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

Key Takeaways

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

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

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

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

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

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

Fertile Ground: Creating the Policy Conditions for Scale

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

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

From REDD+ to Agriculture: Embedding Equity and Inclusion

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

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

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

Investing in Readiness and Regional Collaboration

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

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

Innovative Tools for a Thriving Policy Landscape

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

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

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

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

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

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

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

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

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

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

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

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

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

What should that look like in practice? 

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

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

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

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

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

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

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

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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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In this podcast, hear from VCMI’s Executive Director Mark Kenber on outcomes from Baku and what they mean for the future of carbon markets.

Date: December 12, 2024

Listen: Click here

“The rules around the Paris Agreement carbon markets known as Article 6 were finally agreed, and that now gives some confidence to those who are developing projects, looking at investing in the market, developing markets at a national level and, of course, buyers, that there is now a UN imprimatur on project-based carbon markets,” Mark says. “And with luck, that will encourage more investment.”

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The private sector has a critical role to play in meeting global climate goals and financing climate action. It has been estimated that voluntary carbon markets could channel an additional $50 billion in finance for climate action from the private sector by 2030.

This announcement positions the UK among other leading countries, including the United States and the G7, in recognizing the essential role that high-integrity VCMs must play in the global low carbon transformation.

The UK Principles include a focus on biodiversity integration, claims integrity and mandatory reporting. A consultation in early 2025 will look at proposed implementation of these principles, through guidance, standards and regulatory oversight by UK Government.

“Companies and investors need clear signals that taking action and being ambitious on climate using voluntary carbon markets is supported and recommended by policy makers, and that is what the UK Government is providing today,” says Mark Kenber, Executive Director of VCMI. “The principles for high integrity voluntary carbon markets are well aligned with the VCMI Claims Code, establishing a robust framework for ambitious, transparent use of VCMs to fund climate action. Alongside the guidance and guardrails, we also need the incentives that will encourage the private sector to use carbon credits with integrity and confidence in this critical decade.”

“The climate crisis is here and disproportionately impacting society’s most vulnerable,” adds Usha Rao-Monari, VCMI Steering Committee Chair and previously Under Secretary-General of the UN Development Programme (UNDP). “The scale of the challenge only adds to the urgency of mobilizing critical sources of finance for climate action globally. The UK’s announcement makes an important contribution in harnessing this opportunity. The finance to be unlocked can help the UK Government deliver on its promise to show renewed climate leadership.”

Specific ways in which the Principles from the UK raise the global bar include:

• Explicitly incorporating biodiversity protection and nature-based solutions.
• Directly tackling misleading claims terminology (e.g., “carbon neutral”).
• Mandating sustainability reporting for credit use.
• Inclusion of an explicit focus on FPIC and Indigenous rights.
• Requiring detailed project-level disclosure.

Global organizations like VCMI and ICVCM have laid the groundwork, but government support, as demonstrated by the UK, is essential for ensuring a move to high-integrity market participation and ensuring impact of voluntary carbon markets.

VCMI welcomes alignment of the UK Principles with the VCMI Claims Code of Practice.  The inclusion of VCMI’s Scope 3 Claim (currently in beta) within the consultation is also an important step in addressing a complex issue which it is essential businesses are able to tackle. The Claim still being developed in parallel by VCMI, will enable companies to go further and faster in taking action, where progress on scope 3 emission has met challenges.

– Ends –

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

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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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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.” 

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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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