Voluntary carbon market success depends on high-quality credits

Writing in the Opinion column of the South China Morning Post, Chris Webb, Global Head of Carbon Markets, explores the purpose of the voluntary carbon market and how it can be used as a force for good to help counter climate change.

2030 is just over seven years away. If nations and companies are to accelerate towards their net zero targets, voluntary carbon markets have an essential role to play – where companies and other entities voluntarily fund low-carbon solutions in return for carbon credits.

Since the Paris Agreement was adopted in 2015, carbon emissions have been going up, apart from a slight drop during the peak of the Covid pandemic.

The transition to reach 45% carbon reductions by 2030 and net zero by 2050 needs to accelerate, having been disrupted by the pandemic, global supply chain issues, the rising costs of energy, high inflation, and geopolitics.

The voluntary carbon market is, therefore, an important mechanism that can help accelerate the transition to a net zero economy, when used by companies to complement – not substitute -- the decarbonisation of their own operations across their entire value chain.

Procuring carbon credits – whether bilaterally or through carbon credit exchanges – that are deemed high-quality under an international governance framework, will be key to the success of the voluntary carbon market.

If you want to read more on Chris’ view, you can find his entire op-ed in the South China Morning Post.