The Voluntary Carbon Market (VCM) isn’t tightly regulated by governments. However, there are several important bodies that keep things in check, ensuring that the carbon credits you buy and sell genuinely contribute to reaching net zero. To victoriously operate in the VCM, you should definitely be familiar with them, but with so much information on policies and regulations, keeping track of updates and knowing which frameworks to prioritise can be challenging– unrelated to whether you're new to the VCM, have some experience, or are a seasoned pro. Therefore, this article aims to cut through the noise and guide you through the essential policies that will set you up for success in this market.

For carbon removal buyers: Key initiatives that drive the VCM forward

In recent years, various initiatives have been launched to manage increasing demand for carbon credits. They have developed standards, claiming and purchasing guidelines and credit registries. Keeping track of all of them and understanding which apply to you can be hard work, especially when time is of the essence. To maximise your capacity and resource, we’ve compiled the top 3 initiatives in the VCM that you need to know about - and why they’re important.

Integrity Council for the Voluntary Carbon Market (ICVCM):

Why they’re important: Think of ICVCM as the gold standard setter. They decide what makes a carbon credit truly reliable in the quest for net zero emissions. Their stamp of approval, called the Core Carbon Principles, is like a “seal of trust” showing that a carbon credit meets the highest standards.

Science Based Targets Initiative (SBTi):

Why they’re important: They help businesses figure out how to measure their emissions, plan reductions, and, eventually, offset the emissions that are hardest to eliminate. If it is a company’s priority to work towards net zero, aligning to SBTi is a good option as a guide for best practice. You can now use the current Corporate Net-Zero Standard v1.2. The revised Corporate Net-Zero Standard will come into effect in 2025.

3. Voluntary Carbon Markets Integrity Initiative (VCMI):

Why they’re important: It helps companies and organisations make honest and clear claims about their efforts to go carbon neutral or achieve net-zero emissions. They released the Claims Code of Practice, which provides guidance for companies making claims based on purchasing credits from the voluntary carbon market. They require firms to take several steps when making claims related to carbon credit purchases:

a) Set and publicly disclose a validated, science-based emission reduction target

b) Publish an annual greenhouse gas emissions inventory

For carbon project developers: The key market makers in the VCM

Here, we shift focus to the supply side of the VCM—there are several key players who define the standards and ensure that carbon credits are actually credible. Some of these are quite popular, while others are more regional or policy-specific. However, they are all useful to keep in your VCM arsenal. It’s important to remember that these players remain non-governmental and private; they earn revenue from the offsets they recognise:

Verra: A certification organisation for climate action and sustainable development projects.
Gold Standard: A certification body that ensures carbon offset projects meet high environmental and social standards.
Greenhouse Gas Protocol: An international tool that helps businesses and governments quantify and manage their greenhouse gas emissions.
Climate Action Reserve (CAR): A registry that promotes the reduction of greenhouse gas emissions through market-based policies and solutions in North America.
Taskforce on Scaling Voluntary Carbon Markets (TSVCM): An initiative focused on expanding the voluntary carbon market to meet the goals of the Paris Agreement.
International Carbon Reduction and Offsetting Alliance (ICROA): The ICROA Accreditation programme for carbon credits providers promotes high standards of environmental integrity. Accreditation is obtained annually through a third-party audit process based on the requirements outlined in the ICROA Code of Best Practice.

The Voluntary Carbon Market is complex - understanding its key players and principles is essential for making a real impact. By aligning with these standards and initiatives, you can ensure that your actions not only support your business goals but also contribute to the global effort to achieve net-zero emissions.

To learn more about policies in the VCM or anything else within the carbon markets, reach out to our team at hi@opna.earth.