Public event highlights companies’ concerns about the VCM

In a lively debate on October 8th, 18 participants from the private sector and government discussed the impact of the current unrest in the Voluntary Carbon Market (VCM) following a 2023 Science article exposing flaws in project quality and inflated claims. Negative media coverage has made companies reluctant to purchase REDD+ credits, leading to a shift toward reactive approaches and a halt in proactive communication.

Despite these challenges, all participants reaffirmed the critical role of halting deforestation in mitigating climate change, conserving biodiversity, and protecting forest-dependent livelihoods. Companies emphasized the need for validation of their efforts from NGOs and for government support, suggesting that RBI could play a mobilizing role.

The Science Based Targets initiative’s (SBTi) decision on scope 3 offsets and the Corporate Sustainability Reporting Directive (CSRD) were identified as key to the market’s future. Governments were urged to restore market confidence, as private financing becomes increasingly essential amid ODA cuts. RBI announced it will further explore the future of REDD+ at a conference next year.