This study proposes several options to address the challenges and enhance the quality, scale, interoperability, and interconnectivity of VCMs. These include: 1) providing policy clarity on the role of VCMs within national and international carbon pricing mechanisms, with international organizations playing a supporting role through technical assistance and global coordination; 2) creating demand for carbon credits by leveraging offset mechanisms that link VCMs with compliance markets or carbon taxes, consistent with Article 6.2 and 6.4 of the Paris Agreement; 3) enhancing the quality and integrity of carbon credits by promoting the adoption of Core-Carbon-Principles by the Integrity Council for the Voluntary Carbon Market (ICVCM); 4) promoting interoperability among VCMs through the establishment of cooperation mechanisms; 5) adopting technological solutions to improve the distribution of benefits to communities in developing economies and moving to an impact based approach beyond CO2 offsetting; 6) developing operational rules for cross-border transactions; and 7) enhancing capacity building for VCM regulators and key participants in developing countries.