Decarbonisation Round-up 2023: Voluntary Carbon Markets


The voluntary carbon market (VCM) has witnessed a rapid trajectory in recent years, indicating it is ready to grow from its billion-dollar value to a much higher number. Carbon registries offering carbon credits and offsets are drawing interest from various sectors, industries, and individuals that would like to participate in the global move to meet Net Zero 2050 goals, and positively impact the removal and reduction of carbon dioxide (CO2) emissions across the planet. Companies for which such carbon emissions are currently unavoidable have an even keener interest in the growth of these carbon registries which comprise the VCMs, using which they can offset the emissions.

With this round-up, we have compiled a series of our top reads including industry insight and reference cases exploring the various VCM aspects, from some basics of the voluntary markets to larger trends and challenges which could pave the way for sustainable markets of the future. We also look at the specific technology and project types that may have a strong future including Blue Carbon and Carbon Capture. We explore the demand-supply scenarios for the VCM, as well as explore integration across value chains through mergers and acquisitions (M&A) in the VCM. Don’t forget to read the reference cases which highlight how our Carbon Offset Platform, and our team of experts are already empowering our clients on their decarbonisation journey.

Industry Insights:

Voluntary carbon markets may be critical for cos to meet carbon emission targets

VCMs are rapidly gaining traction as businesses realign their interests to better mitigate climate impact, meet investor and regulatory demands, as well as a more transparent move to decarbonisation. We look at how carbon credits are generated and can be turned into offsets, what sets VCM apart from compliance carbon markets, the popular project types along with their demand drivers, the challenges ahead, and solutions to overcome them. Read the full insight

VCM could grow 13X by 2030 with trillion-dollar potential

While there have been some recent speedbumps, the demand for the highest-quality carbon offsets in the VCM has been largely positive. We take a look at the factors driving and affecting demand-supply scenarios of this nascent decarbonisation solution, which has already sprouted a billion-dollar market and is pegged to snowball into a sustainability giant offering a just transition. We explore the demand and supply trends, as well as the challenges and way forward to keep the momentum going. Read the full insight

Carbon capture could be a big driver for voluntary markets

While early VCM movers had focused on carbon offsets projects that followed the carbon avoidance and reduction route, a more conscientious focus is seen growing in the carbon removal and sequestration technologies-based projects. Hence, Carbon Capture, Utilisation, and Storage (CCUS) appear pegged to be a potential high-growth area in these voluntary markets. Read the full insight

Blue carbon credits could unlock a new decarbonisation potential for VCMs

Blue Carbon, as the name indicates, has to do with the oceans and coastal wetlands. With a majority of the planet being covered in water, industries are increasingly realising the fact that oceans are capable of providing a strong helping hand in global climate change mitigation goals. Add to that, the level of relative carbon abatement that can be achieved through blue carbon is phenomenal. While blue carbon credits are recent entrants to VCMs, there is a rise in projects offering such offsets, and their demand far outweighs their supply at the moment. Read the full insight

Trends from VCMs that tell us about the future of sustainable markets

There had been a slight slump in carbon credits demand owing to uncertainty over the global economic outlook. Temporary factors notwithstanding, with so much happening and pegged to happen in the VCM space in coming decades, we are witnessing the consolidation of new strategies, and viewpoints, as well as the advent of forward-thinking investment trends with sustainability as a key impact factor. Read the full insight

What M&A in the voluntary markets tells us about consolidation

The nascent nature and rapid growth trajectory of the VCM as well as the prospects of carbon offset prices increasing in coming years has also prompted some major players to invest in and collaborate with climate action projects as well as carbon offset registries in recent years, triggering a slew of mergers and acquisitions (M&A). This could not only bring some consolidation to the markets but also help increase the integration of carbon offsets into industry value chains. Read the full insight

To understand how we support our clients, read our Reference Cases:

1. Identifying high-value carbon credit generation opportunities for a client

Evalueserve recently guided a client which specialises in the waste-to-energy space to zero in on their best-fit route to Voluntary Carbon Market (VCM) participation. As a part of the process, our team of decarbonisation experts utilised Evalueserve’s Carbon Offset Platform to help the client maximise the value of their carbon offset offerings in voluntary markets. Read now

2. Setting up VCM and competition tracker for client to monitor NBS insights

Through this project, the client wanted Evalueserve to set up a monitoring system for developments in the nature-based solutions (NBS) industry and for tracking competitor moves. The system would provide early warnings, help identify opportunities, and enable informed decision-making to support the client’s strategy development. Read now

Carbon Offset Platform: To tackle these challenges and gain all the advantages of participation in voluntary carbon markets, our team of experts at Evalueserve has developed our very own Carbon Offset Platform. This platform comprises a global database of projects from across various carbon offset registries, which helps you in analysing the best-fit project in terms of abatement, as well as economics. To know more about how our Carbon Offset Platform can empower your decarbonisation journey, please connect with our team of experts today.

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Abhishek Samuel
Manager, Decarbonization Practice Posts

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