Voluntary Carbon Market (VCM)

A marketplace where organisations and individuals buy carbon credits to offset for their greenhouse gas emissions, outside of compliance schemes such as the EU Emissions Trading System. Credits are typically issued through certification standards (e.g. Verra’s Verified Carbon Standard, Gold Standard) and represent avoided, reduced, or removed emissions. While VCMs are seen as a tool to accelerate climate action, they have faced scrutiny over transparency, additionality, permanence, and potential use as a substitute for direct emission reductions. Despite these challenges, VCMs continue to expand, with debates ongoing over how to improve governance, integrity, and alignment with net zero pathways.