ICVCM Investigates C-Quest Capital Over-Crediting of Cookstove Projects

The Integrity Council for the Voluntary Carbon Market announced it would investigate alleged fraud at C-Quest Capital, whose former CEO is accused of over-issuing millions of carbon credits from cookstove projects. Verra suspended 27 C-Quest Capital projects pending an independent review.

The ICVCM responded to C-Quest Capital's public disclosure of alleged wrongdoing by its former CEO, which resulted in the over-issuance of millions of carbon credits. The council stated it would use its oversight powers to investigate how the relevant carbon-crediting program has handled the matter, noting that under sections 5.8 and 5.9 of its Assessment Procedure, programs are obligated to cooperate with such investigations. The ICVCM noted it had no information indicating any ICVCM-approved carbon crediting program is implicated.

The case illustrates the risks that integrity failures in the voluntary carbon market pose to investor confidence and to the broader credibility of carbon credits as a climate finance tool. The ICVCM said there is no place for fraud or corruption in the market and highlighted the importance of its oversight function in identifying and addressing such failures. The council recognised C-Quest Capital's new leadership for disclosing the alleged misconduct and committing to address its market impacts.

The ICVCM is currently assessing the methodology used by C-Quest Capital — VMR0006 — as part of its standard review process. Assessment of this methodology will incorporate public information and technical data on how the methodology is applied in practice. Verra's suspension of 27 C-Quest Capital projects remains in effect until its own independent review concludes. The incident reinforces calls for strengthened oversight of project developers and verification bodies in the voluntary carbon market.

Key figure — 27 C-Quest Capital projects suspended by Verra pending independent review