“By recognizing the role of market-based instruments, the new standard will reassure companies that the world’s leading standard-setter for corporate climate action values investment in carbon credits. It draws meaningfully on the work of VCMI to define best-practice corporate use of carbon credits to address ongoing emissions. It is essential that SBTi continues to build on the work of others across the world of corporate climate action, including the ICVCM’s Core Carbon Principles, to increase alignment and drive clarity for businesses.

“However, SBTi stops short of creating a meaningful incentive for businesses to invest in high integrity carbon crediting projects now. Without a stronger signal, important opportunities to reduce and remove emissions will be lost and the market won’t be ready when it’s needed. VCMI’s work, driven by deep consultation across a wide range of stakeholders shows that carbon finance is needed and can be used to increase overall ambition and accelerate short-term action.

“Governments, too, are increasingly strengthening political and regulatory signals that support credible action on ongoing emissions and greater corporate participation in high-integrity carbon markets. We’re pleased SBTi has opened the door to recognizing companies that purchase carbon credits and stand ready to continue working with them to give businesses the confidence to act now.”

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23 April, Washington DC, USA — Climate-vulnerable nations from across Africa, Asia, the Caribbean, Latin America, and the Pacific convened to spotlight concrete steps they are taking to harness high-integrity carbon markets as a driver of economic resilience and climate prosperity, demonstrating that they are not waiting for climate finance to arrive, but actively building the architecture to attract it.

The event was convened by the Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) and VCMI on the sidelines of the Spring Meetings of the World Bank and the International Monetary Fund (IMF).

Ambassador H.E. The Most Honourable Elizabeth Thompson, Sherpa to Prime Minister Mia Amor Mottley of Barbados, Chair of the CVF-V20, set the tone for the discussions, underscoring that carbon finance is one of the super levers to catalyze finance in climate-vulnerable countries, with the potential to  “unlock an additional US$20 billion by 2030, which can be used to support the climate prosperity agenda and boost nature-based solution investments.”

CVF-V20 Nations Showcasing Action

Earlier this year, Bhutan launched the Carbon Market Information Platform, designed to enhance transparency, reduce transaction costs, and strengthen carbon credit integrity. The platform includes a first-of-its-kind, interactive private sector engagement manual to help private participants navigate key sections of Bhutan’s carbon market guidance. 

“Bhutan’s approach focuses on bridging the gap between frameworks and a functioning market by developing a credible pipeline of activities, strengthening institutional coordination, and engaging early with sovereign and private sector buyers,” H.E. Lyonpo Lekey Dorji, the Minister of Finance of The Kingdom of Bhutan, said. 

Ghana is among the most advanced CVF-V20 countries at mobilizing finance under Article 6 of the Paris Agreement. 

“Several projects on the National Carbon Market Pipeline include Ghana Forest Investment Program which is expected to generate 10 million carbon credits, the Ghana REDD+ Program which targets 5 million carbon credits, and the Solar Irrigation Project which is estimated to gain two million carbon credits,” H.E. Issifu Seidu, the Minister of State for Climate Change and Sustainability of the Republic of Ghana, cited.

H.E. Tiaone Hendry, Chairperson of the Natural Resources, Energy and Climate Change Committee of the Parliament of Malawi, stressed that strong legislative foundations are non-negotiable as carbon projects begin to scale in her country. “Parliamentary engagement is not optional. It is essential,” she said, noting the ongoing questions around legal frameworks, benefit-sharing, and community rights.

The esteemed parliamentarian made it clear, “Success will not be measured by the number of carbon credits generated. It will be measured by whether livelihoods are improved, whether communities see tangible benefits, and whether revenues are clearly contributing to national development.” She warned about avoiding a situation where carbon becomes another extractive industry, and highlighted the vital role of parliamentarians to ensure the interests of their constituents are heard in emerging legislation.

Mr. John Narag, Director at the Philippines’ Department of Finance, presented the country’s newly adopted Roadmap to Readiness in the Voluntary Forest Carbon Market, establishing a strategic framework spanning policy development, data analytics, institutional mechanisms, and sustainable financing for forest carbon. He also shared that the Philippines, as the current ASEAN Chairman, will host a Carbon Market Forum for the region in September 2026 to help advance carbon market initiatives across the country and the wider region.

