Today’s article in the nine newspapers is highlighting a range of recent high profile corporate withdrawals from the Climate Active voluntary carbon market scheme. But there are hundreds of companies using the certification to highlight climate actions and many more supporting those actions.
Overall, there are 554 businesses using 750 Climate Active certification, which includes:
- 434 organisations
- 102 products
- 50 services
- 13 events
- 146 buildings
- 5 precincts
- 140 undergoing certification.
While the program is undergoing a drawn-out review, other companies are progressing applications to certify under the program, highlighting its continued relevance to corporate climate action.
Carbon Market Institute (CMI) CEO John Connor said: “The way forward to address greenwashing concerns and use Climate Active to its full potential is to reform not repeal the scheme and to double down on Australian carbon credit integrity and method reforms.”
In a submission to the Greenwashing Inquiry by the Senate, CMI called for reforms to Climate Active to move away from carbon neutral certification and better align with maturing international best practice on net zero.
Through a reformed Climate Active, the Australian Government can help to build investment and community confidence in private sector leadership on climate action and integrity in the use of carbon markets.
“Best practice guidance on corporate net zero is evolving from carbon neutrality to net zero alignment in a global effort to ensure the substance and speed of our collective efforts. This shift demands a focus on both deep emissions reductions and complementary investments for emissions that cannot be immediately reduced, including through carbon markets,” said Connor.
Emerging best practice guidance is now available on high-integrity credits in the voluntary carbon market and their use as part of a broader net zero organisational strategy. Frameworks such as the Voluntary Carbon Market Integrity Initiative’s (VCMI) Claims Code of Practice that can inform corporate claims and the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles that concerns the integrity of the credits themselves are already being operationalised in market.
“CMI has been actively supporting that important shift to ensure consumer and investment confidence in corporate climate action, including through the Climate Active reform program and participation in international standards development such as the VCMI Claims Code and ISO net zero standard for organisations.”
“Business are looking for guidance to support their decision making and navigate a complex landscape,” said Connor.
In addition, Indigenous backed ACCU providers as well as building and energy efficiency standards are heavily reliant on Climate Active certification.
CMI strongly advocates that Climate Active should be reformed to provide guidance on high integrity voluntary action that supports global net zero goals.
“Ensuring that corporate claims are accurate, trustworthy and evidence-based is vital to the credibility of corporate transition approaches and the ability to scale investment into robust climate solutions,” Connor added.
Important integrity advances have also been made in the Australian Carbon Credit Unit (ACCU) Scheme, there is more to be done but advances in the last 12 months should also be recognised.
Link to CMI’s submission to the Senate Inquiry into Greenwashing.
Link to CMI’s Climate Active submission.
