The US government has announced a set of new principles aimed at improving the integrity of the voluntary carbon markets.

The Responsible Participation in Voluntary Carbon Markets has been published by the US Secretaries of Treasury, Agriculture and Energy. Under the nonbinding guidelines, companies that use carbon offsets are requested to disclose details about their purchases in a “standardized manner that enables comparability” at least once a year.

The US government has outlined seven key principles to guide the VCM and companies that participate:

• Carbon credits and the activities that generate them should meet credible atmospheric integrity standards and represent real decarbonization;

• Credit-generating activities should avoid environmental and social harm and should, where applicable, support co-benefits and transparent and inclusive benefits-sharing;

• Corporate buyers that use credits should prioritise measurable emissions reductions within their own value chains;

• Credit users should publicly disclose the nature of purchased and retired credits;

• Public claims by credit users should accurately reflect the climate impact of retired credits and should only rely on credits that meet high integrity standards;

• Market participants should contribute to efforts that improve market integrity; and

• Policymakers and market participants should facilitate efficient market participation and seek to lower transaction costs.

Andrea Abrahams, managing director VCM at the International Emissions Trading Association (IETA), said, “These principles closely complement IETA’s own Guidelines for High Integrity Use of Carbon Credits, published earlier this year. They recognise explicitly that carbon credits can help towards meeting corporate emissions targets. The emphasis on liquidity and transparency also recognises the need for greater depth to these markets.”

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