Pakistan, meanwhile, announced the signing of its first-ever carbon market deal—another milestone following the launch of its National Policy Guidelines for Trading in Carbon Markets. Zulfiqar Younas, Additional Secretary and Member of the Federal Board of Revenue in Pakistan, highlighted the country’s plans to scale investment-ready project pipelines across key sectors, including water, transport, industry, agriculture, forestry, and other land uses.

Participants at the Carbon Finance Program workshop

Addressing Bottlenecks, Enabling Market Conditions

Despite rising momentum, significant barriers remain. The 45 least developed countries globally accounted for just 1.5 percent of all projects registered under the Clean Development Mechanism. Without significant technical support, there is a significant risk that this pattern will repeat under Article 6, with those countries that most need the carbon market finance that is available unable to access it. Discussions identified low technical capacities, fragmented institutional uptake and coordination, accounting challenges, regulatory uncertainty, and social safeguards as the principal constraints holding both countries and private sector investors back.

”Countries need to take ownership of carbon market initiatives. An appropriate legislative framework and fiscal infrastructure are needed to ensure efficiency in carbon market engagement and management,” Sara Jane Ahmed, Managing Director and Finance Advisor of the CVF-V20 Secretariat, said. 

The technical session, the first of three to be delivered this year, examined what policy and regulatory conditions are needed to unlock Article 6 and voluntary demand for high-integrity carbon credits at scale.

“The world cannot achieve its climate targets without dramatically scaling up flows of finance to climate-vulnerable nations. As carbon markets grow, it is vital that climate-vulnerable nations are well equipped to leverage these channels of finance to support domestic priorities and global goals. VCMI’s partnership with the CVF-V20 is already building the foundations for high-integrity carbon markets that support climate prosperity across the CVF-V20 membership,” Mark Kenber, Executive Director of VCMI, said.

VCMI has launched the Carbon Markets Access Toolkit that political leaders and key market actors from host countries can use to decide whether and how to engage with regulated and voluntary carbon markets, as well as those facilitated under Article 6 of the Paris Agreement.

As the global carbon market continues to grow, the CVF-V20 Secretariat and VCMI will continue empowering climate-vulnerable countries with knowledge, tools, and capacity-building activities on the development of robust carbon market infrastructure that attracts investment.  

Notes to editor

• This event forms part of the workshop series under VCMI and CVF-V20’s Carbon Finance Program, designed to support CVF-V20 member countries in leveraging high-integrity carbon markets to finance their Nationally Determined Contributions (NDCs) and Climate Prosperity Plans (CPPs). 
• CPPs are nationally owned multi-phase investment strategies that reframe climate vulnerability as a socio-economic and development challenge that can be solved through well-structured, growth-generating investment. They are built around bankable pipelines of investment opportunities, grounded in macroeconomic realities and implemented through delivery structures known as Country Platforms, typically anchored in Ministries of Finance. These platforms coordinate line ministries, development banks, and capital mobilization institutions under a single architecture.
• With 83 percent of NDCs expressing interest in international market mechanisms, Article 6 of the Paris Agreement is emerging as a critical enabler for raising climate ambitions. Scaling carbon markets through high-integrity projects could halve the cost of capital needed to implement NDCs, CPPs, and broader development plans. 
• A 2025 report by CVF-V20 and Bridgetown Initiative identified ten ‘super levers’ that will create multiplier effects, mobilising hundreds of billions of dollars of desperately-needed financial resources to countries on the frontlines of the climate crisis. One of these super levers is scaling and standardizing carbon markets by implementing high-integrity carbon pricing in ways that help protect and enhance nature, including a robust Article 6 mechanism and G20 countries purchasing international credits to raise carbon market funds for vulnerable countries.

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The transition to resilient agriculture is at an inflection point – one that could translate lessons learned in Latin America and the Caribbean (LAC) into global climate and food security solutions.

The LAC region is ready to lead the transition to climate resilient agriculture, but finance is needed, and fast

LAC boasts a proud and highly skilled workforce of smallholder farmers whose livelihoods are being threatened by climate change. The region’s unique biodiversity and abundant biomass is capable of supporting climate resilient bioeconomy models, with strong potential in agroforestry and regenerative livestock systems, but only if finance is made available, and fast.

