From 15 to 17 January 2025, the fourth session of the Working Group on the Legal Nature of Verified Carbon Credits (VCCs) convened in a hybrid format at the UNIDROIT Headquarters in Rome. Held in collaboration with the World Bank, the session gathered 59 participants, including legal experts, observers from international, regional and intergovernmental organizations, and representatives from the private sector and academia.
The UNIDROIT Project on the Legal Nature of Verified Carbon Credits, a high priority initiative under the UNIDROIT Triennial Work Programme for 2023-2025, aims to provide guidance on private law issues in order to build confidence in VCC transactions and foster a robust voluntary carbon market.
During this session, the Working Group discussed the draft UNIDROIT Principles on the Legal Nature of Verified Carbon Credits prepared by the Drafting Committee. In particular, the Working Group focused on proposed language concerning registries, custody, and secured transactions. The Working Group also considered revised drafting in relation to the principles governing the creation, cancellation, revocation, transfer, and retirement of VCCs, as well as the definition of key terms.
The fourth session marked an important progress in the development of a coherent and effective legal framework for VCC transactions. A session report will be published soon, and the fifth session of the Working Group is scheduled for April 2025. For further details on the UNIDROIT Project on the Legal Nature of Verified Carbon Credits, visit the UNIDROIT website.