High-Integrity Voluntary Carbon Markets U.S. Joint Policy Statement

Starting June 2024, the U.S. government supports high-integrity voluntary carbon markets (VCMs) to help achieve global net-zero emissions by 2050.…

Starting June 2024, the U.S. government supports high-integrity voluntary carbon markets (VCMs) to help achieve global net-zero emissions by 2050. VCMs can attract private capital to fund real and lasting emissions reductions, benefiting various sectors like energy and environment. This statement outlines principles for U.S. market participants to ensure VCMs’ effectiveness and integrity.

This policy statement, issued by U.S. Federal departments, highlights the importance of high-integrity voluntary carbon markets (VCMs) in supporting global decarbonization efforts. VCMs can unlock private capital for emissions reductions and provide economic and environmental co-benefits. However, challenges exist, such as ensuring the credibility of carbon credits and improving market efficiency.
The statement emphasizes the need for robust standards for carbon credit supply and demand, fair treatment of all participants, and market confidence. It addresses the issues of credit integrity and demand integrity, stressing that one credit must genuinely represent one tonne of carbon dioxide reduced or removed from the atmosphere.

Key developments include multi-stakeholder initiatives for high-integrity credits, improved crediting methodologies, new analytical products, technologies for measurement and verification, and multilateral rules under the Paris Agreement.
The U.S. Government commits to incorporating carbon credit disclosure standards, safeguarding voluntary carbon credit derivatives, and supporting investments in project-enabling environments. A fact sheet outlines federal actions to support these principles.
Key Points

• Importance of VCMs: High-integrity VCMs can support decarbonization and provide co-benefits.
• Challenges: Addressing credit integrity, ensuring additional decarbonization, and improving market functioning.
• Developments: Standards for high-integrity credits, improved methodologies, and new technologies.
• U.S. Government Role: Incorporating disclosure standards, supporting project environments, and committing to market integrity principles.

SOURCE:
Voluntary Carbon Markets Joint Policy Statement and Principles, (May 2024)