Management consulting firm Bain & Company, in collaboration with the World Economic Forum (WEF), has released a white paper titled 'Scaling Voluntary Carbon Markets: A Playbook for Corporate Action.' This guide is aimed at corporate leaders and emphasizes the need for action to harness the potential of voluntary carbon markets (VCM) amid the urgent climate crisis. The paper highlights that without meaningful action, climate change could lead to a 14% reduction in global GDP and 1.2 billion climate refugees by mid-century. While climate finance investments are significantly below the required levels, the VCM is identified as a tool to channel funds rapidly into climate projects and accelerate the adoption of climate-friendly technologies. The VCM had an estimated value of USD1.3bn in 2022 and has the potential to grow to over USD50bn by the end of the decade with increased strategic corporate investment and regulatory mandates. The paper offers a flexible framework for companies to take action in the VCM despite its current limitations.

Source: Carbonherald