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Voluntary Carbon Markets

The growth of the voluntary carbon markets has accelerated dramatically in the past 2 years. In 2007, 42.1 metric tonne (Mt) of CO2 reductions have transacted in the OTC market, combined with 22.9 Mt transacted in the Chicago Climate Exchange (CCX). Compared to 2006, these numbers represent about tripling of the OTC transactions, and doubling of the CCX transactions.1

Tradeable verified emission reductions (VER), each representing one tonne of CO2 emission reduction are generated according to defined standards and requirements other than the Kyoto Protocol. In addition to voluntary GHG emission reduction programs, the voluntary carbon markets are fueled by speculation (or in some cases fact) that offsets originated by a voluntary standard can be used in compliance GHG emission reduction programs, primarily in the US.

A number of standards organizations have emerged which developed the methodology and oversee the overall framework for the validation, verification and issuance of the carbon credits. The vast majority of voluntary carbon credits are issued as:

  • Gold Standard VER
  • Voluntary Carbon Standard (VCS) VCU
  • California Climate Action Registry (CCAR)
  • VER+
  • Chicago Climate Exchange CFI
  1. Source: Ecosystem Marketplace / New Carbon Finance