Paving the way for the next wave of corporate participation in the voluntary carbon market
- Media Manager
- Jun 25, 2023
- 1 min read
World Economic Forum
AMNC 2023
Published: June 26th, 2023
Voluntary carbon markets (VCMs) can play a key role in accelerating climate action, while decarbonization through mitigation remains the ultimate goal.
VCM investment can augment, instead of distract from, decarbonization and provide a direct catalyst for wider carbon mitigation initiatives worldwide.
Stakeholders including regulators, market initiatives and corporations, must work together to overcome obstacles and promote VCM investment.
The voluntary carbon market (VCM) is widely seen as an essential lever to accelerate climate action, especially in the near term. The market directs capital flows from the private sector to create and protect natural carbon sinks, as well as to develop and implement technologies that will reduce and remove carbon dioxide.
While decarbonization through mitigation remains the ultimate goal of corporate climate action, it is clear that VCM investment is required to scale climate action globally and plays an important role in establishing a global price on carbon for business.
This provides a direct catalyst for wider mitigation initiatives while providing carbon finance to a diversified set of actions. Such investment should be viewed as augmenting, rather than distracting from, decarbonization.
