Federal Joint Policy Statement And Principles On Voluntary Carbon Markets Emphasize Consistency And Reliability

The U.S. Department of the Treasury (Treasury) announced a new joint statement of policy and new principles (Joint Statement) for responsible participation in voluntary carbon markets (VCMs) with the U.S. Department of Agriculture, the U.S. Department of Energy, and the White House on May 28, 2024. The principles are meant to guide how the U.S. government engages with VCMs. By issuing the Joint Statement, Treasury intends to channel private capital to drive decarbonization efforts, ensure the integrity of carbon credits, and generate economic opportunities. While the Joint Statement adds additional legitimacy to VCMs, federal agencies should take care to craft focused and clear regulations implementing such principles to ensure the Joint Statement's objectives are met.