Recent data reveals a growing recognition of the need to finance climate resilient agriculture, but a concerning mismatch between flows of finance and the regions that need it most. From 2021-2022, global climate finance for agrifood systems tripled, reaching USD 94.9 billion,[1] but just 5% of total funding (about USD 6 billion) went to LAC, where agriculture accounts for 55% of emissions. To build sustainable agricultural solutions and rural resilience, the region needs a 27x increase in funding: USD 160 billion annually through 2050.

This imbalance in public finance for climate resilient agriculture is unfolding amid mounting fiscal constraints. In Central America, for instance, agricultural budgets have declined by an average of 8.57% annually over the past decade, and this decline could increase to up to 15% annually by 2030.

The conclusion is unavoidable: the region cannot rely solely on public finance to deliver the transition to climate resilient agricultural practices. Private finance must be part of the solution.

High-integrity carbon markets are well poised to catalyze the transition

With limited public finance on the table, high-integrity carbon markets can support LAC’s transition to climate resilient agriculture – driving regional impact, and developing a blueprint that the rest of the world can follow. Recent trends point to growing demand for carbon markets – including the acceleration of Article 6 agreements and approved methodologies – laying the groundwork for scaled transactions.[2]

Agriculture-based credits are also attracting a higher value – prices rose by 18–20% in 2024[3] – and surging retirements indicate increasing private-sector appetite.[4] But there is a risk that the opportunity presented by this growing demand for agriculture-based credits is not effectively leveraged in LAC, or other global south markets due to fragmented development of the market.

Carbon credit markets have historically developed project by project, but this model alone cannot mobilize the scale of finance required for the transition to climate resilient agriculture. Rather than isolated projects, investors increasingly seek system-level coherence, with markets underpinned by government-led frameworks that reduce risk, aggregate supply, and ensure environmental integrity. To lead the transition, LAC needs to transform carbon markets from fragmented credit generation into structured investment platforms that can mobilize debt-free finance that helps governments and farmers catalyze the sector’s just transition.

Governments need support to leverage catalytic carbon finance for climate resilient agriculture

To achieve this, governments must lead the way. A scale-up approach to agricultural carbon markets – characterized by national carbon project inventories, robust territorial or sectoral MRV systems, benefit sharing frameworks, and the integration of carbon markets within national climate strategies – is essential.

For institutional investors, development finance institutions, and corporates with long-term supply chain exposure, scale-up approaches reduce transaction costs and enhance confidence. They also serve to create the enabling environment for catalytic capital – such as blended finance, guarantees, and results-based payments – which can deliver a multiplier effect on top of carbon revenues, supporting climate resilient growth, strengthening rural incomes, enhancing smallholder resilience, and improving international competitiveness.

But designing scale-up approaches for agricultural carbon markets requires significant institutional capacity and tailored expertise within governments. Analysis by the Partnership for Agricultural Carbon (PAC) indicates that several Latin American countries, including Brazil, Colombia and Peru, could attract more finance by enhancing ‘investment readiness’ for agricultural carbon markets.

The challenge is therefore how governments in LAC – and beyond – can build and position carbon credit markets as structured investment platforms for delivering climate resilient agriculture. Promising developments in LAC are already underway:

• Peru’s Ministry of Agricultural Development and Irrigation [5] to promote participation of the sector in carbon markets and help famers access climate finance through high-integrity carbon credits.
• Paraguay and Peru are also front runners in Article 6 implementation, signing bilateral cooperation agreements with multiple countries, including partnerships with Singapore, which cover generation of carbon credits from sustainable grazing and rice methane reduction.
• Bolivia has recently started work on a national regenerative agriculture and livestock program intended to support climate mitigation in the agricultural sector. The initiative will establish the systems needed to measure soil carbon changes across large agricultural areas, laying the foundations needed for future carbon projects.

To take the role of carbon markets in the climate resilient agriculture transition across the LAC region, and worldwide, governments need tailored support. VCMI’s Access Strategies Program is designed to find and fill gaps in carbon markets participation around the world. Through the Program, the Partnership for Agricultural Carbon (PAC) has been supporting governments across LAC to build the institutional conditions needed to effectively leverage high-integrity carbon finance mechanisms in support of climate resilient agricultural solutions, through diagnostics, readiness frameworks, policy tools, and capacity-building programs that translate ambition into action. PAC is the only expert-led, international initiative dedicated exclusively to supporting governments and farmers to access the power of carbon markets for climate resilient agriculture.

