ICR Program
HomeProjectsCreditsTransactionsInsights
  • Welcome to the ICR program documentation
    • About ICR
      • ICR Team
        • Gudmundur Sigbergsson
        • Olafur "Oli" Torfason
        • Bjorn H. Helgason
        • Thordur "Thor" Agustsson
        • Alondra Silva Munoz
        • Dr. Rannveig Anna Guicharnaud
        • Robert Huldarsson
        • Ria Antil
        • Alvaro Vallejo Rendón
      • ICR's Mission Statement
      • ICR's Context
      • Leadership
        • Leadership and Commitment
        • Policies
          • Quality policy
          • KYC/KYB Compliance Policy
          • Grievance policy
          • Anti-Corruption Compliance Policy
          • Impartiality policy
          • ICR Privacy and Cybersecurity Policy
          • Diversity, Equality, and Inclusion policy
        • Organizational Roles, Responsibilities, and Authorities
          • Leadership
            • Chief Executive Officer (CEO)
            • Chief Operating Officer (COO)
            • Chief Technology Officer (CTO)
            • Chief Product Officer (CPO)
            • Chief Science Officer (CSO)
            • Chief Marketing Officer (CMO)
            • ICR Board
              • Members
                • Daníel F. Jónsson
                • Kristján I. Mikaelsson
              • ICR Board Procedures v3.0
            • ICR Program Advisory Panel
              • Members
              • ICR Program Advisory Panel 3.0
          • ICR Program Advisory Panel
            • Amit Sharma
            • Geetha Gopal
            • Javier Castro
          • Forums
            • ICR Project Proponent and Developer forum
              • ICR Project Proponent and Developer Forum Terms of Reference
            • ICR Stakeholder forum
              • ICR Stakeholder Forum - Terms of Reference
            • ICR VVB forum
              • ICR VVB Forum Terms of Reference
            • ICR Forum Guidelines
            • Forum Application
          • Committees
            • Appeals Committee
              • ICR Appeals Committee Terms of Reference
      • Articles of Association for International Carbon Registry ehf.
  • Fundamentals
    • Climate change
    • Kyoto protocol
    • Paris Agreement
      • Nationally Determined Contributions
      • Carbon Markets Under the Paris Agreement
    • Voluntary Carbon Markets
    • Compensation
      • ÍST 92
      • ISO 14068-1:2023
  • ICR Program
    • Overview
    • Fundamentals
      • ISO
        • ISO 14064
          • ISO 14064-1
          • ISO 14064-2
          • ISO 14064-3
          • ISO 14068-1
      • Project Origination
      • Additionality
      • ICR Registration Process
      • Validation and verification
        • Accreditation
    • Definitions
      • ICR Definitions v3.1
        • Version history
          • ICR Definitions v3.0
          • ICR Definitions v2.0
          • ICR Definitions v1.0
    • Methodology Development
      • Criteria
        • ICR Methodology Requirements v3.0
        • Version history
          • ICR Methodology Requirements 2.0
          • ICR Methodology Requirements 1.0
      • Procedural
        • ICR Methodology Approval Process v3.0
        • Version history
          • ICR Methodology Approval Process v2.0
          • ICR Methodology Approval Process v1.0
      • ICR Methodologies
        • Under development
          • M-ICR001
          • M-ICR002
          • M-ICR003
          • M-ICR004
          • M-ICR005:
          • M-ICR006
          • M-ICR007
          • M-ICR009
          • M-ICR011
        • Approved ICR Methodologies
      • Templates
        • Concept note
          • Older versions
        • Methodology description
          • Older versions
        • Methodology summary
          • Older versions
    • Project development
      • Criteria
        • ICR Requirement Document v6.0
          • Version history
            • ICR Requirement Document v5.0
            • ICR Requirement Document v4.0
      • Procedural
        • ICR Process Requirements v6.1
          • Version history
            • ICR Process Requirements v6.0
            • ICR Process Requirements v5.0
            • ICR Process Requirements v4.0 Final
            • ICR Process Requirements v3.0
        • ICR Article 6 2 procedures v1.0
      • Templates
        • Project concept description (PCD)
          • Older versions
        • Project design description (PDD)
          • Older versions
        • Monitoring report (MR)
          • Older versions
        • Project design description and monitoring report
          • Older versions
        • Letter of attestation
        • Non-performance report
          • Older versions
        • Non-permanence event report
          • Older versions
        • Non-permanence risk assessment
        • Non-performance risk assessment
      • Tools
        • ICR Tool for Environmental and Socio-economic Safeguards and Sustainable Development
      • Approved methodologies, modules and tools
        • ICR approved methodologies, modules and tools v4.0
    • Validation and verification
      • Validation and Verification Bodies
      • Criteria
        • ICR validation and verification specifications v2.0
