By Andi Anderson
During Climate Week NYC, the Center on Global Energy Policy (CGEP) at Columbia University SIPA hosted a private roundtable to explore how national regulations could strengthen project-based carbon credit markets (PCCMs).
Participants representing governments, research institutions, and private stakeholders reached consensus that clearer and more durable regulations are essential to scale up high-integrity carbon credit systems.
The discussion focused on the need for enforceable frameworks covering every stage of the carbon credit lifecycle—from project creation to trading—to ensure consistency, integrity, and global interoperability.
Experts compared the regulatory trajectory of carbon markets to that of financial derivatives, emphasizing that similar cross-border coordination is achievable and necessary for long-term stability.
Speakers noted that current market growth is slowing due to weak oversight and inconsistent standards. While voluntary frameworks like the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Markets Integrity Initiative have improved transparency, their nonbinding nature limits their effectiveness. Participants agreed that well-designed national regulations could enhance trust, attract investors, and harmonize standards between voluntary and compliance markets.
Experts also pointed to lagging demand-side regulations as a major challenge. Many governments have yet to clarify how and when carbon credits can count toward emission-reduction targets.
Examples like Singapore’s compliance scheme and Brazil’s sectoral planning approach were highlighted as models for integrating carbon credits within broader policy frameworks.
Another key point was the need for interoperability across jurisdictions. Participants emphasized aligning measurement, reporting, and verification systems to ensure carbon credit fungibility and reduce fragmentation caused by varying legal classifications and registry systems.
The roundtable also examined the role of the Paris Agreement’s Article 6 mechanisms, which facilitate international carbon trading. Participants agreed that these mechanisms should complement—not replace—domestic climate ambitions.
Ultimately, the discussion underscored the importance of regulatory stability and durability through political cycles. Experts warned that policy reversals could undermine investor confidence, and they urged countries to embed frameworks in international agreements to ensure long-term credibility.
The consensus was clear: to expand the carbon credit market and meet global climate goals, governments must act now to create coherent, transparent, and resilient regulatory systems capable of sustaining integrity and trust across borders.
Photo Credit: gettyimages-shotbydave
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