes high-integrity carbon markets. If it fails to do so, we risk hobbling the private sector at precisely the moment we need it moving fastest. 

We are nowhere near on track to meet the global climate goals of the Paris Agreement. Current trajectories point us towards a catastrophic 2.5 – 2.9C of warming at best. Emissions are still rising, private sector progress is constrained by lack of coherent policy,  opaque standards and limited tools, and finance is falling well short of what’s needed to support emerging and developing economies in their transition. On top of that, most companies are struggling to tackle scope 3 emissions—representing from 15% up to as much as 95%of a company’s climate footprint –  and hardest to abate. Meanwhile, the ecosystem of solutions to remove residual emissions remains woefully underdeveloped and underfunded. 

This is where high-integrity carbon markets can—and must—step in. When used transparently to complement rather than replace companies’ own decarbonisation efforts, carbon credits offer a critical mechanism to mobilise finance, accelerate innovation, and maintain momentum where decarbonisation pathways are temporarily blocked. If deployed within robust guardrails, carbon credits are not a substitute for deep emissions cuts, but a vital enhancement to them. 

The end goal is clear and shared: a net zero global economy, achieved as swiftly and equitably as possible, in a way that conserves nature, strengthens communities, and secures health and prosperity for all. But to get there, the private sector needs a full suite of credible tools — and the SBTi, working closely with partners with complementary tools and expertise,  has a unique opportunity to empower them. 

In our recent market research (due to be published next month), companies are voicing frustration at a fragmented standards landscape that undermines both ambition and action. They want consistency across frameworks, and confidence that their climate leadership will be recognised. SBTi is well-positioned to lead this convergence — but only if it seizes the moment. 

What should that look like in practice? 

First, SBTi should integrate frameworks for the high-integrity use of carbon credits into its guidance, and make plans to explicitly include other instrument types such as insets and commodity credits. This includes allowing companies to use credits to close short-term gaps when scope 3—and possibly scope 1—decarbonisation hits barriers, and do so in a way that is science-aligned, transparent, and accountable. The Voluntary Carbon Markets Integrity Initiative’s (VCMI) Scope 3 Action Code of Practice provides a robust blueprint.

Second, it should explicitly allow the use of high-quality carbon credits—both emissions reductions and removals, technology and nature—that meet established criteria; the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles provide a blueprint for this. Achieving global net zero will require the full spectrum of mitigation activities.

Third, SBTi should push for true interoperability across the climate standards landscape. Companies deserve a coherent, end-to-end integrity framework where the GHG Protocol, SBTi, ICVCM, VCMI, and CDP operate in harmony. That means standardising key definitions—terms like “ongoing,” “residual,” “unabated,” and “remaining”—and eliminating contradictions that breed confusion.

Finally, SBTi should formally endorse the VCMI Claims Code of Practice as the default mechanism for companies to communicate voluntary action beyond their targets. This endorsement would ensure high-integrity claims are grounded in credible, transparent frameworks — while unlocking much-needed finance for climate-positive development. 

The world does not have the luxury of delay. Climate science demands urgency, and the private sector is asking for clarity. This is SBTi’s opportunity to lead decisively, evolve with the times, and unleash the full potential of market-based solutions—without compromising environmental integrity. 

The question is no longer whether carbon markets have a role to play. It is whether the institutions shaping corporate climate action are ready to acknowledge that role and act accordingly.

For more insights, subscribe here to VCMI’s newsletter and follow us on LinkedIn.

The post SBTi must embrace carbon markets to keep net-zero within reach appeared first on VCMI.

It is vital that together we collectively deliver the clarity and consistency businesses need to continue making progress towards net zero emissions and catalyse lasting climate action and deliver on the goals of the Paris Agreement.  

In the consultation SBTi recognizes the persistent challenges faced by businesses in reducing scope 3 emissions. It will explore different approaches to target setting for scope 3 and making progress against those targets, in addition to incentives for companies to address on-going emissions through climate mitigation activities beyond their direct value chain.   

VCMI’s scope 3 guidance, which will be released at the end of April, is designed to fill the gap which has been identified by SBTi: it delivers a high-integrity, practical solution to close the scope 3 emissions gap, by complementing decarbonization with high-quality carbon credits.  

Corporate climate action is rarely a linear process, especially when confronted with the complexity of scope 3 emissions, so it is crucial that businesses are provided with frameworks that support them to advance towards climate goals through range of tools.  

High-quality carbon credits have an under-utilised role in helping companies address their scope 3 emissions. Companies need a range of levers to pull, and when underpinned with greater transparency and accountability in the process, carbon credits can unlock the step change in emissions reductions so urgently required. Clear guidance will accelerate corporate engagement and channel vital private sector finance to where it’s needed most, driving us towards a net zero economy. 

We will review the SBTi consultation in detail and contribute constructively to the process. Our goal is to ensure everyone engaged in delivering climate action is able to make progress so that we can deliver the speed and scale that’s required.

– Mark Kenber, Executive Director, VCMI 

The post VCMI welcomes SBTi consultation on Corporate Net Zero Standard appeared first on VCMI.

With nearly 40 countries and 150 corporations represented, including 12 national governments, the message was clear: the building blocks of reform are in place, and we must now remove barriers to scale high-integrity voluntary carbon markets as a critical tool for climate action. 

