Among certain corners of the sustainability sector, there’s talk about how carbon markets could undergo a quiet but significant rebrand. It’s being proposed that what was long known as the Voluntary Carbon Market (VCM) should be called the Verified Carbon Market, a shift spearheaded by the VCM Coalition (VCM+).

At first glance, this might seem like a matter of semantics.

But as Palladium’s Naomi Conway points out, words matter, and in this case, they could reshape how businesses, investors, and the public perceive the role of carbon credits in climate action.

What is the VCM—and Why Does It Matter?

The Voluntary Carbon Market is a system that allows companies, organisations, and even individuals to purchase carbon credits to compensate for greenhouse gas emissions that even after emission reduction efforts, they cannot eliminate. Each credit typically represents one metric ton of carbon dioxide (or its equivalent) either removed from the atmosphere or avoided through projects like reforestation, renewable energy, or improved land management.

Unlike compliance markets—where governments mandate emissions caps and companies must buy allowances or credits to stay within legal limits—the VCM has been, as the name suggests, optional. Companies participate to meet self-imposed climate targets, demonstrate leadership, or enhance brand reputation.

Credits are issued by independent standards bodies after rigorous verification to ensure the underlying projects deliver real, measurable, and additional climate benefits.

Why the Old Term May No Longer Fit

The term “voluntary” emerged to distinguish these markets from compliance systems. But as corporate climate commitments have matured, the line between voluntary and compliance markets has blurred. Today, major buyers, think Google, Microsoft, and other net-zero leaders, aren’t purchasing credits out of goodwill.

They’re doing it to meet science-based targets and make credible claims.
“Calling it ‘voluntary’ has always been problematic,” says Conway, Palladium’s UK Director of Natural Capital “It sounds optional, almost philanthropic, a touch soft-edged and homespun. But these credits are verified. They’re science-backed, additional, and designed to meet the same integrity standards that compliance markets demand.”

A Market in Recovery

The push for a rebrand comes after a turbulent two years for the VCM. Transaction volumes shrank significantly, and the market faced a reputational crisis fuelled by headlines about “junk credits.” While many of those criticisms were oversimplified, they stuck, and the damage was real.

“The term ‘junk credit’ first appeared in a newspaper article and spread quickly,” she notes. “It became a catch-all term, even though the underlying projects weren’t junk. Many of these projects enabled financing for nature-positive and socially beneficial activities. The problem was often about mismatched claims, not necessarily bad work.”

This is where semantics come in. Just as climate advocates shifted from “global warming” to “global heating” to convey urgency, reframing the VCM as the Verified Carbon Market signals a break from the past and a commitment to integrity.

The Power and Risk of Words

Language shapes perception, and perception drives trust. By emphasising “verified,” many hope to move beyond outdated and inaccurate narratives about the market and towards something that reflects the growth in high integrity projects. It’s a way to underscore that these credits aren’t casual or optional—they’re rigorously assessed and essential to financing climate solutions.

Still, the shift isn’t without trade-offs. The term “voluntary carbon market” is widely recognised, and introducing a new label could create confusion. Are there now two markets? Or is this simply a rebranding exercise?

“I don’t think the old term is set in stone,” Conway adds. “If project developers and buyers start calling it verified, it can become reality. Semantics matter. They can either reinforce outdated perceptions or help us move forward.”

Beyond Semantics: A Signal to Investors

Ultimately, this isn’t just about language, it’s about signalling credibility to the market. The Verified Carbon Market concept aligns with what buyers increasingly demand: transparency, integrity, and alignment with net-zero strategies. It also reflects a broader push to attract private capital into climate finance.

“The coalition behind this shift is trying to encourage demand,” she says of VCM+. “If we want more private finance flowing into nature-based solutions, we need a market that feels trustworthy. Verified is a step in that direction.”
The rebrand won’t solve every challenge facing carbon markets. But it’s a start—a way to reset the narrative and rebuild confidence in a mechanism that, despite its flaws, remains critical to global climate goals.

“Let’s make it so,” Conway exclaims. “Start talking about it as the Verified Carbon Market. Words have power. They can either undermine progress or help create it.”