How To Use Carbon Credits on the Pathway to Net Zero Emissions? Draft VCMI Claims Code

On June 7, the Voluntary Carbon Markets Integrity group (VCMI) published its Provisional Claims Code, which provides:

• A strong incentive for companies to reduce and eliminate their emissions (Scope 1, 2, and 3). Without a net zero target by 2050, and five-year interim targets, a company cannot use the VCMI labels.
• A strong incentive to use carbon credits to cover remaining emissions, incentivizing an increase in the uptake of carbon credits to cover remaining emissions (with a VCMI Gold (Net Zero) company-wide label available if all remaining annual emissions are covered by carbon credits).
• A strong incentive to increase transparent reporting, with annual reporting in corporate sustainability reports, including on the purchased carbon credits.
• No detailed guidance on criteria for high-quality credits, leaving such guidance to the ICVCM (draft expected in July 2022). The Claims Code allows companies to use carbon credits that are also used by the host country to meet the country’s international climate obligations, but a company must publicly communicate if it does so.
• An opportunity for public comments until August 12, 2022.