Drop carbon offsetting-based environmental claims, companies urged
- Media Manager
- Jul 9, 2023
- 1 min read
The Guardian
Written By: Patrick Greenfield
Published: July 10th, 2023
New guidance says carbon credits should only be used to contribute to climate mitigation
Companies should drop offsetting-based environmental claims and adopt a “climate contribution” model instead, according to a new quality standard.
In a new code of practice, the Voluntary Carbon Markets Integrity Initiative (VCMI) has published guidance on how companies should use carbon credits as part of high-quality corporate action. It recommends that firms should disclose their emissions every year, show they are successfully meeting a science-based target aligned with the Paris agreement, and only use carbon credits to contribute to climate mitigation, moving away from claims that they have “cancelled out” their emissions by purchasing offsets.
The rules, which are limited to voluntary corporate action on the climate, were the result of consultation with civil society, the private sector, Indigenous communities and governments. They aim to introduce a standardised method for assessing the quality of corporate claims amid accusations of greenwashing and intense scrutiny of the carbon offsetting industry.
The VCMI recommends firms should buy high-quality credits from a separate standards body, the Integrity Council for the Voluntary Carbon Market (ICVCM), which will release its recommendations on what counts as a “good” carbon credit later this summer.
“Companies must step up their transparency game and provide real information that consumers can understand. Beyond reducing their emissions, the richest companies have a responsibility to contribute finance to climate action, even in sectors that they are not directly impacting. If the largest and richest companies do not step up to provide the finance that we urgently need, then who will?” he said.
