The Integrity Council for the Voluntary Carbon Market announced that current renewable energy methodologies won’t qualify for the high-integrity CCP® (Core Carbon Principles) label. These methodologies, representing nearly a third of the voluntary carbon market, fail to meet the rigorous CCP Assessment Framework requirements on additionality.

Annette Nazareth, Integrity Council Chair, stated, “We are taking the tough decisions necessary to build a high-integrity voluntary carbon market that can be scaled to meaningfully fund climate solutions and channel material amounts of finance to the Global South.”

Key Decisions:

Eight methodologies used for renewable energy projects do not meet the CCP requirements, impacting 236 million unretired credits (32% of the market).

Approved methodologies include projects for methane leak detection and repair in the gas industry, covering an estimated 19 million unretired credits (2.6% of the market), and methane capture from landfill sites.

Rejected methodologies include those for the magnesium industry’s sulphur hexafluoride (SF6) reduction due to unmet additionality requirements.

Amy Merrill, Integrity Council CEO, emphasized the importance of rigorous assessments: “Our rigorous, science-based assessments are well underway and will give buyers confidence that CCP-labelled carbon credits deliver genuine emissions reductions and bring positive social and environmental benefits that support Indigenous Peoples and local communities.”

The council’s recent approvals include:

Methane leak detection and repair (LDAR) in lower-income countries, addressing infrastructure issues and accounting for 2.6% of the market.

Methane capture from landfill sites and destruction of ozone-depleting substances (ODS), covering an estimated 8 million unretired carbon credits.

The council calls for carbon-crediting programs to develop more sophisticated methodologies reflecting the varying conditions of renewable energy deployment across different regions. Annette Nazareth noted, “Renewable energy projects financed by carbon credits still have a role in the decarbonization of energy grids, especially in least developed countries. More robust methodologies would unlock finance for new renewable energy projects where most needed.”

Pedro Martins Barata, Co-Chair of the Expert Panel, added, “We encourage programs to develop methodologies that take a much more sophisticated approach to assessing whether renewable energy projects are additional. This would be beneficial for international agencies concerned with improving energy access.”

Governments and regulators, including the US and UK, and organizations like the CFTC and ISDA, endorse the CCPs as a global standard for high-integrity carbon credits. The CCP label ensures that each credit represents a tonne of emissions reduced or removed and guarantees robust social and environmental safeguards.

The Integrity Council continues to assess and improve methodologies, urging programs to submit their applications before October for the next review cycle. Their ongoing assessments aim to refine standards and support the voluntary carbon market’s growth.

Amy Merrill highlighted the necessity of regulations: “Methane is a potent greenhouse gas, and leakage should be subject to regulation. Leaks can and should be addressed by the companies responsible for building and maintaining this infrastructure.”

The council’s actions set a precedent for the market, aiming to ensure that only high-integrity, impactful carbon credits receive the CCP label, fostering trust and encouraging investment in genuine climate solutions.