COP28 update: Progress, challenges, and collaborative initiatives in the pursuit of climate goals

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COP28 has agreed upon several important milestones to help achieve climate goals. For us, the results so far are fruitful concerning the work we do with our clients. It strengthens our dedication and effective approach to support companies in making a real climate impact.

General outcomes 

• The 1st Global Stocktake at COP28 shows that we are not on track to limit global warming to safe levels. The main goal of this Global Stocktake is to enhance all national ambitions in the next round of Nationally Determined Contributions (NDCs). These will cover the period from 2025 to 2035, an important window of opportunity for closing the Emission Gap.
• Article 6 of the Paris Agreement states that the global carbon market must play a role in helping to bridge the Emissions Gap. The potential is at least 9 Gigatonnes by 2030. Next week, countries will finalise decisions on the work the Supervisory Body will have to do to issue tradable emission reduction certificates, which countries can use to help meet their targets.
• Climate Finance: Developing countries, at the heart of the global climate transition, require $3 trillion by 2030 to transition to a path of low-carbon, equitable, resilient, and rapid economic growth. A high-integrity voluntary carbon market (VCM) is acknowledged as one of the most direct ways to unlock and catalyse private-sector finance, getting it moving faster to where it is most needed.
• The Fund for Loss and Damage for the most vulnerable countries has been established. The wealthy countries, being most responsible for the climate emergency, pledged a combined total of just over $700m. Good news is the Fund is finally there, but the imbalance in the pledge per country is disappointing; a large emitter like the US has made a relatively very low pledge.
• There is an agreement to triple renewable energy capacity by 2030, and alas no agreement on phasing out the “unabated” use of fossil fuel.

Restoring trust and scaling up the VCM  

Key initiatives such as VCMI, SBTi, GHG Protocol, ICVCM, CDP, and We Mean Business pledged cooperation in establishing an end-to-end integrity framework for consistent decarbonisation guidance.

Six independent carbon standards, including Verra and Gold Standard, announced on Finance Day collaboration to enhance the impact of activities under their standards, aiming to align certifications with common principles for quantification and accounting and to encourage the provision of information on credit use to enable credible voluntary claims and compliance uses of carbon credits.

We are pleased with this collaboration, which will ensure that all carbon credits they issue have high quality. And we are happy to help our clients to be eligible to make use of the new end-to-end carbon integrity framework.

In the COP’s Presidency Roundtable on Scaling Voluntary Carbon Markets, several ministers referred positively to the announcements VCM partners made. US Special Climate Envoy John Kerry said, “I have become a firm believer in the power of carbon markets to drive increased climate ambition and action, and the VCM is a vital tool to keep 1.5C in reach. Let’s not waste any more time or let the perfect be the enemy of the good.” He mentioned the new Energy Transition Accelerator. This is a Carbon Credit programme to help phase-out coal in developing countries. And the LEAF Fund to invest in forest protection and the Commodity Futures Trading Commission (CFTC) requiring listed companies report better on climate impact and use of offsets.

It became clear that the carbon market has an important role in bridging the emission gap between today and IPCC’s 1.5-degree scenario. Last Monday was reserved for the voluntary carbon markets (VCM) in the formal programme. This results in significant developments in the VCM.

• A roundtable featured participants from organisations such as the World Bank, UNFCCC, BP, and Standard Chartered.  
• The COP Presidency also hosted a VCM roundtable, with UNFCCC Executive Secretary Simon Stiell emphasising that no developing country should be left behind in utilising voluntary carbon markets.  
• The UN Development Programme launched the High Integrity Carbon Markets Initiative, a framework for increased transparency and reliability in carbon markets, emphasising co-benefits, and ensuring alignment with host countries (corresponding border adjustment), NDCs, and sustainable development goals. 

We are confident that all agreements, developments, and initiatives around the VCM restore confidence in this important solution to contribute to bridging the emissions gap in the tight window of opportunity we have. Until these improvements are fully operational at scale and ensured in frameworks, we will keep using our intensive due diligence process.

We welcome new initiatives and guidance as the VCM Integrity 

We are happy that the VCMI will help to restore confidence in carbon offsetting and communication.  The VCMI also strengthens our belief in the power of our Climate Neutral Certification programme with strict criteria for the emission calculations, reduction on track with climate goals and carbon offsetting projects/ 

We will accelerate the review and development* of our Climate Neutral Certification programme, focusing on our Trademark & Claims Policy and a new alternative claim. This will be launched next year. Other adaptations in our standard and assurance protocol are needed to comply fully with EU regulations as the draft Green Claims Directive will be effective on national level. This will be at the earliest in 2026. For our (future) clients being certified according to our standard for product(s) and/or their organisation, the adaption of our programme according to the ‘new era’ in claims making is important. We also further explore alignment with VCMI and SBTi target setting- and ‘Beyond Value Chain Mitigation’ initiative (BVCM).

*Because we are an ISEAL Community Member, the review and development will reference the ISEAL Code of Good Practice.