Written By: Krishnan SRINIVASAN
Verified By: Albert SUTANTO
The Integrity Council for the Voluntary Carbon Market (ICVCM) has announced the approval of three methodologies designed to generate high-integrity carbon credits through the reduction of emissions from deforestation and forest degradation (REDD+). This move will bring back the trust and investment back into nature-based solutions
The approved methodologies are:
The REDD+ Environmental Excellence Standard (TREES) v2.0, TREES Crediting Level (ART).
Verra's VM0048 methodology for Reducing Emissions from Deforestation and Forest Degradation v1.0.
Verra’s Jurisdictional and Nested REDD+ (JNR) Framework v4.1.
Early 2025 the methodologies are set to begin issuing credits soon, with credits bearing the Core Carbon Principles (CCP) label.
No credits have yet been issued under the approved methodologies, but there is a large volume of credits in development. Nine jurisdictions are currently in the ART TREES pathway, which could produce 123 million credits. Another eight jurisdictions are in the process of preparing TREES documents for registration and issuance, expected to materialize next year.
Similarly, Verra’s VM0048 methodology has 21 projects in development, with the potential to generate approximately 300 million credits during their first crediting period. Five projects are under development within Verra's JNR Framework. The announcement ensures that all credits issued through these mechanisms will qualify for the CCP label, representing a new benchmark for integrity in the carbon market.
Additional Approvals Expected
Apart from these three methodologies, two further crediting levels of the REDD+ Environmental Excellence Standard V2.0 – the HFLD Crediting Approach and the Removals Crediting Approach – are still in the assessment process. By end of the this year decision
It is to be noted that REDD+ projects are critical in achieving our climate targets and prevent forest ecosystems from tripping into dangerous levels. Achieving significant reductions in tropical forest deforestation is a cornerstone of climate models that aim to limit global temperature rise to 1.5ºC.
Photo by Patrick Miyaoka
Reforms in Baseline Setting and Monitoring
The Governing body believes that concerns present in the older methodologies were addressed in the new REDD+ methodologies and will pave the way for the forth coming high integrity projects. Under new VM0048 methodology project developers can no longer set their own baselines based on self reference areas. Rather VCS follows new approch where baselines are determined on the jurisdictional deforestation data combined with an assessment of deforestation risk in the specific project area. This reform significantly reduces the risk of over-crediting, addressing a primary concern of critics of previous methodologies.
Jurisdictional methodologies, such as ART-TREES and VCS-JNR, operate on a much larger scale than project-based REDD+. These frameworks enable national or state-level programs to safeguard vast forest areas through policy and regulation. Experts anticipate that jurisdictional approaches will be increasingly integrated into national forestry policies and countries’ Nationally Determined Contributions (NDCs) under the Paris Agreement.
Older REDD+ methodologies previously offered by Verra, such as VM0006, VM0007, VM0009, VM0015, and VM0037, were not submitted for ICVCM assessment. These methodologies represent a significant portion of the existing REDD+ market, including around one-quarter of all carbon credits retired in 2023. However, credits issued under older methodologies will not be eligible for CCP labels.
To align with the new standards, Verra requires Avoiding Unplanned Deforestation REDD + projects using the older methodologies to transition across to VM0048. Transitioning projects must undergo requantification to reflect the updated baseline and monitoring calculations. Projects that successfully transition and issue credits under VM0048 will be eligible for the CCP label, ensuring their compatibility with ICVCM standards.
Strengthened Integrity and Robust Safeguards
The ICVCM has emphasized that the approved methodologies significantly enhance the integrity of REDD+ projects. Key improvements include strengthened measures for additionality, permanence, rigorous quantification, and social safeguards. The changes are aligned with the ICVCM’s Assessment Framework and address concerns identified in older methodologies.
Amy Merrill, CEO of the Integrity Council, highlighted the importance of robust frameworks in attracting investment and achieving climate goals. “There is no chance of meeting our climate and biodiversity goals without increased finance for nature, Indigenous Peoples, and local communities,” she stated.
The rigorous assessment process involved contributions from subject matter experts and multi-stakeholder groups. Gabriel Labbate, co-chair of the ICVCM Expert Panel, noted that the approved methodologies demonstrate significant improvements over their predecessors, particularly in managing risks such as over-crediting and lack of permanence.
Conclusion
The approval of three REDD+ methodologies is a significant step ahead for the carbon markets. By addressing past concerns in the methodologies, the new baseline determination ensure greater credibility and reduces over-crediting. They also pave the way for large-scale efforts to protect forests, support local communities, and meet global climate goals. As these methodologies are implemented, they promise to strengthen the role of nature-based solutions in tackling deforestation and reducing emissions, offering a practical and impactful way to fight climate change.
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