Voluntary Carbon Market

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Voluntary Carbon Market

May 10, 2024

VCM allows companies to self-introduce emission targets aligned with their climate objectives, often complementing their business strategies or Corporate Social Responsibility (CSR) initiatives. It has emerged as a flexible mechanism for both private and public sector entities seeking to voluntarily off set emissions. The significance of VCMs has been underscored in various UNFCCC meetings, notably during COP 21 in Paris (2015), which highlighted the complementary nature of voluntary actions in order to achieve Nationally Determined Contributions (NDC) targets. The pivotal role of non-state actors, including voluntary carbon markets, has been increasingly recognized in strengthening climate ambition. With the urgent need to limit global temperature rise, countries are turning to ambitious NDCs, where the engagement of the private sector through VCMs becomes crucial for mobilizing mitigation finance, technology transfer, and innovation, thus contributing to multiple Sustainable Development Goals (SDGs) and aiding in meeting emissions reduction targets committed through NDCs. The report scopes the existing VCM projects in Nepal and recommend measures to create enabling environment for the private sector involvement.

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