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

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In this webinar co-hosted by the Voluntary Carbon Markets Integrity Initiative (VCMI) and the International Chamber of Commerce (ICC), learn about the Scope 3 Action Challenge and VCMI’s Scope 3 Action Code of Practice—a practical solution designed to help businesses take high-integrity action on scope 3 emissions. This session explores the broader challenges companies face in addressing scope 3 emissions and how high-quality carbon credits, alongside deep decarbonization, can accelerate progress toward net zero.

Hear from industry leaders, policymakers, and experts as they discuss global best practices on scope 3 action, the role of voluntary carbon markets, and how businesses can align their climate strategies with credible, high-integrity solutions. Whether you’re looking to take immediate action, understand how to responsibly use carbon credits, or explore ways to integrate high-integrity approaches into your climate strategy, this session will provide the practical steps you need.

Speakers

To watch the recording or download the webinar slides please click here

To learn more about Scope 3 Action click here

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Launched at the ChangeNOW 2025 forum in Paris by the French Minister of Ecological Transition, Ms Agnès Pannier-Runacher, the Carbon Credit Charter commits 17 international companies to adhere to principles for high-integrity use of carbon credits, including taking into account VCMI’s international best practice approach. The pledge states that as buyers of carbon credits, the signatories commit to:

1. Prioritizing their own emission reductions, clearly reporting on all three scopes and publishing a time-bound action plan for climate transition
2. Using carbon credits not as a substitute but only as a complement to their gross emission reductions pathway, to address remaining emissions while on the path to net zero, and residual emissions to meet net zero
3. Reporting their gross emissions, separating any use of carbon credits.

These principles align with the underpinning foundational criteria and guidance in VCMI’s Claims Code of Practice and forthcoming Scope 3 Action Code of Practice.

Commenting on the launch of the charter, VCMI’s Director of Policy and Partnerships, Lydia Sheldrake, said:

“The French government has shown international leadership by convening a group of high-ambition businesses to commit to using carbon credits with confidence and credibility. High-integrity carbon markets can drive immediate progress towards global climate goals. Unlocking this potential will require a robust mandate and demand signals to be in place. The French Government has stepped up to mobilize this group of leaders under a common pledge for action, and I am thrilled to see VCMI Codes of Practice at the center.”

The pledge also commits the signatories to use carbon credits aligned with the requirements of the Article 6.4 mechanism, as well as those generated from standards approved under the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles. This is vital to ensure integrity on the supply-side of carbon markets, in tandem with VCMI’s guidance on demand-side integrity.

Pledge signatories include some of the world’s leading businesses, including Schneider Electric. VCMI was established in 2021 with a goal to create the conditions for companies to confidently and credibly invest in voluntary carbon markets to maximize their contribution to global net zero and sustainable development. Today’s announcement demonstrates that VCMI’s Codes of Practice are critical to providing blueprints for governments to incentivize and scale high-integrity corporate engagement with carbon markets.

The charter builds on momentum from COP29 which saw agreement on the rulebook for carbon markets under Article 6 of the Paris Agreement. The charter was announced at a special high-level session at ChangeNOW to reflect on progress made since the 2015 Paris Agreement, following a panel discussion between Ms Agnès Pannier-Runacher, French Minister for Ecological Transition, Simon Stiell, UNFCCC Executive Secretary, and Dr. Osama Faqeeha, Deputy Minister of Environment, Saudi Arabia, and President of COP16, UN Convention to Combat Desertification (UNCCD).

Notes to Editor:

• The Charter was announced during a session at the ChangeNOW Forum in Paris, France, which took place at 11.15 (CEST) on 24 April 2025 : https://www.changenow.world/program-2025/
• The session at ChangeNOW was closed by Merem Tahar, Special Youth Envoy of the President for the 15th UNCCD, Christina Schwarzer, Co-Founder and Global Coordinator, Global Youth Biodiversity Network; and Nisreen Elsaim, Chair of UN Secretary-General’s Youth Advisory Group on Climate Change, Sudan Youth for Climate Change.

