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Governing Corporate Claims

Increasing transparency of climate-related claims

'Carbon neutrality' and other climate-related claims are playing an increasingly important role in advertising and in the self- representation of companies and other organizations to consumers and investors. However, organizations that use these claims are often confronted with accusations of greenwashing, which is also due to a lack of uniform guidelines and inadequate regulation of these claims. In particular, the role of carbon credits is criticized. This is because claims such as 'carbon neutrality' are often based to a considerable extent on the purchase of such credits. Against this background, the policy paper provides an overview of how climate-related claims are regulated in selected jurisdictions and analyzes the current status of two voluntary carbon market initiatives that are working towards an internationally agreed use of such claims. Based on these findings, the paper discusses what the emerging regulation and governance could mean for the voluntary carbon market.

 

Kreibich, N.; Brandemann,V. Jüde, F.; Governing Corporate Claims: Increasing transparency of climate-related claims. Carbon Mechanisms Research Policy Paper 03/2022. Wuppertal Institute for Climate, Environment, Energy. 44 pp. URL: www.carbon-mechanisms.de/en/governing-corporate-claims

 

Date: December 2022

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