(h) Article IX: Public Announcements and Marketing

Under OSCAR, the parties are required to coordinate any press releases and public announcements. Buyer-friendly Offtake Agreements often include additional language prohibiting the supplier from using the buyer's name or logo without the buyer's prior written consent, while granting the buyer the right to use project images, data, and information for its own marketing and communications purposes. Both parties are typically subject to an overarching obligation to avoid misleading or inaccurate environmental claims in their public statements, thereby providing a framework that protects each party from reputational harm while allowing buyers to credibly highlight their climate contributions.

Increased Relevance of Communications

Public communications in the carbon market carry heightened significance because they can amplify reputational risks. A buyer who presents or frames purchased CDR credits in a misleading manner, whether by overstating their climate impact or using them in contexts for which they were not intended, may inadvertently harm the supplier. Such misrepresentations can result in accusations of greenwashing, reputational damage, or even regulatory scrutiny, with suppliers drawn into controversies beyond their control.

Key Questions for Risk Allocation

Can a supplier be harmed by a buyer's misuse of CDR credits? If a buyer exaggerates claims, employs CDR credits in misleading marketing, or uses them in a way that contravenes regulatory guidelines, the supplier's reputation and credibility may suffer. This risk is especially acute for early-stage CDR companies that depend on maintaining trust with investors, regulators, and local stakeholders.

What remedies should be available? To mitigate these risks, agreements may include supplier consent rights over specific uses of project information, requirements for corrective disclosures in the event of misstatements, indemnification for damages arising from buyer misuse, or, in severe cases, termination rights that allow the supplier to disengage from the relationship.

Should buyers provide notice of material context changes? Yes. Buyers should be required to notify suppliers if the intended use of CDR credits changes in a material way. For example, if CDR credits are shifted from voluntary offsetting claims to compliance obligations, or if they are deployed in connection with contested or high-risk claims frameworks. Early notice enables suppliers to assess whether they are comfortable with the new context and to exercise any applicable contractual rights. The current version of OSCAR omits this point.

Balancing Reputation and Marketing Needs

Reputation is often one of the buyer's chief motivations for purchasing CDR credits, as companies seek to demonstrate climate leadership and corporate responsibility. This section of OSCAR is therefore designed to strike a careful balance. On the one hand, it protects against unauthorized publicity and prevents buyers from making claims that could expose suppliers to reputational or legal risks. On the other hand, it grants buyers sufficient rights to communicate their involvement in carbon removal projects, enabling them to tell credible, standards-compliant climate stories. By balancing the supplier's need for confidentiality with the buyer's marketing objectives, OSCAR creates a framework that safeguards both parties while supporting transparent and responsible market growth.