Carbon-credit users typically outperform non-users in disclosing and reducing their emissions, setting targets and investing in low-carbon technologies, while integrity in carbon markets is also improving — key takeaways from MSCI’s Climate Week NYC event.  

Have users of carbon credits reduced emissions faster or slower than non-users? Our latest report contradicts the notion that companies have used carbon credits as an alternative to investing in climate mitigation activities within their businesses. 

The ICVCM’s recent decision to reject renewable-energy projects from its high-integrity label reinforces MSCI’s own integrity analysis of this project type. What could this mean for the future of renewable energy in the carbon-credit market?

The Integrity Council for the Voluntary Carbon Market has announced the first set of projects that qualify for its Core Carbon Principles, marking a major milestone for the voluntary carbon market and one that could pave the way for a bifurcated market. 

Although transparency around the use of carbon credits is improving, variations in rules across jurisdictions can add complexity and an extra reporting burden for companies, and make it harder for investors to report on credit use across their portfolio.