The Voluntary Carbon Market in Action: Where Are We and What Comes Next?

In recent years, the Voluntary Carbon Market (VCM) has played an increasingly prominent role in global climate action strategies. In Portugal, the market has begun to take shape, driven by the urgency to decarbonize the economy and the growing environmental awareness of businesses, organizations, and citizens.

In October 2024, significant progress was made with the publication of two key regulations: Ordinance 239/2024 and Ordinance 240/2024.

• Ordinance 239/2024 sets out the legal framework for the functioning of the VCM in Portugal, defining the principles, rules, and procedures that ensure transparency, integrity, and credibility in carbon credit projects.
  
• Ordinance 240/2024 complements this by establishing the fees and operational costs associated with project registration, ensuring the system is financially sustainable and accessible. These ordinances will continue to be refined in the coming years.
  

Despite this progress, the Portuguese VCM is still in its early stages, with few registered projects and limited private sector engagement. A major challenge lies in the lack of clear, recognized methodologies for measuring avoided or removed emissions.

🍷 An Example: Cork as a Temporary Carbon Sink

Cork stoppers, made from the bark of the cork oak (Quercus suber), store CO₂ absorbed during tree growth. As a durable, reusable product, the cork acts as a temporary carbon sink while in use. To count this towards carbon credits, carbon must be traceable, uniquely registered, and accurately quantified (e.g., by registering total cork biomass harvested in kg per producer).
Portugal, as the leading cork producer, is ideally placed to lead the development of a methodology for cork — in collaboration with other producing nations.

🔧 What Comes Next?

To build trust and ensure legal certainty, the approval of technical methodologies for various sectors (forestry, agriculture, renewable energy, energy efficiency) is vital. The Portuguese Government is expected to publish new methodologies throughout 2025.

Another major step is the creation of a centralized digital registry platform, also scheduled for 2025. This platform will:

• Track projects and credit issuance in real time;
  
• Facilitate transparent transactions;
  
• Serve as a public data repository.
  

To scale the VCM, stakeholder engagement and training will be key — particularly for companies, farmers, municipalities, and communities. Fiscal or financial incentives, along with clear communication, can drive more participation and higher climate impact.

In the long term, aligning the VCM with other national instruments — such as the Environmental Fund and National Hydrogen Programme — will be essential to build a coherent and effective ecosystem.

While Portugal has taken important steps toward a solid, internationally aligned Voluntary Carbon Market, much work remains. Rigorous implementation, quick approval of methodologies, and a functioning digital platform are critical to turning the VCM into a credible tool for reaching carbon neutrality by 2050.

To know more about the Carbon Market, register here in our free webinar on the 10th of september.