Discover the ins and outs of the Voluntary Carbon Market (VCM) with our concise guide.
Learn about different types of projects eligible for carbon credits, how to choose the right carbon credit certifications, and the strategies and regulations shaping this dynamic market. Download now to elevate your carbon contribution strategy!
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What is the voluntary carbon market (VCM)?
Understanding the voluntary carbon market (VCM) is essential for stakeholders aiming to engage in effective climate action. The voluntary market allows private entities to take the initiative in addressing climate change by purchasing carbon credits that represent a reduction in carbon emissions. These credits are generated through various projects aimed at emission reduction, such as carbon capture and storage, reforestation, and renewable energy initiatives. The market operates independently of the compliance market, regulated by government mandates. In the voluntary market, participants voluntarily buy and sell carbon credits to offset their greenhouse gas (GHG) emissions, striving towards carbon neutrality and contributing positively to the global effort to mitigate climate change.
What types of projects exist that generate carbon credits?
Projects eligible for generating carbon credits must adhere to specific methodologies that ensure their effectiveness in reducing or avoiding carbon dioxideemissions. These include initiatives that capture and store carbon from the atmosphere or prevent potential emissions through sustainable practices. When considering which credits to purchase, evaluating the quality of the credits available on the market is crucial. Recognised standards should verify high-quality carbon credits to ensure they represent a legitimate reduction in one metric tonne of carbon dioxide or more. Buyers of carbon credits should also consider the project developers' transparency and the credibility of the methodologies used in the credit generation process.