ESMA regulation could strengthen carbon markets, says Be Zero

Be Zero suggests that regulation from the European Securities and Markets Authority (ESMA) could enhance the voluntary carbon market's integrity and functionality. The organisation argues that ESMA's oversight, typically applied to financial markets, could bring much-needed standardisation and transparency to carbon credit trading. This regulatory framework could address current market fragmentation and foster greater investor confidence. Such a move would align the VCM more closely with established financial instruments, potentially increasing its scale and effectiveness in climate action.