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.

A thriving carbon market will unlock finance to support the decarbonisation and sustainable development agendas of Emerging Markets and Developing Economies (EMDEs), which is critical to meeting global climate goals.

The Coalition comprises ambitious governments committed to advancing climate action through credible business use of high-integrity carbon credits alongside deep corporate decarbonisation. The Coalition is co-chaired by Ali Mohamed, Kenya Special Climate Envoy; Ravi Menon, Singapore Ambassador for Climate Action; and Rachel Kyte, UK Special Representative for Climate.

France and Panama are founding members of this coalition of ambitious governments committed to advancing climate action through the credible use of high-integrity carbon credits. The Coalition will expand over the coming months to include countries which are sources of demand for carbon credits as well as countries which are sources of supply of credits. The Government of Peru has already endorsed the Coalition’s mission, recognising the critical role of carbon markets and corporate use of carbon credits in delivering climate-positive growth globally.

By COP30, the Coalition will deliver its first results by issuing a clear set of shared principles on the voluntary use of high-integrity carbon credits by businesses to provide consistency in approach across jurisdictions. This is in response to calls from businesses for greater clarity from governments on the use of carbon credits as part of corporate decarbonisation plans. The shared principles will give businesses the confidence and incentives they need to invest in a proven but underused climate financing tool and continue to strengthen and scale carbon markets. The Coalition will work closely with businesses, so that policies and incentives better respond to business needs.

The principles will help to grow demand for high-integrity carbon credits, thereby helping to increase the flow of climate finance to EMDEs, by better reflecting the true value of emissions reductions and removals being delivered. This will boost investment in climate-positive businesses, sustainable development and projects such as sustainable agriculture, clean energy, as well as nature conservation and restoration.

The Coalition represents a bold new approach to mobilising essential private sector investment to help close the USD$1.3 trillion climate finance gap without adding to the debt burden. By boosting demand for high-integrity credits, the market could expand to as much as USD$250 billion by 2050 in direct and leveraged finance to support climate action globally.

This move has also been welcomed by the International Chamber of Commerce (ICC) as a response to calls from business for more cohesion and transparency, and stronger, clearer incentives to engage with carbon markets. The ICC and the World Business Council for Sustainable Development (WBCSD) will be partners to the Coalition, playing a critical role to ensure that its work is informed by the needs, experiences and ambitions of global business.

In addition, the Integrity Council for the Voluntary Carbon Market (ICVCM), an independent governance body which sets the global quality threshold for the supply of credits in the voluntary carbon market through the Core Carbon Principles, is also working with the Coalition to support seamless alignment between the demand and supply sides of the market.

Carbon markets direct finance to projects that can cut emissions faster and at lower cost. This helps modernise industries, cuts pollution, creates employment opportunities, and delivers lasting benefits for local communities and ecosystems. But reputational and legal risks, concerns about integrity of supply, and lack of consistent guidance have stopped companies from buying credits, even though they recognise the opportunity they offer to deliver more rapid climate action at scale.

The Coalition will build on the progress made on Article 6 at COP29, and high-integrity supply frameworks such as the Integrity Council for the Voluntary Carbon Market (ICVCM)’s Core Carbon Principles starting to shape the market. There is a clear role for Governments now to align, through the Coalition, to support a level playing field and the high-integrity scaling of voluntary market use.

Learn more about the Coalition

QUOTES  

“To help unlock private sector finance at the scale and pace needed to support global climate ambitions, we must energise the carbon markets. This Coalition will help foster investor and stakeholder confidence, and strengthen the integrity and interoperability of these markets while delivering real emissions reductions. Singapore will play a meaningful role in catalysing the development of the voluntary carbon market as a financial and services hub, and through our investments in impactful decarbonisation projects globally,” said Grace Fu, Minister for Sustainability and the Environment and Minister-in-charge of Trade Relations, Singapore.

“The UK is championing the responsible use of carbon credits by taking action to spearhead global efforts to raise integrity, supporting UK businesses to grow these markets and delivering growth through the Plan for Change. Through this new Coalition, we’re giving businesses the clarity they need to invest in high-integrity credits that drive real impact for climate and nature, unlocking carbon markets as a trusted tool in accelerating towards net zero,” said Kerry McCarthy MP, Minister for Climate, UK Government.

“Kenya’s leadership in this Coalition reflects our commitment to transforming how climate finance reaches developing nations. By boosting demand for high-integrity credits, the market could expand to as much as $250 billion by 2050 in direct and leveraged finance, supporting global climate action, particularly through transformative projects in developing countries.” said Ali Mohamed, Kenya Special Climate Envoy and Co-Chair of the Coalition to Grow Carbon Markets.

“This new Coalition is a welcome response to the clear call from the global business community to bring clarity, build confidence and integrity for carbon credit buyers, and to scale incentives that reward real climate action. 

High-integrity carbon markets are a vital—but still underused—tool in our climate arsenal. When done right, they empower businesses to cut emissions faster, invest at scale, and accelerate the global transition to net zero. 

