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Scientific principles and transparency must lead the conversation about what ‘counts’ for carbon credits to build confidence in the voluntary carbon market (VCM).
That’s according to the latest report from global climate experts, the Climate Crisis Advisory Group, which provides seven key recommendations that go beyond the Oxford Offsetting principles.
The report outlines a roadmap for the VCM to overcome recent criticism and rebuild trust through science by supporting projects that deliver real emissions reductions, as well as redistribute finance and meaningful co-benefits to local communities where projects are based. It further stresses the need for international and state regulation to guarantee the quality of credits and ensure organisations take all feasible steps to reduce emissions before engaging with the VCM.
Acknowledging the current limits of the VCM, the report provides guidance on the application of rigorous scientific principles across measurement, monitoring and reporting in order to create a reformed market that has potential to make a much-needed contribution to climate efforts. It also sets boundaries for the legitimate use of carbon credits, stressing that they cannot be used to leave carbon removal and carbon sink preservation to market forces, nor can vulnerable ‘green’ carbon sinks meaningfully offset ‘black’ carbon emissions (i.e., GHG).
The critical role of transparency in building and maintaining confidence in the VCM
Acknowledging the historical shortcomings of the VCM, the report emphasises financial transparency as a critical step towards building trust and confidence in the current absence of international and state regulation.
A transparent system would mean measurement and methodology are open for discussion, and as industry norms are strengthened, opportunities for 'shopping around’ by buyers and sellers into VCMs are reduced. Transparency about financial allocations along the VCM pipeline will also help to expose unethical practices and secure a fairer deal for communities and project implementers.
The report’s lead author and CCAG member, Professor Mark Maslin, commented:
“There must be a stringent approach and management to VCM practices in order for the market to play a meaningful role in mitigating the climate crisis. However, this will not be achieved without a strong and standardised commitment from all actors within the system.
“Carbon credits can be viable as part of a set of tools to fund emissions mitigation projects around the world - but their value must be based on clear scientific principles, and deliver real, tangible value to the health of the planet.”
A call for standardisation of monitoring, reporting and verification (MRV) practices
The report further emphasises the need for standardisation of monitoring, reporting and verification (MRV) practices within the VCM in order to ensure emissions reductions delivered by each credit are real and verifiable.
CCAG also recommends the establishment of independent oversight bodies at a national, regional, and global level to regulate and standardise carbon credits based on quality and performance rather than quantity of offsets.
Professor Mercedes Bustamante, member of CCAG and Professor at the University of Brasilia, commented:
“We cannot afford to throw money at initiatives that don’t work. It is a noble aim to provide countries with more funds to protect nature, but they cannot be used as a way to concentrate wealth in the hands of the few again.
“The VCM has the potential to deliver co-benefits for local communities in the Global South, creating wealth for areas most in need of resources in the transition to net zero. But it’s up to us to ensure the system is more rigorous and able to deliver the results promised, and fund the clean energy transition in an equitable manner.”
Chair of the Climate Crisis Advisory Group, Sir David King, commented:
“There is no doubt that the voluntary carbon market faces immense challenges if it is to play a significant role moving forward. But I do believe that if it is based on robust scientific principles and is implemented transparently, the VCM has the potential to be a significant force for good. The science is clear: we need to be pulling every lever available to us to help tackle the climate crisis. This is one such lever and we should be doing everything possible to ensure that it is fit for purpose.”
Read the report here.
