Business of Sustainability Initiative Releases New Whitepaper to Address Opportunities for Collaboration in Voluntary Carbon Markets

Washington, D.C. (October 7, 2024) – In a newly released whitepaper, “Challenges and Opportunities for the Voluntary Carbon Markets,” sustainability and business experts from the Business of Sustainability Initiative at Georgetown University’s McDonough School of Business and the National Institute of Standards and Technology explore the opportunities and challenges presented by the Voluntary Carbon Market (VCM)  and how they can be utilized to spur collaboration and action amongst market players.

As society continues to move towards a more sustainable future, environmental and business experts are looking for innovative ways to improve the carbon footprint across a variety of sectors—including private companies, local and federal government, and within the nonprofit community. 

The VCM, which is a largely unregulated market that serves as a buying and selling marketplace for carbon offsets, is serving a vital role in helping organizations reach net-zero emission goals by purchasing these credits.

“Carbon offsetting is an important tool for decarbonization and meeting corporate sustainability targets. However, it requires the keen analysis and attention of sustainability business experts, academics, and policymakers around the world to make these markets efficient and effective,” said Vishal Agrawal, Henry J. Blommer Family Endowed Chair in Sustainable Business and academic director of the Business of Sustainability Initiative at Georgetown McDonough. “The Business of Sustainability Initiative is dedicated to providing thought leadership and convening to propel businesses towards a more sustainable future. We hope the findings of this report contribute to meaningful discussions and advances in the voluntary carbon offsets markets and decarbonization .”

The report identifies opportunities to improve confidence and enhance the efficiency of the VCM, which includes issues such as data transparency and accessibility, science and technology, standardization, market structure, and policy landscape. Challenges related to the VCM, specifically regarding trust, quality, and scaling the market, were also examined. 

The report concluded that there are opportunities available in the marketplace that would “strengthen both the market and emissions avoidance and carbon dioxide removal projects.” The VCM also has the “potential to greatly support net-zero goals, climate finance, and sustainable development, but to achieve these goals, there must be public and stakeholder trust in carbon credits.” The report addresses how low trust decreases demand, disincentivizing developers from investing and creating new projects in the VCM.

Read the full report .

The findings in the report were produced following a workshop in fall 2023 and are not direct proposals or policy recommendations from the Business of Sustainability Initiative at Georgetown McDonough and the National Institute of Standards and Technology.