carbon credits and claims for credible climate plans
published 6.25.24
Our Environmental Lead, Erica Chan Glueck, spoke to Raffaella Infanti, Engagement Manager, at the Voluntary Carbon Market Integrity Initiative on how companies can make credible claims and utilize carbon credits in their climate action plans.
E: We know that carbon credits can unlock the potential to accelerate climate action — in the corporate context, what other best practices go hand-in-hand with using carbon credits?
R: VCMI recommends that companies follow the mitigation hierarchy, which means first, avoiding the creation of additional carbon emissions; second, reducing the carbon emissions already being produced; and lastly, using high-quality carbon credits to take responsibility for remaining emissions.
(qb. note: Need a refresh on the Mitigation Hierarchy? WWF covers it well here.)
Internal decarbonization must be the priority for businesses. Carbon credits should be used in addition to internal decarbonization strategies.
VCMI is working hand-in-glove with fellow standard setters, including GHG Protocol, SBTi and ICVCM, to deliver clear, cohesive standards for corporate climate action. Our standards provide the basis for reforming voluntary carbon markets based on strong and coherent integrity standards requiring full value chain disclosure and decarbonization in line with science.
VCMI’s Claims Code of Practice ensures integrity on the demand side. This means that companies use carbon credits in addition to – not instead of – decarbonization and make credible claims. ICVCM’s Core Carbon Principles ensure integrity on the supply side, meaning carbon credits represent real, verified GHG reductions and removals and robust environmental and social safeguards are applied.
E: How does the use of high-integrity carbon credits fit within a broader climate transition plan or net-zero strategy?
R: High-quality carbon credits are a tool to enable action as companies transition to net zero. The use of credits must be in addition to – and not count towards – a company’s emissions reduction targets. A Carbon Integrity Claim means a company is going above and beyond science-aligned emissions cuts by using high-quality carbon credits. Silver, Gold and Platinum “Carbon Integrity” claims recognize increasing levels of climate achievement. VCMI’s Foundational Criteria require companies to have a climate transition plan, including science-aligned long-term and near-term emissions reduction targets, to reach their net-zero target no later than 2050.
"In a world demanding urgent climate action, businesses must lead by example. VCMI announced this week that Natura Cosmetics has achieved a Carbon Integrity Platinum Claim, sending a clear signal for others to follow. Prioritize reducing your emissions, then use high-quality carbon credits to address what's left. Make a VCMI Carbon Integrity Claim and demonstrate true corporate climate leadership."
E: How does a company get started? What should they consider when getting into the carbon credits market?
R: Transitioning to a net-zero future can seem complex and, at times, a daunting proposition for companies. VCMI is proud to work alongside a group of organizations supporting ambitious climate action throughout different phases of the corporate decarbonization journey. We are helping corporates achieve credible climate leadership in collaboration with the following organizations: The Integrity Council for the Voluntary Carbon Markets (IC-VCM), We Mean Business Coalition (WMB), Climate Disclosure Project (CDP), Science Based Targets initiative (SBTi) and Greenhouse Gas Protocol (GHG Protocol).
Any company looking to embark on its climate transition journey should look to organizations like these for support and guidance. Recently, VCMI launched its Carbon Integrity 101 webinar series, inviting companies from around the world to learn how to make Carbon Integrity Claims to accelerate global net-zero, above and beyond science-aligned emissions cuts.
This full program provides a step-by-step deep dive into VCMI’s Claims Code of Practice, with a live Q&A at the end of each session. Upon completion, participants will be fully equipped with the know-how to make a Carbon Integrity Claim. And, of course, VCMI’s Claims Code of Practice is the go-to guidance for companies on credible claims.
For support on navigating the carbon landscape, contact us.
by Erica Chan Glueck
Environment Lead
