The Case for Compensation Claims

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In the complex landscape of carbon markets and climate action, the terminology we use to describe our actions is critical. Two terms currently under discussion in the market are compensation claims and contribution claims. Compensation claims can be made when an organisation “compensates” or takes responsibility for their unabated emissions through the purchase of an equivalent volume of carbon credits. Meanwhile, contribution claims can be made when an organisation makes a financial investment into credits for the purpose of supporting global climate goals.