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In a decisive move towards ensuring greater integrity within the carbon market, the Integrity Council for the Voluntary Carbon Market (ICVCM) has announced that more than 230 million carbon credits under renewable energy methodologies will no longer be eligible for its new high-integrity labelling initiative. This decision directly impacts 32% of the voluntary carbon market, underscoring the ICVCM’s commitment to upholding stringent standards for just climate action.
The exclusion follows as these credits fail to meet the Core Carbon Principles (CCP), a set of ten rigorous criteria that projects must satisfy to be deemed high integrity. The CCPs are designed to ensure that carbon credits represent genuine emissions reductions and provide substantial social and environmental benefits, particularly to Indigenous Peoples and local communities in the Global South. Currently, major programs like Climate Action Reserve (CAR), Gold Standard, and Verra (VCS) meet these standards and are eligible for the CCP label.
The ICVCM's latest assessment highlights a stark contrast: out of the 236 million unretired credits excluded, only 27 million unretired credits have been approved under the CCP label, representing a mere 3.6% of the market. This decisive action addresses mounting concerns over greenwashing and the questionable effectiveness of existing carbon credits.
Indeed, a recent survey by Edie revealed that 60% of businesses find the current market too risky to invest in, exacerbated by a 28% decline in average credit prices in 2023, partially due to quality concerns.
Amidst these developments, the launch of the Carbon Removal Standards Initiative (CRSI) marks a pivotal moment for the carbon market. The CRSI aims to establish rigorous carbon removal standards, grounded in science-based policies to ensure accurate carbon quantification and accountability. By focusing on transparency and rigour in carbon quantification, the CRSI seeks to promote effective climate solutions and equitable climate justice.
The CRSI initiative emphasises the importance of monitoring, reporting, and verification (MRV) to ensure that carbon removal efforts are backed by reliable data. By treating carbon removal as a public good, the CRSI advocates for the establishment and maintenance of standards by policymakers and regulators, ensuring that policies are informed by the best available science.
The CRSI's Quantification Resources Database is a key tool in this effort. It aims to identify gaps, promote consensus and consistency, and provide technical assistance to public servants and stakeholders engaged in carbon removal standardisation and rule-making.
Biochar has emerged as a promising tool for carbon removal, delivering approximately 90% of the carbon credits sold today. However, there are numerous methodologies for biochar carbon sequestration, including those by Puro, Verra, Climate Action Reserve (CAR), and Riverse. Each methodology comes with its understanding, formulas, and project boundaries, leading to varied approaches to measuring biochar’s carbon sequestration potential. Initiatives such as the CRSI highlight the need for standardised, science-based guidelines to ensure consistency and reliability in carbon accounting.
This can ultimately help enhance market confidence, attract large-scale investment, and potentially drive up credit prices by providing a clearer, more reliable framework for evaluating and trading biochar credits.
In conclusion, the actions of the ICVCM and the launch of the CRSI represent significant strides towards a more transparent, accountable, and effective carbon market. By prioritising high-integrity standards and rigorous carbon quantification, these initiatives are poised to drive meaningful climate solutions, fostering a more sustainable and equitable future.
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