With coordinated support, Latin America and the Caribbean can be a laboratory for the global transition to climate resilient agriculture

With coordinated support for governments to pioneer large-scale agricultural carbon markets, Latin America and the Caribbean has the potential to position itself as a strategic partner in delivering sustainable and adaptive agrifood systems for the world.

By prioritizing readiness and piloting innovative approaches Latin America and the Caribbean can be a ‘global laboratory’ for scaling high-integrity, market-ready approaches that fast track the transition to a more resilient agricultural sector. Other regions with rich natural capital and large-scale agriculture economies can follow in its footsteps.

The opportunity is clear. Agriculture cannot remain the underfunded frontier of climate action. If LAC can build the institutional readiness needed to scale high-integrity agricultural carbon markets, it will not only attract transformative investment but redefine the entire sector’s role in the global climate transition.

About the Partnership for Agricultural Carbon 

• The Partnership for Agricultural Carbon (PAC) is the only expert-led, international initiative dedicated exclusively to supporting governments and farmers to access the power of carbon markets for sustainable agriculture.  

• PAC is incubated and operationalized through VCMI’s Access Strategies Program, which supports countries to meaningfully participate in, and benefit from, high-integrity carbon markets. 

• PAC accelerates investment in agricultural carbon markets by supporting governments and famers to deliver clear, enabling policies, robust MRV systems, and effective local impact plans that build confidence amongst private sector investors.  

[1] Climate Policy Initiative’s (CPI) Landscape of Climate Finance for Agrifood Systems 2025

[2] Climate Focus report

[3] 2025 State of Voluntary Market report

[4] 2025 State of Voluntary Market report

[5] Guide to promote the participation of producers in the Agricultural and Irrigation sector in the Voluntary Carbon Market

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The guide, produced as part of VCMI’s Access Strategies Program, is designed to help governments and financial authorities test and refine carbon market regulations in a controlled, evidence-based way.

Carbon markets hold significant potential for financial innovation and growth. Voluntary carbon markets are projected to reach US$ 5–20  billion by 2030 and US$ 60–270 billion by 2050. However, carbon markets are constrained by structural challenges such as inconsistent credit quality, limited transparency, high transaction costs, and regulatory uncertainty. These obstacles undermine market confidence and limit the flow of capital to high-impact climate-mitigation projects. However, there is a lot that regulators can do to reduce such risk and create a positive enabling environment for investors, buyers, and project developers.  

To support the establishment of regulatory frameworks that balance financial innovation, environmental integrity, and risk protections for investors and consumers, CCA and VCMI have developed a guide on the use of regulatory sandboxes: a practical tool that allows governments to trial regulatory approaches to carbon finance before committing them to law.

Regulatory sandboxes provide controlled live environments for testing innovations such as carbon-credit linked bonds, securitized carbon transactions, blockchain carbon registries, AI-driven monitoring systems, and tokenized credits while maintaining environmental integrity and investor protection.

“Carbon markets hold significant opportunities for climate-positive growth in emerging markets and developing economies, but accessing growing demand for carbon credits requires specialist knowledge and tailored policies and regulations that have been tested in real world contexts,” said Mark Kenber, Executive Director of VCMI. “This guide provides policymakers with a transformational tool to drive innovation in carbon markets, while upholding environmental and social integrity through robust oversight. This can help EMDEs to accelerate credible climate finance solutions and position themselves as investment-ready sources of high-quality carbon credits.” 

The guide provides a step-by-step framework for designing and implementing regulatory sandboxes tailored to national legal and institutional contexts. It offers practical guidance on how to assess the impact and safety of innovations while managing risks, including through governance mechanisms, risk controls, stakeholder roles, and technical considerations.

“Innovation in the clean cooking sector is advancing rapidly, and regulatory clarity will be critical to unlocking investment,” said Dymphna van der Lans, CCA CEO. “Regulatory sandboxes give policymakers a practical way to test new approaches, build confidence, manage risk, and protect the integrity of carbon markets.”

“With many countries across Africa aiming to develop their carbon markets and become investment-ready, this guide offers timely and practical guidance to help financial institutions regulators develop carbon regulations that fit country contexts,” said Reshma Shah, Carbon Markets Lead at FSD Africa.

