New carbon credits Code of Practice suggests more robust standards for voluntary markets

Increasingly, corporations are under pressure to set public targets for the net reduction of carbon produced by their operations. Meeting these voluntary targets broadly involves a combination of two strategies: the actual reduction of carbon produced as a result of a corporation's operations, and the 'offset' of unabated emissions through the purchase and surrender of carbon credits.

As emissions reduction deadlines grow closer, the practice of offsetting emissions — and, consequently, trading in currently unregulated voluntary carbon markets — is increasing. At the same time, investors, the public and regulators are becoming increasingly apprehensive of the potential for corporate 'greenwashing'.