Ceres Welcomes New Guidance on Voluntary Carbon Markets with Essential Safeguards

Ceres President and CEO Mindy Lubber issued the following statement in support of new principles from the Biden Administration on voluntary carbon markets.  

Today’s announcement by the U.S. Treasury Department and complementary actions by the Departments of Energy and Agriculture, underscore the critical role that the Biden Administration is playing in helping to strengthen voluntary carbon markets in channeling capital towards climate mitigation efforts. The interagency, whole-of-government effort that yielded these principles is an impressive signal of the Biden administration’s support for increased integrity in voluntary carbon markets that can help drive demand for high-quality credits and grow these markets.  

At Ceres, we have advocated for robust and accountable carbon markets with the recognition that companies must prioritize reducing greenhouse gas emissions across their value chains. This includes implementing a climate transition plan and detailing the specific actions they will take across their business to achieve their emission reduction goals. Companies are also encouraged to support emission reductions or carbon removals beyond their value chains by purchasing carbon credits and contributing to efforts to limit average global temperature rise to no more than 1.5 degrees Celsius.  For voluntary carbon markets to be truly impactful, it is essential that carbon credits meaningfully contribute to climate change mitigation, uphold the rights of Indigenous peoples, and adhere to the highest industry best practices.  

These principles provide the much-needed guidance to ensure markets contribute to our climate goals in an equitable and just manner.  We look forward to continuing our work with the Biden administration and all stakeholders to ensure that voluntary carbon markets help finance climate mitigation, especially in the Global South and for nature-based solutions.

Ceres has published two reports, Evaluating the Use of Carbon Credits: Critical Questions for Financial Institutions When Engaging with Companies and The Role of Natural Climate Solutions in Corporate Climate Commitments: A Brief for Investors which provide essential guidance for ensuring the use of carbon credits are effective and credible. Ceres also submitted a comment letter to the Commodity Futures Trading Commission’s proposed Guidance Regarding the Listing of Voluntary Carbon Credit Derivative Contracts in 2024. 

About Ceres 

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and sustainable world. United under a shared vision, our powerful networks of investors and companies are proving sustainability is the bottom line—changing markets and sectors from the inside out. For more information, visit ceres.org.