Global & Canadian Use of Voluntary Carbon Credits and the Related Financial Accounting and Disclosure Considerations

Voluntary carbon markets (VCMs) have the potential to advance climate action by providing an avenue for organizations to offset their hard-to-abate greenhouse gas (GHG) emissions to meet their targets. However, VCMs face ongoing challenges and controversies that undermine their credibility and effectiveness.

This report, the second in the series aimed at providing an understanding of carbon credit markets and the related challenges, analyzes the use of voluntary carbon credits by corporate buyers, focusing on Canadian practices and global comparisons. It also reviews the related financial accounting and disclosure implications of using voluntary carbon credits toward decarbonization targets.