Companies seeking to voluntarily purchase carbon credits to offset their emissions now have a government-backed framework offering consistent guidance across jurisdictions.
A set of shared principles for voluntary carbon markets was unveiled by a coalition of governments on the sidelines of the United Nations Climate Change Conference (COP30) in Brazil. The initiative aims to build global trust and boost corporate demand for high-integrity carbon credits as a complement to direct emissions reduction efforts.
The framework, jointly launched by the governments of Singapore, the United Kingdom, and Kenya, with France and Panama as founding members, seeks to harmonise international policy approaches and enhance private-sector participation in carbon markets.
The principles emphasise:
- Complementary use of carbon credits alongside internal decarbonisation;
- Rigorous quality and integrity standards;
- Transparent reporting; and
- Accurate, verifiable claims on the use of credits for emissions offsetting.
According to the coalition’s joint statement, the shared principles represent international alignment on the role of carbon credits and will help shape national policies designed to unlock private-sector investment in carbon markets.
“In endorsing the shared principles, each government commits to explore, develop and continue pursuing supportive policies or regulations aligned with the framework,” the coalition said. “This could include stronger government recognition for companies that follow the shared principles.”
The framework was developed in response to corporate feedback calling for clearer, consistent government guidance across markets. Businesses had urged policymakers to create incentives that encourage credible participation in carbon markets while ensuring that credit purchases strengthen — rather than substitute — emissions reduction strategies.
“Developed with inputs from governments around the world and informed by business leaders and market experts, the shared principles will provide companies with the clarity and confidence they need to purchase carbon credits as part of credible decarbonisation plans,” the statement noted.
The coalition, first formed during London Climate Action Week in June, also released an action plan that will guide its work until COP33. The plan aims to expand membership, assist governments in adopting aligned policies, and engage networks of corporate buyers to aggregate and scale demand for high-quality carbon credits.
It also encourages collaboration with international partners to demonstrate the positive impacts of carbon credits when used responsibly.
The governments leading the initiative said the combined framework and action plan are intended to “drive climate-positive growth and accelerate the pace of global emissions reductions” by creating the confidence and consistency businesses need to invest in carbon markets.
