The voluntary carbon market has really taken off in the last few years, with the adoption of the Paris Agreement in 2016 and the Glasgow Climate Pact of 2021. It has been fueled also by numerous new net-zero emission commitments by governments and corporates.
Key takeaways
There's a lot of uncertainty around the legal nature of voluntary carbon credits, including what title can be claimed in them and what security can be taken over them
A two-tier voluntary carbon market labelling/pricing structure may develop: one for credits that comply with Paris Agreement rules, and another for credits that do not
The lack of market standard trading documentation for voluntary carbon credits is both a hindrance and an opportunity
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