Open Access

Nicolas Kreibich

• This focus article traces the evolution of the voluntary carbon market (VCM), putting emphasis on the more recent developments following the adoption of the Paris Agreement in 2015. It focuses on the interplay between the privately governed VCM and the global climate regime under the United Nations (UN). For years, the VCM and the UN carbon market operated in parallel and mutually influenced each other. The adoption of the Paris Agreement, however, marked a turning point for the VCM. It triggered the proliferation of net zero targets, sparking the interest in the VCM as a supplier of carbon credits to offset companies' remaining emissions. At the same time, the global scope and ambitious targets set by the agreement have put the future ofThis focus article traces the evolution of the voluntary carbon market (VCM), putting emphasis on the more recent developments following the adoption of the Paris Agreement in 2015. It focuses on the interplay between the privately governed VCM and the global climate regime under the United Nations (UN). For years, the VCM and the UN carbon market operated in parallel and mutually influenced each other. The adoption of the Paris Agreement, however, marked a turning point for the VCM. It triggered the proliferation of net zero targets, sparking the interest in the VCM as a supplier of carbon credits to offset companies' remaining emissions. At the same time, the global scope and ambitious targets set by the agreement have put the future of the VCM in limbo, raising concerns about double claiming and more generally, questioning the adequacy of offsetting. Considering these challenges, numerous stakeholders have started a process to redefine the rules of the market to ensure its credibility and legitimacy. While some areas of convergence were identified, the VCM's private governance has long been unable to address the question of how to deal with double claiming and the claims companies should be allowed to make. In this situation, signals from international policy and regulation under national policy point the way forward for the VCM. By moving from offsetting toward a contribution claim model, the VCM may overcome its "identity crisis" and find a new place within the broader climate change regime.…