As co-convening organizations, we are working to deliver essential market integrity and infrastructure initiatives.  

VCMI’s Claims Code of Practice ensures integrity on the demand side of the market, providing essential guidance meaning that companies use carbon credits in addition to – not instead of – decarbonization and can make credible claims.  

ICVCM’s Core Carbon Principles ensure integrity on the supply side of the market, meaning that carbon credits represent real, verified GHG reductions and removals, and apply robust environmental and social safeguards.  

GCMU is establishing the infrastructure required to scale a trustworthy carbon market — including data transparency and management, contracts, audits, verification, and dispute resolution, enabling financial intermediaries to enter the market, provide finance to projects, and take on potential risk. 

Throughout VCM Day, sessions spanned topics from the role of market-based instruments in addressing Scope 3 emissions, to how carbon finance can accelerate a just energy transition, to the role of Indigenous People in the reform of the voluntary carbon market. 

The participation of governments, businesses, Indigenous Peoples, NGOs, academics, buyers, sellers and market makers underscored a shared commitment to delivering a high-integrity market as a critical tool to drive real-world climate action.

The day also spotlighted several new developments for VCMs, including: 

• VCMI’s partnership with Africa Carbon Markets Initiative (ACMI) to transform and scale up carbon markets across Africa 

• The LEAF Coalition’s $180 million agreement to protect Amazonian rainforest in the Brazilian state of Pará 

• The UK Government’s announcement that it will consult on reforms designed to strengthen the market 

As VCMI Steering Committe Chair Usha Rao-Monari pointed out, a well-functioning market can channel climate funds that would otherwise remain untapped; a growing market could channel an additional $50 billion in finance by 2030. Delivering this market is necessary “for the people and planet to have a future.” 

Jennifer Morris, CEO of The Nature Conservancy, added: “The VCM is not just for conservation, or for communities — it’s also because we truly believe it’s a critical tool in the toolbox to achieve global climate goals.” 

To mobilize this finance, we heard how governments can promote market growth by aligning with standard setters to give consistent direction and support to companies so that they can use carbon credits with integrity. We heard how Indigenous leadership must be central to ensuring markets are fair and just, as key stakeholders who preserve 80% of the world’s biodiversity. We also heard how novel technologies, data, and modelling are being used to enhance market transparency at scale – providing buyers of credits with the reassurance that their investments are sound. 

Sam Israelit, Chief Sustainability Officer at Bain & Co., said VCMI’s Carbon Integrity Claims and ICVCM’s Core Carbon Principles “provide independent, external validation that what [Bain & Co.] is doing is consistent with best practice,” which “helps us build credibility.” He continued, “that’s a critical part of any company’s carbon credit strategy: trust and validation.” 

In a conversation with former VCMI Steering Committee Co-Chair and newly appointed UK Special Representative for Climate Rachel Kyte, Tariye Gbadegesin, CEO of Climate Investment Funds, emphasized that integrity is “fundamental” to a functioning market – and with the building blocks of reform underway, what she hopes for at next year’s Climate Week is “carbon markets back in play – big time.” 

We at VCMI are committed to building this market – one that is locally anchored, globally connected, and operates with the utmost integrity – and look forward to continuing this vital work together.  

For updates, you can sign up to our newsletter, follow us on LinkedIn, and check our website frequently for ways to get involved with our Scope 3 Claim, Access Strategies Program, and other market integrity initiatives. 

Read our VCM Day report for an inside look at the event: 

VCM Day Report

The post VCM Day: How global climate leaders came together to unlock the potential of a reformed voluntary carbon market appeared first on VCMI.

1. Maintain and disclose an annual greenhouse gas emissions inventory; 
2. Set and publicly disclose science-aligned near-term emission reduction targets, and publicly commit to reaching net-zero emissions no later than 2050; 
3. Demonstrate progress on financial allocation, governance, and strategy towards meeting near-term emission reduction targets; and 
4. Demonstrate that a company’s public policy advocacy aligns with the goals of the Paris Agreement and does not represent a barrier to ambitious climate regulation. 

These criteria align with the Paris Agreement’s long-term mitigation goals, drawing on best practice guidance developed by leading global initiatives and regulatory frameworks. 

In November, VCMI released additional guidance to the Claims Code, enabling companies to make claims about their use of high-quality carbon credits. The development of this guidance involved months of active consultation and stakeholder engagement with more than 150 experts across VCMI’s Stakeholder Forum, Early Adopters Programme, Expert Advisory Group, and Country Contact Group. As part of this process, a thorough review of the existing Foundational Criteria to make a Claim was undertaken, with updates made to strengthen corporate use of the Code.  

To inform this review, VCMI commissioned research from Ramboll, a global engineering and management consultancy, related to the Strategy and Governance requirements laid out in Foundational Criterion 3. This criterion encompasses board-level compensation tied to corporate sustainability targets, board-level expertise in climate-related issues, and oversight of these matters. 

The research revealed that this discussion is taking place predominantly in the Global North. Of the 18% of companies reporting board-level compensation tied to emissions reductions targets, 77% were headquartered in Europe or North America; disclosure rates in Latin America, Oceania, and Africa were significantly lower. 

Ramboll, p. 40, November 2023 

In this blog post, Sohyeon Park, VCMI’s Technical Associate of Markets and Standards, shares insights into the research and how it has informed VCMI’s Claims Code of Practice.

