Monthly Methodology Updates (April 2024)

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 Sustainacraft Inc.'s newsletter. This issue covers news related to Verra's Verified Carbon Standard (VCS) Program. We will introduce conditional permission for non-native monoculture planting in Afforestation, Reforestation and Revegetation (ARR) or Wetland Restoration and Conservation (WRC) projects, the strengthening of safeguard requirements with an eye on Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Core Carbon Principles (CCP), and methodologies for reduction or removal labels as mitigation outcome type labels (especially for Improved Forest Management (IFM) and Agricultural Land Management (ALM)).

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Monthly Methodology Updates

(1) VCS Standard Update (Verra)

(2) Development of Methodologies for Reduction or Removal Labels (Verra)

VCS Standard Update (Verra)

From last month to this month, Verra successively released VCS Standard v4.6 and v4.7, documents that define the standards for the entire VCS Program. Below, we will briefly introduce the major changes in these revisions.

Partial Permission for the Use of Non-Native Monoculture in ARR/WRC Projects (v4.6)

With the release of VCS Standard v4.5 in August 2023, the planting of non-native monoculture species in ARR or WRC projects was excluded. However, there appears to have been significant stakeholder feedback regarding this change1. Subsequently, as a result of a public consultation conducted from October to November 2023, v4.6 conditionally allows non-native monoculture planting. As far as reading the Public Consultation Report suggests, it seems that fundamental agreement between stakeholders and Verra has not been reached, but this revision can be seen as Verra leaning towards the stakeholders' side. However, Verra is currently also proceeding with preparations for v5, a significant revision of the VCS Standard, and states that the handling of this matter will continue to be considered there.

• Should non-native monoculture planting be permitted in the first place?

  • 85% of stakeholders supported permitting it (65% without conditions, 20% with conditions).

  • Verra's position is that non-native monoculture planting can negatively impact the surrounding ecosystem, and therefore should not be permitted in principle.

  • v4.6 was revised to permit it conditionally.

• What about the appropriateness of limiting planting area (100ha or less) to mitigate the impact of non-native monoculture planting on the surroundings?

  • The most common stakeholder response was that it should be permitted without size restrictions (45%).

  • Verra recognizes that larger sizes would likely have a greater impact on the surroundings, but there's no guarantee that negative impacts would be small for small-scale projects either.

  • Therefore, v4.6 removed the mention of area.

• What about the appropriateness of the wording proposed as conditions for permitting non-native monoculture planting?

  • The v4.6 proposal required satisfying both of the following two conditions:

    • a) At least 30% or more of the project area should be dedicated to the conservation and restoration of the original ecosystem.

    • b) Non-native monoculture planting should only occur in areas recognized as degraded by prior research or official records, or areas that have undergone high-intensity agriculture for over 10 years.

  • The majority of stakeholders supported condition b), but reactions to condition a) varied.

  • As a result of the review, it was concluded that Verra's other safeguard requirements are sufficiently robust, and it is not problematic even if a portion of the project is not dedicated to ecosystem restoration.

  • Therefore, v4.6 was revised to impose only a condition equivalent to b).

Regarding the v4.7 revision, it is intended to clarify that the requirements for CORSIA's first phase approval and the Integrity Council for the Voluntary Carbon Market (IC-VCM)'s Core Carbon Principles (CCP) are met. The program-level assessment of CCPs is expected to be released by the end of April or May.