Evaluating the Future of Global Carbon Markets

Voluntary Carbon Markets (VCMs) are instrumental in mobilizing financial resources towards climate mitigation. Prepared under the guidance of Accenture, the report analyzed the current VCM landscape by reviewing public data and conducting interviews with high-profile actors operating across the value chain. The study concluded that VCMs will undoubtedly grow, dependent on both current market factors and potential future trends.  

Currently, four carbon registries spearhead protocol development and credit issuances, with most of which originate primarily from Forestry, Land Use and Renewable Energy projects. The market is undergoing a transformation, with a short-term decline in issuances driven by shifts in the governance landscape and trading infrastructure, a changing preference towards removal credits, the integration of roles exemplified through buyers’ vertical integration, and the development of new overarching standards. Underlying risk factors and low levels of trust are resulting in prices that are still low to achieve timely growth. For these reasons, the market should prioritize actions that inject trust through improved governance. Considering perspectives from key stakeholders across the market, including project developers, investors, buyers, registries, and policymakers, the report strongly recommended that the enforcement of the guidelines from the Core Carbon Principles is set as a priority. Additionally, perspectives on the integrity in the use of credits must be improved, by increasing buyer disclosure and ensuring that the use of credits comes second to emission reduction. Promoting the development of standardized contracts would also contribute to risk reduction and price transparency.