Carbon markets-focused body the Voluntary Carbon Market Integrity Initiative (VCMI) announced today the launch of its Claims Code of Practice, aimed at providing a rulebook for companies to navigate carbon markets and make credible climate claims.

According to the VCMI, the new code aims to help build market confidence for companies’ engagement with voluntary carbon markets (VCMs), in order to accelerate corporate VCM use as part of their net zero pathways.

VCMI Steering Committee Co-Chair Rachel Kyte said:

“Voluntary carbon markets bring considerable benefits as part of companies’ net-zero transition and as a means of financing climate transition worldwide. Against a backdrop of recent criticism, we are now at a juncture where only consistent, well-considered global guidance can underpin a high-quality market and stimulate the rapid scaling of corporate use we need. The Claims Code will give greater confidence and develop trust in those who use it. If you build integrity, trust will follow, and trust is the foundation of a high value, high impact market.”

Demand for carbon offset projects that counteract the release of greenhouse gases, and related credits, is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions.

Demand for carbon offset projects and related credits is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions. The unregulated and rapidly growing market faces a series of challenges, however, with market participants unable to differentiate between high and low quality projects with insufficient or inconsistent data to assess the effectiveness of the projects.

Announced in 2021 by COP26 President Alok Sharma, VCMI collaborates with stakeholders across the private sector, indigenous peoples, local communities, and governments in order to enable high-integrity voluntary carbon markets that meaningfully contribute to climate action and support the achievement of the UN SDGs. The body’s initiatives include the demand-side focused Claims Code released today, and the supply side-focused VCM Access Strategy Toolkit, designed to help policymakers establish policies and processes to enable their countries’ participation in high-integrity VCMs.

The new claims code introduces three tiers of claims – Platinum, Gold and Silver – for investments in GHG emissions reductions and removals, and outlines the steps required to make a “VCMI Claim,” including meeting the VCMI’s Foundational Criteria for climate strategy, selecting a Platinum, Gold or Silver claim, selecting carbon markets which meet stringent quality thresholds in line with the Integrity Council for Voluntary Carbon Markets (IC-VCM) Core Carbon Principles (CCPs), and disclosing information to support the claim and conducting independent validation and assurance.

VCMI Steering Committee Co-Chair Tariye Gbadegesin said:

“Integrity is what will make the VCM a powerful tool that gets us to a net-zero world and mobilizes much-needed finance to low- and middle income-countries, faster. Clear and transparent guidance about the voluntary use of carbon credits has been missing. Now that the VCMI Claims Code is available to guide corporate claims made with the use of VCMs and eventually when paired with ICVCM’s Core Carbon Principles guiding supply, market participants have the key ingredients of what we call “end to end” integrity which will enable this crucial market development.”