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Focus Areas : Voluntary Markets

The international voluntary carbon market creates incentives for reducing greenhouse gas emissions outside of the government-mandated cap-and-trade systems. Although most buyers come from Europe, the US and Australia, the USD700 million voluntary carbon market sources offsets from every major region and sector, especially renewable energy and land use. It is driven by organizations, companies, and individuals who wish to voluntarily reduce their carbon footprint.  Despite ongoing policy uncertainty, this market is expected to continue it recent growth with market values nearly doubling annually since 2007.

For firms and consumers, the voluntary carbon market offers the chance to buy or sell credible emission reductions at attractive prices from a range of sectors. Project developers may ensure credits qualify under multiple standards and certifications, broadening their potential market, while delivering strong social and ecological co-benefits. The voluntary market also supports activities, particularly in the area of forest protection and land use, not yet included under compliance schemes with a lower administrative burden relative to the Clean Development Mechanism.   

Climate Focus offers a suite of technical, policy and financial services for the voluntary market. The Climate Focus technical team in the US and Europe has written or contributed to methodologies approved and under consideration by the Voluntary Carbon Standard for energy efficiency and reduce emissions from deforestation. Our legal and policy group can help identify and implement voluntary emission reduction projects, and provide strategic advice and guidance on good business practices, relevant standards, risk assessment and market direction.

Examples of activities and projects

• Development of methodologies for energy efficiency in buildings
• Development of methodology modules for REDD+
• Marketing voluntary emission reductions for Chinese project developers
• Developing afforestation/reforestation projects under the Voluntary Carbon Standard in India
• Development voluntary carbon projects in biofuel/reforestation project in Malawi
• Environment and community based framework for designing afforestation, reforestation and revegetation projects in the voluntary carbon market
• REDD+ project design and legal contracting in Brazil for degraded land reforestation and avoided deforestation of high-conservation value forest.