VERRA-VCS/CCB/REDD+/JNR/SD VISta/Landscape Consulting & Project Development

Being one of the oldest consulting and project developers for GHG projects under VERRA (previously known as VCSA), we are involved in various VCS/VCS+CCB/REDD+/JNR/SD VISta/Landscape projects consulting & project development across the World since beginning of the VCS Program.

In general project development and monetization process cycle under the VCS/CCB which are the most commonly used VERRA programs, consists of the following process steps:

• Review of the project activity and preparation of strategy.
• Decide whether to register the project as a single standalone VCS/CCB Project Activity or as a grouped project where multiple project instances can be included in the group at a later stage during verification.
• Preparation of Project Idea Note / Draft Project Document
• Intense discussions between project owner and KMS to solidify the approach to be followed to accomplish the task of monetization of the carbon and environmental attributes. At this time generally the crediting period to go for is decided. In general non-AFOLU projects have 10-year crediting periods, twice renewable, for a total maximum crediting period length of 30 years. For AFOLU projects other than such ALM projects, the project crediting period can be 20 years up to a maximum of 100 years, means renewed at most four times with a total project crediting period not to exceed 100 years. In case of renewal after each crediting period, the base line has to be reassessed and applied accordingly. Generally during these discussions the applicable approved methodology should have been decided. In case it is found that there is no approved technical methodology which is applicable as per the existing or proposed project activity then a new methodology is to be written and get it approved from VERRA. Both CDM and VCS methodologies are applicable and can be used for VERRA projects. The same is true for methodologies developed by the Climate Action Reserve, with the exception of their forest protocols. List of approved CDM methodologies based on technical sector and scale of projects are available here. List of VCS approved methodologies are available here.
• The VCS registry system is a multi-registry system, comprised of a number of registry service providers and a central project database. Project developers open accounts and submit required documentation to their chosen VCS registry administrator to apply for project registration and issuance of Verified Carbon Units (VCUs). VCS registry administrators are responsible for uploading project information to the VCS project database and for issuing VCUs into their clients’ accounts. There may be VCS and Registry specific fees for various services. Please visit VERRA website here for additional information.
• Appointment of the VVB. As per the approved methodology, Project Documents based on VCS templates are prepared and submitted for publishing in the pipeline by VCS. Subsequent to this the VVB is appointed and the listed project documents are published for international stake holder consultation process on the VERRA web site. By this time local stake holder consultation must have been completed and details recorded as appropriate in the Project Document. Once the publishing period is completed the project onsite visit is conducted by the appointed VVB. Depending on the project start date and choice, project owner can go for either validation or validation+verification in the first attempt.
• Obtaining Host Country Approval letter is not necessary for VCS/CCB project.
• VVB issues the audit findings after conducting the project site visit.
• Audit findings are replied with relevant evidences and there after VVB may close all CAR’s and CL’s and issues the Final Validation Report along with the VCS Deed to Project owner. Alternatively VVB may issue a negative opinion.
• Once the project documents are uploaded in the Registry system, VERRA may select the project for review. If the project is selected for review by VERRA, VVB along with the Project owner shall reply to VERRA findings and close all the VERRA findings satisfactorily.
• Once VERRA clears the project then it is registered with VERRA. VERRA rejection of the registration request is also a possibility.
• One can go for only VCS/CCB validation or validation+verification as may be necessary depending on the project circumstances and preference.
• Adding of instances to a registered grouped project during a verification audit by the VVB.
• At each decision stage, VERRA has the final decision authority to accept or reject the validation and/or verification request.
• If necessary CCB labelling is done for forestry based projects along with the above mentioned steps.

