The Voluntary Carbon Market (VCM), where companies and individuals voluntarily undertake greenhouse gas reduction projects and trade their results in the form of carbon credits (mitigation outcomes), is necessary ultimately because the issue of climate change cannot be solved by regulatory markets alone.
The need for the Voluntary Carbon Market stems from the development of diverse mitigation projects that are difficult to access through existing regulatory markets, as well as the necessity to address the need for greater liquidity in regulatory markets.
As Corporate Social Responsibility (CSR) has gained emphasis, companies are now evaluated by various criteria such as ESG management, carbon-neutral management, and climate disclosure systems. This has led businesses to focus not only on profitability but also on social and environmental indicators.
In this context, carbon credit trading within regulatory markets merely fulfills statutory obligations or legal responsibilities of companies.
Consequently, many companies have begun to consider various ways to fulfill their social and environmental responsibilities, and the Voluntary Carbon Market is emerging as an alternative to meet this demand.
