Understanding the New VCMI Claims Code of Practice

The voluntary carbon market is a growing market in which companies and individuals can purchase carbon credits to offset their emissions. Carbon credits are generated by projects that reduce or remove greenhouse gases from the atmosphere. The market is still relatively young, but it is expected to grow significantly in the coming years as companies and governments look for ways to reduce their emissions.

The Voluntary Carbon Market Integrity Initiative (VCMI) has published a new Claims Code of Practice, which aims to provide companies with a rulebook for making credible climate claims using carbon credits. The Claims Code is designed to help companies ensure that their carbon offset purchases are additional, verifiable, and used to achieve real and measurable emissions reductions.

What is the VCMI Claims Code of Practice?

The VCMI Claims Code of Practice is a set of requirements and recommendations for companies that want to make credible claims about their use of carbon credits. The Claims Code outlines four levels of claims that companies can make, from Silver to Platinum. The higher the level of claim, the more rigorous the requirements that companies must meet.

• Silver:?Companies must meet the following requirements to make a Silver claim:
• Purchase carbon credits that have been verified by a reputable third party.
• Use the carbon credits to achieve real and measurable emissions reductions or removals.
• Communicate the claims about their use of carbon credits in a clear, transparent, and accurate way.
• Gold:?Companies must also meet the following requirements to make a Gold claim:
• Ensure that the carbon credits are additional, meaning that they represent emissions reductions or removals that would not have happened without the purchase of the credits.
• Publish a plan for how they will use the carbon credits to achieve their net-zero goals.
• Platinum:?Companies must also meet the following requirements to make a Platinum claim:
• Conduct an independent review of their carbon offset purchases.
• Provide ongoing updates on their progress towards their net-zero goals.

Why is the VCMI Claims Code of Practice important?

The VCMI Claims Code of Practice is important because it provides companies with a clear set of guidelines for making credible climate claims. This is essential in a market where there is a growing risk of greenwashing, where companies make misleading claims about their environmental credentials.

The Claims Code is also important because it helps to ensure the integrity of the voluntary carbon market. By setting clear standards for carbon offset purchases, the Claims Code helps to ensure that companies are only purchasing credits that are genuine and that will actually help to reduce emissions.

How can companies use the VCMI Claims Code of Practice?

Companies can use the VCMI Claims Code of Practice in a number of ways. They can use it to:

• Assess the credibility of carbon offset projects.
• Develop their own carbon offset procurement policies.
• Communicate their climate commitments to stakeholders.

The Claims Code is also a valuable resource for investors and regulators who are looking to assess the environmental impact of companies' carbon offset purchases.

Conclusion

The VCMI Claims Code of Practice is an important step forward in the fight against climate change. By providing companies with a clear set of guidelines for making credible climate claims, the Claims Code helps to ensure that companies are only purchasing carbon credits that will actually help to reduce emissions.

The Claims Code is also expected to play a significant role in ensuring the integrity of the voluntary carbon market and in helping companies to achieve their net-zero goals.

Here are some additional details about the VCMI Claims Code of Practice:

• The Claims Code was developed by a multi-stakeholder platform that includes governments, companies, NGOs, and civil society organizations.
• The Claims Code is supported by a number of leading carbon offset standards, including the Verified Carbon Standard (VCS) and the Climate Action Reserve (CAR).
• The Claims Code is expected to be widely adopted by companies that are looking to make credible climate claims.
• The Claims Code is a valuable tool for investors and regulators who are looking to assess the environmental impact of companies' carbon offset purchases.

The VCMI Claims Code of Practice is a significant development in the voluntary carbon market. It provides companies with a clear set of guidelines for making credible climate claims, and it helps to ensure that the market is used to its full potential in the fight against climate change.

As ethical standards continue to evolve, industry stakeholders must stay informed and contribute to their development. The Code provides an opportunity for the venture capital industry to strengthen its integrity, foster trust, and drive sustainable growth.

For comprehensive details, please refer to the VCMI Claims Code of Practice document.

Reference: https://vcmintegrity.org/wp-content/uploads/2023/06/VCMI-Claims-Code-of-Practice.pdf