In the global effort to combat climate change, a powerful tool has emerged: the voluntary carbon market (VCM). At its heart, the VCM is a system where individuals, businesses, and organisations voluntarily purchase carbon credits to compensate for their greenhouse gas (GHG) emissions. Unlike compliance markets, such as the EU Emissions Trading System, which are mandated by law, the VCM is driven by a commitment to environmental stewardship.

A carbon credit represents the reduction or removal of one tonne of carbon dioxide equivalent (tCO2e) from the atmosphere. These credits are generated by projects that reduce emissions or sequester carbon, or, in the case of AgreenaCarbon, do both. Think renewable energy projects replacing fossil fuels, reforestation initiatives absorbing CO2, or, as referenced, innovative agricultural practices.

The journey of a carbon credit is a rigorous one, governed by a series of internationally recognised standards and registries. Verra, which AgreenaCarbon credits are certified by, and the Gold Standard are two of the most prominent, ensuring that credits are real, measurable, permanent, and additional. 'Additionality' is a critical concept, meaning the emission reduction would not have happened without the financial incentive provided by the carbon credit.

It's important to be honest about the VCM's past. Early days were not without their challenges. The market faced scrutiny over the quality of credits, with concerns about greenwashing and projects that didn't deliver on their promises.

However, the VCM has evolved significantly. Increased transparency, more robust verification protocols, and a growing demand for high-integrity credits have transformed the market. The Science Based Targets initiative (SBTi) has provided clearer guidance on the role of credits, emphasising that they should complement, not replace, a company’s primary focus on reducing its own emissions.

Today, the VCM is a more mature and credible mechanism for corporate climate action.

While many associate carbon credits with forests and renewable energy, a powerful and often overlooked frontier is rising: soil carbon. This is where Agreena are leading the charge, making a significant impact by scaling regenerative agriculture across Europe.

Soil has an immense capacity to store carbon; it’s the second largest carbon sink in the world, after the ocean. Through regenerative farming practices, such as cover cropping, no-till farming, and residue management, farmers can increase the organic matter in their soil. This process not only sequesters carbon from the atmosphere but also improves soil health, enhances biodiversity, and protects farms from the worst effects of climate change - in turn improving the resilience of the global food system.

Soil carbon credits generated by regenerative agriculture offer a unique and tangible way for companies to invest in climate solutions. By purchasing these credits, businesses are not only compensating for their emissions but also directly supporting farmers in their transition to more sustainable, climate-friendly practices. This creates a virtuous cycle: corporate funding enables farmers to adopt these methods, which in turn generates high-quality, nature-based carbon credits.

Looking ahead, the future of the VCM is brighter than ever. As the global push for net-zero goals intensifies, the VCM is poised to become a vital tool for companies on their decarbonisation journey. It offers a way to:

- Complement emission reduction: Use credits to address hard-to-abate emissions while the company works on its long-term decarbonisation strategy.

- Fund innovation: Channel capital towards innovative climate solutions, from soil carbon sequestration to cutting-edge carbon capture technologies.

- Achieve climate pledges: Meet ambitious climate commitments and demonstrate leadership in environmental responsibility.

- Drive positive co-benefits: Support projects that not only reduce carbon but also benefit local communities, enhance biodiversity, and improve livelihoods.

The VCM is not a silver bullet, but it is a critical component of a comprehensive climate strategy. For sustainability professionals, it represents an opportunity to drive meaningful change, fund vital projects, and help their organisations contribute to a more sustainable future.

The market has learned from its past and is now moving forward with greater integrity and purpose. By focusing on high-quality, verified projects, especially those with strong co-benefits like soil carbon, we can ensure the VCM reaches its full potential as a powerful force for climate action.

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