High-Integrity Carbon Markets at COP29

Finance was at the heart of this year’s summit and high-integrity carbon markets remain a crucial tool for scaling up private investment and delivering sustainable, impactful climate solutions.

Key announcements included:

UK Endorses High-Integrity Carbon Markets: The UK government has launched its principles for voluntary carbon and nature market integrity, encouraging buyers to use the ICVCM as a guide for high integrity credits – as a complement to rapid value chain decarbonisation.
Agreement on International Carbon Market Standards: At COP29, delegates agreed standards under Article 6.4 of the Paris Agreement and a mechanism to update them, supporting global trading of UN-backed carbon credits to unlock critical climate finance.
Climate Finance Agreement at COP29: Nations committed to triple annual climate finance to $300 billion a year by 2035 for developing countries, alongside a commitment from all actors (private and public) to mobilise $1.3 trillion a year by 2035.

As we reflect on COP29, it is evident that momentum behind ICVCM’s work to deliver a reformed, high integrity carbon market is growing. The Integrity Council and the Core Carbon Principles (CCPs), was integral to key discussions and announcements made throughout the conference.

The Integrity Council at COP29

During COP29 our message was clear: high-integrity in carbon markets is essential to unlocking more of the private investment needed to achieve effective climate solutions and contributing to the goal to mobilise $1.3trn a year from all actors.

Yet the impact of high-integrity carbon markets extends far beyond emissions reductions. They can play a crucial role in supporting biodiversity protection efforts, sustainable development and gender equality.

Through panels, roundtables, and discussions, we met stakeholders from governments, businesses, and civil society to explore how voluntary carbon markets can accelerate sustainable climate action. Highlights of our wider engagement included:

Panel – ‘Can emissions trading promote carbon removals?’, hosted by European University Institute (EUI): Lorna Ritchie, Director of Public Affairs, explored the integration of carbon removals into emissions trading systems and their potential role in the broader climate policy mix.
Panel – ‘Navigating net zero with carbon removals and voluntary strategies’, hosted by Climate Action: Lorna Ritchie delved into the evolving standards and parameters of carbon markets, discussing how these tools can advance companies’ net-zero ambitions.
Panel – ‘Corporate road to net-zero – From science to reality’, hosted by IETA: Lorna Ritchie joined stakeholders to discuss practical solutions for aligning private sector efforts with the Paris Agreement, focusing on bridging the gap between science and real-world implementation.
Fireside chat – ‘The need for and challenges of carbon finance’, co-hosted by WWF, GenZero and Gold Standard: Amy Merrill joined industry experts to highlight the importance of robust financial mechanisms in delivering climate resilience, alongside benefits for people, nature, and climate.
Panel – ‘Are carbon credits key to net zero?’, hosted by Climate Action Reserve and EKI: Anton Tsvetov, Associate Director for Policy, shared insights on the critical role of high-integrity carbon credits, the ICVCM’s Core Carbon Principles, and how these can drive net-zero progress, particularly in the Global South.
Panel – ’Leveraging the Power of Markets to Help Achieve Angola’s Climate Goals’, hosted by KAYA: Pedro Martins Barata, our Expert Panel Co-Chair, shared insights on how carbon markets can transform countries like Angola, delivering environmental and socio-economic benefits that directly support local communities.

Putting Indigenous Peoples and/or local communities at the heart of our work

Indeed, throughout COP29, one clear message resonated: Indigenous Peoples and/or local communities must be active stakeholders, not just beneficiaries, in carbon markets.

The Integrity Council, in collaboration with the GCMU and VCMI, hosted a dynamic town hall session titled “Delivering High-Integrity Carbon Markets – How we unlock finance to accelerate climate action”. The session explored the transformative impact of VCM reforms for Indigenous Peoples and climate-vulnerable countries. Participants engaged in thoughtful discussions about ensuring the fair distribution of benefits and scaling action through high-integrity carbon markets.

These engagements underscored the diverse ways carbon markets can be harnessed to drive ambitious climate action and sustainable development.

