Harnessing voluntary carbon markets for climate ambition

Abstract

Voluntary compensation of greenhouse gas emissions Demand-side issues Supply-side issues Summary of good practice elements relevant to voluntary compensation Sammanfattning Frivillig klimatkompensation Klimatkompensationens användarsida Klimatkompensationens utbudssida Sammanfattning av bästa praxis-element som är relevanta för frivillig klimatkompensation Yhteenveto Vapaaehtoinen kompensaatio Kysyntä Tarjonta Tiivistelmä vapaaehtoiseen kompensaatioon liittyvistä hyvistä käytännöistä Abbreviations 1. Introduction 2. Policy context and key concepts 2.1 The Paris Agreement 2.2. Targets towards and beyond carbon neutrality 2.3 Voluntary compensation of greenhouse gas emissions 2.4 Carbon standards, crediting standards and the voluntary carbon market 3. Generating carbon credits 3.1. Carbon credit quality criteria 3.2. Carbon credit attributes 3.3. Assessing crediting standards 4. Using carbon credits, making claims and marketing 4.1. Good practice elements relevant to high-integrity voluntary compensation 4.2 Integrity of claims 4.3. Responsible marketing 5. Public efforts to facilitate good practice voluntary compensation

Demystifying Carbon Removals in the Context of Sub-Global Net-Zero Targets

“…Preliminary ndings regarding concepts and terminology were reported in previously published reports. 14,15 In the second stage of the literature review, a keyword search was performed using the search engine Google Scholar and the keyword strings "corporate net zero" and "offsetting residual emissions". Criteria for inclusion were: publication date 2018-2023 and that the publication addresses sub-global scale net-zero targets and offsetting practices to reach such targets.…”

“…There is a broad consensus that entities aiming for net-zero should prioritise deep and rapid emission reductions within their value chain, for example by following a 1.5 or 2°C-aligned emissions reduction pathway [7][8][9][10][11][12][13]15 . There is also a consensus that eliminating all emissions will be extremely challenging or impossible in many cases, and that there will thus be residual emissions that need to be offset [7][8][9][10][11][12][13]15 . Furthermore, there will be "remaining emissions" (i.e., emissions that are yet to be reduced and residual emissions) while on the transitional pathway towards the residual level.…”

“…The use of carbon credits for offsetting remaining or residual emissions to achieve net-zero is an area where opinions diverge. Most agree that carbon credits need to ful l certain quality criteria by, inter alia, being additional, quanti ed against a credible baseline, permanent and veri ed, and need to be issued within a carbon crediting programme [7][8][9][11][12][13]15,16 . However, positions diverge on the roles of carbon credits emanating from activities that lead to GHG emission reductions versus removals as well as the need to avoid double claiming of the underlying MOs towards both corporate climate goals and countries' climate targets 14 .…”

“…Net-zero and GHG-neutrality standards and guidelines applicable at a sub-global scale are emerging [7][8][9][10][11][12][13] . However, the meaning of net-zero emissions on the sub-global scale is still an ongoing discussion that needs to be resolved for entities to truly align their climate policies and actions to the goals of the Paris Agreement 14,15 . There is a broad consensus that entities aiming for net-zero should prioritise deep and rapid emission reductions within their value chain, for example by following a 1.5 or 2°C-aligned emissions reduction pathway [7][8][9][10][11][12][13]15 .…”

“…However, the meaning of net-zero emissions on the sub-global scale is still an ongoing discussion that needs to be resolved for entities to truly align their climate policies and actions to the goals of the Paris Agreement 14,15 . There is a broad consensus that entities aiming for net-zero should prioritise deep and rapid emission reductions within their value chain, for example by following a 1.5 or 2°C-aligned emissions reduction pathway [7][8][9][10][11][12][13]15 . There is also a consensus that eliminating all emissions will be extremely challenging or impossible in many cases, and that there will thus be residual emissions that need to be offset [7][8][9][10][11][12][13]15 .…”