As we transition from the Kyoto to Paris era, the role for the voluntary carbon market to support climate action faces uncertainty and change. The Paris Agreement, in which all countries have emission reduction targets, introduces new implications for the scope and effectiveness of traditional offsetting activities.

This research project – commissioned by the German Emission Trading Authority (DEHSt) at the Federal Environment Agency (UBA) - considers the future role for voluntary carbon markets after 2020. The work focused on identifying and assessing a range of operating models for voluntary carbon markets before presenting recommendations to most effectively ensure the positive impact of voluntary action and maintain the flow of finance to emission reduction activities.

To support the research, the project team engaged in dialogue with key stakeholders to further involve market participants. This included structured interviews as well as a workshop hosted in Berlin in November 2019. The output of the project informed a topic that was both timely and critical for efforts to ramp up emission reduction activities in line with Paris goals.