Sheri Hickok, chief executive officer of Climate Impact Partners, shares insights on the shift from transactional credits to long-term, high-quality removals, the rise of standardisation, and how corporates are embedding climate strategies into core business decisions.

Environmental Finance: How has your role in the voluntary carbon markets evolved since Climate Impact Partners' foundation?

Sheri Hickok: Climate Impact Partners has been operating in the carbon markets for more than 27 years, and, during that time, we have reduced or removed over 150 million tonnes of carbon across more than 600 projects in 60 countries. That has given us a front row seat to how the voluntary market continues to develop.

For our clients, the value of partnership has come to the fore and is at the heart of everything we do to ensure we are a trusted advisor. We have adapted and led through a changing market, and it is clear that quality and integrity now play the most important role when it comes to buying carbon credits.

EF: What are some of the key trends shaping the market in 2025?

SH: The carbon market is maturing rapidly. In the past three years, from the corporate buyers' side, we have seen more sophisticated corporate procurement strategies, enhanced due diligence, and greater integration of carbon credits across science-aligned climate strategies.

We have also seen third-party ratings agencies, integrity bodies, such as the Integrity Council for the Voluntary Carbon Market (ICVCM) and the Voluntary Carbon Market Initiative (VCMI), and carbon project insurers play a more important role.

I come from an automotive background. Take that industry as an example: when it comes to quality standards, it didn't start with the product. It was implemented at an operating level, followed by execution. That's what we are starting to see in the carbon markets; signs of maturation as quality and integrity is embedded from the methodology through to execution.

Combined with growing government engagement around the world, from Kenya to Singapore, 2026 promises to mark the next stage in the evolution of the retail of credits, both for voluntary and compliance markets.

EF: How are corporate buyers changing the way they engage with voluntary carbon markets?

SH: We're seeing three big shifts. First, companies are more deliberate about what is in their portfolio – focusing on high-integrity projects that balance immediate impact with investment in future solutions. Second, they're changing how they buy – moving away from one-off spot purchases toward longer-term partnerships that give them security of supply and price certainty. And third, they want their choices to reflect their values, so the projects they support reinforce their broader purpose. That's where we come in – helping corporates design portfolios and partnerships that deliver credibility, impact, and alignment with their strategy.

EF: What recent projects have you worked on that demonstrate this shift in approach?

SH: There are a few examples here showcasing the different approaches we are seeing across the market

• What they buy: As part of Deloitte's Beyond Value Chain Mitigation programme we worked with Deloitte, Project Seagrass, and the UK's National Oceanography Centre to unlock finance for vital blue carbon ecosystems – the Accelerate Seagrass programme. Through this, we are contributing to the development of the first-ever UK seagrass carbon code. Seagrass ecosystems can capture carbon up to 35 times faster than tropical rainforests, and this initiative aims to scale carbon finance for their protection and restoration, enhancing marine biodiversity and carbon sequestration potential.
• How they buy: We are working with Microsoft and Terra Natural Capital to deliver long-term finance to the Panna afforestation project in India, from which Microsoft will purchase 1.5 million tonnes of verified carbon removal credits over 30 years, representing 50% of the project's output. This enables Microsoft to secure credits from a high-quality project at a fixed cost today, protecting it from the supply crunch that is to come.
• Values alignment: We partnered with DWF, the global provider of integrated legal and business services, on an innovative forestry project to support the firm's pathway to net zero. With a commitment to achieve net zero by 2045, DWF aims to reduce emissions by 90% with the residual 10% compensated for through carbon removals from Broadmeadows, the "DWF Forest". With exclusive access to this project, DFW has built employee excitement for their climate actions. The project, located in Yarrowford in the Scottish Borders, operates under the UK Woodland Carbon Code (WCC), the quality assurance standard for woodland carbon projects in the UK. It covers 225 hectares of land, much of which was previously used for sheep grazing. More than half a million trees have been planted since 2018, including a mix of conifers and native broadleaves.

EF: How can retailers secure demand from corporates for more ambitious carbon credit plans?

SH: In today's global macroeconomic environment, companies are focused on competitiveness and value creation at the boardroom level, so climate strategies have to be embedded into the business outlook from that perspective. For every company, the question is: how does this investment create value, and how can it help us reduce future risks?

So, the onus is on us to help our clients translate climate action into real business outcomes, such as risk mitigation, increased pricing power for products, and brand recognition. By speaking the language of the chief financial officer, chief executive officer, and board, we can elevate the conversation from the environmental, social, and governance team to the top and ensure climate action becomes part of the value creation story.

EF: How do you see carbon markets developing in the next few years?

SH: Carbon markets will be shaped by three forces: regulation, standardisation, and demand. Regulation is driving convergence between voluntary and compliance markets, with frameworks like Article 6 providing more clarity. Standardisation through initiatives like the ICVCM is critical to building trust and achieving scale. And demand is shifting toward high-quality, long-term investments, moving from spot buying to strategic partnerships. That's where we help clients secure credible supply and design portfolios that deliver real impact, while meeting their needs – today, and into the future.

For more information, see: www.climateimpact.com/