          • Version history
            • ICR validation and verification specifications v1.0
      • Templates
        • Methodology validation report (MValR)
          • Older versions
        • Validation report (ValR)
          • Older versions
        • Verification report (VerR)
          • Older versions
        • Validation and verification report (ValVerR)
          • Older versions
    • Terms and conditions
      • Terms and Conditions - Users
      • Terms and Conditions - Project
      • ICR Terms and Conditions Market Participants
      • Fee Schedule 2024-2025
      • 🔦ICR KYC/KYB Complience Policy
      • ICR Terms and Conditions - Organizations
        • Older versions
          • ICR Terms and Conditions - Organizations
    • Public consultation
      • Methodologies
        • 2023
          • M-ICR0001
          • M-ICR0002
          • M-ICR0003
          • M-ICR0004
          • M-ICR0005
        • 2024
          • M-ICR0006
        • 2025
          • M-ICR009
          • M-ICR007
          • M-ICR011
      • ICR Program
        • 2023
          • Specifications to guide validation and verification
          • Program revision August 2023
        • 2024
          • Program Revision - July 2024
    • Grievance
      • ICR Grievance process
        • Submit a Complaint
    • Document Library
      • Documents
  • Biodiversity Program
    • Overview
    • Fundamentals
    • Definitions
    • Requirements
      • Templates
        • Concept note
    • Public consultation
    • Document Library
    • Fee Schedule - Biodiversity Pilot Phase 2024-2025
  • Carbonregistry.com
    • Marketplaces
      • Terms and Conditions - Trading Hub
    • On Chain
      • How it works
      • Credit data
      • Contracts
      • Retiring Credits Onchain
    • Registry user guide
      • Introduction
      • Get started
        • Create a user account
          • User profile
            • Authentication
            • Documents
            • API
          • KYC
        • Create an organizational account
          • KYB
      • Account management
        • User account management
        • Organizational account management
          • Projects
          • Users
          • Documentation
          • Settings
          • API
      • Project proponents and developers
        • Registering a project
          • Create a New Project
            • New Project Home Screen
            • Project mitigations
            • Project location
            • Benefits
            • Documents and files
            • People and Organizations
              • People
              • Organizations
            • Home screen tabs
              • Overview
              • Mitigations
              • Benefits
              • Documents
              • People
              • Media
              • VVB
            • Submit for ICR Review
          • Manage a project
          • Transition
          • Page
          • Transition
          • Validation/verification
          • Authorized representatives
          • Finish
        • Credits
          • Ex-ante issuance
          • Ex-post issuance
          • Transferring credits
          • Retiring credits
          • Cancelling credits
        • Side Panel
        • Page 1
      • Organizations
        • Account management
        • Credits
        • Retiring credits
      • Insights
    • API
      • Apps
        • Using ICR apps
          • Approve new permissions
          • Review installations
        • Creating ICR apps
          • About creating ICR apps
            • Best practices
          • Registering an ICR app
            • Permissions
            • Webhooks
              • Webhook actions and payloads
              • Handle deliveries
              • Validate deliveries
              • Handle failed deliveries
            • Callback URLs
        • Authentication
          • Authenticate as an app
          • Generate a JWT
          • Authenticate as an installation
          • App private keys
          • Authenticate as an organization
        • Examples
          • Setting up an ICR app
          • Requesting credit action for organization
          • Interacting with the organization warehouse
      • Endpoints
        • V0.5
          • Apps
          • Organizations
          • Inventory
          • Projects
          • Retirements
          • Warehouse
          • Credits
          • Documents
          • Utility
        • V1 - Beta
          • Organizations
          • Projects
          • Transactions
          • Retirements
          • Credit actions
          • Subaccounts
          • Utility
      • Environments
      • Versions
      • Authentication
    • The Credit Bundler
      • Purchasing Credits
      • Post Purchase: Accepting Credits
  • Quality management system
    • ICR QMS
Powered by GitBook
LogoLogo
On this page
  • What are voluntary carbon markets?
  • How do voluntary carbon markets promote sustainable development?
  • How do voluntary carbon markets align with the Paris Agreement goals?
  • How do voluntary carbon markets contribute to the overall mitigation of climate change?
  1. Fundamentals

