This VCMI Claims Code of Practice brings confidence and credibility to claims that involve the use of carbon credits. Under the Claims Code, companies can use carbon credits to make “Carbon Integrity” claims to accelerate global net zero, above and beyond science-aligned emissions cuts.

The Claims Code is essential to ensure the integrity of voluntary carbon markets and therefore their ability to make a meaningful contribution to the goal of the Paris Agreement, while also at the same time contribute towards the United Nations Sustainable Development Goals (SDGs).

Developed through a global, multi-stakeholder collaborative process, the Claims Code builds on the Provisional Claims Code released by VCMI in June 2022. It expands on requirements of other leading climate change initiatives, including the Carbon Pricing Leadership Coalition’s (CPLC) Report of the Task Force on Net Zero Goals and Carbon Pricing; the full suite of Science Based Target initiative’s (SBTi) target setting guidance and standard; Gold Standard’s Scope 3 Value Chain Interventions Guidance; The Oxford Principles for Net Zero Aligned Carbon Offsetting; the UNSG’s HLEG; and the GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

The Claims Code is for companies seeking to make credible voluntary use of carbon credits and receive recognition in the form of a VCMI Claim. VCMI also provides additional guidance on how companies can credibly structure other climate claims.

All VCMI Claims made using the Claims Code require companies to set clear science-based near-term emission reduction targets, and publicly commit to reaching net zero emissions no later than 2050, supporting the goals of the Paris Agreement.

In addition, companies must purchase high-quality carbon credits representing emissions reductions and / or removals from outside the value chain of the company. As such, companies making VCMI Claims demonstrate their contribution to the collective global effort to reach net zero.

Equally, the Claims Code will help the following groups as a point of reference:

• Individuals, businesses, and other buyers of goods and services seeking to make climate-friendly purchases;
• Investors and other stakeholders who want to judge the credibility of companies’ climate ambitions and actions, including use of carbon credits alongside broader decarbonization efforts;
• Governments and their regulatory agencies considering how to incentivize companies to use carbon credits credibly and structure claims to be truthful, clear and informative, through government-developed or endorsed corporate reporting requirements, advertising and consumer protection standards and other policies, measures, or guidance.

VCMI has consulted with its Expert Advisory Group and Stakeholder Forum to determine some changes to its Claims Codes’ Foundational Criteria, designed to ensure VCMI is aligned with evolutions in best practice approaches to corporate climate action while providing solutions for corporates to deliver immediate, near-term action.

The changes will be implemented alongside the Scope 3 Action Code of Practice at the end of April.

The changes being made are:

Foundational Criterion 1 will be updated to reflect the fact that countries may use national GHG emissions inventory methodologies, which have been adapted from the Greenhouse Gas Protocol (GHGP). This more inclusive approach is aligned with the GHGP.

Foundational Criterion 2 will be updated to reflect that near-term emissions reduction targets shall be consistent with reaching net-zero by 2050, but we will not require companies to make a public commitment.

Though target setting must be consistent with net zero no later than 2050, the requirement for a public commitment has been identified as a significant barrier to entry for companies that are focused on reducing emissions in the near-term. Ensuring companies have net zero aligned near-term targets is in line with VCMI’s high-integrity approach.

Commitment to long-term targets and setting long-term targets will become a recommendation, reflecting the urgent need for more ambitious and rapid action immediately and in the next five to 10 years.

All near-term emission reduction targets must be established through a credible science-aligned framework and should be validated by a third party.

Instead of requiring the verification stage to be delivered according to SBTI’s process, we will broaden the scope to allow for verification through other target setting frameworks, if available and credible, and recommend it is done by a 3rd party organization, in line with best practice.