As the carbon markets evolve, so does its soft and hard infrastructure, with new technologies and approaches improving and enhancing its functionality and reach.
By focusing on advanced infrastructure and digital technologies, the Continuous Improvement Work Programs (CIWPs) within this category will help modernise the market, making it more transparent, accessible, efficient, and scalable.
Together, these groups work to fortify the infrastructure of the VCM, preparing it to operate effectively at a larger scale while maintaining high standards of integrity.
Market Modernisation, Transparency, and Oversight Working Groups
Market Transparency, Scalability and Standardisation
This work program aims to tackle key challenges that hinder the market’s effectiveness. This includes exploring new ways of leveraging existing and emerging technologies to make the carbon market more transparent, standardised, and scalable to facilitate widespread participation and trust in the VCM.
These work programs include:
• Market Infrastructure – Addressing registry interoperability, standardised carbon contracts, and legal constraints. Sub-groups are exploring registry integration and trading infrastructure, such as creating a meta-registry and enhancing trade transparency.
• Pricing Transparency and Integrity – Promoting revenue-sharing fairness, fee standardisation, and enhanced price discovery.
• Catalysing Structured Finance – Aiming to unlock capital for project developers by providing risk data, financing infrastructure, and mechanisms to engage investors.
By promoting transparency, all market participants have access to the same information, reducing the likelihood of manipulation and enhancing trust.
Scalability is addressed by developing systems that can accommodate growing transaction volumes without compromising quality or integrity.
Report from Continuous Improvement Work Program on Market Transparency, Scalability and Standardisation
The CIWP on Market Transparency, Scalability and Standardisation found that while the Core Carbon Principles (CCPs) provide a robust foundation for credit integrity, further improvements to market infrastructure are needed to support scale and liquidity.
The report sets out recommendations across three key areas: Market Infrastructure, Pricing Transparency & Integrity, and Catalysing Structured Finance.
What happens next?
The outputs of the CIWPs will inform further development and refinement of the CCP Assessment Framework. They will also support broader evolution of carbon markets and may be implemented by entities other than the ICVCM.
Read the report
Download the full report below for the complete context, evidence and recommendation tables.
Measurement, Reporting and Verification (MRV) Systems (including Digital MRV)
The focus of this work program is to leverage advances in technology to enhance the accuracy and reliability of digital MRV systems and activities. New digital tools such as satellite data, lidar, machine learning and artificial intelligence are rapidly changing the landscape of MRV tools and approaches across the VCM. They offer significant new opportunities for improved measurement, quantification and verification of VCM projects and activities.
These advancements enable more precise measurement of emissions reductions, streamlined and transparent reporting processes, and rigorous validation of projects’ environmental impact. This technology-driven approach can help minimise human error and increase the speed at which projects are verified and credits issued, enhancing the overall efficiency, credibility and scale of the market over time.
This CIWP will consider best practices and approaches for integrating digital MRV tools and techniques into the VCM.
Oversight of Validation and Verification Bodies (VVBs)
This CIWP presents an opportunity to engage with a wide range of stakeholders in an important conversation about the oversight of validation and verification bodies (VVBs) within the VCM.
The work aims to identify and address key oversight gaps, strengthen the integrity of the market, and explore practical, scalable solutions for enhancing the performance of VVBs.
Key areas of focus include:
- Systemic gaps and areas for improvement in VVBs’ performance and accreditation.
- Roles and responsibilities of VVBs, accreditation bodies and carbon crediting programs.
- Impact of market growth and expectations on VVBs’ capacity and scrutiny.
- Transparency, monitoring and accountability in validation and verification processes.
- Innovative and scalable approaches to enhancing VVB performance, oversight and market integrity.
Other CIWP areas
Regulatory & Policy Alignment
CIWPs Supporting Alignment Between the Voluntary Carbon Market and Evolving Climate Policy
Equity, Impact and Safeguards
CIWPs Advancing Equity, Safeguards, and Inclusive Benefits in the Carbon Crediting
Standardised and Innovative Crediting Approaches
CIWPs Setting Clear Standards to Foster Innovation and Scalability in Carbon Markets
