9th International Conference on ICT for Sustainable Development

Authors - Akshita Bipin, Abhinav Satish Pillai, Jerush John Joseph
Abstract - Voluntary Carbon Markets (VCMs) enable companies and individuals to offset their carbon footprint by acquiring carbon credits from programs that decrease or eliminate emissions, such as renewable energy or forest conservation activities. As climate change mitigation becomes more prominent on corporate and investor agendas, voluntary carbon markets provide a framework for channeling funding towards emissions-reduction operations. The threat of climate change necessitates immediate action, pushing Sustainable Finance to the forefront. Carbon offsetting appears as an intriguing but contentious option in this changing ecology. It enables entities to compensate for their greenhouse gas emissions by funding programs that reduce emissions elsewhere. However, worries about the integrity of some offsets remain, emphasizing the need for strong standards and verification systems. This includes aligning lending, insurance, and investment agendas with sustainability objectives such as the Paris Agreement. As the global economy undergoes structural transformations to meet climate targets, sustainable finance invests in VCM projects to direct funds towards programs that reduce carbon emissions, boost renewable energy use, and support sustainable practices. This linkage strengthens the financial sector's role in combating climate change while also promoting economic growth and resilience. Integrating VCMs into sustainable finance strategies improves transparency and accountability in carbon offsetting methods, ensuring that investments contribute to emissions reductions and environmental benefits. This conceptual study seeks to contribute to a thorough understanding of the collaboration between VCMs, sustainable finance, and climate action emphasizing the significance of collective action in companies and individuals achieving environmental sustainability and minimizer by the effects of climate change.