How did VCMI improve the Claims Code between June and November 2023, and why? 

VCMI made improvements to the Claims Code between June and November aimed to enable corporate adoption of the code. VCMI has commissioned research from Ramboll to further investigate governance indicators proposed in the Claims Code. 

Ramboll assessed whether the indicators included in Foundational Criterion 3 were adequate to corporate reporting practice, and identified areas for potential improvement. This involved the development of evidence-based governance indicators, benchmarks, and minimum thresholds, as well as clear, transparent definitions and descriptions of relevant terms and methodologies.

“Robust governance that enables regular review and oversight of net-zero transition plans at the management level is crucial to placing climate goals at the forefront of business strategy.”

The study evaluated sustainability reports from 100 companies, across sectors and geographies, which had set science-based targets for 2030. It assessed whether those companies met VCMI’s Strategy and Governance requirement in the Claims Code published in June, which aligned with the UK Transition Plan Taskforce (TPT) and EU Corporate Sustainability Reporting Directive (CSRD). 

*The chart above is modified from page 9 of the ‘On-track’ indicator development study conducted by Ramboll (November 2023).  

This research was essential to incentivising meaningful corporate climate leadership, as governance that enables regular management-level review and oversight of net-zero transition plans is crucial to placing climate goals at the forefront of business strategy. 

Can you share some key takeaways from the research? 

First, while the majority of companies surveyed – 52% — linked board member compensation to ESG performance and other environmental targets, far fewer – just 18% — offered incentives to board-level members tied specifically to progress on emissions reduction targets. Most companies employed general terms like ‘ESG’ or ‘sustainability’ for board-level compensation incentives, rather than disclosing specific priorities for emissions reduction. 

Ramboll, p. 17 , November 2023 

Second, while nearly all companies (96%) reported someone responsible for sustainability issues at the board- or management-level, the climate- or sustainability-related expertise of those employees tasked with climate-related issues was unidentifiable due to a lack of data. Board-level experience for addressing climate-related issues is crucial to the effective implementation of corporate climate strategies, and for supporting a company’s long term climate objectives; however, none of the 100 companies surveyed were able to provide that information. 

Ramboll, p. 27, November 2023 

Although current data is scarce, disclosure will soon become more prevalent and standardized under impending regulation from the EU Corporate Sustainability Reporting Directive (CSRD) and UK Transition Plan Taskforce (TPT), expected to take effect in 2026. 

Lastly, while most (79%) companies conducted board-level reviews on progress towards ESG strategy and targets, respondents did not disclose whether that review specifically included emissions reduction targets. The remaining proportion (21%) of companies did not review ESG issues at the board level at all. 

Ramboll, p. 36, November 2023 

How did this research inform the Claims Code of Practice? 

The research revealed that the requirements laid out in the Claims Code align with reporting standards that many companies are likely to be required to report under, such as the Corporate Sustainability Reporting Directive (CSRD). By implementing the standards provided in VCMI’s Claims Code, companies can confidently prepare for impending regulation from regulatory bodies such as the CSRD. 

The Ramboll study recommended that VCMI adopt a phased approach to progressively enhance corporate disclosure over short-term, mid-term, and long-term periods. This would mean applying expanded language in Foundational Criterion 3, such as ‘sustainability’ or ‘ESG,’ in the short- and medium-term, rather than maintaining focus on a company’s progress towards near-term emission targets. VCMI welcomed the recommendations made and looked forward to assessing the proposed approach using the data accumulated from companies as VCMI Claims scale up. However, understanding that maintaining a more stringent approach to governance and strategy requirements – rather than adopting the recommended phased approach — would make obtaining a VCMI Claim more challenging, VCMI elected to maintain the rigor of the Claims Code requirements, seeing an opportunity to strengthen corporate governance systems and drive meaningful emissions reductions.  

Strengthening corporate governance practices could include: 

• Tying board member compensation to climate target and emissions reduction performance;  
• Selecting board and advisory members with technical background in sustainability, Environmental, Social and Governance (ESG), and/or climate change; and  
• Adding climate criteria to annual board member reviews. 

Ultimately, VCMI used this research to strengthen and specify governance and strategy metrics under Foundational Criterion 3, encouraging corporate climate leadership under the Claims Code of Practice by mandating the disclosure of governance metrics ahead of impending regulation.  

What does the future hold? 

Global emissions must be nearly halved by 2030 to avoid catastrophic climate change. Despite the urgency of cutting emissions across sectors, corporate governance is not currently strong enough to deliver on net zero goals and to implement climate transition plans at speed and scale. 

As the study indicated, less than one-fifth of companies surveyed reported compensation mechanisms to incentivise emissions reductions; board members responsible for oversight of climate-related issues within companies often lacked relevant professional expertise, and the achievement of emissions reduction targets is rarely subject to board-level review.  

Yet to raise corporate climate ambition and achieve net zero, robust governance is needed to underpin corporate climate transition plans. Companies must integrate climate issues into core business strategies. Climate goals must be consistently incentivised, monitored, and reviewed among corporate leadership at the board and senior levels. 

What can companies do now to get involved and accelerate meaningful climate action? 

