VCMI launches framework to tackle Scope 3 emissions gap by 2040

Carbon market integrity entity VCMI has launched a new ‘Scope 3 Action Code of Practice’ to help companies tackle the gap between their Scope 3 reduction targets and what they are actually achieving.

The code supports companies in measuring their Scope 3 emissions gap and disclosing it, as well as the barriers they are facing in reducing value chain emissions, and what they are doing to overcome these issues. Beyond that, it provides a framework on how companies can use high-quality carbon credits to offset some of the gap – which is estimated at 1.4 gigatonnes of CO2e today and could reach 7 gigatonnes by 2030.

With mid-term climate targets fast approaching, firms have been making progress in reducing operational emissions – but for the most part, Scope 3 emissions are either increasing along with business growth or stagnating.

With its new Code of Practice, the Voluntary Carbon Market Integrity initiative (VCMI) acknowledges that Scope 3 emissions are not decreasing at the necessary pace, but encourages companies to pursue continuous and incremental action.

15 years to get Scope 3 back on track

The framework, which was developed following an extensive consultation, states that carbon credits are to be used in addition to, and not as a substitute for, direct decarbonisation of value chain emissions. 

It also lays out quality criteria for carbon credits, mandating companies to retire the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles-labelled credits, or UN-governed Article 6.4 credits when they become available – with interim options acceptable until January 1, 2026 given the low availability of these labelled credits.

The VCMI code gives the corporate world 15 years to overcome barriers to Scope 3 decarbonisation, with 2040 as a deadline to be back on a net zero-consistent pathway.

Christiana Figueres, Founding Partner of Global Optimism and Former Executive Secretary, UNFCCC, commented: “The Voluntary Carbon Markets Integrity Initiative’s Scope 3 Action Code of Practice provides a science-aligned, practical pathway for credible action. It is not a license to delay, but a framework of integrity. It ensures carbon credits are used only where direct reductions face real barriers, and always in addition to deep emissions cuts.”

VCMI Scope 3 framework backed by governments and businesses

The code has been backed by business organizations and coalitions including the International Chamber of Commerce (ICC), We Mean Business Coalition, Environmental Defense Fund, and World Economic Forum, among others.  

In addition, the governments of the UK, Peru and Panama have also welcomed it, with the UK exploring implementation as part of live consultation on raising integrity on carbon and nature markets.

Kerry McCarthy MP, UK Minister for Climate, said: “ By combining direct decarbonisation within the value chain alongside appropriate use of high-integrity carbon credits, businesses can go further, faster, and deliver finance to projects that reduce and remove emissions. Now is the time to embrace this approach, unlock momentum, and ensure companies deliver the speed and scale of global climate action required.”