Voluntary carbon markets (VCMs) stand to play a big role in the shift to a net-zero global economy by enabling companies to offset certain emissions during the transition. They also have the potential to channel significant and much-needed investment towards initiatives that will have a positive climate impact.
These markets are distinct from the compliance carbon markets managed by governments, such as the EU’s Emissions Trading System, and are already growing rapidly. According to non-profit Ecosystem Marketplace, VCMs almost quadrupled in value from around $500m at the end of 2020 to almost $2bn at the end of 2021. Research by the management firm McKinsey suggests that could increase to more than $50bn by 2030.