VCMI encourages all companies to work towards making a Carbon Integrity Claim and get recognized for accelerating global net zero, above and beyond their science-aligned emissions cuts. Companies that demonstrate climate leadership by making VCMI Claims promote industry best practice for governance, disclosure, and use of high-quality carbon credits as part of their net zero strategies. 

Ramboll’s research indicated that VCMI’s Claims Code is a step ahead of regulation. Companies making VCMI Claims can be recognized as early adopters of regulatory disclosures, future-proofing their business from impending regulation and other standards such as CSRD and ISSB. 

As more companies make VCMI Claims, further data will be disclosed under Foundational Criterion 3, providing new insights into best practice for climate governance and allowing VCMI to continue identifying effective benchmarks to accelerate the pace of decarbonization. VCMI will also continue to closely collaborate with climate reporting frameworks to strengthen guidance for corporate climate action and ultimately deliver on net zero goals. 

To learn more, companies can tune into VCMI’s Carbon Integrity 101 webinar series, which provides a step-by-step deep dive into VCMI’s Claims Code, with a live Q&A at the end of each session. All recordings and slides are available to view and download on the VCMI website. 

Interested parties can also sign up to the VCMI newsletter to stay up-to-date on VCMI’s work and learn about upcoming opportunities to get involved. 

About VCMI 

The Voluntary Carbon Markets Integrity Initiative (VCMI) is the standard setter for the high-integrity use of carbon credits by companies as part of their net zero transitions. In June 2023, VCMI published the Claims Code of Practice (‘Claims Code’) to incentivize corporate climate leadership; the Claims Code is the go-to guidance for companies on credible claims. 

In November, VCMI released additional guidance for the Claims Code, enabling companies to make claims about their use of high-quality carbon credits. This guidance includes a Monitoring, Reporting and Assurance (MRA) Framework, a brand and associated mark for making ‘Carbon Integrity’ Claims, and a beta version of VCMI’s Scope 3 Claim. 

From November 2023, companies have all they need to make a VCMI Carbon Integrity Claim and get recognized for accelerating global net zero. 

The post To deliver on climate goals, companies must strengthen governance: Ramboll study insights show how and why appeared first on VCMI.

The message from governments globally is clear: high-integrity voluntary carbon markets are an important part of the climate solution.  

Support for high-integrity voluntary carbon markets (VCMs) is also strong in the EU, demonstrated by governments of the Netherlands, Germany, France, Spain, Finland, Belgium, and Austria joining up to provide clarity on credible climate claims based on the use of carbon credits. The joint statement adds welcome detail to existing government guidance, such as the G7 principles of High Integrity Carbon Markets and the Call to action for Paris-aligned Carbon Markets, which aim to boost integrity in the VCM and support the achievement of Paris Agreement goals.

The statement also complements evolving EU regulation linked to claims made using carbon credits, such as the Empowering Consumers Directive passed by members of the European Parliament last week. The EU’s legislative reforms are designed to prevent greenwashing and place integrity at the heart of Europe’s green transition. Alongside VCMI’s Claims guidance, this package presents corporates with a clear pathway to transparent and credible claims, incentivizing and rewarding environmental performance whilst eliminating greenwashing.    

The joint statement, EU legislation, and other advances highlighted at COP28 provide a clear call-to-action for corporates globally: set science-aligned net zero targets, take action now to ensure progress against them, and purchase carbon credits to demonstrate greater climate ambition in addition to meeting targets.  

VCMI’s Claims Code of Practice (Claims Code) provides a framework for companies to do exactly that: restore trust in VCMs. The Claims Code brings transparency and credibility to climate claims that involve the use of high-quality carbon credits. Register your interest in making a Carbon Integrity Claim and get recognized for accelerating global net zero here.

Annex 1: Policy breakdown – Companies can meet the recommendations set out in the EU Governments’ joint statement by making a VCMI Carbon Integrity Claim. 

As demonstrated in the table below, fundamental demand-side integrity principles underpinning the process of making a VCMI Carbon Integrity Claim mirror the recommendations in the Joint Statement for organizations making climate claims based on the use of carbon credits.

