The funding of high quality climate action by companies beyond their value chain can play an important role in the transition towards global net zero emissions. When done correctly, it can provide much-needed funds to activities that can deliver benefits both for the climate and for sustainable development.

In this context, it is essential that companies have a clear and credible model. Despite the scrutiny and shortcomings of existing carbon neutrality  models, few companies have yet fully embraced alternative channels to finance climate action outside of their value chains. This is why Carbon Market Watch, alongside 44 other organisations and individuals, emphasise, in this joint statement, that an alternative model already exists. It is clear, simple, implementable and easily communicable. It does not need to be defined by a single name, but instead by key steps. 

It is now time to act.