Businesses want help avoiding a scandal in carbon markets

illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: A new report by the Voluntary Carbon Market Initiative (VCMI) highlights growing concern among businesses over the credibility of carbon credit markets
• In a survey of 65 companies, respondents expressed a strong need for clearer, more consistent rules to avoid reputational risks linked to low-quality or non-additional offset projects
• Despite these concerns, companies view the market as essential to meeting climate and sustainability goals

🔭 The context: Voluntary carbon markets have expanded rapidly, offering credits from thousands of global projects, including renewable energy, reforestation, and cookstove replacements
• However, high-profile scandals involving questionable offsets have cast doubt on their environmental integrity
• Amid regulatory uncertainty and inconsistent methodologies, companies are increasingly cautious about being associated with credits that fail to deliver real emission reductions

🌍 Why it matters for the planet: If voluntary markets are to play a meaningful role in global decarbonization, trust and transparency are essential
• Poorly vetted projects can lead to double counting, greenwashing, and net increases in emissions—undermining climate action
• Establishing robust quality standards is crucial to ensuring that corporate climate finance drives measurable climate benefits and supports sustainable development goals in host countries

⏭️ What's next: VCMI and other standard-setters are expected to release clearer guidance and validation tools over the next year to help buyers identify high-integrity credits
• Meanwhile, businesses are pushing for endorsements from governments and third-party scientific institutions to improve project selection
• CFOs increasingly seek credits that deliver both climate value and return on investment, signaling a growing integration of sustainability with financial decision-making

💬 One quote: “Companies don’t want to be embarrassed by buying credits that turn out to be junk,” said a representative involved in the report. “They need help identifying which projects are credible”

📈 One stat: More than 65 companies participated in the VCMI’s 2025 report, emphasizing that clearer carbon credit rules are now a top concern across multiple sectors

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