Business & Philanthropy Climate Forum



Voluntary Carbon Markets: High-quality carbon credits to support a pathway to Net Zero

Context and challenges

VCMs have the potential to contribute to ~9 out of the 22 Gtons net emissions reduction required by 2030 to meet the Paris Agreement and constitute an important tool in companies’ Net Zero journey.

Carbon market growth has slowed down due to uncertainties around policies, as well as lack of harmonized standards.

Achieving the potential of emissions reduction would require USD 50-100 Bn valuation by 2030, versus current valuation of USD 2 Bn.

Initiative Description

The Voluntary Carbon Markets (VCMs) is an initiative launched by  COP28 to boost and revitalize the VCMs to restore government and private sector confidence, unlock high-integrity transactions, and catalyze capital flows towards projects that deliver real benefits to nature, people and the planet.

The launch of this initiative sends a clear and ambitious demand signal and has been boosted by several companies having joined the initiative to enhance credibility and adoption of high-integrity VCMs.

Companies further along in their decarbonization journey may join existing alliances (e.g., Frontier, LEAF coalition, ACMI) to unlock additional investments in emerging markets and developing economies, catalyzing investment in new technologies.

Commitments from Business & Philanthropy

Publicly endorse the following GHG1 mitigation hierarchy :

  • Measure, account, and report GHG emissions
  • Set science-based decarbonization targets and reduce emissions as top priority
  • Use high-quality carbon credits to offset residual emissions

Commit in a press release to purchase or invest in the development of high-quality carbon credits at scale, within a clear timeline

How to get involved?

  • Reach out to COP28 team to receive the endorsement letter to sign
  • Publish a press release after the sign-up


1: Green house gas emissions

Source: IPCC AR6 WGIII | UNFCCC Race to Zero | TSVCM report, January 2021 | McKinsey article, CO2 removal solutions: A buyer’s perspective, February 2023 | London School of Economics and Political Science, February 2023 | MAS Working Paper on Accelerating the Early Retirement of Coal-Fired Power Plants through Carbon Credits, September 2023

Scroll to Top