On the ESG Insider podcast, we often hear that achieving the low-carbon transition on a global scale will require a mix of solutions. Carbon markets are one key tool available to companies and countries.

In this episode, we bring you the second of a two-part miniseries on carbon markets. In part one last week, we explored how voluntary and compliance carbon markets work. We also heard that voluntary carbon markets have faced some recent challenges and criticisms that have eroded confidence and dampened trading in those markets.  

In this episode, we dig into what is driving those challenges and how the voluntary market is evolving to address the concerns. We explore different types of voluntary carbon credits that are currently available in the market. And we hear how voluntary markets can play a role in international decarbonization efforts.  

We talk with Dr. Spencer Meyer, Chief Ratings Officer at BeZero Carbon, which provides project-level credit risk assessments for voluntary carbon credits. Spencer explains that carbon markets are relatively new and are still developing the necessary safeguards and infrastructure.  

"What we've been seeing over the last year or two are quite a few new initiatives really to improve the quality and integrity in the market," says Spencer. "In general, I think the market is moving in a strong direction. But it will take some time to work out the kinks." 

We also speak with Frédéric Gagnon-Lebrun, Global Director for Climate Policy, Finance and Carbon Markets at South Pole, a carbon project expert and climate consultancy. 

Listen to part one of our carbon markets miniseries, "Exploring the role of carbon markets in reaching climate targets," here: https://www.spglobal.com/esg/podcasts/exploring-the-role-of-carbon-markets-in-reaching-climate-targets  

Listen to our episode about Article 6 of the Paris Agreement here: https://www.spglobal.com/esg/podcasts/at-cop26-why-article-6-matters-to-companies-and-investors<span class="TextRun SCXW212238981 BCX0"