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

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

Cooperation on climate now matters more than ever

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

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

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

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

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

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

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

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

The road ahead

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

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

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

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

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

VCMI’s Steering Committee Chair, Usha Rao-Monari, and Executive Director, Mark Kenber, will be speaking at various panels, alongside key partners including WBCSD, Climate Impact Partners, EY, BDO, and Columbia Climate School. Conversations will focus on the role of high-integrity carbon markets in meeting net-zero targets, and financing national climate plans ahead of COP30 in Belém.

Sign up to the VCMI newsletter for updates.

VCMI will be participating in numerous events at Climate Week, including:

  23rd September      
  14:00-15:00
  BDO NYC Office, 200 Park Avenue, New York, New York 10166

Utilizing Carbon Credits to Drive Revenue & Investment

Hosted by BDO   |  Mark Kenber speaking

  23rd September         
  17:00-19:00     
  New York

Putting Carbon Credits to Work – Networking and Panel Events

Hosted by Climate Impact Partners |Mark Kenber speaking

  24th September         
  8:30-12:30     
  Aon New York Office

4th Annual Risk and Resilience Summit

Hosted by Aon  |  Usha Rao-Monari speaking

  25th September         
  15:00-17:00     
  The Center on Global Energy Policy at Columbia University SIPA

Center on Global Energy Policy Roundtable

Hosted by Columbia Climate School

The post VCMI at Climate Week NYC 2025 appeared first on VCMI.

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

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

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

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

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

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

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

Read the full article in Reuters

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

The report, A Confident Carbon Market: Business Perspectives, reveals that there is latent demand for carbon credits from businesses across sectors and geographies, but that concerns about quality, integrity, and reputational risks, along with a lack of clarity amongst regulatory and voluntary climate initiatives, are holding businesses back from investing. The result is that participation in carbon markets has stalled at a time when increased flows of climate finance are urgently needed to help close the $1.3 trillion climate finance gap. 

The research reveals that businesses need clear, aligned, and stable rules on how and when to use carbon credits to scale engagement and create a confident carbon market. Businesses stress that developing a 10-25-year investment strategy is challenging if there is no confidence in what rules will still be relevant by 2040, or even 2030.  

Commenting on what the research reveals about the state of play in carbon markets today, Mark Kenber, Executive Director of VCMI, said: “Significant strides have been made in addressing integrity gaps, including the work of both VCMI and ICVCM, but we now need confidence and investment to flow back into carbon markets. To achieve that, governments and voluntary frameworks for corporate climate action must redouble efforts towards increasing business participation. Carbon markets can and must complement corporate value chain decarbonization efforts if we are to reach our global climate goals. To unlock this action, businesses need clear rules aligned across regulations and voluntary commitments – that is the strong message from this research.” 

Governments and voluntary initiatives have an important role to play in creating the enabling environment for a confident carbon market. Whether regulatory or voluntary, clear rules, including direct requirements, were seen by businesses as critical for justifying investment in the market, especially to internal stakeholders. 

Reflecting on the findings, Philippe Varin, Chair of the International Chamber of Commerce (ICC), said “Businesses are keen to scale up their support for voluntary carbon markets, not only for meeting climate targets but also for important co-benefits, such as social impact and biodiversity conservation.  

“But businesses also need to confidently make the case for investing in carbon markets. Clearer guidance on how and when to use carbon credits would create a positive feedback loop —  to build greater confidence and drive business engagement in high-integrity carbon markets.”  

Businesses say examples of poor practice coupled with media scrutiny and public scepticism have contributed to a decline in market trust, and a weakened business case for participation. Carbon credit use is no longer seen to significantly enhance brand reputation, and carbon credit quality remains a top concern. 

However, businesses recognize ‘making progress towards climate goals’ as the top opportunity of carbon market participation. Alongside the introduction of clear, aligned, and stable rules on how and when to use carbon markets, businesses also called for clearer frameworks and stronger assurances that credits will deliver measurable and enduring climate benefits, as well as clear endorsements from governments, NGOs, and standard setters, and collective action from peers, to build business confidence to act now, not later. 

The research is based on a qualitative, in-depth study involving more than 65 businesses, 20 experts, and 60 market reports to explore perceptions, barriers, and opportunities around carbon market participation. ICC and the World Business Council for Sustainable Development (WBCSD) supported the research by reaching out to businesses in their networks to promote participation in the focus groups to ensure strong cross-sectoral and global engagement.  

“This report found continued appetite among the business community for high-integrity carbon markets to deliver much-needed climate finance, but businesses need clear, stable and aligned guidance to unlock greater participation. In addition, businesses also need a supportive environment that recognizes and endorses early adopters of high-integrity carbon markets to build confidence and encourage collective action at the scale needed,” said Jon Williams, Global Financial Services Lead for Sustainability Services and UK, Ireland & Africa Sustainability Services Lead, Accenture. 