EU Governments’ Joint Statement on VCM: The Claims Side Recommendations	Compatible with VCMI Carbon Integrity Claims?	Explanation	Relevant Claims Code Text
1) Calculate and publicly disclose all direct and indirect emissions, have a climate target in line with the Paris Agreement and a roadmap in place to reduce emissions.		To make a Carbon Integrity Claim, companies must publicly disclose a greenhouse gas emissions inventory including direct and indirect emissions. They must set and publicly disclose science-aligned near-term emissions reduction targets, also publicly committing to reaching net zero emissions no later than 2050.	Claims Code of Practice, Step 1, pp. 19-21
2) Prioritise reduction of emissions across the value chain. Ensure that the use of carbon credits will supplement and not substitute or delay your own emissions reduction measures.		VCMI’s Claims Code makes clear that organizations must prioritize emissions reductions across the value chain. By mandating that claimants have set and are making progress toward meeting interim emissions reduction targets, Carbon Integrity Claims do not allow carbon credits to substitute for or delay internal emissions reductions.	Claims Code of Practice, Step 2, pp. 25-26
3) Formulate clear claims in response to the use of carbon credits, while providing sufficient details to avoid misleading consumers.		VCMI provides the first set of standardized Claims around how companies are using carbon credits through its ‘Carbon Integrity’ Claim. By displaying the Carbon Integrity mark, a company demonstrates it is “accelerating global net zero.” This encapsulates the commitment of an organization to swiftly driving the world towards achieving net zero emissions, taking action above and beyond progress on science-aligned targets.  Companies that successfully make a Carbon Integrity Claim will receive a QR code that can be displayed alongside the mark, linking to information regarding how carbon credits are used to make a Carbon Integrity Claim and what the claim means.   VCMI also provides communications guidance to prevent misleading use of the claims.	Supplementary Guidance, pp. 3-5
4) Indicate whether credits are used towards the organisations’ climate goals (offsetting claim), or to contribute towards achieving climate goals in the host country (contribution claim).    N.B. the Joint Statement states that for offsetting claims, a corresponding adjustment is done by the host country to avoid double claiming of carbon credit. A corresponding adjustment is where the government hosting the project adjusts its international accounting so the mitigation outcome is not double-counted.		Corresponding adjustments are not required to make a Carbon Integrity Claim. However, corporates are required to publicly disclose whether the carbon credits they have purchased have been correspondingly adjusted. VCMI’s Carbon Integrity Claims recommended tagline, ‘accelerating global net zero’, is closely aligned with what the joint statement considers a contribution claim, removing the possibility of double claiming.	Claims Code of Practice, pp. 30
5) Buy high quality credits; ensure that the credits represent real, additional, and permanent mitigation and leakage is prevented.		The VCMI Claims Code mandates that organizations purchase ICVCM Core Carbon Principle (CCP)-aligned credits. The CCPs provide a global benchmark for high quality carbon credits that buyers can be confident are real, additional, and contribute to permanent mitigation, with leakage prevented.	Claims Code of Practice, pp. 29-30
6) Pay attention to the impact in the host country (environmental and social impacts, human rights, gender equality, the rights of Indigenous Peoples and other local communities) and consider how purchase of carbon credits contributes to achieving sustainable development goals.		ICVCM’s Core Carbon Principle 9 focuses on sustainable development benefits and safeguards, requiring that “the carbon-crediting program shall have clear guidance, tools and compliance procedures to ensure mitigation activities conform with or go beyond widely established industry best practices on social and environmental safeguards while delivering positive sustainable development impacts.”	Claims Code of Practice, pp. 31
7) Be transparent and report annually in a publicly available report on the progress in achieving climate targets and the use of carbon credits.		Transparency is a fundamental principle of VCMI’s work. To make a Carbon Integrity Claim, a company must follow VCMI’s Monitoring, Reporting, and Assurance (MRA) framework. This requires public disclosure of the company’s progress towards targets and use of carbon credits. A Carbon Integrity Claim mark includes the claim year to encourage organizations to report and publicly disclose progress annually.	Claims Code of Practice, pp. 33    MRA Framework

The post Government guidance and unfolding regulation pave the way for companies to make VCMI Claims appeared first on VCMI.

Getting a consensus on a phase out of fossil fuels was never going to be easy. Neither was a way forward on Article 6 carbon markets. The final texts reflect these challenges, and the misses here are disappointing.

However, where we have landed – the “UAE Consensus” – does speak to the urgent need to cut emissions and unlock significantly more finance to support sustainable development, adaptation and mitigation in emerging and developing countries. This is critical progress.

The call to transition from fossil fuels is a step in the right direction but doesn’t go far enough:

• The Global Stocktake text has not put us back on track, but it does signal the beginning of the end for fossil fuels. Commitments to the scale-up of renewable energy and energy efficiency have been well received, but this must be accompanied by a rapid phaseout of coal, oil and gas based on a clear plan for a just transition.

Increased finance is essential to make the transition from fossil fuels a reality:

• Details are scant in the Global Stocktake on how emerging and developing countries will fund this transition. In the early days of COP28 we saw a blueprint emerging for the way forward on global climate finance, but there is more to do. It was positive to see some breakthroughs in financing activity – for instance the $30bn climate-focused investment fund launched by the UAE in the opening days of COP. There must now be more focus on how blended finance, private sector investment and public sector financing initiatives can come together to channel investment from the Global North to the Global South. This will be the key task at COP29.
• On loss and damage for developing countries, the agreement reached on the Loss & Damage Fund in the opening days was positive, with the first pledges totalling $700 million. However, this is still far below what is needed – with some estimates placing this at $400 billion per year. We must now see concrete commitments to get the Fund to a meaningful scale.

Carbon markets can play an important role in cutting emissions and supporting the transition away from fossil fuels; the failure to reach agreement on Article 6 means this important source of funding faces further delays.

• If the carbon market’s architecture is to come together within two years as the UN and many governments have called for, policymakers must now push forward and build on the work already done. This includes filling gaps in definitions and agreement on transparency, environmental and social safeguards, authorizations, methodology approvals and ensuring appropriate rules for carbon removals.
• The absence of an agreement on Article 6 for another year reinforces the need for a high-integrity VCM more than ever. This can provide a foundation and framework for integrity in carbon markets as they continue to develop, providing clarity and giving confidence that will unlock finance and incentivise deeper corporate climate action.

