The challenges of getting a project verified

The challenge behind a credible and sustainable carbon credits market. 

Here are a few key initiatives and developments related to the standardization of carbon credit verification:

  1. International Organization for Standardization (ISO): ISO has developed standards related to carbon footprinting and carbon offsetting, which provide guidelines for the measurement and verification of carbon credits. ISO 14064-2 specifies requirements for quantifying, monitoring, and reporting greenhouse gas emissions and removals, including the validation and verification process for carbon offset projects.
  2. Verified Carbon Standard (VCS): The VCS is one of the most widely used voluntary carbon offset standards. It provides a robust framework for the verification and certification of carbon offset projects. VCS projects must undergo third-party verification by an accredited verifier to ensure that the claimed emission reductions are real, additional, measurable, permanent, and independently verified.
  3. Gold Standard: The Gold Standard is another prominent certification standard for carbon offset projects. It emphasizes sustainable development co-benefits, such as poverty reduction and sustainable development in addition to climate mitigation. The Gold Standard includes stringent requirements for project design, monitoring, and verification.
  4. Climate Action Reserve (CAR): The CAR is a carbon offset registry and program that operates primarily in North America. It has developed rigorous protocols for different types of carbon offset projects, including forestry, methane capture, and renewable energy. CAR-certified projects must undergo independent third-party verification to ensure their compliance with the program’s standards.
  5. Taskforce on Scaling Voluntary Carbon Markets (TSVCM): The TSVCM is an industry-led initiative established by the private sector, with the goal of developing a standardized framework for voluntary carbon markets. It aims to enhance transparency, credibility, and the environmental integrity of carbon credits. The TSVCM is working on developing a set of guidelines and requirements for the verification of carbon credits.  (May 23)

More about VCS

 

  1. Verified Carbon Standard (VCS): The VCS is one of the most widely used voluntary carbon offset standards. It provides a robust framework for the verification and certification of carbon offset projects. VCS projects must undergo third-party verification by an accredited verifier to ensure that the claimed emission reductions are real, additional, measurable, permanent, and independently verified.
  1. Independent third party verifiers. Some of the most respected include:
  • The Carbon Trust
  • SGS
  • DNV GL
  • TÜV Süd
  • Bureau Veritas
  • PwC
  • Ernst & Young
  • KPMG
  • Deloitte
  • PricewaterhouseCoopers

These verifiers have a proven track record of verifying VCS projects and are recognized by Verra, the organization that oversees the VCS. Verra help to develop the standard, set the criteria for project approval, and accredit verifiers.

 

They are all independent, third-party organizations that have the expertise and experience to ensure that VCS projects meet the high standards set by the standard. 

 

They are also recognised by Gold Standard who promote the use of the VCS.   This includes providing technical assistance to project developers and verifiers, and working with businesses and governments to adopt the VCS.

 

When choosing a verifier for your VCS project, it is important to consider the following factors:

  • The verifier’s experience with VCS projects
  • The verifier’s expertise in the specific project type
  • The verifier’s independence and objectivity
  • The verifier’s fees

It is also important to get references from other VCS project developers who have worked with the verifier you are considering. This will help you to get a sense of the verifier’s quality of work and their ability to meet your needs.

By choosing a respected accredited verifier, you can help to ensure that your VCS project meets the high standards set by the standard and that the claimed emission reductions are real, additional, measurable, permanent, and independently verified.  (May 23)

 

Verification of Voluntary Carbon credits

There are a number of reasons why voluntary carbon credits (VCCs) can be difficult to verify. These include:

  • The nature of the projects. VCCs are generated from a wide range of projects, including renewable energy, energy efficiency, forest conservation, and sustainable agriculture. Each type of project has its own unique challenges in terms of measurement and verification.
  • The location of the projects. Many VCC projects are located in developing countries, where there may be limited resources and capacity for measurement and verification.
  • The lack of a global standard. There is no single global standard for VCCs, which can make it difficult to compare and verify credits from different projects.
  • The risk of fraud. There is a risk that VCCs could be fraudulently generated or traded. This is a serious concern that undermines the credibility of the VCC market.

