The Voluntary Carbon Market (VCM) is a market where entities, not bound by greenhouse gas reduction obligations, voluntarily carry out carbon reduction projects to achieve various objectives. These entities trade credits obtained with the approval of independent third-party auditors.

In the voluntary carbon market, the scope of reduction projects varies according to the settings of voluntary greenhouse gas reduction programs. Compared to the regulated compliance market, the market participation conditions (such as target business, methodology, registration method, etc.) are more open, diverse, and flexible, allowing anyone to participate.

Voluntary greenhouse gas reduction program, such as Gold Standard and Verra, are primarily operated by private or international organizations and carry out businesses in various sectors. The main international voluntary greenhouse gas reduction programs are as follows:

Activity Cycle

The activity cycle of each voluntary GHG reduction programme (GS, VCS, etc.) proceeds as follows

① Project Design Document (PDD) Preparation
Considering the project objectives, select an appropriate voluntary greenhouse gas reduction program and design the project according to the criteria and methodology provided by the entity.

② Validation
The project undergoes a validation process by an  independent third-party auditors to evaluate the project’s feasibility.

③ Project Registration
After passing the validation process and obtaining approval from the voluntary greenhouse gas reduction program, the project is registered in the registry.

④ Monitoring
After the implementation of project activities, monitoring is carried out for the reduction or removal of greenhouse gases.

⑤ Verification
The independent third-party auditor verifies the greenhouse gas emission reductions or removals achieved by the project.

⑥ Credit Issuance
Successful projects that have been verified can apply for credit issuance in order to receive credits.