New ICVCM Methodology Decisions Announced | Verra (2024)

The Integrity Council for the Voluntary Carbon Market (ICVCM) has published its Core Carbon Principles (CCP) eligibility decisions on methodologies related to methane leak detection and repair, renewable energy, and sulfur hexafluoride replacement.

The ICVCM is an “independent multistakeholder led governance body” that has set “a global benchmark for high-quality carbon credits”, the CCPs, for high-quality carbon credits. Earlier this year, the ICVCM published a list of standards programs that are aligned with the CCPs. Shortly afterward, the ICVCM started to release, in batches, its assessment of the carbon accounting methodologies each program submitted for assessment.

Below is an overview of the ICVCM’s most recent decisions and how they affect projects registered in the Verified Carbon Standard (VCS) Program.

The decision: The ICVCM approved CDM methodology AM0023 Leak detection and repair in gas production, processing, transmission, storage and distribution systems and in refinery facilities — Version 4.0.0 (external) as meeting the CCPs for projects’ first crediting periods.

Implications for VCS projects: In accordance with this decision, Verra has applied CCP labels to 23.4 million Verified Carbon Units (VCUs), almost 19.5 million of which are active.

Note: Verra automatically applies CCP labels to eligible VCUs where all necessary information is available.

The decision: The ICVCM did not approve any renewable energy methodologies from any greenhouse gas (GHG) crediting program as eligible for CCP labels. However, noting that renewables are critical for reaching global climate goals and acknowledging that many renewable projects are likely additional, the ICVCM invited approved programs to update their submitted methodologies to address noted gaps and deficiencies.

Implications for VCS projects: The renewable energy methodologies that are active in the VCS Program and that were not approved by the ICVCM are Clean Development Mechanism (CDM) methodologies Verra accepted for use in the VCS Program. (All renewable energy methodologies active in the VCS Program are CDM methodologies.) Specifically, the ICVCM has noted deficiencies in the CDM tools for additionality and the grid factor tool.

While Verra excluded most renewable energy projects from the scope of the VCS Program when it launched version 4 of the program in 2019, Verra still holds that the targeted application of carbon finance in least developed countries (LDCs) is crucial to overcoming barriers that renewable projects face in some jurisdictions.

Verra is therefore currently revising the CDM additionality tools to address the deficiencies noted by the ICVCM and will be consulting on these revisions in the coming month. Verra’s new electricity tool will address the deficiencies noted in the CDM electricity tools. Once finalized Verra will submit the updated tools and methodologies to ICVCM for re-assessment.

Verra recently launched a consultation on an optional methodology update and requantification procedure, which would enable proponents of existing projects to adopt the updated tools and meet the higher information standards promoted by the ICVCM and thereby qualify for CCP labels.

• AMS-I.D. – Grid connected renewable electricity generation (external) — Version 18.0 and earlier versions
• AMS-I.A. – Electricity generation by the user (external) — Version 19.0 and earlier versions
• AMS-I.L. – Electrification of rural communities using renewable energy (external) — Version 4.0 and earlier versions
• ACM0002 – Grid-connected electricity generation from renewable sources (external) — Version 21.0 and earlier versions
• ACM0006 – Electricity and heat generation from biomass (external) —Version 16.0 and earlier versions
• ACM0018 – Electricity generation from biomass in power-only plants (external)— Version 6.0 and earlier versions
• AM0036 – Use of biomass in heat generation equipment (external) — Version 7.0 and earlier versions
• AM0072 – Fossil Fuel Displacement by Geothermal Resources for Space Heating (external) — Version 3.0 and earlier versions

The decision: The ICVCM did not approve CDM methodology AM0065 Replacement of SF6 with alternative cover gas in the magnesium industry(external).

Implications for VCS projects: The two VCS projects using this methodology are not eligible to apply CCP labels to any VCUs they generate and are not able to update to any other methodology that is CCP label-eligible.

CCP label guidance: Verra expects to publish CCP label guidance for VCS projects in Q3 2024.

Next ICVCM decisions: The ICVCM will continue to publish future decisions on the CCP eligibility of other methodologies active in the VCS Program. Assessment decisions and review statuses are available on the ICVCM website (external).