A new guide on the Voluntary Carbon Market (VCM) has been launched by Initiative Climat International (iCI), a network backed by Principles for Responsible Investment (PRI), in collaboration with sustainability consultancy Anthesis. The guidance aims to help private market investors navigate the rapidly growing carbon credit market, supporting net-zero strategies while ensuring responsible investments in carbon offsets and decarbonisation initiatives.
As the carbon credit market expands, private investors are recognising the VCM’s role in complementing emissions reduction. This new framework offers a simplified approach to engaging with the carbon trading sector, providing insights into sustainable investment opportunities without introducing additional standards.
The guidance builds on findings from iCI’s 2024 Voluntary Carbon Market (VCM) survey, published in November 2024, which highlights a growing demand for carbon credits among private investors:
Nearly 50% of private market professionals have already purchased carbon credits, with 58% planning to increase their participation in the next year. Research from MSCI estimates the VCM, currently valued at $1.4 billion, could expand to $7 billion-$35 billion by 2030 and $45 billion-$250 billion by 2050.
Despite rising interest, 75% of iCI members reported having only an average or below-average understanding of the carbon credit market, underscoring the need for clear and practical guidance.
The guidance outlines three key investment approaches for private markets engaging with the VCM – investing in VCM-focused companies, direct funding of carbon offset projects, and allocating capital to carbon investment funds.
Beyond carbon credit investments, the report also highlights nature-based solutions and nature tech as emerging asset classes, delivering both financial returns and climate impact.
The report includes insights from leading private equity and sustainability experts, advocating for carbon credit investments as part of a robust net-zero strategy.
Dr Serge Younes, Global Head of Sustainability at Investindustrial and Chair of iCI said, “Voluntary carbon credits are a strategic pillar of any net-zero strategy. They enable private equity firms to offset emissions for their own operations, funds, and portfolio companies. Used alongside real-world decarbonisation efforts, the VCM is a powerful tool for long-term climate impact.”
Arjen Struijk, Global Business Line Lead for Climate and Nature at Anthesis said, “This guide equips private market firms with the tools to responsibly engage with the VCM, ensuring high-quality carbon credit investments and sustainable financial growth. The carbon credit market presents a unique opportunity to drive environmental and social impact while aligning with long-term business goals.”
Bettina Reinboth, Director of Sustainability Initiatives at PRI said, “This resource is designed to help private market investors navigate the complexities of the VCM and leverage carbon credits to accelerate decarbonisation efforts.”
Nicolas Theis, VP of Responsible Investments at Bregal Investments and Co-Chair of iCI VCM Working Group commented, “With 75% of iCI members reporting limited knowledge of the VCM, this guide simplifies market engagement, unlocking both business and climate opportunities.”
