Voluntary Carbon Markets (VCM)

VCMs are a decentralized marketplace where companies buy and sell carbon credits.

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We support businesses seeking to reduce their negative climate impacts. We offer access to high-standard—realistic, measurable and tested—carbon projects bringing the economy closer to climate neutrality.

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What are voluntary carbon markets, and why are they important?

Voluntary carbon markets (VCMs) are a decentralized marketplace where private entities buy and sell carbon credits, representing certified removal of greenhouse gases from the atmosphere. Carbon credits mean any tradable certificate or permit representing the right to emit a certain amount of carbon dioxide or equivalent amount of other greenhouse gases.

Currently, most VCM projects are based on methods set by various standards. They can vary depending on many factors, such as the project location, rules, or parameters. But all the standards require offsets to meet the following assumptions:

1 Planning how to implement the achievement of climate neutrality in a cost-effective way.

2 Critical review of technologies and solutions that reduce the environmental impact of business operations in terms of capital/operational expenditure.

3 Identification of the main risks associated with the implemention or proposal of technologies and investments and assessment of the action in the local context.

4 Identification and assessment of available solutions (including PPAs), market suppliers and supply chain implementation models.

5 Development of a robust and dynamic financial model, taking into account all options and climate and financial risks. Managing the implementation of the programme.

6 Setting targets and levels of emission reductions achieved.

Voluntary carbon projects are carried out in 83 countries around the world and can be traded between buyers and sellers within these countries.

Challenges for companies related to carbon offsets

Achieving climate neutrality is a key challenge for enterprises. So the first priority is to reduce greenhouse gas emissions as much as possible. However, due to the nature of production or logistics, it is not possible to reduce them to zero. This means that under current national and international legislation, the entity will still have to pay for emission allowances.

But the organization can achieve climate neutrality (net zero) by balancing emissions. The tool in such cases is carbon offsets.

Any entity can invest in projects that reduce emissions in various locations around the world. Each project has a specific reduction value and produces a specific number of offsets. By purchasing offsets, the buyer reduces emissions elsewhere, at their origin. Although the buyer still produces emissions from its own operations, it contributes to further reductions on a global scale.

What will you gain from careful investment in carbon offsets?

Interest in offsets will help your company get on the path to climate neutrality

As determined by scientific consensus, legislative strategies, and measures inspired by it. These changes (along with other trends, such as the growing number of companies declaring their own reduction targets and demanding similar actions from contractors) will require a credible response.

Using emissions offsets can benefit the environment and your company’s reputation

But only if the scheme is implemented thoughtfully. With our support, and including carbon credits in broader, ambitious reduction targets, it will be possible to increase the credibility of the proposed solutions and avoid greenwashing accusations.

KPMG’s support in the area of carbon offsets

We help include carbon credits among other measures for achieving climate neutrality.

We guide you through the process of purchasing offsets through:

support and advice in the development of a carbon credit purchasing strategy;
assessment of your portfolio of offset units, so you can be sure that your investment pays off and generates real climate benefits.

We also have experience in developing project documentation for clients planning to emit GHGs and seeking to certify their emission reduction units.

About us

At KPMG, we focus on innovative solutions, tailored to the specifics and needs of the client. Drawing on KPMG’s global network of experts, we effectively adapt innovative ideas and implementations to Polish conditions.