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ARTICLE · 04 AUGUST 2023

Voluntary Carbon Credits – A Free Market Solution

Bracewell LLP
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In February of this year, the International Emissions Trading Association ("IETA") published a comprehensive set of standardised agreements for the sale and purchase...

United KingdomFinance and Banking
Gordon Stewart
Gordon Stewart
Nicholas Neuberger
Nicholas Neuberger
Sam Phillips
Sam Phillips

OVERVIEW

In February of this year, the International Emissions Trading Association ("IETA") published a comprehensive set of standardised agreements for the sale and purchase of voluntary carbon credits ("VCCs"). The international market for VCCs has been growing at a substantial rate, however, there has been increasing scrutiny in respect of the transparency and consistency of the VCC market.

The IETA is an international body established to create a functional global framework for the trading of greenhouse gas emission reductions and, the issuance of these standard form documents represents a significant advance in the legitimisation and regularisation of the VCC market.

This article provides a brief overview of the primary standardised sale agreement and how it, and the other new standard form documents, fit into the continuing development of the VCC market and its financing.

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