Gap Analysis of Voluntary Carbon Market (VCM) Standards

In 2020, KfW commissioned a gap analysis (GA) to compare Voluntary Carbon Market (VCM) standards with KfW standards and against each other. The present assignment repeats, updates and complements the previous GA now that several standards have updated their safeguards and some new ones have entered the market. Where gaps are identified, gap closing measures are suggested. The analysis will also look deeper into some key E&S risk areas, including E&S management systems, workers’ rights, human rights risks in connection to law enforcement and patrolling, access and use restrictions/resettlement, invasive species, Indigenous Peoples rights, and Stakeholder engagement, and grievance redress. In addition, recommendations will be derived for developing benefit sharing schemes in the VCM that aim to enhance procedural and distributive justice at the community level.  

Main tasks

• Gap Analysis of standards of the VCM against KfW standards and against each other
• Development of gap closing measures
• Derive recommendations for benefit sharing schemes in VCM projects

Main outputs‍

• Assessment Report, incl. tabular gap analysis of the VCM standards and gap closing measures
• Short document with recommendations on VCM benefit sharing
• Presentation to KfW at the end of the assignment