There is now wide support for high-integrity VCMs can complement Article 6 markets as a key part of the wider package of global climate finance mechanisms:

• VCMs, along with compliance markets, emerging Article 6 markets, and effective carbon pricing by governments, can all deliver finance towards climate mitigation and sustainable development efforts.
• Many global political, business and civil society leaders voiced support for VCMs during COP28, specifically noting that only high-integrity VCMs can make sure that carbon finance is delivered in a way that is targeted, equitable, and that the credits sold represent real, verifiable emission reductions or removals.
• These respective and complementary roles of different carbon mechanisms were highlighted at a Presidential roundtable on 4th December, moderated by Tariye Gbadegesin, Co-Chair, VCMI. Speakers stressed the important role of high-integrity VCMs in channeling climate finance from advanced economies to projects in emerging markets and developing economies to support ambitious decarbonization in line with 1.5 degrees. Many voiced support for the work of VCMI and ICVCM in developing the rules for high-integrity.

Government endorsement for high-integrity VCMs is growing, and being seeded in nascent VCM regulatory approaches:

• The CFTC, IOSCO, the UK Government and a group of major EU countries (Netherlands, Germany, France, Spain, Finland, Belgium and Austria) announced initiatives during COP28 that pave the way for increased government action and regulation in VCMs. All these initiatives highlighted the necessity for VCM activity to be high-integrity – and many directly pointed to the work of VCMI for companies to follow. If these initiatives are to succeed in their ambition, they must align with the work VCMI and ICVCM have already produced that defines integrity.

Companies now have an end-to-end integrity framework to follow to scale up climate action. Many are confidently engaging with high-integrity VCMs:

• VCMI came together with SBTi, GHG Protocol and ICVCM to display how they are collaborating to deliver clear, cohesive standards for corporate climate action. This was widely welcomed by companies with many consistently demonstrating their support for the work of VCMI and ICVCM in providing rules for high-integrity VCMs.
• Many companies during COP28 signalled their intention to participate in initiatives that are underpinned by high-integrity. We heard from many climate leading businesses – including Salesforce, Natura, Netflix and BCG – on how they are using high-integrity VCMs to go above and beyond their science-aligned emissions cuts. Many leading companies also expressed their interest in participating in the Energy Transition Accelerator (ETA); we were delighted to see reference to VCMI’s guidance and look forward to seeing this fully embedded in the ETA’s rules.

There is still more to do to embed integrity in all VCM activity:

• All VCM activity must be high integrity. Every credit originated and purchased must be high quality. Use of carbon credits must be in addition to – not instead of – decarbonization. There cannot be a slip back to the ways of the past where low-integrity approaches damaged the VCM’s reputation and ability to deliver financing to emerging and developing economies.
• Throughout COP28, there was resounding support for high-integrity VCMs and an expectation that there can be nothing less than high-integrity in VCM activity. We cannot delay further, we must do everything we can to ensure that finance flows are increased to facilitate a rapid, equitable phaseout of fossil fuels.

Mark Kenber, Executive Director, VCMI, commented:

“While there were many encouraging developments on carbon markets at COP28, the overall negotiations fell short of the mark. Achieving Paris Goals requires all flows of capital to be mobilized. The lack of agreement on Article 6 makes this much harder. For the market to fully develop in the next two years as the UN and governments have called for, policymakers can draw on the foundational work of the VCMI and IC-VCM to accelerate the transparency and integrity agenda, developing high-integrity VCM and Article 6 markets that deliver the finance that makes ambitious global action possible.”

Image source: UNCTAD at COP28 – 2 December 2023

The post VCMI on COP28: The beginning of the end of fossil fuels: we need to use every form of finance to deliver this commitment. appeared first on VCMI.

• Companies must prioritise rapid cuts to their own emissions, while using high-quality carbon credits to take responsibility for their remaining emissions. 
• With greater opportunity to decarbonise than ever before, businesses must urgently move away from their reliance on fossil fuels. 
• Companies must set and publicly disclose science-aligned near-term emission reduction targets, and publicly commit to reaching net zero emissions no later than 2050, across Scopes 1, 2 and 3 GHG emissions. In addition, they must buy high-quality carbon credits – representing real, verified GHG reductions and removals, which apply robust environment and social safeguards; and they should communicate about the use of those carbon credits.

VCMI and ICVCM have developed end-to-end rules for integrity in VCMs, from demand to supply sides. VCMI has delivered the Claims Code of Practice which guides companies on how they should use high-quality carbon credits and communicate about the use of those credits. The ICVCM’s Core Carbon Principles set new fundamental principles for carbon projects that will raise standards in the VCM to a consistent level of quality.

By following our guidance, buyers of carbon credits can be confident that they will not be accused of greenwashing either because of the credits that they buy or the way they use them as part of their climate goals.

In the face of climate change, nothing is more dangerous than inaction. Companies and other non-state actors play a critical role in cutting global emissions in half by 2030. That means action now. The planet cannot afford delays or excuses.

The post Joint statement: VCMI and ICVCM call on businesses to urgently decarbonize operations and demonstrate climate leadership appeared first on VCMI.

In 2021, the UK Government published its Net Zero Strategy, which laid out a roadmap for achieving net zero greenhouse gas emissions by 2050.

Unfortunately, that road had some unexpected obstacles. The Russian invasion of Ukraine, high energy prices, inflationary pressures, and tumultuous politics dramatically altered the landscape of climate action across the globe. The UK was no exception.