While the guide draws on practical experience from carbon markets linked to clean cooking and household energy access, it is intentionally designed for broad applicability across countries, technologies, and carbon market segments. It builds on previous work by CCA, including a report and policy brief on “Financial Regulatory Pathways for Scaling Carbon Markets.”  Collectively, these resources are guiding CCA’s ongoing support to regulators in Kenya, with similar efforts underway in Nigeria.

“Unlocking carbon finance is vital for climate resilience and sustainable development across West African countries and communities,” said Ousmane Fall Sarr, Coordinator of the West African Alliance on Carbon Markets and Climate Finance. “This resource  can help regulators build and test the necessary enabling conditions for market growth.”  

The “Regulatory Sandbox to Support Carbon Markets” guide is intended for:

• Capital markets authorities
• Financial regulators
• Central banks
• Climate finance innovators
• Carbon project developers
• Economic development partners 

The guide is now publicly available in English and will soon be available in French. 

Download the guide here. 

About the Clean Cooking Alliance
The Clean Cooking Alliance (CCA) works with a global network of partners to build an inclusive industry that makes clean cooking accessible to the 2.1 billion people who live each day without it. Established in 2010, CCA is driving consumer demand, mobilizing investment to build a pipeline of scalable businesses, and fostering an enabling environment that allows the sector to thrive. Clean cooking transforms lives by improving health, protecting the climate and the environment, empowering women, and helping consumers save time and money.

About the Voluntary Carbon Markets Integrity Initiative

The Voluntary Carbon Markets Integrity Initiative (VCMI) is an international non-profit committed to realizing the full potential of high-integrity voluntary carbon markets (VCMs). VCMI’s mission is to empower companies, governments, and non-state actors to maximize their climate impact through the use of high-quality carbon credits. 

The ‘Regulatory Sandbox to Support Carbon Markets’ guide was produced as part of VCMI’s Access Strategies Program, which supports host countries, regions, and sectors to participate in high-integrity carbon markets and unlock the environmental, social, and economic benefits of carbon finance within national climate plans. This program is instrumental in building the necessary infrastructure for countries to participate meaningfully in and benefit from the global carbon market. 

About FSD Africa

FSD Africa is a specialist development agency established in 2012 by the UK Government working to make finance work for Africa’s future. FSD Africa works on the ground in over 30 African countries to mobilise “green plus” finance that will power economic and social development while delivering environmental gains and building Africa’s resilience. FSD Africa works on policy and regulatory reform, capacity strengthening and improving financial infrastructure, and addressing systemic challenges in Africa’s financial markets to spark large-scale and long-term change.

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26 February, London – A new playbook sets out steps to fill the gap for Africa-based validation and verification bodies and improve the efficiency of the continent’s carbon credit market and unlock socio-economic benefits. 

 Pathways for Strengthening Validation and Verification Body (VVB) Capacity in Africa also available in French, highlights that Africa still relies on international VVBs and non-African auditors for more than 90 per cent of carbon project verification activities. Project developers estimate that between 10 and 50 per cent of total project delays and cost overruns are attributable to VVB bottlenecks. 

The report, produced by Perspectives Climate Group,​ ​​​​was commissioned by the Voluntary Carbon Markets Integrity Initiative (VCMI) for its Access Strategies program, and German Agency for International Cooperation, GIZ as part of its Global Carbon Market Project. The Eastern Africa Alliance on Carbon Markets and Climate Finance, and the West African Alliance on Carbon Markets and Climate Finance, have supported the report’s findings. 

Africa issued approximately 12.2 million carbon credits in 2024, with voluntary market issuance comparable to that of Asia. However, a lack of VVBs in Africa results in higher transaction costs and limited local ownership and economic benefits, while demand for carbon credits is expected to continue to rise. The report outlines that strengthening Africa’s VVB ecosystem would deliver a range of climate, economic and social benefits including reduced greenwashing risks, more green jobs and greater retention of the value of carbon markets within African economies. 

“Demand for validation and verification services is expected to rise significantly by 2030, as countries implement activities under the Paris Agreement’s Article 6 mechanisms and governments drive consistent guidance on corporate use of carbon credits as part of credible decarbonization plans,” said Mark Kenber, Executive Director of VCMI.

“Building Africa’s capacity to validate and verify emissions reductions through carbon credit projects is fundamental for fulfilling its potential to meet rising demand for high-integrity carbon credits and to ensure that the value of these services remains on the continent. The opportunity cost for the continent is considerable – without coordinated action to scale Africa-based VVB capacity, Africa risks losing out on approximately USD $ 1 billion of economic benefits over five years.” 