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The process now underway will define the standards required to underpin the integrity of these markets and scale them up. This will significantly enhance their contribution to global climate and nature goals, and increase the flow of finance for climate action, particularly to emerging markets and developing economies.  

The consultation proposes that voluntary standards developed by VCMI are adopted as best practice, for use by companies active in the voluntary carbon market. It also seeks views on guidance from VCMI, designed for companies and policy makers, to help tackle corporate scope 3 greenhouse gas emissions. 

Building business confidence  

Robust and well-governed voluntary carbon markets play an important role in driving down global emissions, scaling climate and nature finance, and empowering businesses to go further and faster in delivering on climate commitments. 

VCMI’s Claims Code of Practice is one of the key standards recognized by the UK Government as critical to raising integrity of climate and nature markets. In endorsing and clarifying relevant standards, the UK Government is providing companies with greater certainty on what best practice looks like and how to demonstrate alignment. 

“Voluntary carbon markets are essential for mobilizing additional finance to address the climate crisis,” adds Usha Rao-Monari, VCMI Steering Committee Chair and former Under Secretary-General of the UN. “By building on standards already set by VCMI, the UK is helping to provide the clarity and assurance businesses need to invest in high-quality carbon credits, deliver financial flows to support low carbon sustainable development in developing economies, and accelerate global progress towards net zero.” 

The consultation follows existing UK Government principles for voluntary carbon and nature markets integrity. It also sees the UK build on its international leadership on enabling greater climate action from business, especially in seeking views on new approaches developed by VCMI for companies to address a shortfall in scope 3 emissions reductions.  

Unlocking action on scope 3 emissions 

Scope 3 emissions, generated ‘indirectly’ across a company’s value chain, commonly represent the largest share of a company’s carbon footprint and are the most challenging to reduce. Among other data sources, analysis by CDP and Bain found that 47% of companies with net zero commitments are ‘well behind’ on delivering their scope 3 targets. The UK Government is looking at how high-integrity carbon credits can help close this ‘scope 3 emissions gap’.  

The consultation seeks views on new ways to address unabated scope 3 emissions2, principally the opportunities and guardrails set out in VCMI’s scope 3 guidance. This has been developed to enable companies to work on direct emissions reductions and also use carbon credits to address unabated scope 3 emissions, while getting back to their science-aligned decarbonization target. VCMI will publish its Scope 3 Action Code of Practice on 30 April. 

“Most companies’ emissions are generated by activities outside their core operations and across their wider value chains – their scope 3 emissions. However, despite the importance of these emissions, most firms are falling behind on their scope 3 targets and global emissions continue to grow. Closing this scope 3 emissions gap is key to meeting global climate goals.” said Mark Kenber, Executive Director of VCMI, “When facing barriers to decarbonization, companies should be encouraged to invest and take responsibility for their excess emissions. Acknowledging this isn’t about giving companies opportunities to do less, but more, and the UK Government is right to explore options for driving further action.”  

VCMI encourages companies and business groups to share their views with the UK Government on how high-integrity use of carbon credits could raise their climate ambition and action. VCMI is engaging with other leading governments around the world to drive the consistency and clarity of businesses need to invest in carbon markets and accelerate progress towards global net zero. 

– Ends – 

Notes to Editor: 

• Bain and CDP (2024) p33, link. 
• The proposals put forward in the consultation are based on VCMI’s beta Scope 3 Claim and forthcoming Scope 3 Action Code of Practice, to be launched later this month.   
• The VCMI Claims Code of Practice addresses integrity on the demand side, by guiding companies and other nonstate actors on how they can credibly make voluntary use of carbon credits as part of their climate commitments and on how they communicate use of those credits.  
• ICVCM’s Core Carbon Principles – which set the supply-side standards for high-quality carbon credits – are also proposed in the consultation to be recognized as best practice. Together, VCMI and ICVCM work in close partnership to create an end-to-end model to achieve a voluntary carbon market with integrity, by providing clear guidance from both the demand and supply sides. 

