Navigating the voluntary carbon market: a guide for startups
GSMA (GSM Association)
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Abstract: This guide provides a comprehensive roadmap for startups seeking to engage with the Voluntary Carbon Market (VCM). Developed by GSMA ClimateTech and Social Finance, it demystifies the structure, players, and methodologies of the VCM, offering actionable insights for early-stage ventures in low- and middle-income countries. The report begins by explaining the fundamentals of carbon credits, distinguishing between avoidance and removal-based credits, and outlining the roles of standards, registries, rating agencies, and brokers. It then presents a four-step framework for project assessment: eligibility, financial viability, go-to-market strategy, and implementation planning. Case studies from ATEC, ENGIE Energy Access, and Sanergy illustrate practical applications in clean cooking, solar lighting, and waste management. The guide also explores Article 6 of the Paris Agreement, highlighting how startups can align with Internationally Transferred Mitigation Outcomes (ITMOs) and emerging national carbon regulations.