This section will help you to understand the essential components and prerequisites for a successful journey into nature-based carbon credit procurement. This section guides you through the Foundational Principles, ensuring you’re well-equipped to make informed decisions aligned with the industry’s best practices.
Pre-Conditions for Purchase
Prior to considering NCS carbon credit purchases, ensure that your business meets these fundamental pre-conditions, including:
1. Clear Carbon Accounting
Maintain and publicly disclose an annual greenhouse gas inventory.
2. Net Zero Commitment
Set and publicly disclose validated science-based near-term emissions reduction targets, and publicly commit to reaching net zero emissions no later than 2050.
3. Emissions Reduction Progress than 2050.
Demonstrate that the company is on-track towards meeting a near-term emissions reduction target and minimizing cumulative emissions over the target period.
4. Paris Agreement Alignment
Demonstrate that the company’s public policy advocacy supports the goals of the Paris Agreement and does not represent a barrier to ambitious climate regulation.
Where Carbon Credits Fit Within Corporate Climate Strategies
Deep emissions reductions remain the primary focus of credible corporate climate action. Carbon credits are not a substitute for reducing emissions and should not be counted towards science-based emissions reduction targets.
Increasingly, businesses are also exploring how high-integrity carbon credits can complement decarbonisation strategies. SBTi’s Corporate Net-Zero Standard v.2 introduces the concept of Ongoing Emissions Responsibility (OER), recognising a role for companies to address ongoing emissions as they transition towards net zero.
This reinforces the importance of using high-integrity carbon credits alongside ambitious emissions reductions, supported by transparent governance and recognised best practice.
Reaching Your Net-Zero Targets: Resources
- Discover the most recent and comprehensive resources based on expert advice from WBCSD, Oxford University and knowledge partners. Get started or advance your knowledge with practical recommendations for a successful Net Zero journey.
- The SME Climate Hub is a non-profit global initiative that empowers small to medium sized companies to take climate action and build resilient businesses for the future.
- The Climate Pledge is a cross-sector community of companies, organizations, individuals, and partners, working together to crack the climate crisis and solve the challenges of decarbonizing our economy.
- The United Nations Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to undertake partnerships in support of UN goals.
- A global campaign rallying non-state actors to take rigorous and immediate action to halve global emissions by 2030 and deliver a healthier, fairer zero carbon world.
- CDP runs the global disclosure system for environmental reporting and risk management.