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What is the Provisional Claims Code of Practice?

Breaking down the latest from the Voluntary Carbon Markets Integrity Initiative (VCMI).

On 7th June 2022, the Voluntary Carbon Markets Integrity Initiative (VCMI) launched its new Provisional Claims Code of Practice. The code aims to ensure that voluntary carbon markets actually deliver the levels of mitigation and sequestration needed to enable Paris-aligned net zero pathways and will help test the credibility of corporate net zero claims tied to the use of offsets.


Many corporate carbon neutral claims rely on the purchase of carbon offsets from projects such as tree planting or gas capture to compensate for emissions that can’t be reduced from operations. There are growing concerns around whether offsetting schemes are enabling credible climate strategies. Common issues include double-counting, questions around whether schemes provide additional benefits and around whether projects are climate-resilient.

The new Code accounts for the VCMI’s ten principles for corporate climate action:

  1. Science-based action (ensuring compatibility with a 1.5°C world)
  2. Comprehensive action (covering all relevant emissions scopes to the appropriate extent)
  3. Equity-oriented action (maximising social benefits, avoiding unintended negative consequences)
  4. Nature-positive action (addressing the nature crisis as well as the climate crisis)
  5. Rapid action
  6. Scaled-up action
  7. Transparent Action
  8. Action that enables the delivery of Nationally Determined Contributions (NDCs) to the Paris Agreement
  9. Consistent action
  10. Collective and predictable action

Although this is a great step forward in improving the credibility of carbon offsets, the code does not align perfectly with the standards set out by the Science Based Targets initiative, which states that a company can only be considered net zero when it has reduced 90-95% of its emissions and addressed the residual emissions with offsets that actually remove carbon dioxide from the air. According to SBTi, a company cannot balance their unabated emissions ahead of that and claim to be net zero. While the code does refer to the SBTi standard, it might also facilitate a focus on carbon neutrality rather than net zero.


The first round of business trials of the Provisional Code will include participation from Google, Hitachi Ltd and Unilever Plc and will run through to August 2022. Following that an updated version of the Code will be released later this year or early next year. The VCMI is planning to begin by encouraging voluntary adoption, but ultimately work with Governments to “establish a clear pathway to regulation” in the longer term.


You can learn more about the code here. Businesses are being encouraged to respond to the consultation.

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