Raffaella Infanti, Engagement Manager, VCMI
The Voluntary Carbon Markets Integrity Initiative (VCMI) is an international non-profit organisation with a mission to enable high-integrity voluntary carbon markets (VCMs). In case you are not familiar with it, VCM is a concept that allows carbon emitters to offset their emissions by purchasing carbon credits emitted by projects targeted at removing or reducing greenhouse gas from the atmosphere, according to an explanation by the European Energy Exchange (EEX).
In late June, the organisation published a Claims Code of Practice, which will give companies a rulebook to follow for making credible climate claims.
As awareness of the importance of decarbonisation continues to increase among global business players, there is an urgency to have a guide that can help businesses in making their claims. This Claims Code clarifies the complex landscape of VCMs by providing companies with a rulebook for high-integrity voluntary use of carbon credits and associated claims.
“The voluntary carbon market is one tool that can mobilise the much-needed finance to low and middle-income countries towards climate solutions that will accelerate the net-zero transition. It’s not too late to drive progress, and the VCMI Claims Code released today is a welcome step forward,” says Razan Al Mubarak, UN Climate Change High-Level Champion for COP28, during the launch of the initiative.
But what benefits can tech startups get from this initiative, and how can they make use of this opportunity? Raffaella Infanti, Engagement Manager at VCMI, gives e27 all the details in an email interview. The following is an edited excerpt of the interview.
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Can you tell us more about the process of developing the Claims Code?
The Claims Code is the culmination of over 12 months of road testing by companies, public consultations, and multi-stakeholder collaboration. The process has been informed by input from leading non-profits, VCMI’s Steering Committee, its high-level decision-making body, as well as guidance from VCMI’s Executive Advisory Group (EAG).
These bodies include experienced VCM voices, such as indigenous and civil society leaders, independent net zero experts, corporate sustainability leads, governments, regulators and academics.
Following the publication of the provisional Claims Code in June 2022, we went through feedback on what was needed to improve. We had over 130 responses to the subsequent consultation, and nearly 70 companies took part in the road test.
The Claims Code will be released in two parts. The first part, published on June 28, is the core Claims Code, an operable claims code that companies will be able to follow and check that they have everything in place in order to make a claim.
Releases after June 28 will build on what is already contained in the Claims Code and will be prepared in consultation with our Stakeholder Forum. These will make the Claims Code more accessible for different types and sizes of organisations by introducing additional claims tiers and an on-ramp.
The Claims Code is part of an evolving process, whereby VCMI must respond to new science, policy, and regulatory requirements – which, since the Claims Code is paving the way for regulation, VCMI supports.
Can you give us more details about the claim process?
The Claims Code has three tiers of claims that companies can make –Silver, Gold, Platinum– each of which recognises investment in GHG emission reductions and removals above and beyond corporate action to meet their science-aligned targets. This work will be supported by additional guidance in November 2023, specifically on the VCMI Measurement, Reporting and Assurance (MRA) framework, additional claim tiers and claim names.
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The Claims Code consists of four steps that a company must undertake to make a VCMI Claim:
1. It must first meet VCMI’s Foundational Criteria, which serve as the backbone of an ambitious and robust climate strategy
2. It must then select which VCMI Claim to make Silver, Gold, Platinum
3. To make a claim, the company must select carbon credits which meet stringent quality thresholds in line with the Integrity Council for Voluntary Carbon Markets (ICVCM) Core Carbon Principles (CCPs)
4. Finally, the company must disclose information to support its claim and conduct independent validation and assurance in line with the VCMI MRV and Assurance Framework (to be published in November 2023)
Additional claim options and information will be released in November, and we encourage businesses who may be interested in making a Claim, but who do not think they are able to meet the requirements of Silver to Platinum Claims, to stay posted for further information.
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How can tech startups in various stages and sizes make use of the Claims Code? Is there any specific approach that they should use when using this guideline?
VCMI calls on all organisations to implement the Claims Code to unlock the full potential of high-integrity VCMs. As part of the Claims Code, companies are required to publicly disclose key elements part of transition plan frameworks and globally recognised frameworks such as CDP.
While VCMI does not currently have sector-specific advice on using the Claims Code, we look forward to participation from all organisations, including tech startups, to review their foundational criteria and identify whether they are able to make a claim.
What are the benefits for tech startups in taking part in this initiative?
High-integrity voluntary carbon markets can drive action to accelerate GHG mitigation and channel finance to where it is needed most for national economic, social and climate prosperity.
By adopting the Claims Code, working towards making a Claim and complying with VCMI’s Foundational Criteria, companies across different industries are working towards ensuring climate claims are trustworthy and that their climate strategies, including the use of carbon credits, are being undertaken in a way that provides real benefits to people and nature.
This way, all companies, including tech startups, can help contribute to the global goals of the Paris Agreement by meeting their emissions reduction targets and taking additional mitigation measures.
How do you plan to introduce and promote the Claims Code to the business community?
We will continue to engage with the business community as we further shape and release additional modules to the Claims Code up to November 2023. This will be done in consultation with our Stakeholder Forum, which consists of representatives from business, government, academic/research, and civil society.
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There is a large number of organisations that are already taking part in the Stakeholder Forum and are committed to advancing the mission of the VCMI and the Claims Code.
The work of VCMI also expands on other leading initiatives and guidance in the market, including the ICVCM Core Carbon Principles. VCMI is collaborating with ICVCM to analyse the impacts of corresponding adjustments in the voluntary carbon market.
VCMI and ICVCM work together to consider how correspondingly adjusted carbon credits can be reflected in market guidance to generate coherent, end-to-end rules for the VCM market.
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Image Credit: VCMI
This article was first published on July 11, 2023
The post What startups need to know about Claims Code, the new rulebook for making credible climate claims appeared first on e27.