COP28 has been a whirlwind of activity and it feels like this is finally the time that Voluntary Carbon Markets can move on from recent troubles and find new purpose and growth. A series of significant developments have signalled a pivotal moment, emphasising the theme that collaboration, rather than competition, is essential for scaling this market effectively.
These initiatives collectively aim to remove barriers for companies to responsibly offset emissions and contribute to keeping global temperature rise below 1.5C. They reflect a growing consensus on the need for high-integrity rules and a collaborative approach to meet global climate goals.
Prominent voices like UN Climate Change Executive Secretary Simon Stiell, World Bank President Ajay Banga, and US Special Climate Envoy John Kerry have underscored the importance of the VCM, especially for developing countries. Their statements emphasize that no country should be left behind in using the VCM and stress the need for developing countries to be compensated for climate benefits they provide.
This collective movement at COP28 is a clear message: The voluntary carbon market is a crucial tool for driving increased climate ambition and action. The emphasis is on integrity, clarity, and collaboration to ensure that the market scales effectively and equitably, supporting both technological and nature-based climate solutions.
In wider climate news, Over 60 countries signed the Global Cooling Pledge to cut cooling-related CO2 emissions by at least 68% by 2050.
The Voluntary Carbon Market (VCM) enables businesses, governments, and individuals to purchase carbon credits to offset their emissions. Carbon credits can be seen as a company’s voluntary tax on their emissions, channelling funding into projects that reduce or remove carbon from the atmosphere.
Amidst the flurry of media attention surrounding clean cookstove projects, it is essential to consider a full range of standpoints to ensure that we focus on continuously improving the quality and integrity of carbon projects. Scrutiny drives change, and with it, the voluntary carbon market can continue to deliver climate finance to initiatives that go beyond emission reductions and offer meaningful benefits to communities.
Following a successful year, CFP Energy is delighted to have been voted a winner in the Environmental Finance Environmental Market Rankings 2023-2024. CFP Energy were voted as winners in two awards, and runner-up in a further two.