Late last month, the Voluntary Carbon Markets Integrity Initiative (VCMI) launched their Claims Code of Practice, which aims to heighten integrity of the carbon credits sold on the voluntary carbon market. The Claims Code provides companies with a rulebook on how and when to utilize carbon credits and the claims they can make following their use. By clarifying the guidelines for companies, this launch from VCMI will boost confidence in the entire market and safeguard against greenwashing in the fight against climate change.  

The launch of the Claims Code represents the cumulative work of leaders in sustainability across government, business, academia, nonprofit and civil society groups. These voices contributed to the development and testing of the Claims Code through public consultations and multi-stakeholder collaborations over the past year.  

What Does the Claims Code Do? 

The Claims Code outlines out a four-step process for companies to follow when making carbon credit claims: 

1. First, companies must comply with the VCMI’s Foundational Criteria, which represents current corporate best practice and is designed to align companies with the long-term goals of the Paris Agreement. 

2. Next, companies select which of three tiers of Claims to make: VCMI Platinum, VCMI Gold, or VCMI Silver. Each tier represents a corporate investment in emission reductions and removals beyond corporate action to reach their net zero goals. Companies can claim the highest tier, VCMI Platinum, if the associated amount of credits they purchase and retire is equal to 100% or more of their remaining emissions for that VCMI claim year.  

3. Third, companies must meet the required carbon credit use and quality thresholds, which VCMI defines as those that meet the ICVCM Core Carbon Principles and qualify under its Assessment Framework.  

4. Lastly, companies must obtain third-party assurance and transparently disclose key information related to their carbon credits purchased, in line with the VCMI Measurement, Reporting and Assurance Framework (to be published by late 2023).  

The work of VCMI to create transparent standards is key to bringing finance into the voluntary carbon market and the communities in the field implementing carbon reduction and removal projects. 

What Does This Mean for Family Forests?  

Family forest owners have historically been locked out of participating in the voluntary carbon market. High upfront costs, lack of technical support, and market complexity have stopped them from being able to meaningfully contribute to fighting climate change. AFF’s Family Forest Carbon Program is uniquely designed to expand access to carbon markets for small family forests, empowering rural communities to capture and store carbon to improve their forests’ health and address climate change. But without standards and guidance in place on the demand side of the voluntary carbon market, landowners, corporate buyers, and funders cannot ensure the credibility of the carbon claims being made. 

That’s what makes VCMI’s Claims Code – and other emerging standards that increase transparency and integrity of carbon credits – so crucial. This guidance enables a robust and inclusionary market that encourages accurate and proper use of carbon credits, strengthening trust and credibility for all high-quality projects. A more transparent market means family forest owners can rest assured that their participation is creating meaningful climate impact. It also means more investment in the market, which further expands access to family forests across the United States, equipping them with the tools to increase the health, wellbeing, and value of their lands.