Principles of High Integrity Carbon Markets
1. Overall Message
To achieve net-zero emissions by 2050 and keep a limit of 1.5°C temperature rise
within reach, it is crucial to accelerate action by 2030, increase ambition andurgently implement current nationally determined contributions (NDCs) under theParis Agreement and the collective long-term global aspirational goal adopted by
the International Civil Aviation Organization (ICAO) Member States. Theseambitious goals can be advanced by, among other actions, supporting greenhousegas mitigation actions that generate high integrity carbon credits.
High integrity carbon credit markets can play an important role in accelerating
global decarbonization toward net-zero emissions. In order to achieve this, theyneed to be consistent with a pathway toward overall net-zero emissions; inparticular, both creation and use of credits need to be supplementary to immediate
efforts to reduce emissions in line with science-aligned pathways, and should avoid
lock-in of high emissions pathways and contribute to the implementation of hostcountry targets such as by sharing mitigation benefits.
In addition to mobilizing climate finance from public and private sources, highintegrity carbon credit markets can, where necessary safeguards are in place,provide sufficient demand to promote deployment of clean, safe and sustainabledecarbonizing technologies and investment in nature-based solutions, unlocking
social and environmental co-benefits.
There is a growing need to enhance the integrity of voluntary carbon credit markets
and their alignment to the goals of the Paris Agreement, including theirincorporation of best practices related to carbon crediting mechanisms.
In this context, we have developed this set of “Principles of High Integrity CarbonMarkets”, which can inform global efforts to enhance integrity of carbon credits toallow all stakeholders to take advantage of the full potential of carbon markets forboth voluntary and compliance purposes.
In doing so, we acknowledge the vital contributions of organizations and initiatives
advancing principles such as these to amplify environmental integrity in the creation
and use of carbon credits, whether for voluntary or compliance purposes. These
include relevant rules, guidance, and procedures developed multilaterally underArticle 6 of the Paris Agreement and for ICAO’s Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA) and through independent multistakeholder initiatives.
We will strive to promote these principles where appropriate in the developmentof carbon credit markets. We also emphasize that these principles are nonexhaustive and require robust interpretation and implementation, and refinement
as necessary, to ensure that they reinforce science and best practices for aligningcarbon markets with ambitious global emissions pathways.
12. Principles of High Integrity Carbon Markets
The following principles for high integrity carbon credit markets apply to strategies
and standards guiding their supply, demand, and market infrastructure to improvecredibility, transparency, and overall confidence in the markets.
(i) Supply-side Integrity
A robust certification standard is applied to activity design and measurement,
reporting, and verification (MRV) of emission reductions or removals, withprocedures that ensure the following aspects of the supported activities andresulting greenhouse gas mitigation:-Crediting levels align with emissions pathways consistent with the Paris
Agreement temperature goal and achievement of global net-zero emissions
by 2050.

-Credits are issued for emission reductions or removals that clearly contributeto host country mitigation, and avoid lock-in of high emissions pathways, andwhere climate change mitigation strategies are in place that prioritize direct
mitigation action.

-Alignment with relevant requirements for ensuring environment integrity
under Article 6 rulebook and the CORSIA emissions units criteria andguidelines, including in reporting requirements under guidance oncooperative approaches referred to in Article 6, paragraph 2, and elements
reflecting emerging best practices under the Article 6, paragraph 4 mechanism,in particular for ambitious baseline-setting, additionality assessment,
avoidance of emissions lock in, emissions leakage accounting, permanence,and the avoidance of all forms of double-counting.

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Robust and transparent governance, with procedures in place to ensuretransparency and, public accountability including with respect to decisions
and decision-making processes, as well as the long-term administration of thestandard, issued credits, and their ownership.

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Sustainable development objectives and resulting benefits are transparentlyreported.

Environmental and social impacts are identified, publicly disclosed, and addressed
through safeguards including monitoring. Human rights, gender equality and therights of Indigenous Peoples are respected.
(ii) Demand-side Integrity
The use of credits, including by the private sector, align with keeping a limit of 1.5°C
temperature rise within reach and achievement of global net-zero emissions by
2050, in relation to unavoidable emissions and where science-based climate change
mitigation strategies and targets are in place that prioritize direct action to mitigateemissions.
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Emission reductions or removals underpinning carbon credits are claimed for use toachieve NDCs and other international mitigation purposes only when they areauthorized according to the Guidance on cooperative approaches referred to inArticle 6, paragraph 2 and eligible for such use.
The use of carbon credits is disclosed through reporting processes that make suchinformation transparent to and easily accessible by the public, to allow for public
accountability and encourage investments in mitigation actions such as beyond thevalue chain. This includes information on the types, sources, and quantities ofcredits used.
(iii) Market Integrity
Registries publicly track information necessary for compliance and voluntary carbon
credit market integrity, including enabling users and the public to identify market
eligibility, the status of authorization and corresponding adjustments, and thepurpose of use.
Emissions across all scopes and associated targets, and strategies and annual
progress toward their implementation, are transparently disclosed and tracked,
including any use of carbon credits as well as any targeted investments in beyondvalue-chain mitigation, to enhance integrity and appropriate signaling between
supply- and demand-side participants in the carbon credit markets.
Global standard-setting bodies and initiatives cooperate to align standards, clarify
their respective services or roles, and continually innovate certification productsthat will meet and exceed current practice and expectations of regulators and otherstakeholders to reduce carbon credit market fragmentation and promote a uniform
shift to high integrity.

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