A Deep Dive into Industrial Gas Projects in the Voluntary Carbon Market

Abstract

The Voluntary Carbon Market (VCM) provides tons of opportunities for carbon projects in areas and industries that would not happen without carbon credits revenue. Industrial gas produces large amounts of GHG emissions. We focus on coal mine methane and natural gas pipeline leakage with three key project types: Coal Mine Methane (CMM), Abandoned Mine Methane (AMM), and Leak Detection and Repair (LDAR). These projects play a significant role in methane reduction, a critical strategy for mitigating climate change due to methane’s high global warming potential. Our project examines the challenges, financial additionality, and risks associated with these project types through the lens of the rating framework developed by Calyx Global. We further identify major barriers to project implementation and assess how financial incentives, regulatory frameworks, and technological advancements influence the viability of these initiatives.