About VCMI 

The Voluntary Carbon Markets Integrity Initiative (VCMI) is the issuing body behind the ‘Carbon Integrity’ mark. It 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. 

www.vcmintegrity.org 

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The report by global consultancy Ramboll, commissioned by VCMI, reveals that while the majority of companies are confident in their ability to overcome barriers within a decade, during this time systemic challenges will continue to slow their progress towards scope 3 targets. 

Corporate progress on scope 3 decarbonization remains mixed: 46% of companies reported a decrease in scope 3 emissions, but 38% saw an increase — underscoring the challenges in translating ambition into tangible emissions reductions. Most companies assessed their progress on scope 3 ‘as expected’ (46%) or ‘below expectation’ (36%) with only a minority exceeding expectation. 

The research shows that as companies work towards their scope 3 targets, most of which are set for between 2030 and 2040, a range of techno-economic and supply chain barriers will mean companies continue to have unabated scope 3 emissions. The findings point to the need for stronger incentives, clearer guidance, and new solutions to close the gap between scope 3 ambition and action. 

“Most companies understand what’s at stake—but they’re held back by challenges they can’t fix on their own,” said Niki Bey, Decarbonisation Lead at Ramboll. “This research highlights the pressure points where better coordination, clearer expectations, and targeted support could unlock real progress.” 

Why are companies stuck? 

The report, Scope 3 Decarbonisation: Practitioner Challenges, draws on a detailed market assessment, analysing survey responses from corporate sustainability leaders and market data across multiple sectors, to identify the key systemic and structural barriers that continue to impede progress to close the scope 3 emissions gap—even among those with high climate ambition. 

The majority (55%) of survey respondents indicated that their company is targeting a reduction in scope 3 emissions between 2030 and 2040. The findings reveal that while companies are increasingly committed to addressing scope 3 emissions, they are often held back by conditions beyond their control. Specifically, the report highlights two major themes around techno-economic barriers to upstream decarbonization and supply chain coordination and emissions reporting: 

1. High costs and limited access to low-carbon solutions 

The transition to low-carbon alternatives remains costly and, in many cases, logistically or technologically out of reach, with 1 in 5 companies citing the price of carbon-free energy as a top challenge, and many others highlighting the unaffordability of low-carbon alternatives. In some sectors, like heavy industry and food systems, low-carbon options are either not yet commercially viable or require significant infrastructure investments. In many geographies, especially across emerging markets, companies also face inadequate access to scalable, affordable low-carbon technologies and services. 

2. Lack of supplier emissions data and limited data standardization 

Even when companies want to take action, they are often missing the data needed to do so credibly. Supplier emissions data unavailability was identified as a critical barrier to decarbonization, cited by 14% of companies surveyed. Due to the complexity of global value chains and the variability in supplier capabilities, many companies are still relying on estimations, industry averages, or incomplete datasets — undermining the credibility of scope 3 accounting and slowing down decarbonization efforts.

3. Minimal leverage over indirect suppliers deep in the value chain 

Scope 3 emissions frequently originate several tiers upstream or downstream from a company’s direct control—often involving small and medium-sized enterprises (SMEs) with limited climate capacity. Companies report limited influence over their indirect suppliers. The report finds that 1 in 5 companies feel they have sufficient influence over indirect suppliers to drive decarbonization. Without clear market signals or incentives, many suppliers remain disengaged or unable to respond to buyers’ climate expectations. This is especially true in fragmented supply chains, where governance and transparency are weak.

“Even where long-term scope 3 targets exist, the solutions identified in the Ramboll report are not quick fixes and many companies lack clear plans to overcome systemic barriers in the near term,” said Nick Corbett, VCMI Technical Associate. “High-quality carbon credits — used transparently and within a credible strategy — can help close the scope 3 emissions gap while longer-term solutions take shape, enabling near-term action and unlocking urgently needed climate finance.” 

