Carbon credits with high-quality tag emerge on VCM in bid to rebuild trust
The VCM has endured tough years, and many expect the CCP-labeled credits to lead a better functioning market, with these offsets demanding higher prices.
After a long delay, the first batch of carbon credits with a high-integrity label finally emerged on the voluntary carbon market, with market participants hoping this will bring much-needed credibility and clarity.
These credits, emanate from projects that fall under two broad categories: Ozone Depleting Substances (ODS) and Landfill Gas Capture and Utilization.
This is a significant milestone for a market that has been plagued by quality concerns, especially in the past two years, where the growing scrutiny has led to a sharp slump in the value on the VCM.
Upcoming announcements
These credits may only represent a small section of the VCM, but it is a much-needed start, Pedro Martins Barata, Co-Chair of the ICVCM Expert Panel told S&P Global Commodity Insights.
Barata said the next announcements in the coming months will "focus on a broader set of methodologies" and the impact from these could be more significant, as they represent a large share of the market.
As many as 27 project categories of carbon credits, representing over 50% of the market, remain under active assessment, with announcements on these expected by September( article continues at S&P Global )