Despite strong potential, Africa’s carbon credit market, representing about 11 per cent of global issuance, has tapped only two per cent of its maximum capacity, the report finds. 

VVBs play a central role in carbon markets, providing independent assurance that emission reductions and removals are real, additional, permanent, and properly monitored. VVBs are therefore essential to the credibility of African credits for voluntary and compliance uses.  

“The supply of carbon credits in Africa has increased significantly in recent years, but it continues to represent a fraction of retirements globally,” said Andrew Ocama, Coordinator of the Eastern Africa Alliance on Carbon Markets and Climate Finance.  

“An understanding of local context is important for auditing community related projects, which form the majority of projects in Africa. This report is a welcome resource that will guide countries in Eastern Africa and beyond looking to bolster domestic audit infrastructure for high-integrity carbon markets and reduce reliance on international auditors.” 

The report authors call for a phased and coordinated approach, moving from rapid deployment of Africa-based auditors in the near-term to the establishment of durable African VVB institutions in the longer term, through accreditation and training pathways, targeted de-risking of private sector investment, and integration of digital monitoring, reporting and verification tools. 

“For Africa to fully participate in high-integrity carbon markets, it must build the systems and structures that underpin them. Validation and verification are core market infrastructure. Strengthening this capacity locally is essential for credibility, competitiveness, and climate sovereignty,” said Ritah Rukundo, Manager of the Global Carbon Market Project at GIZ. 

“This report clearly shows that addressing this gap and ensuring carbon markets deliver critical climate finance and wider economic and community benefits for Africa will require coordinated action across policy, institutions, workforce development, and financing.” 

The nine priority actions identified by the report include: 

1. Providing clear policy signals on the role of carbon markets in Nationally Determined Contribution implementation and embed VVB functions within national Measurement, Reporting, and Verification (MRV) frameworks.

2. Strengthening regional and national accreditation and training pipelines aligned with ISO standards and priority sectors in the African project pipeline.

3. Harmonizing regional training-to-accreditation pathways as a structural precondition for scaling with integrity, including mutual recognition where feasible.

4. Rapidly scaling Africa-based auditors’ engagement in VVB services for carbon market activities through co-auditing, mentorship, and permanent regional audit teams.

5. Improving and addressing auditor retention and career progression through demand-linked professional pathways.

6. Deploying targeted financial de-risking instruments to address accreditation costs, working capital needs, and early-stage risk.

7. Exploring durable domestic financing options such as allocating a share of proceeds from carbon levies to fund verification capacity, reducing dependency on short-term donor cycles, and aligning incentives for market credibility.

8. Integrating digital MRV tools as efficiency-enhancing complements within robust institutional and accreditation frameworks.

9. Embedding inclusivity pathways throughout all priority actions such as targeted outreach and scholarships for women and under-represented groups, multilingual materials and delivery, and deliberate representation of least developed countries and smaller markets within regional hubs.

“Africa’s rapidly growing carbon markets are constrained by a critical shortage of local validation and verification capacity. As demand for carbon credits increases, Africa’s reliance on international auditors leads to higher costs, delays and limited local value creation,” said Sergi Cuadrat, Managing Director for Carbon Markets at Perspectives Climate Group. 

“Beyond identifying practical pathways to strengthen VVB capacity, the report has informed the design of a strategic accelerator concept to translate evidence into implementation. The accelerator combines targeted policy coordination, accreditation training, supervised audit deployment and catalytic financial instruments to scale high-integrity, Africa-based VVB capacity. By addressing systemic bottlenecks rather than isolated skills gaps, it provides a credible roadmap to unlock private investment and strengthen institutional resilience across Africa.” 

​“Communities across West Africa stand to gain significantly from a mature and well-regulated carbon markets ecosystem. Building strong VVB capacity will not only create skilled green jobs, but also ensure high-integrity carbon projects are designed, implemented, and audited with African priorities at the forefront. This report sets out the critical actions required to scale VVB capacity and unlock the full climate and economic potential of carbon markets,” said Ousmane Fall Sarr, Coordinator of the West African Alliance on Carbon Markets and Climate Finance   

Ends 

About VCMI 

The Voluntary Carbon Markets Integrity Initiative (VCMI) is an international non-profit organization with a mission to enable high-integrity voluntary carbon markets (VCMs) that deliver real and additional benefits to the atmosphere, help protect nature, and accelerate the transition to ambitious, economy-wide climate policies and regulation. 

https://vcmintegrity.org/ 

About GIZ 

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a German federal company with over 50 years of experience in technical cooperation across a broad range of areas, including economic development and employment promotion, energy, environment and climate change, and peace and security. GIZ works in partnership with various state and non-state actors, facilitating effective collaboration between development policy and other key areas. 

