Hanna-Mari Ahonen, Senior Consultant at Perspectives Climate Research, noted that, according to a recent survey, Nordic stakeholders welcome companies’ climate targets and claims, but find them hard to understand and compare. The Dialogue aims to address these challenges by fostering a common understanding of key concepts and co-creating a Nordic approach to high-integrity voluntary compensation together with Nordic stakeholders, complementing national and international initiatives. Hanna-Mari noted that the Dialogue’s new report explains key concepts, such as net zero and carbon neutrality, and maps international guidance on best practices in voluntary compensation.

Helen Mountford, Co-Chair of the Task Force on Net Zero Goals and Carbon Pricing, noted that the number of net-zero pledges has increased rapid in the past two years. According to Helen, their inconsistent use is creating confusion and mistrust. She stressed the importance of addressing greenwashing concerns raised by the youth movement and activists and the need to improve the consistency, transparency and credibility of companies’ targets. She highlighted the Science-Based Target initiative’s new net-zero standard as an important tool for ambitious corporate target-setting and accountability. To achieve net zero, only a small amount of residual emissions may remain and should be counterbalanced by permanent removals in the target year. Along the way to net zero, Helen noted that companies are encouraged to purchase carbon credits to compensate for their remaining emissions through additional investments in mitigation beyond their value chain. She stressed, however, that this should complement their own efforts to rapidly decarbonise their value chain as much as possible. She emphasised that there is no more space for the traditional use of offsetting as a substitute for own mitigation.

Mark Kenber, Co-Executive Director for External Affairs for the Voluntary Carbon Markets Integrity Initiative (VCMI), fully supported the points raised by Helen. He emphasised that we are now in a new world, while recognising that offsetting was done in good faith in the past. Mark noted that VCMI is working with various initiatives to create a rigorous and understandable set of claims that companies can make about their climate actions, when they go beyond what they can achieve within their value chains. The VCMI aims to both prevent false claims and facilitate high-integrity claims. Mark concluded that the use of voluntary carbon markets can be a great thing if – and only if – it is additional to corporate decarbonisation efforts and countries’ NDCs, and it is based on investments in activities that are driven by the communities’ and the host country’s needs to accelerate climate action.

Matti Kahra, Senior Climate Specialist at Nordea, one of the biggest banks in Europe, said that Nordea has committed to reducing its portfolio emissions by 40-50% by 2030 and becoming a net-zero bank by 2050. He outlined three dimensions of net zero and carbon neutrality that are relevant for Nordea. Firstly, since all loans and investments made by Nordea need to be net-zero by 2050, Nordea needs to understand all of its customers’ plans regarding their transition to net zero, including the role of offsetting in their journey. Secondly, Nordea could provide financing for mitigation activities that generate carbon credits for the voluntary carbon markets, including Nordic companies and start-ups active in the voluntary compensation space. Thirdly, the bank aims to become carbon positive by 2030, including by using offsetting. Matti noted that Nordea’s annual procurement of some EUR 2 billion worth of goods and services provides further opportunities to promote carbon neutrality. He stressed that initiatives that promote integrity, comparability and transparency are very important in helping banks and other stakeholders to understand the current heterogenous landscape.

Kari Hämekoski, Senior Programme Manager at the Nordic Environment Finance Corporation and manager of the Nordic Initiative for Cooperative Approaches, highlighted that, if robust rules are in place, market-based cooperation can deliver win-win-win benefits relating to ambition-raising, sustainable development and cost-effectiveness. He noted that market-based cooperation can be used to promote specific priorities, such as the Nordic priority of gender equality, and it can also serve as a buffer against uncertainties in own plans and actions. Kari emphasised that the private sector is key to implementing action on the ground and that Article 6 can incentivise private sector investments in mitigation, not only based on projects but also broader programmes and policies.