Overcoming barriers to scope 3 decarbonization 

The report identifies practical solutions to help companies overcome systemic barriers to scope 3 decarbonization — spotlighting the complementary role of using high-integrity tools to drive near-term emissions reductions. Among these, the use of high-quality carbon credits emerges as an enabler for companies to make progress on currently hard-to-abate emissions while working on long-term value chain decarbonization. 

When used transparently, and as part of a broader mitigation strategy, high-quality carbon credits enable companies to go further, faster, incentivizing decarbonization and delivering finance to projects reducing and removing emissions. 

The Scope 3 Action Challenge: Mobilizing corporate action to close the scope 3 emissions gap 

In response to this critical gap, VCMI and the International Chamber of Commerce (ICC) are launching the Scope 3 Action Challenge, alongside a growing coalition of global organizations. The Action Challenge will provide recognition for businesses and non-state actors committed to tackling scope 3 emissions, raise awareness of the importance of closing the ‘scope 3 gap’ and signpost practical tools for companies to take action.  

The Challenge will: 

• Recognize companies committed to addressing scope 3 emissions; 

• Raise awareness of the scale and urgency to close the scope 3 emissions gap; 

• Promote credible solutions that prioritize science-aligned direct emissions reductions and complementing that with the use of high-quality carbon credits; and 

• Demonstrate corporate leadership in climate accountability and ambition. 

The window to act on scope 3 emissions is closing—fast. Companies can no longer wait for perfect conditions.  

The Scope 3 Action Challenge is an opportunity to lead from the front. By joining, your organization will stand among global corporates and other non-state actors driving real change—demonstrating that ambition, transparency, and integrity are not just words, but a strategy for long-term value and resilience. 

We must act now—Accelerate Scope 3 Action.  

Join the Scope 3 Action Challenge today.

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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 

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The focus of our conversations will be driving real-world climate action through high-integrity in voluntary carbon markets (VCMs), achieving global net zero through a just and equitable transition. 

Our team will be on the ground to share insights on VCMI Claims, including the beta Scope 3 Claim, as well as our Access Strategies work in collaboration with host countries and partners.  

  11th November      
  08:00-09:30    
  Goals House, Mugam Club, 9 Hagigat Rzayeva Street Baku, 1004

Goals House: Durable Carbon Removal & Corporate Claims in the Era of Article 6

Nasdaq and Oxford University   |   Lydia Sheldrake speaking

  11th November      
  17:00-17:45    
  WBG Pavilion

Raising Finance for Climate Action through Paris Aligned High Integrity Carbon Markets

Hosted by World Bank   |   Mark Kenber speaking

  12th November    
  15:15-16:30     
  Blue Zone

Unlocking the Capital Spectrum – Decarbonization Finance for Developing Economies

Hosted by MSCI and UNFCCC   |  Mark Kenber and Lydia Sheldrake speaking

  13th November      
  11:30-13:00   
  Asia Climate Solutions Pavilion, Blue Zone

COP29 Transition Finance

Hosted by SFOC   |  Mark Kenber speaking

  13th November      
  15:00-16:30    
  Pavilion F03, GCC Pavilion

Role of Contribution Credits and Scope 3 emissions mitigation in global mitigation

Hosted by Global Carbon Council   |   Mark Kenber speaking

  13th November      
  15:00-16:30   
  UNDP Pavilion

United to accelerate NDC implementation: Streamlining global support for high-integrity carbon markets

Hosted by UNDP & World Bank   |  Lydia Sheldrake speaking

  14th November      
  17:00-18:00    
  WTO Trade and Investment House, Green Zone pavilion

Carbon Market Institute – Integrating Net Zero and Nature Positive for Investment

Hosted by Carbon Market Institute  |   Mark Kenber speaking

  14th November  
  09:30
  SE4ALL Pavilion

Africa’s Carbon Markets – Driving Green Growth

Hosted by ACMI and SE4ALL    |   Bianca Gichangi attending

  14th November  
  12:30-13:30
  WMBC Pavilion 

Delivering High Integrity Carbon Markets: How we unlock the finance to accelerate climate action