Through its Global Carbon Market (GCM) project, GIZ supports public sector decision-makers and the Private sector in designing and implementing high- integrity market-based instruments as part of their national climate strategies.  https://www.giz.de/en/projects/global-carbon-markets  

About Perspectives Climate Group 

Perspectives Climate Group GmbH (Perspectives) is an independent policy research and advisory group that provides practical solutions to private sector, governments, financial institutions and non-governmental organizations for domestic and international climate policies, international carbon markets and climate finance instruments.   

https://perspectives.cc/ 

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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

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“This marks a pivotal step in restoring climate equity. High-integrity carbon markets have the potential to unlock billions in private finance, precisely the scale of investment needed by climate-vulnerable nations. Therefore, it is essential to empower these nations to leverage carbon markets effectively to close the climate finance gap,” H.E. Mohamed Nasheed, CVF-V20 Secretary-General and former President of the Maldives, said. 

Launched in June 2024, the Carbon Finance Program supports CVF-V20 member countries to leverage high-integrity voluntary carbon markets to finance their Climate Prosperity Plans—multi-phase national strategies for investment and technology access designed to transform climate risks into bankable opportunities. The program has already provided policy guidance and capacity building on carbon markets including in Benin and Kenya. 

The partnership identifies carbon markets as one of several key levers to help unlock an additional US$20 billion in annual financing for V20 countries, which can be used to support the implementation of Climate Prosperity Plans, boost nature-based solution investments, strengthen climate resilience, and advance broader sustainable development goals. 

To enhance V20 nations’ access to these fiscal revenues, the Carbon Finance Program will be scaled to reach more countries and broaden technical support. The announcement was made during the 2025 Annual Meetings of the World Bank Group and the International Monetary Fund, a month before COP30, where carbon markets, including the implementation of Article 6 of the Paris Agreement, are expected to be high on the agenda. 

“For too long, the architecture of international climate finance has marginalised those on the frontlines of the climate crisis. This expanded Carbon Finance Program aims to reverse that paradigm—empowering climate-vulnerable nations which have the natural resources to actively participate in high-integrity carbon markets, uphold their agency, and fully capture the benefits they deserve. This is critical as we note that there is still a significant gap in the ability of Small Island Developing States (SIDS) like Barbados to reap the benefits from these instruments since many SIDS do not have the scale of terrestrial natural capital like forests, and efforts related to marine carbon dioxide removal (Blue Carbon) remain difficult due to inherent challenges in pursuing conservation and restoration in the marine space, paired with lower levels of access to finance for these projects.” H.E. The Most Honorable Elizabeth Thompson, Ambassador Extraordinary and Plenipotentiary Climate Change, Small Island States (SIDS) & Law of the Sea, Barbados and Sherpa to Prime Minister Mia Amor Mottley, S.C. M.P., Chair of the CVF-V20, explained. 

By enabling vulnerable countries to leverage their natural wealth and climate potential, the program fosters resilience, accelerates sustainable growth, and promotes both climate justice and shared prosperity. Through the Carbon Finance Program, V20 nations will gain access to tailored guidance that aligns with their specific needs, priorities, and strategic goals. This strengthened partnership will also empower climate-vulnerable countries to advance the development and implementation of robust climate finance strategies and policy frameworks through high-integrity carbon markets. 

The Carbon Finance Program extends its support to climate-vulnerable countries through 2028, offering policy advice, carbon credit transaction support, climate finance mechanisms, and measures to aggregate demand across voluntary, compliance, and Article 6 markets. 

“The world cannot achieve its climate targets without dramatically scaling up flows of finance to climate vulnerable nations, which are home to many of the world’s natural carbon sinks as well as being ripe for climate-positive innovation and prosperity. As carbon markets grow, it is vital that climate vulnerable nations are supported to leverage these channels of finance to support domestic priorities and global goals, and I am delighted that the VCMI and CVF-V20 Carbon Finance Program has been launched to deliver expert support to CVF-V20 member states,” said Usha Rao-Monari, VCMI Steering Committee Chair and former Under-Secretary General to the United Nations Development Programme (UNDP).

