The last couple years have seen enough scandals in the voluntary carbon offset world to lose count. Yet voluntary carbon market (VCM) developers, certifiers and investors continued to be upbeat. Yesterday, however, Responsible Investor reported the most tangible evidence that things aren’t going so well – although perhaps not due to offset quality concerns.
“The Voluntary Carbon Markets Integrity Initiative (VCMI) has blamed a loss of confidence in the voluntary market for carbon offsets for an underwhelming public response to its voluntary standard… only two companies have announced VCMI-compliant claims since the rules were launched – Bain & Company and Natura.
VCMI’s executive director Mark Kenber said the issue is ‘less about reluctance to comply, and more about hesitation to make public claims’.
‘Intense public scrutiny and reputational damage caused by the ‘wild west’ era of less rigorous market practices has led companies to be understandably cautious about making public statements about carbon credit use, even if it is high integrity,’ he added.”
VCMI also claims “that the business case for carbon market engagement has been eroded and that governments may need to play more of a signalling role to show that rules for voluntary offset markets are becoming more aligned and stable.” The organization is expected to publish a report on these points later this week.
I’m not sure what the message is here: “offset quality is okay and companies continue to use them – but they won’t talk about it, the business case for them has softened and we need governmental intervention to help a voluntary market”?? Doesn’t seem particularly comforting.
Members can learn more about carbon offsets here and also have access to our Checklist Identifying & Updating Climate Risks and Uncertainties.
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