ICC is calling for stronger governance and transparency in voluntary carbon markets (VCMs), highlighting their critical role in reaching net-zero emissions by 2050. In a new report launched today, ICC emphasises the urgent need to scale VCMs as essential tools for emissions reduction and for channelling financial resources into climate action, particularly in vulnerable regions.
The report comes during the UN Climate Talks in Baku, Azerbaijan, where climate finance is top of the agenda.
With only 24% of global emissions currently priced according to the World Bank, ICC underscores that VCMs can help bridge the financing gap critical to keeping the Paris Agreement goals within reach.
VCMs enable companies, governments, and individuals to offset greenhouse gas emissions by purchasing voluntary carbon credits. These markets not only support emissions reductions but also channel significant financial resources to sustainability projects in regions where climate adaptation, resilience, and financing needs are greatest.
ICC Head of Sustainability, Raelene Martin said:
“As the private sector increases its efforts to meet net-zero targets, voluntary carbon markets offer a valuable means to mobilise the financing required to drive meaningful climate action.”
“To make these markets effective, it’s essential that we create governance frameworks that foster trust and enable companies to confidently leverage carbon credits as part of their emissions reduction strategies.”
The report also addresses the ongoing need for trust-building measures to strengthen VCMs and argues that clear governance frameworks are essential to increase private sector participation and confidence in VCMs.
It outlines the essential components required to mobilise private sector investment in carbon credits, emphasising the need for clear, effective rules on corporate mitigation targets and international cooperation to harmonise standards across borders.
The report calls for:
- Robust governance frameworks that foster trust and economic incentives for companies to engage with VCMs confidently.
- Clear rules and guidance for corporate climate targets, ensuring voluntary carbon credits remain credible and impactful tools for achieving net-zero emissions.
- International cooperation to harmonize standards across borders, making VCMs accessible and effective on a global scale.
Ms Martin added:
“With a strong foundation of standards and clear guidance in place, we envision a transformative path forward in the fight against climate change—where businesses play a critical role in achieving sustainability goals and addressing the essential climate financing needed for a net-zero future.”
The role of voluntary carbon markets in mobilising finance to accelerate climate action (2024)
The report highlights the importance of engaging in and scaling voluntary carbon markets as a complement to achieve global net-zero emissions and mobilise critical financial resources to support climate action.