With Indigenous Peoples and/or local communities managing 40% of the planet’s ecologically intact landscapes, their invaluable knowledge, skills, and leadership are vital to the success of carbon crediting projects. It is essential that these communities are included in decision-making processes, ensuring their rights, sovereignty, and leadership are recognised and protected.

The Integrity Council also hosted an informal breakfast and networking session with representatives from the Indigenous Peoples and/or Local Communities VCM Engagement Forum, including Onel Masardule, representing Latin America. The event provided a unique opportunity to learn about the Forum’s mission, goals, and essential role in amplifying the voices of Indigenous Peoples and/or local communities in the VCM. This gathering reinforced the importance of collaboration, ensuring that these vital stakeholders remain at the heart of climate solutions. As Onel, stated: “There is no integrity without respect and protection of Indigenous rights.”

Our CCPs uphold this commitment to the rights of Indigenous Peoples and/or local communities by requiring all new projects to operate by free, prior, and informed consent from the communities in which they operate, ensuring that the right people are involved in decision-making from the outset.

Driving sustainable and equitable development

High-integrity carbon markets are crucial not only for reducing emissions but also for driving sustainable, equitable development, particularly in the Global South.

The Integrity Council and WWF convened a civil society roundtable discussion. This session, focusing on the pivotal role of VCMs in mobilising climate finance for developing countries and local communities, brought together NGOs and key stakeholders involved in community-centred climate initiatives. Participants explored strategies to ensure that carbon finance effectively benefits both nature and people, reinforcing the need for equitable, high-integrity approaches to overcome barriers and maximise opportunities.

Through rigorous standards, including benefit-sharing and social safeguards, the Integrity Council is committed to ensuring that carbon credits deliver sustainable outcomes for both people and the planet.

Protecting biodiversity through Nature-Based Solutions

Nature-based solutions represent one of the most effective and cost-efficient tools to combat the climate crisis, with research suggesting they could deliver around a quarter of the emissions reductions needed to meet our global climate goals.

Under the CCPs, projects are required to assess and mitigate environmental risks to biodiversity, ecosystems, and natural resources. They must also adopt and report on conservation measures and sustainable management practices for natural resources, ensuring projects foster long-term environmental resilience.

At our panel discussion Advancing sustainable development and nature-positive outcomes through high-integrity VCMs, co-hosted with UNEP, Associate Director of Policy, Anton Tsvetov, underscored the role of the Integrity Council’s Continuous Improvement Work Programs in further developing nature-based solutions, through exploring strengthened permanence requirements, testing pooled buffer reserves, and developing innovative risk management approaches like industry-wide buffer pools and insurance solutions.

REDD+ Methodology approvals

The Integrity Council announced during COP29, the approval of three methodologies for issuing high integrity carbon credits for reducing emissions from deforestation and forest degradation in developing countries (REDD+), marking a new chapter for nature.

Rigorous assessment ensures these methodologies align with our Core Carbon Principles, including additionality, permanence, robust quantification, and social safeguards. As a result, CCP-labelled credits issued under these methodologies will deliver lasting climate solutions.

They will also generate positive social and environmental impacts and help restore investor confidence in carbon crediting projects, marking a significant win for forests, for the communities whose livelihoods depend on them, and for the climate.

The Way Forward: Collaboration and Continual Learning

By continuing to build on the momentum generated at COP29, we can accelerate the flow of climate finance, scale up carbon markets, and drive meaningful climate action.

The Integrity Council will continue to work with governments, businesses, and civil society to build trust in the carbon market, enhance the effectiveness and integrity of carbon credits, and ensure that finance reaches the communities that need it most.

More work remains to be done, and the Integrity Council will continue to support Parties with robust rulesets and expertise to advance high-integrity markets. Our Core Carbon Principles, along with our Continuous Improvement Work Programs, aim to understand and identify emerging best practices and innovative approaches to addressing key complex issues in the voluntary carbon market, will guide this effort as we push for greater accountability, transparency, and equity.

The journey towards a sustainable, high-integrity carbon market that delivers climate and social impacts is well underway.