The interplay between voluntary and compliance carbon markets
Implications for environmental integrity
This paper investigates the interplay between voluntary and compliance carbon markets,
with a focus on the environmental integrity implications, in particular mitigation
of greenhouse gases. It explores different types of carbon credit markets and the
different ways that these markets can, and could, interact. Furthermore, the paper
examines how developments in voluntary and compliance carbon markets can impact the
mitigation effectiveness of carbon credit markets, including on both the supply and
demand sides. The analysis finds that while carbon credit markets could unlock mitigation
ambition and action, they also have significant environmental integrity risks that
merit government attention. The paper suggests some guiding principles for governments
in identifying how to engage with different carbon markets, and recommends that they
take strategic, focused and collaborative action. The paper also highlights potential
policies that could enhance environmental integrity across carbon markets. In addition
to domestic carbon markets, governments could monitor how international and self-regulatory
carbon market frameworks evolve. Governments can also assess the role that carbon
credit markets play in achieving their climate objectives, and identify opportunities
to enhance their mitigation effectiveness.
Title under embargo until July 18, 2024 05:00 GMT+00:00
In series:OECD Environment Working Papersview more titles