This task of ensuring high integrity of these carbon credits is achieved by establishing well-functioning and trusted governance bodies on:
- Demand and usage
- Market places
- Supply and creation.
The first governance need is on the demand side – how carbon credits should be used and what categories of credits qualify. Voluntary Carbon Markets Integrity Initiative (VCMI) is a demand side governance body that establishes Claims Code of Practice and rules on how corporates use carbon credits and make associated climate claims. VCMI also support national strategies for engaging in private sector high-integrity voluntary carbon markets, which will support national climate goals.
One of the main industry specific organisations under the demand side umbrella is CORSIA, body for International Civil Aviation Organization members. It aims to stabilize flight emissions to 2020 levels and requires carbon credits to be purchased for offsetting additional emissions. CORSIA also defines what types of credits can be used.
The second governance need is on the marketplace side – how the markets and market participants should conduct themselves in buying and selling the credits. International Carbon Reduction and Offset Alliance (ICROA) is the governance body which monitors and accredits carbon offset market providers and market participants. ICROA has a Code of Best Practice which defines requirements for carbon management and crediting, and then Accreditation Programme which certifies organizations adhering to these best practices. Carbon Crediting Endorsement Procedure is used to assess how markets and registries operate on basis of good governance, open access, and robust validation and verification of carbon projects.
The final and by far the most important step is the governance body for the supply side – what categories and types of credits are allowed, who can issue them, how exactly are actual carbon credits created. In essence, it defines what a high-quality offset is. The governance body for this is main, overarching role is the Integrity Council for Voluntary Carbon Markets (ICVCM). First ICVCM defines the Core Carbon Principles (CCPs) which defines global requirements for high-integrity carbon credits.