October 2024 Methodology Updates (1/n)
This article is an automatically translated version of the original Japanese article. Please refer to the Japanese version for the most accurate information.
This is the sustainacraft, Inc. newsletter.
Methodology Updates is a series that covers carbon and biodiversity credit Methodologies. This article introduces the draft content of Version 5, a major update to Verra's VCS Standard.
The VCS Standard is a guidance document commonly used for various types of projects implemented under Verra's VCS program. It is a document that defines the fundamental concepts applicable regardless of project type, such as VCS project principles, the process leading to Registration, the concept of Permanence, and safeguard considerations. In our past newsletters, we have introduced several changes to the VCS Standard, such as the eligibility of afforestation with single non-native tree species. These were essentially minor updates where only the decimal part of the version changed, and the scope of changes was limited. This time, it is a major update, so changes from various perspectives are being proposed.
As there are many changes, we plan to introduce the draft changes in multiple installments. This time, we will focus particularly on Additionality requirements and the treatment of the Buffer Pool.
For inquiries, please contact us here.
Initial Public Comment on Major Update to VCS Standard (Verra)
(Source: Initial Consultation on Version 5 of the VCS Program, accessed October 23, 2024; unless otherwise specified, image sources are from the linked document)
This article introduces the draft content of the major update to the VCS Standard (Version 4.x → Version 5). Version 5 has been under development since early 2023, and the draft was completed in September of this year (2024). The initial public comment period is now open (until November 4, 2024). The draft is an initial proposal, and since it is expected to undergo further revisions and public comment periods, it is likely to be finalized and implemented in the latter half of next year or later. However, understanding what changes might be introduced now is crucial, especially when considering investments in early-stage projects.
As mentioned earlier, our newsletters have previously introduced several revisions to the VCS Standard, but these were essentially minor updates limited to specific items.
On the other hand, the following is an overview of the changes being considered in this draft. As it is a major update, the items cover a wide range.
In this newsletter, we will introduce the proposed content, focusing on "Principles & Fundamentals" within the section titled "Program Integrity" from the overview above.
Introduction to Proposed Content for "Principles & Fundamentals"
The following outlines the background and proposed content for the changes being considered in the Principles & Fundamentals section. This section highlights the following eight points (numbers in parentheses refer to the draft section):
(1.1) Revision of VCS Program Principles
Additionality
(1.2) Changes to the method for demonstrating regulatory surplus
(1.3) Reconsideration of "Project method" requirements
(1.4) Requirement for proof of prior consideration
(1.5) Integrity: Treatment of project start date and ex-ante emissions
(1.6) Conservatism: Reconsideration of the de minimis emission threshold
Permanence
(1.7) Management of AFOLU Buffer Pools and procedures for loss events
(1.8) Allowing the use of any VCS Credit for Buffer contributions
Among these, the points considered to have a particularly significant impact on project operations are: regarding Additionality, "(1.4) Requirement for proof of prior consideration"; and regarding Permanence, "(1.7) Management of AFOLU Buffer Pools and procedures for loss events" and "(1.8) Allowing the use of any VCS Credit for Buffer contributions." The details of these points will be explained below.