ICVCM Responds to C-Quest Capital Carbon Credit Fraud Allegations

The Integrity Council for the Voluntary Carbon Market has acknowledged US enforcement actions against C-Quest Capital and its former employees following allegations of over-issuance of millions of carbon credits. ICVCM stated it will review any outcomes of the enforcement processes to determine if additional steps are required under its assurance procedures.

The ICVCM noted announcements from the Commodity Futures Trading Commission, the US Attorney, and the Securities and Exchange Commission in relation to C-Quest Capital, following the company's own June disclosure of alleged wrongdoing by its former CEO. The ICVCM agreed with US Attorney Damian Williams that the voluntary carbon market is an important part of the fight against climate change, and stated that behaviours undermining market integrity must stop, with appropriate enforcement action taken where allegations are proven.

The case highlights the vulnerability of the voluntary carbon market to over-issuance of carbon credits, an integrity risk that the ICVCM's Core Carbon Principles and Assessment Framework are specifically designed to address. The ICVCM's assurance processes cover CCP-Eligible carbon-crediting programs and their adherence to the Core Carbon Principles, providing an independent oversight layer above individual program governance.

The ICVCM declined to comment on specific aspects of the ongoing cases but confirmed it will assess enforcement outcomes once made public to determine whether further action is required under its assurance processes. The council also noted that assessment of relevant methodologies is ongoing, consistent with its standard practice of not commenting on active assessments. The incident underscores calls for a more regulated and transparent voluntary carbon market structure.

Key figure — Millions of carbon credits allegedly over-issued