Hosted by VCMI, ICVCM, and GCMU |   Mark Kenber speaking

  15th November         
  16:10-17:10     
  UK Pavillion

UK Government side event on Voluntary Carbon Markets

Hosted by the UK Government    |   Lydia Sheldrake speaking

  16th November         
  11:00-12:00     
  Malaysia Pavilion, E11, Blue Zone

Financing Carbon Projects in the ASEAN Region

Hosted by Bursa Malaysia    |   Mark Kenber Speaking

  16th November          
  11:30
  UNFCCC Side Event, Blue Zone

Protecting Tropical Forests Through Carbon Markets 

Hosted by LEAF Coalition   |   Lydia Sheldrake attending

  19th November          
  14:30-17:30     
  WWF Pavilion

Carbon Finance Summit 

Hosted by WWF, Genzero and Gold Standard   |   Mark Kenber speaking

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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

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There is no better person to lead the UK’s efforts on climate diplomacy and forge efforts to tackle the dual climate and nature crises. Her role will focus on coordinating the UK’s relations with other donor countries, as well as building relationships with developing economies in the Global South.

In an interview with The Guardian, Rachel said: “This government is committed to reconnecting the UK to the world with climate action as a priority. And the world is being shaped politically and economically by climate change. This provides an opportunity to use international action to help deliver on the UK’s energy mission. And it provides challenges, not least in mobilising the financing to protect people and drive greener growth. There is no time like now for the UK to help drive action and I am excited to play my part in this new role.”

Learn more

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Africa is responsible for only a fraction of global greenhouse gas emissions but is disproportionately facing the worst effects of climate change. Some $2.8 trillion in climate finance will be needed between 2020 and 2030 for Africa to realize its climate change plans as set out in nationally determined contributions (NDCs)1.

Through this partnership, ACMI and VCMI aim to support governments across the continent to establish holistic carbon market frameworks, attract finance, and raise international awareness of the climate protection opportunities in the region.

This collaboration will focus on three key areas of activity;

• Harmonizing tools and frameworks: Providing practical guidance for African governments on developing robust carbon market policies, aligning toolkits developed by VCMI and ACMI to create a cohesive framework for participation in the voluntary carbon market.
• Education and training: Supporting capacity building initiatives to increase local technical expertise.
• Raising awareness and knowledge sharing: Collaborating on intelligence, events and insights driving awareness of the opportunities available in Africa.

Africa currently only realizes a small portion of its carbon credit potential – around 2% annually2. Development of high-integrity voluntary carbon markets across the continent can deliver finance to leverage Africa’s diverse terrestrial and marine ecosystems, vast arable land and abundant renewable energy resources. This supports the development of projects that help tackle and build resilience to the impacts of climate change, alongside other benefits including enhancing food security and creating green jobs.

“VCMI and ACMI are joining forces to scale high-integrity carbon markets in Africa.” said Lydia Sheldrake, Director of Policy and Partnerships at VCMI. “This partnership combines our efforts on country engagement, capacity building and private sector mobilization to accelerate climate finance and action across the continent, bringing benefits to people and nature.”

“ACMI is honored to work with African governments in creating conducive policy and regulatory environments for introducing and scaling high-quality, high-integrity carbon markets,” adds Paul Muthaura, Chief Executive Officer at ACMI. “This is complemented by initiatives on the empowerment of local project developers, ecosystems and communities to catalyze demand and support equitable allocation of credit revenues.”

“We are encouraged by the ongoing discussions on a continental approach to carbon markets with the AU Commission, UNECA and AfDB. This coordination will engender much-needed carbon market policy and framework coordination across African countries.”

“To underpin this continental approach, ACMI is proud of our evolving partnerships with ICVCM, VCMI, and IETA, who respectively and collaboratively will ensure the upholding of integrity in scaling carbon markets in Africa.”

This partnership highlights a shared vision for a transparent, credible and impactful carbon market that delivers tangible benefits for African communities, economies and ecosystems.”