Rather than abandon the goal of a net zero future, the Government commissioned a review led by Chris Skidmore MP to better understand the impact of different approaches to delivering a net zero pathway that maximises the economic opportunities of the transition.

In January, the commission delivered the UK Net Zero Review, and the Government had until 31 March to respond to its proposals. With that as the backdrop, Patch hosted Chris Skidmore alongside Liz Harrowell, Director of Climate Risk and Strategy at KPMG, Lydia Sheldrake, Director of Policy & Partnerships at VCMI, and James Davis, Partner, Financial Services, Climate and Sustainability at Oliver Wyman to talk about what the review could mean for the future of net zero in the UK and climate action at large.

You can watch the full recording of the event, but here are two opportunities and two risks the UK faces according to this panel of experts.

Opportunity: A net zero future unlocks tremendous economic potential for the UK

According to Skidmore, other countries such as the U.S. and Germany have started to take a long-term view on the transition to clean with price-signalling on CO₂ and hydrogen, but the UK has mostly been approaching it project-by-project.

“The UK has two divergent pathways,” said Skidmore, “the net zero pathway that would allow it to access potentially up to a trillion pounds worth of capital by 2030, creating 480,000 new jobs by 2035, or the pathway of not zero.”

Mission Zero, the Net Zero Review, offered 129 recommendations for the UK to unlock that economic potential alongside 10 decade-long missions to create consensus across government and industry. In the webinar, Skidmore outlined the “four C’s” that are key to accomplishing those missions:

• Continuity of people and policy over time
• Certainty of funding for the business environment and regulations
• Consistency of the playing field that’s well-understood by businesses and investors
• Clarity of data to inform future decision making.

As the webinar panel added, it won’t be government alone delivering on those four C’s. Lydia Sheldrake, Director of Policy & Partnerships at VCMI, called out the forthcoming Claims Code of Practice, which will be finalised this year and will help create consistency and clarity around the voluntary carbon market (VCM).

Furthermore, as James Davis, Partner, Financial Services, Climate and Sustainability at Oliver Wyman, pointed out, the UK is home to a major global financial hub in London, which he sees as a huge advantage for it.

“We’re seeing a lot of innovation around market infrastructure that will support all of this,” he said. “So I think that’s all a big positive force for the market. And there’s a lot of appetite to invest in the space which should be helpful for the development.”

Takeaway: If the UK Government adopts the policies that will deliver a net zero future, it could unlock trillions in capital by 2030, with the standards and financial infrastructure in place to ensure that money is invested quickly and according to science-based best practices.

Risk: A fragmented, ambiguous carbon market creates fears of greenwashing

One risk that was expressed consistently among the panel concerned greenhushing. If greenwashing is the practice of covering up unsustainable practices by signalling dubious climate action, greenhushing is the other side of the coin: covering up one’s climate action for fear of being accused of greenwashing — or worse, not taking action at all.

“We’re all well aware of the issues around greenwashing, or now, greenhushing,” said Skidmore, “where companies are now entering a corrosive environment of not being able to commit to even looking at what a voluntary carbon market might look like for the fear of being shunned by a wider investor community.”

Specifically, participants in the VCM told Oliver Wyman in a review last year the causes of their hesitation. They don’t know if they’re using credits in the right way — or even if they ought to use credits at all. How much should they rely on them? How much should they spend?

“And then the other big source of uncertainty is,” said Davis, “are the credits themselves good enough? Do they do what they say they do?”

The result is an investor community whose billions sit on the sidelines.

The solution could be manifold, with standard-setting organisations such as VCMI providing orthodox guidance to companies, policy such as the recommendations of the Net Zero Review, and better data and technology improving the trust and transparency of both projects and markets.

“The overriding message is one of urgency,” said Sheldrake. “We need all hands on deck and tools in the box in order to accelerate the net zero transition. And governments including the UK must act decisively.”

Takeaway: Without swift action from regulatory bodies and standard-setters, companies and investors may be paralyzed by greenhushing — and the investment needed to get climate solutions to commercial scale could come too late to be maximally effective.

Opportunity: Localised investments can drive results at home and in emerging markets

A primary pillar of the Net Zero Review is to catalyse local action, to drive new jobs, homes, and infrastructure for the UK.

“Where is the domestic opportunity to sell the transition to net zero through the voluntary carbon market?” asked Skidmore. “Not just in order for emissions reductions to take place, but actually to mobilise future forms of investment in areas where there has been a lack of investment in the past.”

Liz Harrowell, Director, Climate Risk & Strategy at KPMG, echoed those concerns. She sees emerging demand for opportunities to engage in the VCM that are closer to home. UK companies may see locally-produced carbon credits as more future-proof than those produced abroad, but the supply in the UK is outpaced by that demand.

“It’s more difficult to navigate the market at the moment,” Harrowell explained, “and so a lot of companies are looking for national opportunities in the UK but not seeing an easy way to access those today.”

A tonne of carbon removed on the other side of the globe is identical in terms of chemistry to one removed at home, but the approach and the benefits can be vastly different. Davis took a measured approach to the trade-offs.

“There is a benefit from having a local supply,” he said, “as well as a benefit in carbon credits being able to channel capital to some of the economies where it’s most needed. There’s space for both certainly, but room to expand the supply in the UK based on where it is.”

