The voluntary carbon market (VCM) allows participants to purchase carbon credits to mitigate their GHG emissions resulting from manufacturing processes, electricity use, and transportation. VCM encourage the financing towards activities that reduce GHG emissions. Over time, companies have been tackling climate change on a global scale by using independently Verified Emissions Reductions (VERs).
The popular credits in the Voluntary Market are VERs and VCUs. These credits represent the removal of one ton of CO2 from the atmosphere. VERs and VCUs are issued to project developers that reduce emissions through afforestation, reforestation, energy efficiency, and renewable energy projects. For companies that retire these credits, carbon offsetting becomes possible.
Different stakeholders drive demand in this market
Corporate Social Responsibility
Companies that are active in CSR initiatives and sustainable developments show better financial results over time.
Sustainable investments and green finance interest are growing year after year and are becoming more profitable.
Environmentally Aware Entities
Both players seeking carbon neutrality can compensate their emissions or provide an additional contribution to mitigating climate change.