Voluntary Carbon Markets

VCMs

Supporting climate projects, promoting sustainable development, and contributing to the overall mitigation of climate change.

What are voluntary carbon markets?

Voluntary carbon markets are markets where organizations can purchase carbon credits to offset their carbon emissions. Carbon credits represent a reduction in or removal of greenhouse gas (GHG) emissions, which can be achieved through projects that promote renewable energy, energy efficiency, reforestation, and other activities that reduce or remove carbon dioxide from the atmosphere. When a company purchases a carbon credit, they are effectively investing in a low-carbon project and can use the credit to offset their own unavoidable GHG emissions.

How do voluntary carbon markets promote sustainable development?

Voluntary carbon markets promote sustainable development by incentivizing the implementation of low-carbon and climate-friendly projects. By enabling organizations to offset their emissions through carbon credits, they encourage investment in afforestation, energy efficiency, waste management and other GHG-reducing activities. This, in turn, helps to promote the transition to a low-carbon economy, which brings many other benefits, including:

  • Increased energy security and independence: Investing in renewable energy can reduce reliance on fossil fuels and promote greater energy security and independence.

  • Improved air and water quality: By reducing carbon emissions, low-carbon projects can also reduce other pollutants that contribute to poor air and water quality.

  • Job creation and economic growth: The transition to a low-carbon economy can create jobs in industries like renewable energy, energy efficiency, and forestry, while also promoting economic growth in these sectors.

How do voluntary carbon markets align with the Paris Agreement goals?

Voluntary carbon markets align with the Paris Agreement goals by contributing to the overall mitigation of climate change initiated from activities initated from the private sector. To achieve the goal of the Paris Agreement, it calls for a harmonized efforts in global reduction in GHG emissions. Voluntary carbon markets play a role in mitigation by providing a way for organizations to offset their emissions voluntarily, contributing to the overall reduction of global GHG emissions.

Furthermore, the Paris Agreement recognizes the importance of market and non-market mechanisms in achieving its goals, including carbon pricing, carbon markets, and other market-based mechanisms. Voluntary carbon markets can help to complement and support the development of these mechanisms by providing a way for individuals and organizations to voluntarily invest in low-carbon projects and contribute to the overall reduction of global GHG emissions.

How do voluntary carbon markets contribute to the overall mitigation of climate change?

Voluntary carbon markets contribute to the overall mitigation of climate change by promoting the development and deployment of low-carbon projects that reduce or remove carbon dioxide from the atmosphere. By investing in renewable energy, energy efficiency, and other carbon-reducing activities, organizations can help to mitigate the impacts of climate change. This is particularly important in sectors where it may be difficult or costly to reduce emissions.

Additionally, voluntary carbon markets can help to catalyze the development of new low-carbon projects, by providing a financial incentive for investment in these activities. This can help to spur innovation and investment in the low-carbon economy, which is essential for achieving the goals of the Paris Agreement and mitigating the impacts of climate change.

PreviousCarbon Markets Under the Paris AgreementNextCompensation

Last updated 1 year ago

Page cover image