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VOLUNTARY CARBON MARKETS

By Tim Baines, David Carpenter & Oliver Williams on June 6, 2024
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On May 28 2024, the Biden administration released the “Voluntary Carbon Markets Joint Policy Statement and Principles”.

The Joint Statement makes a number of important and supportive points in favor of the VCM, noting that:

  • High-integrity VCMs, as well as carbon credit markets more broadly, have the potential to support decarbonization efforts within the United States and globally.
  • Important questions have emerged about how to ensure that VCMs genuinely drive additional decarbonization action (rather than reward what would have happened anyway) that is sustained over time and does not simply shift emissions elsewhere.
  • Fully achieving the potential of these markets requires further action to address challenges that have emerged.

The principles set out in the Joint Statement (the “Principles”) will guide how the US Government engages with VCMs. Through the Joint Statement, the US government encourages the US private sector and other stakeholders in the carbon credit value chain to responsibly participate in the VCM market, consistent with the Principles (see further below). While the focus of the Joint Statement is on VCMs, much of the content speaks to the development and operation of carbon credit markets more generally.

Continue reading at Mayerbrown.com.

Photo of Tim Baines Tim Baines

Tim Baines is a partner in the London environmental and planning team of Mayer Brown. Tim has a particular interest and background in advising companies and financial institutions in the real estate, energy and sustainability sectors. He has considerable knowledge of UK planning…

Tim Baines is a partner in the London environmental and planning team of Mayer Brown. Tim has a particular interest and background in advising companies and financial institutions in the real estate, energy and sustainability sectors. He has considerable knowledge of UK planning and environmental regimes, renewables incentives regimes, and emissions and climate-related matters.

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Photo of David Carpenter David Carpenter

David Carpenter is a partner in Mayer Brown’s New York office. He previously served as the Co-Leader of Mayer Brown’s New York Corporate & Securities practice group. He focuses primarily on mergers and acquisitions, divestitures and sales of businesses, joint ventures and strategic…

David Carpenter is a partner in Mayer Brown’s New York office. He previously served as the Co-Leader of Mayer Brown’s New York Corporate & Securities practice group. He focuses primarily on mergers and acquisitions, divestitures and sales of businesses, joint ventures and strategic alliances, with particular emphasis on cross-border transactions. His practice also includes representing clients in connection with PIPEs, venture capital and early stage investment activities as well as on corporate governance matters.

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Photo of Oliver Williams Oliver Williams

Oliver Williams is an associate in the Banking & Finance practice of the London office. He is also an active member of the firm’s Global ESG Group.

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Read more about Oliver WilliamsEmail
  • Posted in:
    Environmental and Climate
  • Blog:
    Eye on ESG
  • Organization:
    Mayer Brown
  • Article: View Original Source

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