No excessive integrity label for carbon credit primarily based on present renewable vitality methodologies: ICVCM | Information | Eco-Enterprise

ICVCM stated right this moment that carbon credit issued underneath current renewable vitality methodologies have been “insufficiently rigorous” in proving additionality, which is whether or not the initiatives would have gone forward with out the inducement of carbon credit score revenues.

“We’re taking the powerful selections needed to construct a high-integrity voluntary carbon market that may be scaled to meaningfully fund local weather options and channel materials quantities of finance to the International South,” stated ICVCM chair Annette Nazareth.

The choice impacts 236 million unretired credit on the voluntary carbon market, virtually a 3rd of all unretired credit, stated the council. It brings the entire variety of unretired credit which may use the CCP label to an estimated 27 million, 3.6 per cent of the market.

The rejected methodologies, which have been created underneath the United Nations-run Clear Improvement Mechanism, embody these associated to grid-connected electrical energy from renewable sources, electrical energy and warmth generated from biomass, in addition to the displacement of fossil fuels by geothermal-based heating [see box]. They’ve been utilized by carbon credit score certifiers Verra and Gold Customary.

In a response to the council’s determination, Verra defined that whereas it didn’t develop the methodologies and instruments, it accepted the methodologies “created many years in the past” underneath the CDM, which it has lengthy recognised as an eligible programme.

“[These are] methodologies that of their time did certainly kickstart the worldwide vitality transition we’re seeing right this moment,” a spokesperson Verra for advised Eco-Enterprise.

The certifier stopped accepting new renewable vitality initiatives in 2021 when in most international locations, the renewables market had developed in order that grid-scale initiatives now not required local weather finance. Nonetheless, Verra nonetheless makes an exception for renewable vitality initiatives in least developed international locations, “the place carbon credit can nonetheless make the distinction between new coal and new clear vitality,” it stated.

Gold Customary of their response to the council’s determination additionally pointed to the wants of areas which nonetheless face monetary and technical obstacles to renewable vitality initiatives. “There are nonetheless a big variety of places the place carbon market funding for these undertaking sorts is extra,” they stated in a press release shared with Eco-Enterprise. “Due to this fact, whereas we welcome additional evaluation by governing our bodies such because the ICVCM, we consider additionality evaluation ought to be utilized at a project-level and never a blanket methodology-level analysis.”

Moreover, carbon credit which have been issued earlier than the 2023 publication of ICVCM’s high-integrity evaluation framework ought to solely be held to the very best customary analysis markers current on the time of their certification, Gold Customary careworn.

Authorized methodologies

ICVCM stated that it practises a “two-tick” course of for the CCP label, which means that the carbon-crediting programme should be deemed eligible and undertaking methodologies authorized by the council.

“The largest [carbon crediting] programmes – American Carbon Registry, Local weather Motion Reserve, Gold Customary and Verra – are all eligible and capable of apply the CCP label to credit utilizing authorized methodologies,” ICVCM stated.

The council authorized a brand new methodology right this moment for initiatives to detect and restore leaks in current pure gasoline pipelines, which is used for carbon credit in lower-income international locations which have ageing infrastructure and don’t but regulate gasoline leaks. The methodology is presently used for an estimated 19 million unretired carbon credit from initiatives in Bangladesh, stated ICVCM.

This brings the entire of its authorized methodologies to eight, after the council in June authorized 4 methodologies for initiatives that seize methane from landfill websites and three for initiatives that destroy stockpiles of ozone-depleting substances. Different methodologies have been grouped into 29 classes for evaluation by multi-stakeholder working teams, ICVCM stated.

“Assessments of some vital credit score classes have concluded and can quickly come to the [council’s] governing board for selections, together with improved forest administration and afforestation, reforestation and revegetation,” it stated.

ICVCM additionally stated that it’s nonetheless assessing two different grid-connected renewables methodologies and different mini-grid methodologies with low market share.

Going ahead, Gold Customary stated that as it really works to convey greater integrity and significant sustainable growth to carbon markets, it will proceed to encourage engagement and collaboration with governance our bodies. “We look ahead to partaking with the ICVCM on the subject of renewable vitality initiatives, via their working programmes or in any other case,” stated Gold Customary.

Verra, in the meantime, stated that it will be revising its instruments for assessing additionality and electrical energy emissions. “Present initiatives could have the choice to replace their initiatives to reveal that they met the necessities of the up to date instruments and thereby qualify for CCP labels,” their spokesperson stated.