Key outcomes from a High-Level Roundtable on Voluntary Carbon Markets at The Summit for a New Global Financing Pact

The discussion addressed that mobilizing VCMs, at the pace and scale needed to preserve nature and the carbon budget, would require addressing any remaining uncertainty on how compliance and voluntary, domestic and cross-border markets come together, and providing capacity building for those countries seeking to leverage the VCMs. Common foundations were needed, across a range of credit types, and coalescing around new supply and demand-side standards being developed by ICVCM and VCMI was critical. Important work to develop the supply of new types of credit - including those designed to accelerate much needed energy transition - was addressed.

The discussion addressed that mobilizing VCMs, at the pace and scale needed to preserve nature and the carbon budget, would require addressing any remaining uncertainty on how compliance and voluntary, domestic and cross-border markets come together, and providing capacity building for those countries seeking to leverage the VCMs. Common foundations were needed, across a range of credit types, and coalescing around new supply and demand-side standards being developed by ICVCM and VCMI was critical. Important work to develop the supply of new types of credit - including those designed to accelerate much needed energy transition - was addressed.

The session also addressed the need to enable high integrity demand pathway to net zero for corporate buyers, whereby reductions of absolute emissions are prioritized, with appropriately defined scope to recognize compensation of residual emissions. The discussion emphasized that to secure the foundations of a high integrity, liquid market in 2023, efforts to align supply, demand, legal, and accounting standards must be facilitated and supported.

More specifically, participants addressed:

Following the event, COP28 President-Designate, His Excellency Dr Sultan Al Jaber, said: "Voluntary carbon markets have the potential to be a powerful enabler in financing decarbonization efforts across industries, cities and entire economies, especially in emerging and developing economies. In order to achieve their potential, we must enhance the credibility of carbon markets and ensure that the highest-integrity standards are firmly in place. This can only be done through collaboration between governments, organizations, and civil society to create a supportive regulatory environment, establish a level playing field, and raise universal standards. By working together, acting in unity and focusing on integrity, the value of this vital tool in our collective decarbonization efforts will increase."

UN Special Envoy on Climate Action and Finance and GFANZ Co-Chair, Mark Carney, said: "With only seven years left to halve emissions and keep 1.5 degrees alive, we cannot afford to leave major sources of climate finance untapped. Voluntary carbon markets could channel hundreds of billions of dollars to nature-based solutions and accelerated coal phaseout.  Critical work this year to deliver supply and demand side standards for these markets can support a high ambition path to net zero, where companies prioritize decarbonization and compensate for residual emissions along the way."

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Notes to Editors:

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