WASHINGTON, D.C. – Today, U.S. Secretary of the Treasury Janet Yellen, Department of Agriculture Secretary Tom Vilsack, Department of Energy Secretary Jennifer Granholm, Senior Advisor for International Climate Policy John Podesta, National Economic Advisor Lael Brainard, and National Climate Advisor Ali Zaidi announced the publication of a Joint Statement of Policy and new Principles for Responsible Participation in Voluntary Carbon Markets (VCMs). These markets have the potential to channel private capital to drive decarbonization efforts.
“Voluntary carbon markets can help unlock the power of private markets to reduce emissions, but that can only happen if we address significant existing challenges,” said U.S. Secretary of the Treasury Janet L. Yellen. “The principles released today are an important step toward building high-integrity voluntary carbon markets.”
“The Department of Energy is proud to work alongside our interagency partners to catalyze the market for high-integrity, high-impact carbon dioxide removal credits," said U.S. Secretary of Energy Jennifer M. Granholm.
VCMs involve buying and selling carbon credits—each representing one tonne of carbon reduced or removed from the atmosphere—by companies, NGOs, governments, and others on a voluntary basis. They have potential economic benefits for farmers, ranchers, small suppliers, and through projects in developing countries.
However, challenges such as projects failing to deliver promised climate impacts have undermined confidence in VCMs. Ensuring that one credit truly represents one tonne of carbon dioxide reduced or removed is critical for market integrity.
“To reach net-zero emissions by mid-century and achieve our climate goals, we need to mobilize enormous amounts of private capital,” said John Podesta.
“With the right incentives and guardrails in place,” added Lael Brainard.
“When President Biden thinks climate, he thinks jobs,” stated Ali Zaidi.
The Statement and Principles affirm that high-integrity VCMs should play a meaningful role in reducing global greenhouse gas emissions by 2050 while supporting economic development and conserving resources.
Today's announcement also highlights various initiatives across the Biden-Harris Administration to encourage responsible VCM development including direct carbon removal purchases by the Department of Energy; support by the Department of Agriculture; international climate agreements led by the Department of State; and principles released by the Department of Treasury for private sector net-zero transition planning.
"If done right," said Agriculture Secretary Vilsack.
The Statement and Principles were developed with coordination from the Office of the Special Presidential Envoy for Climate. “The Statement and Principles align with U.S efforts internationally," noted Sue Biniaz.
