Voluntary Carbon Market
The voluntary carbon market is the system through which companies, individuals, and organisations purchase carbon credits on a voluntary basis to offset emissions beyond regulatory requirements.
What is Voluntary Carbon Market?
The voluntary carbon market (VCM) allows organisations to buy carbon credits to compensate for emissions they cannot yet eliminate. Unlike compliance markets (such as the UK ETS), participation is voluntary and driven by corporate climate commitments, reputational considerations, and customer expectations.
Credits on the voluntary market are issued by independent standards such as the Gold Standard, Verra (Verified Carbon Standard), and the American Carbon Registry. Each credit represents one tonne of CO₂e reduced, avoided, or removed. Projects include renewable energy, forestry and land use, methane capture, cookstoves, and engineered carbon removal.
The voluntary market has faced scrutiny over credit quality, additionality, and permanence. The Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Markets Integrity Initiative (VCMI) have developed frameworks to raise quality standards. Best practice is to prioritise deep emission reductions before using credits for residual emissions only.
Practical Examples
A UK retailer offsets its residual 5,000 tCO₂e of emissions by purchasing Gold Standard credits from a verified cookstove project in East Africa.
A technology company buys biochar carbon removal credits at £120/tCO₂e to compensate for its remaining Scope 3 emissions after achieving a 60% reduction.
A professional services firm uses VCM credits to achieve carbon neutral certification for its operations while pursuing deeper reductions towards net zero.
How Climatise Helps
Climatise quantifies your residual emissions after reduction measures, helping you determine the volume and type of carbon credits needed. The platform tracks offsets alongside your reduction trajectory to ensure credits are used as a complement to, not a substitute for, genuine reductions.
Book a DemoRelated Terms
Frequently Asked Questions
Need help understanding your carbon data?
Climatise turns complex emissions data into clear, useful reports. Book a call and we'll walk you through it.
Book a Demo