From Glasgow to the future: How does the COP26 outcome shape tomorrow’s voluntary carbon market

The demand for offset credits from the voluntary carbon market (VCM) is set to grow considerably in the future. In the past, this market has largely been operating in parallel to the international carbon market under the United Nations Framework Convention on Climate Change (UNFCCC), but it will in the future be much more directly impacted by the structure and functioning of market-based cooperation under the Paris Agreement’s Article 6.

This policy paper takes a closer look at the Article 6 Rulebook adopted in Glasgow in November 2021 to analyze how it impacts the future operation of the VCM and its key actors. It explores this question through an analysis of the decision texts from Glasgow and by taking into consideration secondary literature. The analysis is further complemented by interviews with representatives from private certification standard organizations and project developers.

Kreibich, N.;  Brandemann,V.: From Glasgow to the future: How does the COP26 outcome shape tomorrow’s voluntary carbon market. Carbon Mechanisms Research Policy Paper 02/2022. Wuppertal Institut für Klima, Umwelt, Energie. 37 Seiten. URL: www.carbon-mechanisms.de/en/VCM_Glasgow