Growing voluntary markets in a regulated world

While voluntary markets are an important means of combating climate change for all of the reasons just cited, they should in no way be seen as an alternative to regulation. For this reason, some argue that voluntary markets are superfluous and that they will cease to exist once regulated markets emerge. If global and regional regulations provided a completely closed system capable of accounting for global emissions from all sources, these critics of voluntary markets would probably be right....

A conservationists perspective on the voluntary carbon markets Can they help us overcome inertia

Climate change is such a dire problem that if we are to tackle it, optimism, entrepreneurial innovation, steadfast conviction and systematic changes in global social and economic infrastructure must be combined in amounts never before orchestrated. We need the visionary oversight of policy makers, the innovation of the private sector and the hope and conviction of all global citizens. By putting a price on the activities that lead to climate change, carbon markets can help knit together the...

The broad spectrum

Pushed and pulled by different buyers with different needs, the voluntary markets may one day split themselves into two main segments one large, more com- moditized market aimed at speculators and large companies interested in offering standardized climate neutrality with their products and one smaller, more idiosyncratic market aimed at individuals and companies interested in specific types of offset projects (e.g. trees, community development and or renewable energy). In the first market,...

RECs vs Offsets The Debate Continues

At a recent US-based conference, voluntary carbon wonks were getting stirred up and the mood was divisive. The issue The appropriate use of renewable energy certificates RECs as offsets in the voluntary carbon markets. On one side of the debate, stakeholders like Ron Luhur from Environmental Defense Fund were adamant that, with rare exceptions, RECs simply cannot be converted into carbon offsets and cross over to the voluntary carbon markets. 'With RECs you're claiming an indirect reduction...

Australian Climate Exchange Registry

The Australian Climate Exchange ACX Registry was developed to track the four types of emissions commodities tradable on the Exchange, namely Greenhouse Friendly Approved Abatement units, New South Wales GHG Abatement Certificates NGACs , VER credits, and Renewable Energy Certificates RECs . The Exchange was created initially to serve as a trading platform for Greenhouse Friendly abatement units only, but has since expanded. All credits certificates listed on the Exchange must first be...

Whats driving the market

Heretofore, we have made oblique reference to market drivers the risk of future regulation, a desire for product differentiation, philanthropic aims, etc. . Now that we have a sense of how supply works in the voluntary carbon markets, it is worth shining a more direct spotlight on the demand for voluntary carbon credits. Is it real Is it robust Is it sustainable Briefly, one might answer these questions in turn with a yes, a no and a maybe. The best way to assess these questions, however, is to...