Peter Bakker, President of WBCSD, said, “This new report from VCMI reinforces the findings of WBCSD’s 2025 Business Breakthrough Barometer. It is no longer a question of ‘if’ businesses will move to decarbonize their operations, but rather ‘how’.  Many sectors are already working hard to decarbonize their supply chains, and carbon markets play a vital role to complement these efforts in the near-term. However, to fulfil this potential, clear and business-aligned guidance is critical. This report offers valuable insights as to how this can be delivered.” 

The research indicates that businesses see carbon markets as a critical tool to deliver climate action. The full report details the main barriers faced by companies seeking to engage in the market, along with actionable insights on what is needed next to give businesses the confidence to invest.  

Leading governments are already taking action: The Coalition to Grow Carbon Markets, led by the governments of Kenya, Singapore, and the UK and launched at London Climate Action Week in June 2025, brings together ambitious governments committed to advancing climate action through credible business use of high-integrity carbon credits alongside deep corporate decarbonization.  

To find out more about the report, join an in-depth exploration of the findings by signing up to the launch webinar. The webinar will feature insights and expertise from VCMI, Accenture, ICC and WBCSD.  

— ENDS– 

Notes to editor 

• VCMI commissioned Accenture to deliver a qualitative, in-depth research study involving more than 65 businesses, 20 experts, and 60 market reports to explore perceptions, barriers, and opportunities around carbon market participation. 

• The findings, interpretations, recommendations, and conclusions expressed in the report are a result of a collaborative process facilitated and endorsed by VCMI and Accenture, but whose results do not necessarily represent the views of VCMI and Accenture.

• ICC and WBCSD – including the Natural Climate Solutions Alliance (NCSA) – supported the research by reaching out to businesses in their networks to promote participation in the focus groups to ensure strong cross-sectoral and global engagement. 

The post What will it take to create a confident carbon market? New research reveals what businesses need to make the case for investment appeared first on VCMI.

Carbon markets are critical for climate action. Businesses recognize this, but participation in carbon markets has stalled at a time when increased flows of climate finance are urgently needed.

New research highlights business perspectives on what’s needed to create a confident carbon market. In this webinar, we will share key findings from the report A Confident Carbon Market: Business perspectives, based on research from Accenture and VCMI.

Informed by cross-sectoral, global business perspectives captured thanks to World Business Council for Sustainable Development (WBCSD) and International Chamber of Commerce (ICC) networks, the research draws on insights captured from 65 companies, 20 expert interviews, and more than 60 reports to illuminate corporate perspectives on what’s holding companies back from engaging in the market—and what needs to happen next.

Speakers

• Mark Kenber, Executive Director, VCMI
• Jon Williams, Global Financial Services Lead for Sustainability Services and UK, Ireland & Africa Sustainability Services Lead, Accenture​
• Dominic Waughray, Executive Vice President, WBCSD – World Business Council for Sustainable Development
• Raelene Martin, Head of Sustainability, International Chamber of Commerce

To sign up to the webinar click here

The post Webinar | A Confident Carbon Market: Business perspectives appeared first on VCMI.

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

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

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

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

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

What should that look like in practice? 

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

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

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

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

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

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

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

The post SBTi Must Embrace Carbon Markets to Keep Net Zero Within Reach appeared first on VCMI.

At 11:15am, our Executive Director Mark Kenber will be speaking on the panel High-Integrity Carbon Markets: Moving Beyond Offsetting alongside Guy Turner, Managing Director, MSCI Carbon Markets, and Maria Eugenia Filmanovic, Co-Founder, Abatable. The conversation will be moderated by Frank Watson, Deputy Head of Content, Carbonwise.

This summit will bring together leading global policymakers, industry experts, and market participants to explore the latest trends, regulations, and innovations shaping the future of carbon markets. It will serve as a platform for discussions about this evolution and how carbon markets can drive climate action, facilitate sustainable growth, and create new opportunities for businesses and investors alike.

Learn more

Listen to Mark Kenber’s pre-event interview

The post City & Financial Global International Carbon Markets Summit appeared first on VCMI.

Join Chapter Zero, the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Markets Integrity Initiative (VCMI) on Wednesday 28 May for a webinar designed to equip boards with the level of understanding needed to provide this crucial guidance.  

This online event will explore the role that carbon market mechanisms and decarbonization approaches can have in corporate climate transition planning and residual emissions reductions. We will be joined by expert speakers, including Mark Kenber, Executive Director at VCMI and Doris Honold, Board Director at ICVCM, to share their knowledge and answer your questions on this complex topic.

Register here

The post Webinar: Demystifying Carbon Markets for Boards appeared first on VCMI.

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.

The post New Research: Immediate Solutions Needed as Companies Struggle to Make Progress on Scope 3 Targets  appeared first on VCMI.

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

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

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

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

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

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

– Mark Kenber, Executive Director, VCMI 

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