A new survey by ZERO13, a blockchain-powered international carbon exchange and services ecosystem, has highlighted overwhelming support for reforms in both voluntary and compliance carbon markets.
According to the survey, 88% of respondents identified the need to reduce market fragmentation, improve interoperability, and ensure equitable funding distribution to enhance transparency and trust in voluntary carbon markets.
The survey revealed that 73% of stakeholders believe compliance carbon markets are ineffective without stronger, more harmonised regulatory standards. Respondents also called for greater service interoperability to streamline market processes and enhance efficiency.
Digital technology was highlighted as a critical enabler for reform, with respondents supporting the use of blockchain, artificial intelligence (AI), and the Internet of Things (IoT) to improve credit verification, interoperability, and equitable benefit distribution. These tools can ensure a transparent ‘source-to-sale’ approach, fostering greater trust among stakeholders.
The survey also underscored the need to address funding inequalities in the Global South, where projects account for 30% of global carbon mitigation potential but receive only 5% of carbon investment. ZERO13 emphasised the importance of equitable funding mechanisms to bridge the $4.2 billion annual climate finance gap identified by the World Economic Forum. “By addressing fragmentation, enhancing interoperability, leveraging digital technologies, and fostering collaboration, we can build a high-integrity carbon market ecosystem that reduces emissions and supports sustainable economic growth, particularly in regions that need it most,” said Hirander Misra, CEO of ZERO13.