About VCMI

The Voluntary Carbon Markets Integrity Initiative (VCMI) is the issuing body behind the ‘Carbon Integrity’ mark. It 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.

www.vcmintegrity.org

About ACMI

The Africa Carbon Markets Initiative (ACMI) is a collaborative effort supported by a coalition of organizations committed to expanding African carbon markets as a catalyst for green development, job creation, prosperity, and equality for the benefit of both people and the planet. The initiative aims to meaningfully scale high-integrity, equitable and transparent carbon markets in Africa by addressing the challenges to voluntary and compliance carbon market growth as well as the obstacles hindering Article 6 carbon trading. By making carbon markets a viable financial tool for African nations, ACMI works to accelerate just and sustainable energy transitions and realize environmental, developmental and economic benefits for local communities.

www.africacarbonmarkets.org

Contacts

For the latest updates, please follow us on: @wearevcmi

For media enquiries, please contact: VCMI@bcw-global.com

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Merida, Yucatán, 11 September 2024 — The Government of the State of Yucatán in Mexico, in collaboration with Climate Focus, the Voluntary Carbon Markets Integrity Initiative (VCMI), and UNDP, proudly announces the launch of the Best Practice Guide for Developing Projects in the Voluntary Carbon Market in Yucatán. This strategic tool is designed to guide companies, investors, civil organizations, and local communities in developing Nature-based Solutions (NbS) projects with high social and environmental integrity. 

Yucatán, uniquely located on the Peninsula between the Gulf of Mexico and the Caribbean, harbours invaluable ecosystems such as tropical forests and mangroves. These ecosystems, however, are threatened by human activity and climate-related disturbances. 64 percent of the state’s forested area shows some degree of degradation. The Yucatán government recognizes the need for concrete actions to reverse this trend and is implementing a set of climate and environmental policies. The VCM is, therefore, an instrument with the potential to help Yucatán achieve its sustainable development goals. 

In Yucatán, as elsewhere in Mexico, local communities and ejidos1 own vast areas of land and forests and play a critical role in ecosystem conservation and restoration. Their collaboration is key to the development and long-term success of carbon projects. These communities, often facing poverty and adverse climate-related risks, stand to benefit from the opportunities carbon projects can provide. However, recent critiques of the VCM raised concerns about the protection of local rights and the true effectiveness of these projects in addressing environmental and social issues. Through this Guide, the Government of Yucatán aims to ensure that local communities and ejidos are the primary beneficiaries of VCM initiatives and that those comply with social and environmental integrity. 

Additionally, private sector actors increasingly seek guidance from state agencies to understand the role of national and subnational regulations that could affect the development and sustainability of carbon projects.   

To address these needs, the Government of Yucatán cooperated with VCMI, Climate Focus and UNDP and developed a tool with clear actions and guidelines on five key aspects for developing a carbon project in the region: 

1. Criteria to ensure high-integrity projects comply with the existing legal and political considerations in Mexico; 
2. Concrete steps within the carbon project cycle, from the design phase to the issuance of carbon credits; 
3. Social and legal considerations for developing NbS activities in Mexico to ensure the active participation of communities and ejidos and guarantee their free, prior, and informed consent; 
4. Mechanisms to ensure that the benefits are distributed fairly and equitably between actors involved; 
5. Criteria for achieving equitable and transparent agreements in contracts between investors and communities and ejidos. 

The Best Practice Guide for Developing Projects in the VCM in Yucatán is the result of an inclusive and participatory process. Workshops and consultations were conducted with the federal government, communities, non-governmental organizations, and private sector representatives, ensuring that the Guide meets the needs and expectations of all actors involved in carbon projects in Mexico.  

Lessons learned will be shared with other Mexican states and jurisdictions that aim to play a key role in boosting the VCM’s opportunities and face similar challenges. 

At a time when the VCM has been subject to controversy due to concerns about a lack of integrity, Yucatán positions itself at the forefront by ensuring that the highest environmental and social standards govern projects in its territory. This Guide underscores the importance of developing projects that not only meet their climate mitigation objectives but also respect and benefit local communities and preserve biodiversity. 