  • The establishment of a verifiable, standardized, and broadly applicable carbon credit market faces a number of challenges, including:

    • Lack of a global consensus on carbon pricing. There is no single global price for carbon, and different countries have different approaches to carbon pricing. This makes it difficult to create a standardized carbon credit market.
    • Difficulties in measuring and verifying emissions reductions. It can be difficult to accurately measure and verify emissions reductions from carbon offset projects. This can lead to concerns about the quality of carbon credits and the integrity of the carbon market.
    • Risk of double counting. There is a risk that carbon credits could be double counted, meaning that they are counted towards emissions reductions in more than one place. This can undermine the effectiveness of the carbon market.
    • Limited demand for carbon credits. The demand for carbon credits is currently limited, which can depress prices. This makes it difficult for carbon offset projects to generate revenue and can discourage investment in these projects. (May 23)

Digital technologies and climate change

Sub-Saharan Africa is particularly vulnerable to the impact of climate change. With a rapidly growing population, the region is also experiencing increased energy demands, which can lead to more greenhouse gas emissions and further exacerbate the effects of climate change. However, digital technologies and increased broadband penetration can play a critical role in the fight against climate change in Sub-Saharan Africa.  Indeed, according to Mabadala, the UAE sovereign wealth fund,  digital technology and climate change are two of the five biggest ‘megatrends’ that face mankind. 

Digital technologies can help reduce greenhouse gas emissions by providing more efficient and sustainable solutions for energy production and consumption. For example, renewable energy sources such as solar, wind, and hydroelectric power can be harnessed using digital technologies to provide reliable and affordable electricity to remote areas that lack access to the traditional grid. In addition, smart grids and energy storage systems can be used to manage energy supply and demand, reducing waste and increasing efficiency.

Increased broadband penetration can also facilitate the deployment of digital technologies and promote sustainable development. Broadband can enable access to information and education, which are critical for promoting awareness and understanding of climate change and its impacts. With access to information, people can make informed decisions about their energy consumption and take steps to reduce their carbon footprint. In addition, broadband can promote the development of innovative solutions and enable the exchange of ideas and best practices across borders.

The lack of education about alternatives is a significant driver of deforestation caused by the harvesting of forests for cooking fuel in Sub-Saharan Africa.  According to the World Health Organization, more than 80% of households in the region still rely on solid fuels such as wood, charcoal, and animal dung for cooking and heating. The use of these fuels not only contributes to deforestation but also has serious health implications, as it can lead to respiratory diseases and premature death.

Digital technologies can provide alternative solutions to the use of solid fuels for cooking and heating. For example, gas and pellet stoves can be used to replace traditional stoves, reducing the demand for firewood and charcoal. Solar cookers can also be used to harness the energy of the sun and provide a sustainable and clean cooking solution. However, without education and awareness, people may not know about these alternatives or may not understand how to use them effectively.

With the right policies and investments, digital technologies and increased broadband penetration can help create a more sustainable and prosperous future for Sub-Saharan Africa.  (24 April)

Carbon credits

The transition to green energy is an important step in reducing the harmful effects of climate change and protecting the environment. One important way to support this transition is through the use of carbon credits.
Carbon credits are a type of tradeable certificate that represent a specific amount of carbon dioxide emissions. They are used as a market-based mechanism to incentivize the reduction of greenhouse gas emissions.
The idea behind carbon credits is simple: countries, businesses, and individuals that reduce their carbon emissions below a certain level are awarded credits. These credits can then be sold to other entities that are not able to meet their emissions reduction targets.
By creating a market for carbon credits, the goal is to provide an economic incentive for reducing greenhouse gas emissions. This can help to drive investment in clean, renewable energy sources and other technologies that can help to reduce our dependence on fossil fuels.
In addition to providing an economic incentive for reducing emissions, carbon credits can also help to create a more level playing field for businesses and industries. By placing a price on carbon emissions, carbon credits can help to ensure that companies and industries that are emitting high levels of greenhouse gases are held accountable for their actions.
Overall, carbon credits play a crucial role in the transition to green energy. By providing an economic incentive for reducing emissions and helping to create a level playing field, carbon credits can help to support the transition to a more sustainable future.

