There is no single universally agreed definition of voluntary compensation. In general, “voluntary compensation” means the act of voluntarily compensating a specific amount of greenhouse gas emissions with mitigation outcomes generated by supporting climate action outside the actor’s value chain, often motivated by efforts towards and beyond carbon neutrality. The Nordic Dialogue on Voluntary Compensation aims to develop a common understanding of the meaning of voluntary compensation among Nordic stakeholders. This is important for having a fruitful dialogue. 

Mitigation outcomes can mean reductions or avoidance of emissions as well as removals of carbon dioxide from the atmosphere.

The ongoing first phase of the Nordic Dialogue on Voluntary Compensation includes:

• Mapping Nordic stakeholder’s views on key issues to be addressed under the Dialogue. In practice, this will be done through an online survey that is open to all interested Nordic actors until 30 August 2021 through our website as well as through interviews with key stakeholders in all Nordic countries.
• Fostering a common knowledge base and understanding of key issues and concepts. In practice, this will be done by preparing a report on international guidance and initiatives and a glossary of key terms and concepts relating to voluntary compensation. A common language is important for having a fruitful dialogue.
• Developing outlines for a Nordic Code of Best Practice and an action plan for a Nordic approach to voluntary compensation. These outlines will reflect the inputs received from surveys and interviews, as well as relevant international efforts. These outlines will be presented to stakeholders and consulted to seek consensus, and identify and analyse any areas where consensus cannot be reached.

There are several reasons that Nordic cooperation on voluntary compensation may add value.

Firstly, all Nordic countries have ambitious climate targets and they have agreed to jointly promote carbon neutrality, including encouraging Nordic companies, investors, local governments, cities, organizations and consumers to step up their efforts towards carbon neutrality. The Nordic Dialogue on Voluntary Compensation is designed to support these efforts through Nordic cooperation.

Secondly, there are ongoing national efforts relevant to voluntary compensation in many Nordic countries. The Nordic Dialogue on Voluntary Compensation can help in sharing experiences and lessons across Nordic countries and identifying issues where Nordic cooperation can add value.

Thirdly, Nordic cooperation on voluntary compensation can be relevant for countries outside the Nordic region, and vice versa, international experiences in voluntary compensation can be relevant for Nordic countries. The Nordic Dialogue on Voluntary Compensation can help in sharing experiences and lessons on voluntary compensation between Nordic stakeholders and their international peers. The dialogue also aims to promote complementarity and alignment with relevant ongoing international initiatives relating to voluntary compensation.

A Nordic approach to voluntary compensation will be shaped by Nordic stakeholders under the Dialogue. The Nordic approach to voluntary compensation could include elements that the Nordic stakeholders consider valuable to develop or coordinate at the Nordic level. For example, Nordic stakeholder may see added value in developing joint Nordic high-level principles on what constitutes robust voluntary compensation, Nordic guidance on reporting on voluntary compensation and/or Nordic tools for estimating mitigation outcomes generated by activities in Nordic countries.

You can participate by filling out the survey by 30 August 2021, following us on Twitter and by subscribing to our mailing list to stay informed about activities and further opportunities to participate.