This paper, commissioned by The Coalition to Grow Carbon Markets, sets out how governments can design safe harbour provisions to protect companies that make good-faith claims about their use of carbon credits. It draws on analysis of existing guidance and regulation, consultation with corporates, and input from Coalition member governments.
The research found that litigation risk is holding back demand for high-integrity credits. To support carbon market growth and unlock greater private investment in emissions reductions, IETA recommends that governments design safe harbour provisions to:
- Address both credit quality and the claim being made
- Frame what claims may be made appropriately
- Select relevant carbon credit standards and eligible credit types
- Clarify that either non-authorised or authorised credits may be used, except where a specific policy requires authorised credits
- Set out permissible statements when making claims
- Decide whether safe harbour should be binding or non-binding
