The voluntary carbon market: a primer

The voluntary carbon market (VCM) enables carbon emitters to offset their greenhouse gas emissions through the purchase of carbon offsets from projects such as reforestation and afforestation. Once heralded as a breakthrough opportunity for climate mitigation, the VCM now faces a severe crisis. A series of scandals, combined with intensified regulatory and litigation scrutiny, has arrested its growth and placed its future in jeopardy. Central to these issues is the allegation that many carbon offsets are “inflated,” failing to represent genuine emission reductions. These inflated carbon offsets undermine the credibility of the VCM and fuel accusations of systemic greenwashing. This chapter examines the structure of the VCM, highlighting its benefits while critically analyzing the market failures that threaten its legitimacy. This chapter suggests that, despite its flaws, the VCM remains a necessary tool in the fight against global warming until governments implement sufficiently ambitious green plans.