VCMI releases new guidelines for carbon credit claims

The Voluntary Carbon Markets Integrity Initiative has recently provided additional guidance for its Claims Code of Practice, allowing companies to assert their utilization of high-quality carbon credits. Tariye Gbadegesin, the CEO of ARM-HARITH Infrastructure Investment and co-chair of VCMI, appeared on CNBC Africa to delve into the significance of voluntary carbon markets in corporate decarbonisation and the critical need for guardrails and integrity ahead of and post COP28. Throughout the interview, Gbadegesin highlighted the pressing need for a drastic reduction in carbon emissions, emphasizing the pivotal role that corporates play in achieving this target by making net zero commitments. He underscored the importance of voluntary carbon markets in supporting companies to meet their net zero goals while serving as a valuable financial mechanism for emerging markets and developing economies, particularly in Africa, to secure funding for climate-related initiatives such as reforestation and renewable energy projects. The CEO articulated that the current situation reflects a shortfall in decarbonization efforts, citing a 'tri-crisis' encompassing climate change, economic strains, and health challenges. Gbadegesin acknowledged the urgency for increased capital and enhanced climate action, positioning Voluntary Carbon Markets (VCMs) as a critical tool that will garner significant attention at COP28. Furthermore, the discussion revolved around the latest VCMI guidance and its implications for corporates, especially concerning the enhancement of integrity within the carbon credit market. Gbadegesin elucidated that the guidance establishes a framework to ensure that companies utilize carbon credits ethically and effectively, addressing concerns of 'greenwashing' where credits are used to maintain business as usual practices rather than driving actual decarbonization. The interview delved into the concept of 'guardrails' provided by the integrity framework, emphasizing the necessity for companies to align their carbon credit usage with science-based targets and demonstrate a declining trajectory across all scopes. The newly introduced Carbon Integrity Claims system offers different levels (silver, gold, platinum) based on a company's adherence to decarbonization targets, permitting the strategic use of carbon credits beyond established goals towards net zero. Shifting focus to the West African region, Gbadegesin elaborated on the challenges and opportunities for carbon markets in Africa. He referenced the Africa Carbon Markets Initiative (ACMI), established to scale African carbon markets, and identified key obstacles such as enhancing government engagement, fostering quality project development, and ensuring buyer integrity, emphasizing the importance of end-to-end integrity in project execution. As the momentum builds towards COP28, Gbadegesin expressed optimism regarding the pivotal role of voluntary carbon markets in mobilizing investments and driving technological innovation to combat climate change. The interview concluded with a nod to the future discussions that will unfold under Gbadegesin's leadership as the CEO of Climate Investment Fund. In light of the evolving landscape of corporate decarbonization and climate action, the VCMI guidelines and the insights shared by Tariye Gbadegesin underscore the imperative of transparency, integrity, and robust frameworks to advance sustainable practices and accelerate progress towards a greener future.