Scaling The Global Carbon Markets: A Way Forward For The VCM And Paris Mechanisms
Clifford Chance
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Abstract: This legal and policy analysis reviews the evolution and governance gaps in global carbon markets, particularly Voluntary Carbon Markets (VCMs) and Paris Agreement mechanisms. It examines integrity risks, double counting, avoidance credits, and poor MRV in current systems. Kenya is referenced for hosting a major auction and leading Article 6 readiness. The report compares market reforms post-COP27 and COP29 and outlines legal innovations like the VCMI Claims Code and Core Carbon Principles. It suggests contract redesign, benefit-sharing reforms, registry digitization, and transparency in buyer claims. It calls for multistakeholder coordination?project developers, regulators, corporates?to restore trust and scale investment. Case examples from Microsoft, Total Energies, and ACX show how VCMs are evolving. Recommendations include policy clarity, arbitration mechanisms, and institutional capacity building. The study positions COP29 as a defining moment to reshape global carbon governance frameworks and finance flows.