Today’s announcement is more than a policy signal—it’s a commitment to action. We commend this leadership and stand ready to support this Coalition in unlocking the full potential of carbon markets for people, planet, and prosperity,” said Philippe Varin, Chair of the International Chamber of Commerce (ICC). 

“I am glad to announce that France is officially joining the Coalition launched by the governments of Kenya, Singapore and the UK to support the development of robust, credible and effective carbon markets. 

This commitment is consistent with France’s long-standing leadership on climate action and advocacy for high-integrity carbon markets, which present an untapped potential to increase corporate action and mobilize climate finance where it is most cost effective. 

As a Coalition, we can send a clear message to the market and bring the needed clarity and confidence for investors. We are looking forward to working in partnership with other governments to unlock the full potential of carbon markets,” said Agnès Pannier-Runacher, Minister of Ecological Transition, Government of France. 

“I welcome this effort to provide greater clarity from governments on corporate use of carbon credits to increase climate action. Social and environmental integrity standards of carbon markets are vital to ensure the public trust in this important instrument. Therefore, political leadership is critical to building confidence and ambition, and we welcome this signal of cooperation,” said Ana Toni, CEO of COP30.

“The Ministry of Environment of Peru supports the Coalition’s effort to foster a carbon market environment where integrity and high standards are valued and recognized. We need to facilitate greater financial flows towards mitigation activities and sustainable development, and we see this as a promising foundation for strengthening global partnerships,” said Racquel Soto, Vice Minister of Strategic Development of Natural Resources, Government of Peru.

Notes to editors  

The Coalition to Grow Carbon Markets is supported by a Secretariat hosted by VCMI. The Secretariat provides technical, administrative and logistical support to Co-Chairs and the Coalition activities. VCMI has established guidance on best practice voluntary use of carbon credits by business as part of corporate decarbonization plans.

For media enquiries, please contact VCMCoalition@fgsglobal.com

The post First-of-its-kind government coalition to issue shared principles on carbon credit use by COP30 to boost climate finance appeared first on VCMI.

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.

The post VCMI welcomes French Government Carbon Credit Charter to stimulate high-integrity demand amongst world’s leading companies appeared first on VCMI.

The Claims Code enables companies to transparently and credibly use high-quality carbon credits as part of their net-zero transitions. It also provides a framework for governments to develop effective policy and brings confidence to the wider market.

Speaking at a launch event for the Principles, United States Secretary of the Treasury Janet Yellen described how “multi-stakeholder groups like the ICVCM and VCMI are working to raise integrity standards.”

Today’s move from the U.S. sends a clear signal to governments and businesses across the world. It builds confidence in high-integrity VCMs and will in turn grow the market. High-integrity voluntary carbon markets can put extra investment to work that will otherwise remain untapped. A growing market could channel additional climate finance, increasing to a size of over $50 billion by 2030. The move by the US will boost overall participation and unlock investment.

“We must seize every opportunity to reduce emissions today. Clear direction from governments gives companies confidence to act,” said Mark Kenber, Executive Director of VCMI, who spoke on-stage during the launch event. “This is exactly what the United States is providing. The Principles are fully compatible with VCMI’s Claims Code, which gives companies a standard they can use now to engage in voluntary carbon markets and make verified claims.”

Today’s announcement sets a precedent for countries. This comes as VCMI’s standards are receiving strong recognition by governments around the world. Ministers from Kenya, the UK, the US, Ghana, Japan, and Finland, among others, have to date endorsed and supported the Claims Code.

VCMI will continue to work with policymakers, both in the US and globally, to drive integrity in voluntary carbon markets, delivering benefits for people and the planet.

The post VCMI welcomes U.S. backing of high-integrity voluntary carbon markets appeared first on VCMI.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mark Kenber, Executive Director, VCMI, commented:

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

Image source: UNCTAD at COP28 – 2 December 2023

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

The agreement of an Article 6 rulebook is welcome. However, much critical detail needs to be determined in the coming period – including how these rules relate to voluntary carbon markets and use of Article 6 units to meet voluntary commitments.

It is immediately clear that establishing credible guidance on the claims that companies and other non-state actors can make regarding the voluntary use of carbon credits is more important than ever – this is at the heart of VCMI’s work.

In response to the Article 6 rulebook, VCMI will look closely at the implications for delivering high integrity, inclusive voluntary carbon markets – including the following areas:

• Whether and how Corresponding Adjustments are made for voluntary use of carbon credits, when credits acquired are not used to meet the buyer country’s Nationally Determined Contributions.
• Meaningful and inclusive participation of Indigenous Peoples, local communities, and other rights holders in greenhouse gas reduction and removal projects.
• The role of voluntary carbon markets outside the purview of Article 6.
• Distinguishing between claims based on use and cancellation of credits (from Article 6.4 or elsewhere) and those reflecting other types of action and contribution.
• Ensuring full transparency that allows for public scrutiny of the generation and use of carbon credits.
• If businesses should be permitted to make climate action claims based on some complete or partial use of carbon credits generated before 2021, except to compensate for historic emissions.

The post VCMI response to agreement of Article 6 rulebook appeared first on VCMI.