VCMI’s revised Scope 3 proposal could distract from and delay immediate climate action

The NewClimate Institute criticizes a revised proposal by the Voluntary Carbon Markets Integrity initiative (VCMI) regarding a 'Scope 3 Claim'. The Institute argues that allowing companies to use carbon credits to bridge the gap between target trajectories and actual emissions until 2038 would weaken corporate accountability, discourage immediate emissions reductions, and disadvantage companies already implementing genuine climate strategies.

• VCMI's revised Scope 3 Claim proposal suggests that companies could use carbon credits for up to 24% of their target emission levels until 2038 to address the "emissions gap" between actual emissions and target trajectories. The NewClimate Institute argues this could mislead stakeholders and encourage the use of credits as an alternative to reducing value chain emissions.
• The proposal may lead to 'backsliding ambition' by allowing companies to meet targets with minimal emission reductions that essentially mirror business-as-usual scenarios. Testing the claim against 16 companies with SBTi-validated 2030 targets showed it could reduce targets to levels insufficient for limiting global warming to 1.5°C.
• The VCMI proposal could allow companies to delay short-term action. By combining a 24% flexibility allowance with non-linear pathways, a company with a target to reduce scope 3 emissions by 50% between 2025 and 2035 could potentially increase emissions until 2030 while still qualifying for the claim.
• The proposal may disadvantage 'front-runner' companies—such as Iberdrola, Mars, and Volvo Group—that have invested substantial resources into genuine climate actions. It allows 'laggard' competitors to appear as though they are making similar progress through the use of credits, creating a disincentive for first-movers to implement costly sectoral transitions.
• The NewClimate Institute asserts that VCMI's proposal contradicts the direction of the Science Based Target initiative (SBTi), specifically the SBTi’s July 2024 discussion paper and its Corporate Net Zero Standard revision, which emphasize transition-specific alignment targets over the use of carbon credits from outside the value chain.

APA

NewClimate Institute (2024). VCMI’s revised Scope 3 proposal could distract from and delay immediate climate action. http://www.newclimate.org/news/vcmis-revised-scope-3-proposal-could-distract-from-and-delay-immediate-climate-action

Chicago

NewClimate Institute. VCMI’s revised Scope 3 proposal could distract from and delay immediate climate action. 2024. http://www.newclimate.org/news/vcmis-revised-scope-3-proposal-could-distract-from-and-delay-immediate-climate-action.

Wikipedia

{{cite press release |author=NewClimate Institute |title=VCMI’s revised Scope 3 proposal could distract from and delay immediate climate action |date=2 September 2024 |url=http://www.newclimate.org/news/vcmis-revised-scope-3-proposal-could-distract-from-and-delay-immediate-climate-action |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{newclimateinstitute2024vcmis, author = {{NewClimate Institute}}, title = {{VCMI’s revised Scope 3 proposal could distract from and delay immediate climate action}}, publisher = {NewClimate Institute}, year = {2024}, month = sep, url = {http://www.newclimate.org/news/vcmis-revised-scope-3-proposal-could-distract-from-and-delay-immediate-climate-action}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }