IETA issues new guidelines on how corporate buyers should consider their use of carbon credits

IETA issues new guidelines on how corporate buyers should consider their use of carbon credits to progress towards the goals of the Paris Agreement.

At its annual European Climate Summit, IETA unveils its Guidelines for High Integrity Use of Carbon Credits, that set out clear, unambiguous and robust guidance on how corporate buyers should consider their use of carbon credits to progress towards the goals of the Paris Agreement.

The paper focuses on better defining carbon credit use cases for companies.

However, such use must always occur in parallel with internal abatement activities to reduce absolute emissions across all scopes in line with ambitious near-and long-term targets.

The Guidelines address these broader issues, but do not define how to set net zero pathways.

Andrea Abrahams, IETA managing director, voluntary carbon markets, said: “New modelling by Allied Offsets* shows that 81% of the world’s largest companies have not set net zero targets."

“The IETA Guidelines serve as a strategic framework for companies to mobilise finance and incorporate carbon credits into their climate strategies. The private sector has a critical role to play and we need to act now.”

Evidence from new modelling indicates there is a strong likelihood that companies may miss near- and long-term net zero targets, risking an overshoot of the Paris Agreement’s objectives.

 Carbon Growth Partners said: "The world's best companies are setting targets to meet a critical path to net-zero carbon emissions. IETA's new guidelines for companies make it clear that tha path involves reducing emissions and offsetting the remainder until they hit that target. This clarity is much needed in an arena that has suffered from confusion for too long."

Find out more here.