Understanding Voluntary Carbon Markets: Three Part Series

While investments in carbon credits have significant potential to boost advancement in clean technology, protect and restore nature, and reduce greenhouse gas emissions, the burgeoning voluntary carbon market (VCM) has experienced growing pains. Critics and proponents alike have raised concerns about the quality of carbon credits, the integrity of stated emissions reductions and verification, and the appropriate role of credits in corporate net zero planning.

Chartered Professional Accountants of Canada (CPA Canada), the International Federation of Accountants (IFAC) and the Institute for Sustainable Finance (ISF) collaborated on this series. This research provides a thorough review of how carbon markets work and identifies key opportunities to foster trust, bolster transparency and strengthen accountability as VCMs continue to expand in Canada, and around the world.

Part 1

Key considerations for professional accountants and purchasers on the carbon credit life cycle

To better inform the heated debate over carbon markets, it is necessary to improve our understanding about how VCMs function, and how to critically assess the quality of a carbon credit. A new study, the first in a series by the Institute for Sustainable Finance, CPA Canada and the International Federation of Accountants, provides a crucial resource for existing and potential market participants on the state of VCMs and their future development.

English Version (PDF 674KB) Version française (PDF 488KB)

Part 2

Global and Canadian use of voluntary carbon credits and related financial accounting and disclosure considerations

This report is the second in a three-part series from ISF, CPA Canada and the International Federation of Accountants. It analyzes the use of voluntary carbon credits by corporate buyers, focusing on Canadian practices and global comparisons. It also reviews the related financial accounting and sustainability disclosure implications of using carbon credits toward decarbonization targets.

English Version (PDF 1.2MB) Version française (PDF 1MB)

Part 3

Ecosystem views on quality credits and the future of the Voluntary Carbon Market

The final report in this series from ISF, CPA Canada and IFAC is based on in-depth interviews with key actors, including buyers, project developers, crediting programs and verification bodies — spanning the carbon credit value chain. These perspectives inform efforts to ensure quality credits and market integrity.

English Version (PDF 1.1MB) Version française (PDF 1.2MB)