December 2024 Methodology Updates (2/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 a newsletter from Sustainacraft Inc. 'Methodology Updates' is a series that covers carbon and biodiversity credit methodologies.
※ Note: This article is a continuation of the previous one. If you haven't read it yet, please refer to it here first.
This article, a continuation of the previous one, will cover the second item below:
- Standard: Application of the requirements of Chapter V.B (Methodologies) for the development and assessment of Article 6.4 mechanism methodologies
- Standard: Requirements for activities involving removals under the Article 6.4 mechanism
Standard: Requirements for activities involving removals under the Article 6.4 mechanism
(link)
We will introduce the Standard for activities involving removals under Paris Agreement Article 6.4. Chapter 4 specifies requirements for each item, and we will focus on that section, but first, we will explain the context described in Chapter 3.
＜3章: Context of removals under this standard＞
First, the definition of Removals (除去 / 吸収) refers to the definition in IPCC's AR6 WG3 (Working Group 3) and is stated as follows:
Carbon Dioxide Removal (CO2; CDR) is an anthropogenic activity that removes Carbon Dioxide (CO2) from the atmosphere and durably stores it in geological, terrestrial, or ocean reservoirs, or in products. This includes existing and potential anthropogenic enhancements of biological, geochemical, and chemical CO2 sinks but excludes natural CO2 uptake not directly caused by human activities.
Activities involving removals (吸収・除去を伴う活動) are defined as those that meet the requirements of Chapter 4, which will be explained later.
＜4章: Requirements＞
The main chapter structure is as follows:
- 1: Monitoring
- 2: Reporting
- 3: Monitoring and reporting after the Crediting Period
- 4: Calculation of removals
- 5: Methodologies applicable to an updated Crediting Period
- 6: Addressing Reversals
- 7: Avoiding Leakage
- 8: Avoiding environmental and social adverse impacts and respecting human rights
From this point onward, similar to the previous article, we will present the original text's flow as is, while our comments will be separated and expressed in block quotes.
4.1 Monitoring
SC Comment: ・First, unlike emission reduction activities where the Baseline was the most critical element for Credit issuance, in removal activities, the Baseline can often be assumed to be zero. On the other hand, the calculation of removals in the project scenario becomes the biggest point of contention regarding the validity of the Credits issued. ・Therefore, for removal activities, it is crucial that ex-post monitoring is conducted accurately and conservatively. ・This section 4.1 sets out the requirements for monitoring. ・It is generally considered that the provisions outlined here are largely met by the major Methodologies in the current Voluntary Carbon Market.
・Furthermore, items such as the assessment of non-Permanence risk and Free, Prior, and Informed Consent (FPIC) for Indigenous Peoples are currently, in voluntary standards, generally established as higher-level requirements, such as Verra's "Non-Permanence Risk Tool" or the "VCS Standard," rather than at the Methodology level.
(11) Activity participants shall implement monitoring of removals based on data obtained from **measurements, sampling, Remote Sensing, third-party sources, and published literature**. Data shall be **robust, statistically representative, and conservative**, and shall adequately account for relevant Uncertainties.
(12) Mechanism Methodologies shall include provisions specifically defining the monitoring methods for all parameters necessary for calculating removals, according to the type of removal activity.
(13) **Net removals shall be calculated in a conservative manner, adequately accounting for relevant Uncertainties**.
(14) To ensure flexibility in monitoring, **default values may be used**. However, the use of default values shall still result in conservative estimates of net removals.
(15) Provisions for **appropriate quality assurance and quality control measures** shall be included. Examples include reconciliation of monitoring results with other data sources or published literature, or periodic calibration of measurement equipment.
(16) Provisions shall be included for monitoring and mitigating risks identified in **4.6.1 Reversal risk assessment** and risks identified in **sustainable development tools**. This includes obtaining Free, Prior, and Informed Consent from affected Indigenous Peoples and Local Communities.
(17) Provisions shall require activity participants to **submit a monitoring plan** as part of the Project Design Document (PDD) submitted with the **Registration application**. The monitoring plan shall be **reviewed and updated at the beginning of each Crediting Period**. The monitoring plan shall also be reviewed and updated in any of the following situations:
If the Designated Operational Entity (DOE) or the Supervisory Body identifies the need for revision of the monitoring plan based on concerns regarding the monitoring plan and risk assessment plan.
If, after a Reversal, additional risk factors are identified that are not included in, or adequately addressed by, the monitoring plan and risk assessment plan.
If applicable national or regional regulations require consideration of risk factors not included in, or adequately addressed by, the monitoring plan and risk assessment plan.
4.2 Reporting
SC Comment:
・The requirements for the Monitoring Report are outlined.
・For example, monitoring in Afforestation, Reforestation and Revegetation (ARR) projects includes information about the surveyed locations (plots) and measured data (e.g., diameter at breast height and tree height) from those locations.
・While it is currently common in Voluntary Carbon Market Credits that such measured data are not included in the Monitoring Report, this clause requires that the method of accessing the complete dataset be documented.
・Other clauses are not particularly new, and requirements include submitting a Monitoring Report even in the event of a Reversal.