The “Good Practices Guide for Developing Projects in the Voluntary Carbon Market in Yucatán” is available for download on the official websites of the Yucatán State Department of Sustainable Development, VCMI, Climate Focus, and UNDP. The Guide is currently only available in Spanish, an English translation is forthcoming.

Diana Pérez Jaumá, Secretary of Sustainable Development of the Yucatán State Government, stated:”This product, which is part of the commitments and objectives set forth in the Ecosystem Recovery and Conservation Strategy, is an effort made jointly , between the government sector, civil society organizations, academy, private initiative and of course the communities. With this Guide we take one more step to ensure that this mechanism complies with criteria of integrity, transparency and equality so that it can contribute to environmental conservation while generating positive impacts and economic and social benefits for the local communities of Yucatán as well as fair contracts and benefit share schemes and free and informed decision making.”  

Mark Kenber, Executive Director, VCMI: “Yucatán’s commitment to high-integrity carbon projects sets a new standard for climate action, ensuring that every initiative delivers real and lasting benefits for the people and ecosystems of Yucatán. This guide marks a pivotal moment in the evolution of Voluntary Carbon Markets in Mexico and will empower stakeholders to develop projects that not only meet rigorous climate goals but also respect and strengthen the rights and livelihoods of local communities.”

 Carolina Inclan, Senior Consultant, Climate Focus: “This effort presents critical steps to ensure that carbon projects in Yucatán are not only environmentally sustainable but also socially equitable. It sets clear guidelines for engaging local communities and ejidos, ensuring they are key beneficiaries of these initiatives while also navigating Mexico’s regulatory landscape to attract private investments. We aim to share these insights with other regions, demonstrating how governments can help drive high-quality investments that deliver both social and environmental benefits.”

 Leticia Guimaraes, Head of Carbon Markets at UNDP, stated: “UNDP is proud of its long-standing collaboration with the State of Yucatán and its partners to support the state in achieving its goals of sustainable development. The collaboration with the private sector and local communities through high-integrity carbon markets has the potential to generate substantial private investments for ecosystem conservation and restoration as well as social development. Together with our partners, we are committed to boost integrity in carbon markets for the benefit of people and planet.” 

The post Yucatán Government Launches Innovative Guide for Carbon Project Development in the Voluntary Carbon Market appeared first on VCMI.

New York, NY (September 6, 2024) – Today, the Integrity Council for the Voluntary Carbon Market (ICVCM), the Global Carbon Market Utility (GCMU), and the Voluntary Carbon Markets Integrity Initiative (VCMI) announced they will be co-hosting Accelerating Climate Action: Delivering High-Integrity Carbon Markets, an event on September 25 in New York during Climate Week focused on showcasing the reforms and actions necessary to increase the impact of voluntary carbon markets. 

Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions said: “Voluntary carbon markets have the potential to help us move faster in the fight against climate change, but only if they operate with integrity and transparency. By working across the public, private, and nonprofit sectors, this group can help bolster confidence in these markets, which will help build stronger economies and healthier communities.”

Mark Carney, UN Special Envoy on Climate Finance and Action and co-chair of GFANZ said: “Voluntary carbon markets can play a critical role in accelerating climate action and financing the transition to a net zero economy. But they will only fulfill their potential if they have supply, demand, market and social integrity. The inaugural VCM Day brings together organizations developing standards and infrastructure to ensure the market increases the pace of emissions reduction and investment flows to developing nations in need of capital. Now is the time to create a globally integrated, high-integrity carbon market.”

Amy Merrill, CEO, ICVCM said: “We are in a climate emergency and need to use every tool available to reduce and remove emissions and we must unlock climate finance flows. We are leading the way in delivering the  high integrity, reformed voluntary carbon market that can unlock the vital private climate finance that would not otherwise be deployed. This event highlights the important progress that has been made in recent months and outlines the path ahead on our shared mission to incentivise and enable the private sector to help meet our global climate goals.”

