The transition to low-carbon, climate-resilient economies and the protection of biodiversity require significant investment, particularly in emerging economies. In 2024, the Independent High-Level Expert Group on Climate Finance estimated that emerging markets and developing countries, excluding China, will need between USD 2.3-2.5 trillion annually by 2030 to meet global climate goals[1]. Against this backdrop, carbon finance, especially through voluntary carbon markets (VCMs), has emerged as an important mechanism for mobilising climate funding.
Carbon markets allow the trading of carbon credits to offset greenhouse gas emissions. They include compliance markets regulated by governments and voluntary carbon markets, where companies and individuals purchase credits to meet voluntary climate commitments[2]. As VCMs continue to grow, integrating gender equality into carbon projects is increasingly recognised as both a social imperative and a business opportunity. Carbon credit project types that have the most potential to drive gender equality include agriculture (agroforestry, regenerative farming, etc.), forestry, blue carbon (mangrove restoration), and efficient/clean cookstoves[3].
Women are disproportionately affected by climate change and biodiversity loss, yet they also play a critical role in climate resilience and natural resource management. Their knowledge, expertise and leadership can strengthen the effectiveness and sustainability of climate initiatives. Integrating gender equality into carbon projects can also reduce social risks and enhance the credibility of carbon credits, increasing investor and buyer confidence. Market demand for gender-responsive carbon credits is also growing. A survey by WOCAN[4] found that 65% of respondents believe demand for carbon credits linked to women’s empowerment will increase as buyers become more aware of their social co-benefits. In addition, 90% of brokers surveyed reported growing buyer interest in projects that benefit women.
Different actors across the VCM ecosystem have a role to play in advancing gender-equitable carbon markets[5]. Investors and funders can include gender-related conditions in financing agreements as well as allocate resources for gender activities. Standard-setting organisations can integrate gender criteria into certification frameworks, while verification bodies can assess compliance with those standards. End buyers can also encourage gender-responsive approaches by including gender considerations into their purchasing policies.
Project developers and local implementers are central to ensuring gender integration in practice. Women can participate throughout the credit generation process as community mobilisers, project managers, trainers, technical professionals, farmers and community representatives. Therefore, projects have the opportunity to strengthen women’s leadership, ensure equal pay and employment opportunities, promote equitable benefit-sharing and create safe and inclusive workplaces[6]. In doing so, gender interventions must be locally led and adapted to local contexts. Collaboration with local women’s organisations and gender experts is essential as is applying an intersectional approach and engaging men as partners in gender equality efforts. At the same time, governments should be supported to address gender gaps in legal and policy frameworks related to carbon markets.
[1] Bhattacharya A, Songwe V, Soubeyran E and Stern N (2024) Raising Ambition and Accelerating Delivery of Climate Finance. London: Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science. © The authors, 2024
[2] What are carbon markets and how do they work? | UNDP Climate Promise
[3] UKaid. (2024). Integrating gender into the design, implementation and monitoring of carbon credit projects. Practical Guidance for Project Developers in the Voluntary Carbon Market
[4] asean-lcep-integrating-a-gender-lens-in-vcms-volume-l-executive-summary.pdf
[5] UKaid. (2024). Integrating gender into the design, implementation and monitoring of carbon credit projects. Practical Guidance for Project Developers in the Voluntary Carbon Market
[6] UKaid. (2024). Integrating gender into the design, implementation and monitoring of carbon credit projects. Practical Guidance for Project Developers in the Voluntary Carbon Market