Carbon Offset Standard for Avoided Deforestation (COS-AD)

The Carbon Offset Standard for Avoided Deforestation (COS-AD) is a voluntary carbon standard that was developed to provide a framework for reducing greenhouse gas emissions from deforestation and forest degradation. It is designed to help organizations and individuals offset their carbon emissions by funding projects that aim to reduce or avoid deforestation in tropical countries.

The COS-AD standard involves the following steps:

  1. Project developers identify a deforestation or forest degradation project that can be implemented in a way that meets the requirements of the COS-AD standard.
  2. The project is reviewed and validated by a third-party organization to ensure that it meets the necessary criteria.
  3. Once the project is approved, carbon credits are issued based on the amount of carbon that is expected to be avoided or reduced as a result of the project. These carbon credits can then be sold to organizations or individuals looking to offset their carbon emissions.
  4. The proceeds from the sale of carbon credits are used to fund the project and help ensure its long-term sustainability.

 

Africa, unsustainable cooking and climate change

Although climate change is a major challenge facing Africa, the continent itself is a minor contributor to global carbon emissions.  However, because of the lack of grid utility power in most parts of Africa the environment is being impacted through the harvesting of wood for cooking by poor households.  Approximately 4 million hectares of Africa’s forest are being cut down each year to satisfy the needs of over 900m people who cook using firewood or charcoal. 

This unsustainable practice, known as “subsistence cooking,” not only contributes to deforestation and loss of biodiversity, but also results in poor air quality and health problems for those who are exposed to the smoke on a daily basis.

The problem is particularly acute in urban areas, where the demand for charcoal and wood is high and the resources to sustainably manage and replenish them are limited.  In Zambia today over 90% of the population use charcoal for cooking.  This has led to a cycle of deforestation, followed by soil erosion and desertification, which in turn contributes to the effects of climate change. 

One of the key ways to address this issue is through the promotion and adoption of clean, alternative energy sources such as solar, wind, and biogas.  These options are not only more sustainable, but they are also often more affordable in the long run.  Additionally, policies and programs that focus on reforestation and sustainable land management can help to mitigate the effects of subsistence cooking on the environment.  (17 Jan)

Carbon credits

The transition to green energy is an important step in reducing the harmful effects of climate change and protecting the environment. One important way to support this transition is through the use of carbon credits.
Carbon credits are a type of tradeable certificate that represent a specific amount of carbon dioxide emissions. They are used as a market-based mechanism to incentivize the reduction of greenhouse gas emissions.
The idea behind carbon credits is simple: countries, businesses, and individuals that reduce their carbon emissions below a certain level are awarded credits. These credits can then be sold to other entities that are not able to meet their emissions reduction targets.
By creating a market for carbon credits, the goal is to provide an economic incentive for reducing greenhouse gas emissions. This can help to drive investment in clean, renewable energy sources and other technologies that can help to reduce our dependence on fossil fuels.
In addition to providing an economic incentive for reducing emissions, carbon credits can also help to create a more level playing field for businesses and industries. By placing a price on carbon emissions, carbon credits can help to ensure that companies and industries that are emitting high levels of greenhouse gases are held accountable for their actions.
Overall, carbon credits play a crucial role in the transition to green energy. By providing an economic incentive for reducing emissions and helping to create a level playing field, carbon credits can help to support the transition to a more sustainable future.