PROJECT POST REGISTRATION STEPS IF THE PROJECT IS ONLY VALIDATED AT THE FIRST ATTEMPT

• Monitoring the project activity as per the registered Monitoring Plan described in the project registration documentation either for the project activity or grouped activity.
• Preparation of Monitoring Report for project activity or grouped activity.
• Hiring of VVB for conducting the Verification and Certification of VER’s.
• Submission of the relevant Monitoring Report/s to the appointed VVB.
• After due review of submitted documentation, conducting of onsite field visit by the appointed VVB to check the operation and monitoring of the project activity.
• Issue of Verification audit findings by the appointed VVB.
• Audit findings are replied with evidences and VVB closes all CAR’s and CL’s and issues the Final Verification Report along with VCS Deed to Client. Alternatively VVB may issue a negative opinion.
• Once the project verification reports and deed are uploaded in the Registry system, VERRA may select the project for review. If the project is selected for review by VERRA, VVB along with the Project owner shall reply to VERRA findings and close all the VERRA findings satisfactorily. Rejection of issuance request by VERRA is also a possibility.
• Once VERRA clears the project then it is ready for issuance of VER’s.
• Sale of credits based on a forward or spot contract to a VER buyer.
• If necessary and appropriate, changes to the Project or grouped project documentation can be made by a formal process during Verification through a VVB
• Project earns VER’s as long as the crediting period is active and verification is successful with VERRA regime process. In case the project has become inactive and no more operational for any reasons what so ever, VER’s cannot be issued since VER’s are issued only on the basis of the actual project operation as per the registered and active VCS project documentation.
• If CCB labelling is done for forestry based projects, then above process steps are applicable for verification and the verification period to be parallel with the VCS verification period. For CCB projects, publishing of the CCB monitoring report process prior to the audit is a requirement.
• In case of VERRA programmes such as VCS and CCB, validation can be combined with first verification. Hence the option exists to verify the old vintages during the first verification conducted along with the initial validation.

For further details and process steps visit the relevant VERRA page here.
It may be possible as per the applicable regime specific rules, to shift a GHG project from other regime to VERRA, to continue earning the emission reduction certificates. Speak to our experts today to understand more on the applicable scenarios and opportunity.

Jurisdictional and Nested REDD+ (JNR)

Nearly all REDD+ projects globally use the VCS Program to quantify and credit their carbon benefits, facilitating their integration within JNR programs. Similar to VCS projects, proponents may also choose to develop their REDD+ programs in a phased approach, for example, by including additional activities or carbon pools, and using more advanced methods for baseline setting and monitoring over time. JNR is a practical, flexible and consistent framework that ensures JNR programs maintain environmental integrity and jurisdictional sovereignty. For more information on the JNR programs cycle visit the VERRA website here.

Sustainable Development Verified Impact Standard (SD VISta)

The SD VISta Program sets out rules and criteria for the design, implementation and assessment of projects that aim to deliver high-impact sustainable development benefits. Under SD VISta, projects must demonstrate to the satisfaction of a third-party assessor that they meet the SD VISta Program’s rigorous rules and requirements and advance the SDGs. Once projects have been certified in the SD VISta Program, their contributions to the SDGs are listed on our database. Some projects may issue SD VISta assets: units representing sustainable development benefits that can be sold or retired and claimed. For more information on the SD vista cycle, see here .

Landscape Standard (LS)

The LS is an emerging tool to help drive landscape-scale sustainability. It will provide measurable indicators of the state and trajectory of sustainability at the landscape level across environmental, social, and economic dimensions. This landscape level application sets the LS apart from other sustainability standards, complementing sustainability efforts that target individual production sites, activities or sectors. For more information on the LS program cycle, see here.

Transition requirements to VCS from other GHG schemes:

In case of projects registered under an approved GHG program, with activities that are included within the scope of the VCS Program are eligible to complete a gap validation and/or transfer to the VCS Program where the project initiates the pipeline listing process with the VCS Program on or before 31 December 2021 and completes gap validation on or before 31 March 2022. The project shall also submit a request for registration with the VCS Program on or before 30 June 2022. You may contact our team for detailed discussions, if your project fits in the above case.

Possible business engagement models with us include

• Pure consulting engagement based on task wise deliverables with fixed fees payable at pre-determined process stages. In general this model is called as fixed fee model.
• A consulting model based on task wise deliverables with professional fees payable as a percentage of the emission reductions VER’s that are going to be certified. In general this model is called as success fee model.
• A consulting model which is a hybrid of the above mentioned model 1 and model 2. A combination of fixed fees and success fees as a percentage of the emission reductions certified. In general this model is called as fixed cum success fee model.
• An ERPA (Emission Reduction Purchase Agreement) model wherein we offer project owner a fixed or floating price for the credits, and we prepare documentation and pay the validation and verification cost of the project.
• Special engagement model devised on a case by case basis for a specific project activity.

Based on the specific project characteristics, market conditions and other relevant parameters KMS may or may not offer one of the models described as above.

Contact us today to receive best in class technical and strategically beneficial services. Let’s start the discussion to responsibly and effectively monetize carbon and environmental attributes.

 Please contact us for any sector specific reference projects and capability statements.