After its formative years of experimentation and the emergence of early standards, the voluntary carbon market (VCM) began transitioning from a testing ground for pioneers into a more structured and credible system. By 2008, the market had entered a new phase of consolidation and strengthening, marking a shift toward greater professionalization, clearer rules, and increased trust among participants, while laying the foundation for its future expansion and maturity.
Building Best Practices and Market Integrity
From 2008 onward, the VCM moved beyond ad-hoc experimentation to establish structured processes and standardized practices. One of the most significant shifts was the creation of clear project cycles and verification mechanisms that ensured carbon credits could be reliably measured, tracked, and trusted.
Take Verra’s Verified Carbon Standard (VCS) as an example. During this phase, VCS formalized the full project lifecycle: drafting a Project Description Document (PDD), third-party validation and verification by accredited bodies (VVBs), project registration, and ultimately, the issuance of credits. These steps provided replicable, auditable processes that enhanced transparency and credibility across the market.
In parallel, the VCM also developed stronger governance frameworks. The founding of the International Carbon Reduction and Offset Alliance (ICROA) in 2008 was a turning point. ICROA published its Code of Best Practice, which defined what constituted a “real, measurable, and scientifically credible” carbon credit and guided companies on how to use credits responsibly as part of their climate strategies. By endorsing credible standards like VCS and the Gold Standard, and by facilitating global dialogue through events and procurement support, ICROA became an anchor of trust and quality in the market.
Private Sector Engagement and Growing Demand
This period also saw a decisive shift in the private sector’s role. Companies moved from cautious observers to active participants, incorporating carbon management into their climate strategies. Carbon costs were increasingly internalized in operations, with organizations setting clear reduction targets, tracking emissions scientifically, and using carbon offsets to complement direct reductions.
For example, Microsoft introduced an internal carbon pricing mechanism in 2012, charging its business units according to their greenhouse gas emissions. The collected funds were then reinvested into renewable energy, carbon removal initiatives, and verified offset projects, creating strong incentives to reduce emissions while stimulating demand for high-quality carbon credits.
Similarly, Disney used carbon offsets strategically to address emissions. Since 2009, Disney has committed to achieving net-zero greenhouse gas emissions and by 2013 it expanded its offset program to include indirect emissions. With an internal carbon price of USD 11–14 per ton, Disney invested in forestry projects that delivered both social and ecological benefits, often partnering with trusted international NGOs. By supporting new projects and prioritizing long-term collaborations, Disney became one of the largest corporate buyers of voluntary carbon credits, actively contributing to the growth and credibility of the market.
Through such examples, private sector engagement fueled demand, diversified project types, and strengthened confidence in the market.
Expanding Methodologies and Geographic Reach
On the technical side, the VCM began to move beyond methodologies inherited from the Kyoto Protocol’s Clean Development Mechanism (CDM). New approaches better suited to voluntary markets emerged—most notably methodologies for Reducing Emissions from Deforestation and Degradation (REDD). These frameworks offered greater flexibility, wider applicability, and improved accuracy in accounting for carbon benefits.
This innovation broadened the scope of eligible projects, enabling participation from regions that had previously been underrepresented. While CDM projects were concentrated in a few large developing countries, the VCM began to expand into Africa, small island states, and other areas. This diversification positioned the VCM as a platform for linking the Global North and South in pursuit of climate justice.
From Climate Agreements to Sustainable Development
As the VCM matured, global climate governance entered a new era. In 2015, 196 countries adopted the Paris Agreement at COP21, setting the collective goal of limiting warming to 1.5°C and establishing Article 6, which allowed countries to transfer carbon credits to each other to meet their targets. This marked a new level of international cooperation in climate action.
At the same time, the global development agenda expanded. In 2016, the United Nations launched the Sustainable Development Goals (SDGs), signaling that climate solutions should also advance social and ecological justice. Carbon projects were now expected not only to deliver measurable emission reductions but also to contribute to goals such as poverty reduction, biodiversity conservation, and gender equality.
By the end of this period, the VCM had transformed from a niche offsetting tool into a broader platform for linking climate action with sustainable development. With clearer rules, stronger demand, and deeper integration into global agendas, the market was poised to enter its next phase: mainstreaming.
Reference: Verra . Carbon Offset Guide . ICROA . UNFCCC . Ecosystem Marketplace