The Government has published its policy paper containing six principles to improve the Voluntary Carbon and Nature Markets (VCNMs).

The paper includes what it considers to be a method to establish the “integrity” of credits and how these can be used.

Seeking to maximise finance mobilisation and unlock VCNMs, which are estimated to reach tens of billions of dollars globally by the end of decade, the Government sees this raising of “integrity” in carbon markets as essential to support the generation and trade of reduction and removal credits and accelerate domestic and international efforts to tackle climate change and biodiversity loss.

A key part this is greater transparency and accountability by better ensuring that credits deliver their intended environmental outcomes, that buyers do not purchase and retire (‘use’) credits instead of undertaking the internal action needed to align with, and mitigate damage to, climate and environmental goals, and that any public environmental claims made in relation to the use of credits are aligned with relevant information in sustainability reporting, accurate and avoid misleading stakeholders.

The Government will issue a public consultation to seek views on the steps the Government could take to raise the integrity and use of VCNMs and on the proposed implementation of the principles for carbon and nature market integrity in early 2025.

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