Five large corporations have launched an effort to boost demand for carbon credits from “high quality” Reducing Emissions from Deforestation and Degradation (REDD+) projects in tropical countries.
Insurance giant Allianz, French retail conglomerate PPR, energy companies Eneco and Entega, and South African bank Nedbank have pledged to buy millions of dollars in emissions reductions credits generated by REDD+ projects that have been certified under both the Verified Carbon Standard (VCS) and the Climate, Community & Biodiversity Standards (CCB).
The initiative, dubbed Code REDD, requires carbon project developers to sign a code of ethics as well as achieve certification under VCS and CCB.
By publicly announcing the intent to purchase a large number of credits, Code REDD aims to push other companies to voluntarily commit to offset some of their CO₂ emissions with forest carbon credits while steering them away from dodgy REDD+ projects.
“Reducing your carbon footprint is not a UN obligation,” said Mike Korchinsky, Founder of the Code REDD Campaign and CEO of Wildlife Works, a REDD+ project developer. “It’s a global responsibility.”