Carbonsink- Why carbon credits quality now matters more than quantity

You may have noticed lots of buzz in the news over the few months about the carbon market. Governments, integrity frameworks and standards are stepping up their game. Regulated carbon markets like Emission Trading Systems are expanding in volume and scope across the globe. The voluntary carbon market is increasingly being designed to meet compliance-level standards. We’re seeing this ‘flight to quality’ as people look for carbon credits that meet these standards.

Well, buyers are becoming more sophisticated and increasingly demanding high-integrity credits. They want to deliver true climate impact for people and the planet.

Governing bodies like the Integrity Council for the Voluntary Carbon Market (ICVCM) and UN-backed frameworks like the Paris Agreement Crediting Mechanism (PACM) are raising the bar and pushing the market to follow suit, by assessing carbon programmes against Core Carbon Principles and developing  rigorous standards for international cooperation, respectively.

The market is fundamentally changing in focus, from quantity to quality. Projects are incorporating more demanding requirements for design, monitoring, reporting and verification, and are issuing smaller volumes of credits as a result. Less volume means prices for high-integrity credits are rising.

Decarbonising comes first. The days of simply offsetting to achieve carbon neutrality are over. Businesses are expected to do more and actually prove it. 

You need to do the hard work and you can use high-integrity credits to address those persistent, unavoidable emissions.  You might want to lock in supply of high integrity credits now, given the rising prices. Having a solid strategy in place is a critical distinction that separates companies that are serious about making a climate impact.

When you boil it all down, the market has sent a clear message: credible climate action is no longer just about ticking a box - this is where the real work begins. Companies prioritising a genuine reduction strategy and investing in high-integrity credits are showing that results, not rhetoric, lead the way.