Calyx Global Shows Scrutiny of the Carbon Market May Be Paying Off

An analysis of the state of quality in the voluntary carbon market gives early indications that the market is moving towards higher integrity. The report, by carbon credit ratings platform Calyx Global, integrates data on market trends with Calyx Global’s 500+ ratings to provide unique insights on how efforts to improve market integrity are faring.

After widespread pressure and scrutiny from the media and academia, many market actors have moved to address issues with the quality of carbon credits. This report tracks the effectiveness of those efforts.

“We wanted to start tracking quality, recognizing that the voluntary carbon market is starting to mature,” said Calyx Global Co-founder Donna Lee. She added, “The quicker we improve carbon credit quality and restore confidence, the more effective companies can be at addressing climate change.”

Key findings from the report include:

• The issuance of lowest-grade credits has dropped nearly 50% as a proportion of total issued credits to date in 2024.
• Quality updates related to improving the rules and requirements for credit generation have not yet made their way onto the active market.
• While benefits “beyond carbon” are attractive to buyers, it is a search for higher GHG integrity that is driving trends in the market today.

To learn about these trends and more, download “The State of Quality in the Voluntary Carbon Market” report or register for the June 26, 2024 webinar.