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Businesses want help avoiding a scandal in carbon markets

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By illuminem briefings

· 2 min read


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

Explore carbon credit purchases, total emissions, and climate targets of thousands of companies on Data Hub™ — the first platform designed to help sustainability providers generate sales leads!

Click for more news covering the latest on carbon market and corporate governance

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illuminem's editorial team, providing you with concise summaries of the most important sustainability news of the day. Follow us on Linkedin, Twitter​ & Instagram

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