Challenge #2: Lack of Clarity in Commitments and Claims

Market integrity is necessary to unlock private sector capital for the scale-up of the Voluntary Carbon Markets.

Problem:

Lack of clarity in the meaning of claims and commitments as well as lack of transparency in corporate climate performance can undermine the investment on VCM (VCMI 2023).

There is a need to bridge the information asymmetry between the supply- and the demand-side of carbon markets. This will ensure the high integrity of the market through transparent communication in the use of carbon credits in climate change mitigation strategies.

Potential solution:

Voluntary Carbon Markets Integrity (VCMI) Initiative’s Claims Code of Practice.