At one of Europe’s biggest climate events, ChangeNOW 2025, France made a major move toward building a stronger, more credible carbon market. On April 24, 2025, French Minister for Ecological Transition, Biodiversity, Forests, the Sea, and Fisheries, Agnès Pannier-Runacher, unveiled a new Charter for Paris-aligned and High-Integrity Use of Carbon Credits.
This launch marks an important step to further push the progress happening since the launch of the 2015 Paris Agreement.
The session also brought together some of the most influential voices in climate action like Simon Stiell, Executive Secretary of the UNFCCC; and Dr. Osama Faqeeha, Saudi Arabia’s Deputy Minister of Environment and President of COP16 under the UN Convention to Combat Desertification.
They stressed that urgent, real-world action like credible climate solutions is needed to move closer to global net-zero goals.
France’s Emissions Drop but Natural Carbon Sinks Also Shrink
France accounted for 12.4% of the EU’s total greenhouse gas (GHG) emissions. Overall, France’s total emissions dropped by 31.2% between 2005 and 2023. However, not all trends were positive. During the same period, France’s carbon sink, comprising mainly forests and land that absorb CO2, shrank by more than half.
While emissions from sectors covered by the EU’s Emissions Trading System (ETS) fell by an impressive 52.3%, emissions from sectors outside ETS (under effort-sharing rules) dropped by only 24.1%.
France now needs to reduce its emissions by around 5% every year from 2022 to 2030 to meet the EU’s new climate target of a 55% net emissions cut. And more significantly it must also rebuild its carbon sink.
France has set an ambitious goal of cutting its GHG emissions by 50% compared to 1990 levels by 2030. In 2005, France’s emissions stood at about 566 million tonnes of CO2 equivalent (MtCO2e). By 2023, these emissions were 24.1% lower than in 2005.
- In 2023, per capita emissions were 5.7 tonnes of CO2 equivalent — a 37% decrease from 2005.
- The carbon intensity of France’s economy also improved, dropping by 43% between 2005 and 2023.
How the Carbon Credit Charter Supports Real Net Zero Progress
The new Carbon-Credit Charter calls on companies to use carbon credits responsibly, focusing on transparency and real climate action. Seventeen international companies, including Schneider Electric, have already signed the pledge.
At its core, the Charter commits businesses to three main principles:
- Prioritize Their Own Emission Reductions: Companies must first work on cutting their own emissions across all three scopes (Scope 1, 2, and 3) and publish a time-bound climate transition plan.
- Use Carbon Credits Only as a Complement: Carbon credits should never replace efforts to reduce emissions. Instead, they can help address any remaining emissions on the way to achieving net-zero goals.
- Clear and Separate Reporting: Companies must clearly report their gross emissions and disclose separately any use of carbon credits.
These principles closely follow the Voluntary Carbon Markets Integrity Initiative (VCMI)’s international best practice guidelines, including their Claims Code of Practice and the upcoming Scope 3 Action Code of Practice.
Building Momentum from COP29
The Charter’s launch comes at a time of rising international momentum. In November 2024, during the COP29 UN Climate Conference, a global consensus was reached on the long-awaited standards for carbon credits under Article 6.4 of the Paris Agreement.
These standards introduced clear rules for validating, verifying, and issuing high-quality carbon credits, setting a stronger foundation for international carbon markets.
Importantly, the new French Charter requires companies to align their carbon credit purchases with:
- The Article 6.4 Mechanism Standards
- The Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles
This dual focus ensures both supply-side (quality of carbon credits) and demand-side (how companies use credits) integrity.
Why This Matters Now
Commenting on the launch, Lydia Sheldrake, VCMI’s Director of Policy and Partnerships, praised France’s leadership. She said,
“The French government has shown international leadership by convening a group of high-ambition businesses to commit to using carbon credits with confidence and credibility.”
Sheldrake stressed that high-integrity carbon markets can drive immediate progress toward global climate goals. However, she also emphasized that real change will need strong mandates and clear market demand signals—areas where the French government is stepping up.
VCMI helps companies invest in voluntary carbon markets confidently and responsibly. According to Sheldrake, today’s announcement proves that VCMI’s guidance is now central to helping governments and businesses engage with carbon markets properly.
France Gives a Clear Signal to Global Carbon Markets
By introducing this Charter, France is sending a clear message: carbon credits are not a free pass. Companies must first reduce their actual emissions and only use carbon credits for the unavoidable emissions on their net-zero journey.
Furthermore, the signatories have pledged to ensure their credits come from reliable sources, either through the Article 6.4 mechanism or ICVCM-approved standards. This will help remove low-quality or questionable credits from the system, strengthening the credibility of the entire carbon market.
To summarize, the pledge offers:
- A clear blueprint for businesses and governments worldwide on how to participate in carbon markets without undermining climate goals.
- A hope that voluntary carbon markets will become an even more powerful force in the fight against climate change.
Still, success depends on wide adoption. Other countries and more companies must follow this example, committing to credible carbon credit use and putting real effort into emission cuts. All this all, this latest annoucement from France shows that real, practical steps are being taken to strengthen climate action.
