Project-based carbon credits have significant potential as they can channel investment towards climate mitigation activities, while lowering the cost for companies to meet voluntary climate commitments and regulatory targets. But this potential hinges on the quality of the credit markets, which frequently suffer from persistent challenges. The Center on Regulation and Markets (CRM) at the Brookings Institution launched a major workstream examining how project-based carbon credit markets can be improved through regulatory and market reforms.
The paper by Derik Broekhoff, Aidan Conley, and Sanjay Patnaik opens the collection, mapping the current landscape of project-based carbon credits in the U.S. and abroad. On May 28, 2026, CRM will host a public event discussing our ideas and the work still ahead.
This page will be updated as related publications are released.
Authors:
- Derik Broekhoff Senior Scientist – Stockholm Environment Institute
- Aidan Conley Research Assistant – Center on Regulation and Markets, Economic Studies, Brookings
- Sanjay Patnaik Director – Center on Regulation and Markets, Economic Studies, Brookings
In “Project-based carbon credit markets: Overview, issues, and future directions,” Derik Broekhoff of the Stockholm Environment Institute, and Aidan Conley and Sanjay Patnaik of the Brookings Institution explore how project-based carbon credits are used across voluntary and compliance markets, the issues these markets face, and the emerging responses being employed to address them.
Project-based carbon credits: Regulatory and market reforms
Thursday, May 28, 2026 1:00 PM – 2:30 PM EDT
Speakers:
- Annette L. Nazareth Chair, Governing Board – The Integrity Council for the Voluntary Carbon Market (Integrity Council)
- Derik Broekhoff Senior Scientist – Stockholm Environment Institute
- Philippe Delacote Senior Researcher – INRAE and Climate Economics Chair
- Sanjay Patnaik Director – Center on Regulation and Markets, Economic Studies, Brookings
- Erin Shortell Legal Fellow – Institute for Policy Integrity, New York University School of Law
On Thursday, May 28, Brookings CRM will host a public event examining the challenges facing project-based carbon markets and proposals for their reform. The event will kick off with a keynote and fireside chat from Annette Nazareth, chair of the governing board for the Integrity Council for the Voluntary Carbon Market, who will assess the current state of carbon credit markets and offer a vision for the path forward. Nellie Liang, senior fellow at the Hutchins Center on Fiscal and Monetary Policy at Brookings, will moderate the conversation.
Following the keynote, a panel of distinguished experts—including Derik Broekhoff (Stockholm Environment Institute), Sanjay Patnaik (Brookings), Erin Shortell (Institute for Policy Integrity), and Philippe Delacote (INRAE)—will discuss specific policy proposals drawn from their recent research, exploring how carbon markets might be strengthened, better regulated, and more effectively designed. The panel will be moderated by David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at Brookings.