Mark Kenber, Executive Director, VCMI said: “Most businesses recognize the imperative to act on their carbon emissions now, and many are ready to step up and deliver ambitious, rapid action, with decarbonization of operations and supply chains as the top priority. But with a robust claims framework and high-quality supply of carbon credits, companies can be supported to go even further and faster. This event is the moment for all of us to step up and harness the power of a high integrity voluntary carbon market for increased climate action, and to support resilient, sustainable low carbon growth throughout the world.” 

Chris Canavan, CEO, GCMU said: “To achieve our collective net-zero goals, we must marshal tens of billions of dollars in climate finance. Carbon markets are a critical tool for helping us get there, but they are too small and ineffective today. They must grow by orders of magnitude, and for that they need the right guardrails and market infrastructure to deliver transparency and accountability across supply and demand and in the marketplace. This event will bring together the critical stakeholders from across sectors and geographies to chart a pragmatic path towards scaling the market with integrity.”

Supported by Bloomberg Philanthropies, Accelerating Climate Action: Delivering High-Integrity Carbon Markets will bring together corporate executives, government ministers and senior officials, investors, Indigenous Peoples and local communities, civil society, project developers, and voluntary carbon market specialists to address the critical role of voluntary carbon markets (VCMs) in bridging the gap between the goals of the Paris Agreement and the current trajectory of global greenhouse gas emissions. The event will also focus on the integral role of Indigenous Peoples and Local Communities and Global South business and governments in shaping and driving sustainable, high-integrity carbon markets. The day will be an opportunity to debate the issues, discuss progress, and set a path for continuous improvement and increased impact. 

Time is running out to limit global temperature rise to 1.5°C, and VCMs are a critical tool that must be used to effectively address and reduce global emissions in time to avoid the worst effects of climate change. When used with integrity, high quality carbon credits provide companies and organizations an opportunity to mitigate emissions in addition to direct reductions in their own value chains while channeling vital climate finance to projects that will deliver both immediate and long-term emissions reductions. To maximize this impact, policymakers and regulators must act to help build these markets.

Earlier this year, the U.S. Government released guidance supporting the use of carbon credits and outlined principles for engaging in VCM responsibly and with integrity. Bloomberg noted this important step in leveraging markets, allowing for transparency, standardization and trust, to help drive action at the scale and efficiency required to maximize impact. The World Bank also continues to scale its carbon markets work, building institutional structure and capacity at country and global levels. However, there is still progress that needs to be made to realize results.

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Media must be credentialed to attend. Please contact VCMDay@VCMIntegrity.org to apply for credentials.

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About ICVCM

The Integrity Council for the Voluntary Carbon Market (Integrity Council) is an independent, non-profit governance body for the voluntary carbon market, which aims to ensure the voluntary carbon market accelerates progress on our global climate goals. The Integrity Council aims to set and maintain a voluntary global threshold standard for quality in the voluntary carbon market. The threshold standard is based on the Integrity Council’s Core Carbon Principles (CCPs) and is implemented through an Assessment Framework that sets out what high quality means by reference to those principles. The result is a threshold standard and label that provide a credible, rigorous, and readily accessible means of identifying high-quality carbon credits.

About VCMI

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). Our mission is to empower companies, governments, and non-state actors to maximize the impact of their climate actions through the use of high-quality carbon credits. VCMI’s Claims Code of Practice provides rigorous, science-based guidance for organizations to make credible and transparent ‘Carbon Integrity’ Claims. These claims acknowledge companies that go above and beyond science-aligned emissions cuts to accelerate global net zero. 

About GCMU

The Global Carbon Market Utility is a public utility designed to provide the infrastructure necessary to manage a trustworthy carbon market—including data management, contracts, audits, verification, and dispute resolution. This infrastructure will enable financial intermediaries, like banks and insurance companies, to enter the market, provide project financing, and house risk for end-buyers. The GCMU will directly plug into existing financial and regulatory infrastructure, helping to fill critical climate funding gaps quickly. The GCMU was launched at COP27 in 2022 and is supported jointly by Three Cairns Group and Bloomberg Philanthropies.

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