New guidance for the verification and validation of reporting on sustainability will help businesses take the steps towards participation in a global carbon market following the landmark approval of rules for international carbon trading and accounting at the recently concluded COP29 in Baku, Azerbaijan.
One of the landmark achievements to emerge from the climate summit was the finalisation of rules under Article 6.4 of the Paris Agreement, creating a framework for credible international carbon markets. These markets are a pivotal tool for mobilising private sector finance, which is expected to shoulder 85% of the financial burden in the net-zero transition.
“This outcome completes the Paris rulebook and establishes the standards necessary for voluntary carbon markets to function effectively,” said Martin Baxter, Deputy CEO of IEMA. “To support businesses in this space, IEMA has launched new Verification and Validation Guidance, written by expert IEMA members working in sustainability consulting and auditing, that will ensure businesses collect and report data that has the integrity and accuracy required to participate in any carbon trading scheme that emerges from the COP summit.”
The guidance outlines best practices for assuring sustainability and carbon emissions data, which is vital for compliance with both voluntary schemes and regulatory measures, such as the EU’s Emissions Trading Scheme (EU ETS) and the forthcoming Carbon Border Adjustment Mechanism (CBAM).
The Verification and Validation Guidance was developed by Lucy Candlin FIEMA, Director of Planet & Prosperity, a sustainability, climate change and environmental management consultancy; Helen Sprakes PIEMA, a member of IEMA’s Climate Change and Energy Steering Group and manager of Environmental Strategies Ltd., a sustainability auditing firm; and Mairi Dorward MIEMA, an Environment Specialist at Xodus, a global energy consultancy.
Despite reaching a compromise, COP29 highlighted the persistent divide between developed and developing countries over climate finance to help cut carbon emissions, enhance climate resilience and provide support for loss and damage. The agreed increase from $250 billion to $300 billion per year is a step forward but falls significantly short of the $1.3 trillion annual figure by 2035 that was desired by developing nations.
The absence of mechanisms to monitor and track the implementation of the Global Stocktake, as requested by developed nations, further underscores the urgency for more transparent and actionable frameworks.
While progress on carbon markets and financial commitments is encouraging, these measures alone are insufficient to meet global climate goals. IEMA is calling for an integrated approach that combines robust public funding, accelerated private sector engagement, and a focus on credible, science-based solutions.
“We cannot achieve meaningful climate action without aligning financial flows, policy mechanisms, and implementation frameworks,” added Martin Baxter. “IEMA is committed to supporting businesses and governments in navigating these complex challenges with practical guidance and impartial expertise.”
The new guidance document, Verification and Validation - A Guide for Reporting Entities, has been published today and is now available to IEMA members.
