A Path through Carbon Markets Turmoil

The voluntary carbon market (VCM) is currently hindered by subjective data, lack of transparency, and burdensome processes. To realize its potential for climate finance, the market must shift toward objective measurement using digital and satellite technologies, adopt transparent pricing, and establish a consensus on credit quality through improved certification and governance models.

• The voluntary carbon market (VCM) is experiencing a transition where rapid growth is clashing with outdated institutions and processes that cannot keep pace with demand and technological innovation.
• Improving data integrity in the VCM requires reducing subjectivity in four specific areas: measurement uncertainty, the interpretation of credit quality, transparency regarding market pricing, and the metrics used to evaluate equity and co-benefits.
• Digital and web3 technologies, including decentralized trading platforms, are reducing transactional risks for buyers by improving the traceability of credits, lowering transaction costs, and streamlining contracting.
• To create a high-performing VCM, stakeholders must implement four levers: reaching consensus on credit quality, integrating remote sensing and AI into certification data chains, ensuring independent verification processes, and scaling a transparent governance model.

APA

RMI (2023). A Path through Carbon Markets Turmoil. https://rmi.org/resources/a-path-through-carbon-markets-turmoil/

Chicago

RMI. A Path through Carbon Markets Turmoil. 2023. https://rmi.org/resources/a-path-through-carbon-markets-turmoil/.

Wikipedia

{{cite report |author=RMI |title=A Path through Carbon Markets Turmoil |date=18 September 2023 |url=https://rmi.org/resources/a-path-through-carbon-markets-turmoil/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023path, author = {{RMI}}, title = {{A Path through Carbon Markets Turmoil}}, institution = {RMI}, year = {2023}, month = sep, url = {https://rmi.org/resources/a-path-through-carbon-markets-turmoil/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }