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description=Dig into the research, methodology, and standards behind the Climate Label Certified program.;

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or more near term science aligned emissions reduction target e g for 2030 targets must apply at a minimum to all emissions included in table 1 targets may be set using the tccp methodology for science aligned target setting alternatively they may follow the exponential roadmap s carbon law of 50 absolute reduction by 2030 or be formally validated by the science based targets initiative following either cross sector or sector specific guidance if applicable targets must aim to limit global heating to a 1 5 c or well below 2 c warming scenario entities with less than 100 million in annual revenues are encouraged but not required to set a near term science aligned target c reduction progress all re certifying entities must annually submit the following data to enable tracking of progress toward reduction action plans and science aligned targets absolute emissions emissions intensity reduction action plan completion status certifying entities are encouraged to complete raps within two years of setting them and demonstrate emission reductions that track with near term science aligned targets d exceptions for certain businesses small certifying entities with annual revenues under 2 million must set at least one 1 rap small and medium certifying entities whose revenues are derived more than 80 from services activities are encouraged but not required to meet the criteria in section 2 03 fund 3 1 climate transition budget the climate transition budget ctb is a company s minimum total required funding for the net zero transition and brings financial structure and transparency to corporate targets and climate transition plans certifying entities must calculate a ctb to determine their minimum funding requirement for qualifying projects across value chain abatement vca beyond value chain bvc and other contributions oc companies are encouraged but not required to exceed the minimum a carbon fee the ctb is the product of the total ghg inventory tco2e and the carbon fee for the year in which certification occurs see table 3 a preliminary ctb may be calculated for planning purposes at any time during measurement a final ctb must be calculated using assured inventory data table 3 carbon fee tonne in usd scope 1 2 3 emissions 2026 15 2027 16 2028 17 2029 avail sept 2026 scope 1 2 3 emissions 2026 15 2027 16 2028 17 2029 avail sept 2026 b required ctb allotment to value chain abatement vca a minimum portion of the ctb must be allotted to qualifying vca projects defined in section 3 2 following the minimum percentages in table 4 there is no cap 2 table 4 minimum vca allotment 100m annual revenue 100m annual revenue 2026 10 20 2027 10 30 2028 10 30 100m annual revenue 2026 10 2027 10 2028 10 100m annual revenue 2026 20 2027 30 2028 30 see section 3e 2 for example in 2025 a company with a ctb of 100 000 must allot at least 10 000 to vca projects and up to 90 000 to bvc projects it could alternatively split the ctb 50 50 between vca bvc it could also choose to exceed the ctb and allot 150 000 to vca c ctb allotment to beyond value chain bvc projects and other contributions the portion of the ctb that is not allotted to vca must be allotted to bvc projects and or other contributions following the requirements listed in sections 3 3 and 3 4 below a maximum of 15 of the ctb may be allotted to other contributions d requirements for timing of investments timing of vca funding must include new expenditures capital or operating made or accrued during four consecutive quarters in the certification year and or the emissions year that contribute toward reducing value chain emissions certifying entities may choose their time frame based on their spending and budgeting practices bvc investments and other contributions may take place during the emissions year or the certification year up to the date of submission note the certification year is the year in which the certification process is completed and the emissions year is the year preceding certification e exception for certain businesses certifying entities with 100m in annual revenue that are seeking certification for the first time or whose revenues are derived more than 80 from services activities may meet a minimum vca allotment of 10 3 2 value chain abatement qualified value chain abatement vca funding supports projects undertaken to reduce emissions within a company s direct operations or supply chain most vca projects involve direct funding for equipment or direct costs that meet eligibility criteria however certain vca projects may be accessed through market based instruments where eligible these are noted in table 5 and in the technical appendix requirements for documentation of vca projects are provided in the technical appendix refer to section 3 1 b for required funding thresholds a vca project criteria certifying entities must determine their top sources of emissions and are encouraged to fund vca projects with the highest potential to achieve reductions across their scope 1 2 and 3 emissions vca projects must be linked to activities that are expected to reduce greenhouse gas emissions below levels that would be expected without the vca investment vca projects do not qualify if they include equipment other than energy generating equipment upgrades that would happen due to regular replacement of depreciated equipment or capacity expansion projects needed to support business growth vca projects do not qualify if they are otherwise required in order to comply with an existing law or regulation table 5 eligible vca categories spend requirement 10 minimum no maximum share of the ctb eligible expenditures materials and manufacturing low carbon material purchases purchase of low carbon input alternatives price premium additional direct costs low carbon material integration equipment to support integration of new materials components or technologies capital lease services costs material use efficiency equipment to reduce emissions from material inputs and waste capital lease services costs ghg capture equipment capital lease services costs energy procurement and production low carbon electricity and fuels ppas vppas bundled with recs eacs voluntary green tariffs saf credits zemba credits etc price premium additional direct costs clean energy generation solar panels wind turbines etc capital lease services costs direct fuel switching low carbon fuel conversion capital lease services costs efficiency and electrification energy efficiency lighting hvac other building efficiency manufacturing process efficiency capital lease services costs efficient logistics low carbon shipping price premium additional direct cost for services electrification installation of heat pumps installation of clean cooking equipment conversion to ev fleets charging stations evse capital lease services costs natural climate solutions reforestation afforestation regenerative agriculture soil carbon sequestration ecosystem habitat restoration capital lease services costs spend requirement at least 10 of the ctb 2025 materials and manufacturing low carbon material purchases purchase of low carbon input alternatives eligible expenditures price premium additional direct costs low carbon material switching equipment to support integration of new technologies materials products or processes eligible expenditures capital lease services costs ghg capture equipment