The expansion of the Program is a crucial step toward building the in-country capacity and expertise of V20 nations to effectively harness growing carbon markets in support of national priorities and global climate goals. 

*** 

About CVF-V20 

The CVF-V20 represents 74 member-countries from small island developing states (SIDS), least developed countries (LDCs), low-to-middle income countries (LMICs), landlocked developing countries (LLDCs), and fragile and conflict-affected states (FCS). Working together, the CVF-V20 aims to achieve climate justice through the realization of Climate Prosperity Plans, which contain ambitious economic and financial resilience strategies designed to attract investment and resources that advance the attainment of the Sustainable Development Goals (SDGs), 30×30 Global Biodiversity, and help keep the average global temperatures to the Paris Agreement’s 1.5°C safety threshold.

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Through a series of speaking engagements and events at Africa Climate Summit 2 (ACS2), our team will highlight the role of  high-integrity carbon markets in advancing Africa’s climate agenda and sustainable development priorities. Join us as we help to accelerate the role of high-integrity carbon markets as a tool to finance Africa’s resilient and green development – the theme for ACS2.

  8th September     
12:00 – 13:00 (EAT)

Meeting the New Carbon Market Demand with High-Integrity Credits

Hosted by the International Emissions Trading Association (IETA) | Room T1 | Bianca Gichangi, VCMI’s Regional Lead for Africa, will provide the scene-setting opening address

This side-event aims to explore how international demand for high-integrity credits can support sustainable development in Africa. The event will unpack key developments across voluntary and Article 6 carbon markets, explore the emerging demand landscape for high-integrity carbon credits, and how countries, private sector stakeholders and local communities can fully grasp these new opportunities.

  9th September     
16:30-17.30 (EAT)

Regional Collaboration in the Establishment of Carbon Markets In Africa

Hosted by the Eastern Africa Alliance on Carbon Markets and Climate Finance | Room F3 | Bianca Gichangi, VCMI’s Regional Lead for Africa, will be speaking

This session aims to highlight and amplify the African leadership in carbon markets, and showcase the launch of a new manual – Developing Nature-based Carbon Projects in Eastern Africa – developed by Climate Focus and the Eastern Africa Alliance as part of VCMI’s Access Strategies Program.

  10th September       
  09:30-11:00 (EAT)

Aligning High integrity Carbon Markets with National Climate and Development Goals: A Toolkit for African Policymakers

Hosted by VCMI, the United Nations Development Programme, Climate Vulnerable Forum-V20, Eastern African Alliance on Carbon Markets and Climate Finance, and the West African Alliance on Carbon Markets and Climate Finance | Room F3 |Bianca Gichangi, VCMI’s Regional Lead for Africa, will be speaking

This workshop will support policymakers in determining if and how to engage with high-integrity carbon markets to advance their national climate and development goals.

The session will introduce participants to VCMI’s Carbon Markets Access Toolkit—a set of five concise briefs designed to answer common questions from host countries and offer structured guidance for strategic engagement in carbon markets. Country case studies will highlight practical lessons in developing enabling environments to attract investment and an interactive segment will guide participants through designing equitable and transparent benefit-sharing arrangements.

Policymakers can express their interest in attending this workshop by completing this form.

  10th September       
  15:30-17:00 (EAT)

Africa’s Carbon Markets Moment: Advancing Development, Mobilizing Capital and Driving Global Climate Action

Hosted by VCMI, the African Union Development Agency (AUDA-NEPAD), and Financial Sector Deepening Africa (FSD Africa) | Room F2 

Africa has a unique opportunity to lead a new era of carbon markets—not as fragmented, aid-driven projects, but as integrated, investable systems that deliver sustainable development, nature regeneration, and climate action.

This session will present a landscape approach—linking demand, supply, and enabling conditions—to build a high-integrity carbon market ecosystem that mobilizes both international and domestic capital. On the demand side, it will explore drivers such as Article 6, CORSIA, and voluntary action to meet corporate climate commitments. On the supply side, it will address institutional and policy readiness, project developer capacity, and project pipelines.

Learn more about Africa Climate Summit 2.

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