New Abatable Report Says Voluntary Carbon Market Is At A Critical Point

New Abatable Report Says Voluntary Carbon Market Is At A Critical Point - Carbon Herald

Carbon intelligence and procurement platform Abatable recently published a report, according to which it becomes apparent that the world’s voluntary carbon market (VCM) is currently at a pivotal moment in time. 

The report titled ‘Abatable Voluntary Carbon Market Developer Overview | 2023-2024’ shows how 2023, with its major ups and downs, proved to be catalytic for the VCM and was a year of transition. 

Namely, this transition, as the report puts it, is one ‘paving the way towards a new era’, in which we can start seeing investment flowing into the market and projects and carbon credit issuance growing significantly from the 25 biggest project developers. 

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To break it down, 2023 saw a shift in the distribution of issued credits, as more new, smaller players entered the market, leading to a decline in credits issued from the leading 10 developers. 

A point the report from Abatable highlights is that REDD+ (Reducing Emissions from Deforestation and Forest Degradation) projects continue to dominate the nature-based sector of the VCM, even despite the many challenges they continue to face.

The voluntary carbon market hit several other milestones in 2023, as well. 

The demand side of the market saw unprecedented action, as more new buyers than ever before purchased and retired credits, reflecting a rise in interest and participation.

The release of the Core Carbon Principles (CCPs) was also a major development. This year’s report provides the first in-depth look at how well the market aligns with these new quality standards. 

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Interestingly, over half of the credits currently circulating were issued using methods that are under review for CCP compliance, showing a strong industry push for a market built on integrity.

Maria Eugenia Filmanovic, co-founder of Abatable said: “While we have seen significant growth and interest in carbon credit initiatives and early indications show a move towards greater market integrity, challenges remain as we navigate the implications of the forthcoming Core Carbon Principles.” 

“It is essential for stakeholders to stay informed and proactive in addressing these challenges to ensure the continued effectiveness of the VCM.”

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