1. Voluntary Carbon Markets: A Critical Piece of the Net Zero Puzzle (Citi, July 2023)

Our go-to primer for the VCM. This report from Citi addresses fundamental questions for those completely new to the market, such as: what a carbon credit is, how carbon markets are set up and structured, how the VCM works, the differences between ‘reduction or avoidance’ credits and ‘removal’ credits, and how buyers can navigate the VCM.

They support these explanations with case studies and easy-to-read graphics which succinctly illustrate the key points - such as the one below!

“Carbon Credits 101” infographics in the report by Citi Global Perspectives & Solutions.

2.  The voluntary carbon market: 2022 insights and trends (BCG, January 2023)

This report identifies key market trends through a series of easy-to-read graphics and charts, providing a comprehensive overview of where the VCM is headed, and industry perceptions, supported by 200 market participants from over 15 different industries, on the challenges to address to get there. We like that they also provide actionable guidance for businesses charting their decarbonization journey, drawing on in-depth market knowledge from over 100 interviews.

Insights drawn from interviews and analyses conducted by BCG consultants.

3. How does the voluntary carbon market link to the Paris Agreement and Article 6? (Climate Focus, December 2021)

Reading up on the VCM, you will no doubt have seen references to both the Paris Agreement and Article 6. In short, the Paris Agreement requires countries to commit to a target of reducing carbon emissions, known as a “Nationally Determined Contribution” (or NDC) and Article 6 is a provision of the agreement that allows countries to cooperate to achieve these targets. 

This article from Climate Focus provides an invaluable guide on the mechanisms through which VCMs can support countries to fulfill their NDC commitments. They explain the mechanics through which the VCM can be integrated into approved national carbon reduction programs and cooperative approaches between countries. Moreover, they present a strong case for how the VCM, when implemented responsibly, can support efforts to meet NDC targets while also addressing concerns about it potentially displacing other mitigation efforts. Bonus: the other chapters in this report are pretty good too!

However, do note that we expect significant updates on Article 6 might happen at the COP 28 held in Abu Dhabi later this year. Stay tuned for more updates, and know that this topic is moving quickly as we speak!

4. Time for evolution or the start of a revolution? The carbon markets are feeling some growing pains (Alex Prather, Jan 2023)

Alex Prather, a climate investor, succinctly provides a comprehensive and critical analysis of how the carbon market needs to evolve to move forward. At the heart of this is an excellent stakeholder map supported by explanations of market dynamics across the value chain. Identifying pain points to further market growth, Alex does not shy away from challenging market players across the value chain to raise their game on factors including quality, transparency, and alignment on standards.

Fun Fact: Alex is a classmate of ours at Harvard and MIT. We also found her other blog post decoding jargon around the carbon market especially helpful to newcomers!

Alex mapped out the players in the voluntary carbon market ecosystem as of January 2023 - missing NetaCarbon though!

5. How to Build a Trusted Voluntary Carbon Market (Rocky Mountain Institute, Sept 2022)

This article from RMI is worth reading on two fronts. Firstly, they provide a helpful step-by-step explanation of the different stages in the life of a carbon credit, from project development to retirement. Secondly, they deliver an important call to action to the market as a whole - to “restore trust in the market and ensure carbon credits are delivering high-quality emissions and removals”. They support this call with three well-thought-out solutions: reducing the time and cost of project development, differentiating the carbon credit supply based on positive externalities delivered, and enabling transparency.

NetaCarbon’s goal is to address some of these barriers listed in the RMI article.

We hope these articles are helpful starters for anyone interested in the carbon market! If you want to speak more about the carbon market, please feel free to reach out to us via LinkedIn or the contact form on our website. We will also be publishing more insights on this blog. Stay tuned!