Voluntary Carbon Market
A market-based mechanism where organisations and individuals voluntarily purchase carbon credits to offset their emissions - driving investment in climate projects worldwide.
Key features
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01
Carbon credits
Each credit represents the reduction or removal of one metric ton of CO2 equivalent (CO2e). Credits are generated through projects that either reduce emissions or actively remove carbon from the atmosphere.
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02
Types of projects
A wide range of activities qualify for credit generation.
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03
Certification and standards
Credits are verified by independent standard-setting bodies - including the Verified Carbon Standard (VCS), Gold Standard, and Climate Action Reserve - ensuring reductions are real, additional, measurable, permanent, and independently audited.
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04
Participants
The VCM brings together a diverse ecosystem of actors.
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05
Motivations for participation
Entities participate to achieve CSR goals, enhance brand reputation, meet investor or consumer demand for sustainable practices, and prepare for potential future regulatory requirements.
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06
Market dynamics
Flexible, voluntary participation leads to variable pricing. Credit prices fluctuate based on project type, location, verification standard, and buyer preferences - creating a dynamic and responsive market.
Project eligibility
Eligibility varies by standard applied, but criteria are generally aligned with CDM project requirements. Projects must satisfy all of the following:
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✓
GHG reduction - Covers gases under the Kyoto Protocol: CO2, CH4, N2O, SF6, HFCs, and PFCs.
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Sustainable development - Must contribute to Rwanda's sustainable development goals.
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Additionality - The project must demonstrate it would not have occurred without the incentive of carbon credit revenue.
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Real, measurable, and long-term - Emission reductions must be verifiable and durable over time.
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Eligible sector - The project sector must qualify under the applicable standard's approved project types.