The Carbon Market Institute (CMI) has welcomed the Voluntary Carbon Market Integrity Initiative’s latest package of guidance on its Claims Code of Practice (Claims Code), which enables companies to now make VCMI-backed claims about their use of high-quality carbon credits.
CMI has been involved in consultations on the Code’s development, including through participation in the VCMI’s formal Stakeholder Forum, as it develops supporting materials and seeks to maximise adoption of the Code.
CMI CEO John Connor said:
“Voluntary carbon markets can be a vital tool in boosting private investment into climate solutions, but need to be integrated into a framework of compliance, credibility and transparency that drives on-site decarbonisation. CMI welcomes the new package of guidance and we will work with VCMI through 2024 as they test this guidance with corporates.”
“It’s vital that we continue to improve demand-side integrity in the carbon market to ensure businesses make credible claims, and the voluntary Claims Code is one of a number of emerging initiatives guiding international best practice on this.”
“Enabling large-scale, high-integrity carbon markets is crucial to boosting climate investments at a time when global stocktakes show that while investment is growing, it needs to accelerate. In addition to the vital investment guidance of compliance frameworks, The World Economic Forum estimates that global voluntary carbon markets can grow in value from just over $1.2billion today to over $50 billion by 2030. Other studies estimate more.”
“On a domestic level, there is also an important role for the government in certifying corporate voluntary market engagement, while also encouraging companies to supplement on-site decarbonisation with the use of high integrity credits.”
“The government’s Climate Active scheme has played the role of certifying corporate voluntary action to-date in Australia, and is currently undergoing reform. In order to be fit for purpose, it needs to align more closely with these emerging international best practice initiatives, like the Claims Code and also International Organisation for Standards’ (ISO) Net Zero Guidelines.”
“Reforms such as those being developed by VCMI and Climate Active are also important voluntary complements to strengthening compliance frameworks like the Australian Safeguard Mechanism. CMI looks forward to ensuring the frameworks are practical and investible in driving at-source decarbonisation for small, medium and large businesses as well as supporting investment into broader climate solutions,” he said.
About the Carbon Market Institute
The Carbon Market Institute (CMI) is a member-based institute accelerating the transition towards a negative emissions, nature positive world. It champions best practice in carbon markets and climate policy, and its 150+ members include primary producers, carbon project developers, Indigenous organisations, legal, technology and advisory services, insurers, banks, investors, corporate entities and emission intensive industries. The positions put forward constitute CMI’s independent view and do not purport to represent any CMI individual, member company, or industry sector.