Takeaway: There’s increasing demand in the UK for local approaches to carbon credits, but so far the supply hasn’t kept up. More investment in production could be lucrative for project developers and also deliver economic benefits to the UK and to companies searching for future-proof climate action opportunities.

Risk: The UK must act soon to secure its place as a climate leader

One thing each speaker emphasised was a need for urgency. The climate itself is a ticking clock, with each new year taking us closer to the brink of the 1.5°C threshold the IPCC says we must avoid.

But for the UK specifically, there’s a risk of losing out on the economic benefits of a sustainable economy as other global powers such as the US and Germany race forward. And when it comes to regulatory and policy standards for the VCM, there’s a lot of international competition in this space (UAE, Singapore). The VCM is going to feature heavily during COP28, so the opportunity is now for the UK to step up and take leadership on the VCM before other countries beat it to the punchline.

“We are now in a net zero race, and the UK risks falling behind,” said Skidmore. “But in many ways, we are still way out front when it comes to the ability to regulate and create standards and export those to other countries.”

Corporate climate actors around the world are clamouring for leadership, and Skidmore hopes the UK can provide it. But not all the time pressure is climate or competition related.

“Why are we — with 1% of global emissions — making all this effort?” asked Skidmore. “We can make this effort because we can shift the dial in ways that we wouldn’t have expected. What we have done on net zero, we can now do on the voluntary carbon market for the future.”

Takeaway: Time is running out for the UK to respond to the Net Zero review, but more broadly, for it to be a global leader when it comes to standards and policy for the VCM — and for climate action in general.

How corporate climate action can de-risk government action

While the immediate next steps in Mission Zero are the Governments’ to take, corporate actors need not sit on their hands waiting. The crisis is too urgent and the opportunity too ripe. In fact, action at the company level can play an important role to walk ahead of government spending and de-risk the investment. By helping to guarantee forward revenue for emerging approaches, they can scale faster and prove their methodology in advance of much-needed state investment.

The post VCMI’s Lydia Sheldrake on the UK’s path to net zero appeared first on VCMI.

With corporate decarbonisation driven by robust science a core focus of the “implementation decade”, ensuring genuine corporate progress was a priority for many. The UN Secretary General’s High-Level Expert Group, chaired by former Canadian Minister Catherine McKenna, launched a report that proposed tougher standards on net zero claims, including the requirement that carbon credits be used by companies in a way that is truly additional to decarbonisation efforts. This was echoed by the ISO Net Zero Guidelines, also released at COP27. Ensuring the use of carbon credits enhances climate mitigation rather than substituting for internal decarbonisation is one of VCMI’s key principles and our Claims Code of Practice will maintain this approach.

Article 6 decisions held off until COP28

Disappointingly, decisions on many key Article 6 issues have been held off until the next round of COP negotiations. This includes decisions on how to treat emission “removals”, whether to allow credits for “emissions avoidance” and when carbon credits could be “revoked”. Gaps in the rulebook run the risk of deterring carbon market investments, due to uncertainty around future regulations, and so they must be decided on as soon as possible.

However, one major agreement was on the creation of “mitigation contribution units”: Article 6.4 carbon credits issued without corresponding adjustments which can be used companies and other non-state actors to meet their own commitments, while at the same time contributing towards the host country’s progress towards meeting its NDC. There are still questions about how double-claiming can be avoided – or at least better understood – but the creation of these units aligns the UNFCCC framework more closely with the language used in VCMs.

VCMI’s guidance is clear and as ever based on transparency – if buyers use these units, they must make it clear that the emissions reductions will be used by the host country towards meeting their goals; and buyers must report transparently on which kind of units they’re using.

Unlocking climate finance in developing countries

High-integrity carbon credits can play a central role in directing financial flows to developing countries, and we’re pleased to see the creation of an African Carbon Markets Initiative, which has the potential to unlock $6bn in revenue by 2030 to be distributed equally and transparently among local communities.

Most carbon sinks, like tropical forests and mangroves, are in the Global South – and climate finance is crucial to protecting them. But these kinds of proposals only increase the need for integrity across the full spectrum of carbon markets. VCMI is keen to work with programmes such as the African Carbon Markets Initiative (ACMI) to ensure that these conditions are met, and that finance generated from the Voluntary Carbon Market plays a truly catalytic role.

—

At the heart of the action: On the ground in Sharm El-Sheikh

VCMI Co-Chairs Rachel Kyte and Tariye Gbadegesin joined other climate leaders on several globally significant panels and roundtables. These included Goals House’s deep dive on corporate net-zero, a UK Pavilion discussion on how Africa’s capital markets can close the finance gap, and a panel organised by Strive on communicating carbon offsetting with integrity.

We also hosted our own event with the We Mean Business Coalition on what businesses need – and what we need from businesses – to create high-integrity VCMs. The event saw Rachel, Tariye and WMB’s CEO Maria Mendiluce join an array of industry experts from the private and public sectors. Despite being on a Saturday evening, the event was well attended, with corporate and climate leaders cramming in to discuss this vital topic.

VCMI was referred to in top tier international media, including the Financial Times and Wall Street Journal’s coverage of the John Kerry announcement – moving us from the periphery to the core of media debate compared to the start of the year.

The post Three key themes from COP27 – and what they mean for VCMI appeared first on VCMI.