What are high-integrity carbon credits?

High-integrity carbon credits are those that meet stringent quality standards and ensure that the emission reductions, removals, or offsets they represent are real, additional, permanent, and verifiable. The need for high integrity has become increasingly important as voluntary carbon markets have grown and faced scrutiny.

Where is the need for carbon credits to embody “high integrity” recognized?

The regulation or recognition of the need for high integrity is reflected in various frameworks and guidelines, including:

1. The Paris Agreement (Article 6): While not specifically using the term “high integrity,” it establishes the need for environmental integrity in market mechanisms.
2. The San Jose Principles for High Ambition and Integrity in International Carbon Markets: Developed at COP25 in 2019.
3. The Voluntary Carbon Market Integrity Initiative (VCMI): Establishes the Core Carbon Principles (CCP) to define high-quality carbon credits.
4. Science Based Targets initiative (SBTi): Provides guidance on the use of high-integrity carbon credits in corporate emission reduction strategies.

Having established that the “high integrity” of carbon credits is essential and recognized in various international agreements, let us examine the characteristics and illustrate them with examples.

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Interoperability and interoperability registries in carbon trading

Interoperability, which enables the smooth transfer of carbon allowances between different trading systems, is a crucial element for the smooth functioning of this market.

Characteristics of high-integrity carbon credits and examples:

1. Additionality: The project would not have occurred without the incentive of carbon credits.
   • Example: A renewable energy project in a developing country where the electricity grid is dominated by fossil fuels and there are no supportive policies for renewables.
2. Permanence: The emission reductions or removals are long-lasting.
   • Example: A forest conservation project that includes legal and financial mechanisms to ensure long-term protection of the forest.
3. No double counting: Reductions are not counted more than once.
   • Example: A registry system that ensures each credit has a unique serial number and is retired once used.
4. Accurate measurement: Reductions are measured with precision and conservatism.
   • Example: A landfill methane project that uses continuous monitoring technology to accurately measure avoided emissions.
5. Independent verification: Reductions are verified by an accredited third party.
   • Example: An annual audit conducted by an accredited verification firm that includes site visits and data review.
6. Co-benefits: The project provides additional benefits for sustainable development.
   • Example: An efficient cookstove project that, in addition to reducing emissions, improves family health and reduces deforestation.

In summary, high-integrity carbon credits represent the highest standard in the carbon offset market. They aim to ensure that emission reductions are real, meaningful, and effectively contribute to global climate goals. Although they present challenges in terms of cost and complexity, they are increasingly valued by companies, governments, and organizations committed to robust and credible climate actions.

We have prepared a video on this topic if it is of interest to you.

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