Corporate carbon claims in 2026: what makes one credible

Karbuna

Oct 19

4 min read

Riyadh skyline with the Kingdom Centre tower at sunset

Companies that use carbon credits face more searching questions about what they say in public. During 2026 the main voluntary frameworks were updated, and a European rule on offset-based product claims began to apply. This article sets out what a credible claim looks like as at October 2026, and why it matters in the Gulf.

Reductions come first

Every credible framework starts in the same place: a company's own emissions. The Science Based Targets initiative (SBTi) published version 2.0 of its Corporate Net-Zero Standard in June 2026. Under it, verified mitigation outcomes that a company supports outside its own inventory must be accounted for separately from that inventory and from progress against its targets.

The standard also introduces "ongoing emissions responsibility": action to address the emissions a company releases on its way to net zero. Until 2035 this is optional, with three levels of recognition (Engaged, Advanced and Leadership). From 2035, companies in the standard's Category A would be required to support eligible carbon removals equal to at least 1% of their ongoing emissions, a figure the SBTi labels illustrative. By the net-zero target year, any residual emissions must be neutralised with removals.

The VCMI Claims Code: credits on top of progress

The Voluntary Carbon Markets Integrity Initiative (VCMI) sets out how a company can make a claim that involves carbon credits. Under its Claims Code of Practice, a company must first meet four foundational criteria: a public annual emissions inventory, science-aligned near-term targets consistent with net zero by 2050, evidence of progress towards those targets, and public policy advocacy aligned with the Paris Agreement.

Only then can it make a Carbon Integrity claim, graded by the share of its remaining emissions covered by retired credits. Under the version published in August 2025:

Silver: at least 10% and less than 50% of remaining emissions.
Gold: at least 50% and less than 100%.
Platinum: 100% or more.

For Silver and Gold, the share must rise each year, and every claim is independently verified. Credits must meet the Core Carbon Principles (CCPs) of the Integrity Council for the Voluntary Carbon Market (ICVCM), ten principles covering governance, emissions impact and sustainable development. Interim routes apply until 1 January 2027; after that, credits must carry the CCP label or come from approved methodologies under the Paris Agreement's Article 6.4 mechanism. VCMI published a further update to the Code in September 2026.

Carbon neutrality under ISO 14068

For organisations and products claiming carbon neutrality, the international reference is ISO 14068. The original ISO 14068-1 was published in November 2023; in September 2026 ISO replaced it with ISO 14068:2026, a minor revision that updates the title and removes the part number.

Under the standard, emission reductions and removal enhancements within the value chain take priority, and offsetting is used only for the footprint that remains. Carbon neutrality is treated as a pathway of continual improvement, and the standard sets criteria for the carbon credits and crediting programmes that may be used.

Wording that no longer works in the EU

From 27 September 2026, EU member states must apply Directive (EU) 2024/825 on empowering consumers for the green transition. It bans claims, based on offsetting greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment in terms of those emissions.

The directive's recitals make clear that companies may still advertise their investments in environmental initiatives, including carbon credit projects, provided the information is not misleading. The practical shift is from outcome labels such as "carbon neutral product" to factual statements about what a company has funded, and why.

What this means for Gulf companies

In the UAE, Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects entered into force on 30 May 2025. It requires public and private entities whose activities emit greenhouse gases to measure their emissions, keep an inventory and report periodically, and it provides for a National Carbon Credit Registry. A measured inventory, the starting point of every framework above, is becoming a regulatory baseline as well as a voluntary one. In May 2026 the Doha-based Global Carbon Council announced that the ICVCM had approved its standard as CCP-Eligible.

For a Gulf company preparing a claim, five questions are worth settling early:

Is the emissions inventory complete, and has it been independently assured?
Are targets science-aligned, and is the company on track against them?
Which credits will be used, and do they meet the Core Carbon Principles?
Does the wording describe what was funded, rather than an outcome the credits cannot support?
Will the claim reach consumers in markets such as the EU, where specific rules apply?

Our view

A credible claim in 2026 rests less on the label and more on the evidence behind it: a measured footprint, real reductions, high-quality credits and plain words. That places weight on the projects that generate credits, because a claim is only as sound as the units retired against it.

Karbuna is a carbon project development and management company based in the GCC. We develop and manage projects for their owners across the region, with the documentation, monitoring and governance that credible claims increasingly depend on. We do not buy, sell or broker carbon credits.

This article is general information only. It is not legal, financial or investment advice.