Gold Standard has introduced a new suite of labels within its Impact Registry, designed to streamline carbon credit selection for buyers and investors. As concerns about the integrity of the voluntary carbon market (VCM) persist, these labels aim to increase transparency, helping participants navigate a complex landscape while ensuring that credits meet the highest environmental and social standards.
Multiple registries issue credits using diverse methodologies and standards. This variation presents challenges for buyers—especially those with less experience—in differentiating between credits and identifying those that best meet their needs. Labelling is widely used by registries to address this issue, streamlining due diligence, facilitating transactions, and improving market accessibility by providing key credit information to new participants.
Increased scrutiny of carbon credit generation and use has raised concerns about the VCM’s integrity. To address these issues, initiatives such as the Core Carbon Principles (CCPs) by the Integrity Council for the Voluntary Carbon Market (ICVCM) have been established. These initiatives provide assurance by assigning labels to carbon credits based on strict evaluations.
The Gold Standard Impact Registry has introduced several labels to enhance market quality and assist in the evaluation and selection of credits based on buyer preferences. These labels include:
- Article 6 of the Paris Agreement
Credits authorized by national governments under Article 6 are labelled accordingly in the registry. If a project has received an official Article 6 Letter of Authorization from its host country, the document is publicly accessible. Authorization may limit the credit’s use, such as for fulfilling a Nationally Determined Contribution (NDC) or for voluntary corporate use, which is reflected in the label. - CORSIA Eligibility
CORSIA-eligible credits are available for airline operators to meet compliance obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), administered by the International Civil Aviation Organization (ICAO). Gold Standard credits are approved for use in the CORSIA pilot phase, subject to ICAO’s eligibility criteria and conditionally approved for CORSIA Phase 1. - Core Carbon Principle (CCP) Eligibility
Credits meeting the ICVCM’s CCP Assessment Framework are labeled as CCP-eligible. This enhances credibility and helps reduce market fragmentation, leading to greater confidence in carbon offsetting. - Impact Type
Gold Standard distinguishes between two types of greenhouse gas impacts: reductions and removals. Credits are clearly labelled to reflect these categories, enabling buyers to align purchases with their sustainability strategies. - Sustainable Development Goals (SDGs)
All Gold Standard projects must demonstrate measurable contributions to at least three SDGs, including SDG 13 – Climate Action. - Gender Responsiveness
Projects opting to implement Gender Responsive requirements undergo thorough gender analysis and set gender-focused project goals. Certification is awarded based on efforts to promote gender equality, ensuring that projects not only avoid harm but actively foster positive change.
These new labels aim to improve both market sentiment and accessibility, helping to foster greater VCM participation and confidence. Buyers, investors, and corporations are better positioned to make informed decisions with more speed and to align with their compliance and sustainability goals.
For investors, the labels offer several benefits, including reduced due diligence time and increased confidence in credit quality. They help mitigate reputational risks by ensuring purchases support high-integrity projects, reducing the likelihood of greenwashing. For buyers, the assurance that credits won’t lead to reputational risks or accusations of greenwashing is paramount. The widespread adoption of robust integrity standards is expected to bolster market confidence and enable better comparisons across the fragmented global market.
On the supply side, however, these labelling initiatives could lead to higher transaction costs. As registries invest in tools to maintain high-quality and high-integrity credits, these costs may be passed on to participants through higher fees for project developers and buyers.
The new Gold Standard labels represent a significant step toward standardizing the VCM and enhancing its credibility. By providing clear indicators of credit quality and sustainability impact, these labels are likely to increase buyer confidence and drive market growth. For VCM participants, this development presents an opportunity to engage with a more transparent and robust market, potentially boosting demand for high-integrity carbon credits.
If you have questions about these developments or how they might affect your carbon strategy, please contact the Market Intelligence team.