Carbon Offset Standard for Avoided Deforestation (COS-AD)

The Carbon Offset Standard for Avoided Deforestation (COS-AD) is a voluntary carbon standard that was developed to provide a framework for reducing greenhouse gas emissions from deforestation and forest degradation. It is designed to help organizations and individuals offset their carbon emissions by funding projects that aim to reduce or avoid deforestation in tropical countries.

The COS-AD standard involves the following steps:

  1. Project developers identify a deforestation or forest degradation project that can be implemented in a way that meets the requirements of the COS-AD standard.
  2. The project is reviewed and validated by a third-party organization to ensure that it meets the necessary criteria.
  3. Once the project is approved, carbon credits are issued based on the amount of carbon that is expected to be avoided or reduced as a result of the project. These carbon credits can then be sold to organizations or individuals looking to offset their carbon emissions.
  4. The proceeds from the sale of carbon credits are used to fund the project and help ensure its long-term sustainability.

 

What is the difference between the Verified Carbon Standards (Verra) and the voluntary carbon market​

Verified Carbon Standards (VCS) and the voluntary carbon market are two different mechanisms for trading carbon credits.

Verified Carbon Standards (VCS) is a program that provides third-party verification for carbon offset projects. This means that the VCS program ensures that the carbon emissions reductions claimed by a carbon offset project are real, measurable, and verifiable. The VCS program is recognized as a leading global standard for carbon offset projects, and it is often used by governments, companies, and individuals to ensure the quality and integrity of their carbon offset purchases.

The voluntary carbon market, on the other hand, is a market where individuals, companies, and other entities can voluntarily buy and sell carbon credits. The voluntary carbon market is not regulated by any government or international body, and there is no third-party verification of the carbon emissions reductions claimed by the projects that generate carbon credits in this market.

Overall, the main difference between VCS and the voluntary carbon market is that VCS provides third-party verification for carbon offset projects, while the voluntary carbon market does not. This means that VCS-verified carbon credits are generally considered to be of higher quality and integrity than carbon credits from the voluntary carbon market. (15 Dec 22)

 

 

What is the difference between carbon credits and carbon tax ?

A carbon tax is a fee or tax on GHG emissions, typically on fossil fuels such as coal, oil, and natural gas. The goal of a carbon tax is to create a financial incentive for individuals, businesses, and governments to reduce their emissions by making carbon-intensive activities more expensive. The revenue generated from a carbon tax can be used to support clean energy initiatives or to fund other programs.

 

A carbon credit, on the other hand, is a permit that allows a company or organization to emit a certain amount of GHGs. Carbon credits are typically issued by governments or international organizations based on a set of criteria and standards, such as the amount of emissions reduction achieved through a particular project. Companies can purchase carbon credits to offset their own emissions, effectively balancing out their carbon footprint. Carbon credits can also be traded on carbon markets, allowing companies to buy and sell them as a commodity. ( 3 March 2023)



Carbon pricing

According to the World Bank’s State and Trends of Carbon Pricing report for 2021, the average price of carbon credits in 2020 was around $23 per metric ton of CO2 equivalent. However, prices can vary widely depending on the specific market and the type of carbon credit being traded. For example, prices in the European Union Emissions Trading System (EU ETS) have fluctuated between €4-€32 per tonne of CO2 equivalent over the past few years.

 

As for carbon taxes, they also vary widely depending on the country and region. Some countries have implemented national carbon taxes, while others have regional or state-level taxes. According to the same World Bank report, the highest carbon tax rate in 2020 was in Sweden at $127 per tonne of CO2 equivalent, while other countries like Norway, France, and Switzerland also had relatively high carbon taxes. On the other hand, some countries like the United States and Australia have yet to implement national carbon taxes, although some states and provinces have implemented their own carbon pricing mechanisms. In 2021 carbon credits (ETS) exceeded the value of carbon taxes for the first time.

 (3 Mar 2023)

 
 
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