eligible expenditures capital lease services costs energy procurement and production low carbon electricity ppas vppas bundled with recs eacs voluntary green tariffs eligible expenditures price premium additional direct costs clean energy generation solar panels wind turbines etc cost to install equipment on supplier s facility eligible expenditures capital lease services costs direct fuel switching cost to transition suppliers to consuming lower carbon fuels eligible expenditures capital lease services costs efficiency and electrification energy efficiency lighting hvac other building efficiency manufacturing process efficiency eligible expenditures capital lease services costs efficient logistics low carbon shipping eligible expenditures price premium additional direct costs electrification installation of heat pumps installation of clean cooking equipment conversion to ev fleets charging stations evse eligible expenditures capital lease services costs please refer to the technical appendix for more information about project eligibility 3 3 beyond value chain qualifying beyond value chain bvc funding supports projects that reduce emissions adjacent to or beyond the company s value chain bvc projects yield ghg reductions that are not reflected in a company s ghg inventory some projects outside the value chain are funded through market based instruments others entail direct funding or co investment in reduction projects in an entity s broader economic or geographic market or beyond its value chain eligible bvc project types are noted in table 6 requirements for documentation of bvc projects are provided in the technical appendix refer to section 3 1 c for required funding thresholds table 6 eligible bvc project types spend requirement no minimum maximum 90 of ctb eligible expenditures eligible expenditures market based instruments eligible carbon credits nature based avoidance and removals credits energy and industry avoidance and removals credits includes cdr direct share of costs electricity certificates unbundled recs gos etc direct share of costs low carbon fuel certificates saf certificates zemba credits etc direct share of costs directly funded mitigation projects eligible value chain adjacent projects occurring within an entity s broader economic or geographic market see project types in table 5 see table 5 global mitigation projects occurring fully outside of an entity s value chain geography and market region see project types in table 5 see table 5 spend requirement no minimum no maximum voluntary carbon market carbon credits nature based avoidance and removals credits energy and industry avoidance and removals credits incl cdr eligible expenditures direct share of costs other market based instruments energy attribute certificates unbundled recs gos etc eligible expenditures direct share of costs zero emission transport credits saf zemba etc eligible expenditures direct share of costs a market based instruments in general market based instruments for ghg mitigation may show up in a variety of places in a company s climate portfolio direct procurement by the certifying entity is the commonest approach although instruments may be purchased by third party entities on behalf of the certifying entity by third parties for the benefit of value chain partners etc each of these situations can be different although with few exceptions the requirements for the underlying market based instruments are consistent regardless of how and for whom they are purchased i requirements for carbon credits acceptable methodologies for third party verification carbon credits must be verified under methodologies from one of the following carbon crediting programs gold standard verified carbon standard climate action reserve american carbon registry or european biochar certificate in addition all carbon credits that meet the icvcm s core carbon principles ccp approved methodologies as of the date of purchase are eligible regardless of methodology as long as they meet the vintage year restrictions in this section 3 3 carbon credits from project categories that have specifically received a status of does not meet on the icvcm website as of december 31 2025 are not eligible to be used toward certification vintage year restriction all carbon credits from forestry and land use projects must have a vintage year from 2019 to 2025 all carbon credits from other project types must have a vintage year from 2022 to 2025 eligible carbon credit types and categories all carbon credit purchases must be from the approved project categories and types in table 7 certifying entities are encouraged but not required to follow the portfolio allocation principles outlined in the oxford principles for net zero aligned carbon offsetting third party carbon credit ratings certifying entities are encouraged but not required to evaluate third party project ratings from providers including bezero calyx global renoster and sylvera table 7 eligible carbon credit types project categories eligible project types eligible vintage years emissions removed or avoided from nature agriculture grasslands e g avoided ecosystem conversion grassland rangeland management soil carbon biochar blue carbon e g mangroves coastal conservation wetland seagrass restoration forestry e g afforestation avoided deforestation improved forest management peatland restoration redd reforestation 2019 to 2025 emissions avoided from energy and industry chemical industrial e g manufacturing high gwp gas capture n2o abatement household community e g cookstoves composting household energy efficiency water filtration renewable energy e g biomass geothermal small scale hydropower solar wind transportation e g electric vehicles 2022 to 2025 carbon dioxide removals cdr engineered removals e g direct air carbon capture open system carbon removals e g oceans mineralization 2022 to 2025 excluded project types hfc 23 destruction large scale energy efficiency in non ldcs large scale hydro tokenized credits n a not allowed emissions removed or avoided from nature eligible project types agriculture grasslands e g avoided ecosystem conversion grassland rangeland management soil carbon biochar blue carbon e g mangroves coastal conservation wetland seagrass restoration forestry e g afforestation avoided deforestation improved forest management peatland restoration redd reforestation eligible vintage years 2018 to 2024 emissions avoided from energy and industry eligible project types chemical industrial e g manufacturing high gwp gas capture n2o abatement household community e g cookstoves composting household energy efficiency water filtration renewable energy e g biomass geothermal small scale hydropower solar wind transportation e g electric vehicles eligible vintage years 2018 to 2024 carbon dioxide removals cdr eligible project types engineered removals e g direct air carbon capture open system carbon removals e g oceans mineralization eligible vintage years 2018 to 2024 excluded project types eligible project types hfc 23 destruction large scale energy efficiency in non ldcs large scale hydrotokenized credits eligible vintage years n a not allowed small scale follows un cdm definitions i e 15mw for renewables and 60 gwh in annual improvements from energy efficiency carbon dioxide removals apply to new project types where methodologies have not yet been developed so verification is not possible a list of the un s least developed countries ldcs can be found here ii requirements for other market based instruments electricity certificates low carbon fuel certific...