Voluntary Carbon Market versus the Clean Development Mechanism

The CDM is a robust standard that is strictly regulated by the UNFCCC.  Due to this, carbon credits under the CDM have a much higher value.  However, the CDM process can sometimes be long and complicated.

The Voluntary Carbon Market is not regulated by one regulator, but by a number of different organizations with different standards.  This lower level of regulation results in a lower price per carbon credit.  However, the voluntary carbon market process can be shorter and more flexible.  This may be beneficial for smaller projects or projects types that are not applicable under the CDM.  Many forestry or land use/land change projects are done under the voluntary carbon market.