The government of France presented a new “Charter for Paris-aligned and high integrity use of carbon credits,” launching a pledge for companies to follow in using carbon credits to help reach their climate goals, aimed at supporting the development of a more transparent and credible international carbon market.
The charter, announced by French Minister of Ecological Transition, Biodiversity, Forests, the Sea and Fisheries Agnès Pannier-Runacher, marks the latest in a series of developments supporting the growth of high integrity carbon markets. Most notably, in November 2024 at the COP29 UN Climate Conference, an international consensus was reached on standards for the creation of carbon credits under Article 6.4 of the Paris Agreement, establishing a mechanism for the validation, verification and issuance of high-quality carbon credits.
The developments aim to address a key issue threatening to hold back the growth of carbon markets, with market participants unable to differentiate between high- and low-quality projects with insufficient or inconsistent data to assess the effectiveness of the projects.
France’s new charter calls the adoption of Article 6.4 a “new beginning for carbon markets,” adding:
“They establish a global benchmark that seeks to ensure the highest integrity carbon credits, and a framework that provides reference for Paris Aligned Crediting in terms of governance, methodologies, transparency, and risk prevention for all carbon credit markets. The Article 6.4 mechanism also systematically contributes to fund adaptation measures for the benefit of least developed and vulnerable developing countries, including small island developing states (SIDS).”
The charter focuses on two key commitments for companies, targeting the appropriate use and conditions for utilizing carbon credits, and ensuring integrity of the carbon credits used. The commitments include a “decarbonization first” pledge to ensure that carbon offsetting is used “only by companies that have established global Net Zero pathway and targets validated by an independent institution as consistent with the Paris Agreement,” with a priority given to emissions reduction, reporting to be provided on all three scopes of emissions and on a time-bound transition plan, and for carbon credits to be used “not as a substitute but only as a complement” to emissions reductions. Additionally, companies commit to use only carbon credits aligned with Article 6.4 and those approved under the Integrity Council for Voluntary Carbon Markets (ICVCM) Core Carbon Principles.
The pledge was signed by 17 companies, including Schneider Electric, Capgemini, Beko and FDJ United.
Pannier-Runacher said:
“Faced with the climate emergency, international cooperation is more essential than ever. To reduce greenhouse gas emissions globally, we must mobilize all available levers. Businesses have a key role to play in this dynamic: by financing high-impact projects in developing countries, they contribute to the construction of a credible, inclusive, and economically efficient carbon market, complementing their own decarbonization efforts. I reiterate my call to them: get involved!”
