| Summary: | The Paris Agreement called for voluntary cooperation between firms, NGOs, and the state, to meet global climate goals. This study examines the development of voluntary carbon projects (VCPs) in Iceland – a country aiming to be carbon neutral by 2040. There is little empirical evidence on what catalyzes voluntary and inter-organizational climate cooperation. To fill this gap, we use a mixed methods research design, surveying firms to understand their awareness and commitment to VCPs, and interviewing state and non-state actors involved in VCPs. In interviews, we tested a cooperation framework with six ‘levers’ to enable cooperation: a superordinate goal, group identity, trust, accountability, communication, and reward distribution. Individualist and collectivist cultural dynamics influence these mechanisms. Survey results showed a general awareness of and support for VCPs, but concerns around their robustness. In interviews, the six cooperation mechanisms offered structured pathways for enabling and strengthening VCPs.
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