ICVCM Urges Faster Scope 3 Clarity as Every Tonne of Emissions Counts

The Integrity Council for the Voluntary Carbon Market called on the Science Based Targets initiative to accelerate its process for providing companies with clarity on Scope 3 emissions and the role of carbon credits in decarbonisation strategies. The ICVCM argued that waiting until late 2025 for resolution was too slow given the urgency of cutting global emissions.

The ICVCM responded to the SBTi's discussion papers on Scope 3 emissions, noting they do not yet provide guidance on whether and how companies should use carbon credits as part of decarbonisation. The Integrity Council stated its agreement that carbon credits should not replace internal emissions reductions but argued that ruling out credits effectively tells companies to do nothing about emissions they cannot yet eliminate. Calyx Global data cited by the ICVCM showed the proportion of low-rated credits in new issuances dropped by almost 50% from January to July 2024, indicating VCM reform is already having impact.

The ICVCM cited evidence that companies using carbon credits invest three times more in emissions reduction within their value chains and decarbonise at twice the rate of companies that do not. This challenges the argument that credits act as a substitute for direct action. The council positioned high-quality carbon credits as an on-ramp that helps companies move from inaction to action, while simultaneously providing economic incentives to accelerate internal emissions reductions — a dynamic relevant to large Indian corporates setting science-based targets.

The ICVCM encouraged research organisations, academia, and practitioners to submit experiences and evidence to the SBTi's Scope 3 scenarios process, including paywalled data and internal case studies, before the 12 September deadline. The council also invited the SBTi to supplement its review of historical evidence with an analysis of the transformational impact of current VCM reform initiatives. The ICVCM concluded that every minute lost to delayed policy clarity costs thousands of tonnes of emissions reductions.

Key figure — Companies using carbon credits decarbonise at twice the rate of those that do not