3

SECTION

SUMMARY FOR
DECISION MAKERS
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SECTION 3

PROGRAM-LEVEL MARCH 2023 RELEASE 20

SUMMARY FOR DECISION MAKERS 21

A. GOVERNANCE 23
1 Effective governance
2 Tracking
3 Transparency
4 Robust independent third-party validation and verification

B. EMISSIONS IMPACT 29
5 Additionality (Category-level – release 2, Q2 2023)
6 Permanence (Category-level – release 2, Q2 2023)
7 Robust quantification (Program-level)
8 No double counting

C. SUSTAINABLE DEVELOPMENT 32
9 Sustainable development benefits and safeguards
10 Contribution towards net zero emissions
(Category-level – release 2, Q2 2023)

D. CCP ATTRIBUTES 34

E. CONTINUOUS IMPROVEMENT OF THE ASSESSMENT FRAMEWORK 34

Paris Alignment
Sustainable development benefits and safeguards

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Program-level
March 2023
Release

In this March 2023 release, the ICVCM is publishing the program-level

requirements. This Summary for Decision Makers contains information
relating to the requirements on how carbon-crediting programs are governed,
how they ensure robust quantification of GHG emission reductions and
removals, how they avoid double counting and how they manage sustainable
development benefits and safeguards.

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Summary for
Decision Makers
March 2023

Introduction

This Summary for Decision Makers (SDM) presents an overview of the Integrity Council’s CCPs
and their implementation through the Assessment Framework. The SDM is intended to provide
Decision Makers and stakeholders with a comprehensive understanding of the approach adopted
by the ICVCM. It should be read in conjunction with the CCPs, the Assessment Framework,
Definitions and the Assessment Procedure.

The ICVCM seeks to help the VCM scale up by enabling participants in the market to more easily
identify high-quality carbon credits. The VCM currently comprises several carbon-crediting
programs (also known as carbon standards) that recognise activities and their mitigation
impacts. Those mitigation activities are developed and operated by mitigation activity
proponents and their design is validated by accredited third parties (validation and verification
bodies (VVBs)). Greenhouse gas emission reductions or removals achieved by those mitigation
activities are then verified by VVBs and issued by carbon-crediting programs in their registries
as carbon credits. These credits may then be acquired and used by entities to help manage their
environmental commitments.

All carbon-crediting programs have adopted requirements, procedures, and policies to address
administrative and operational considerations for developing and implementing their programs
known as normative program documents. However, carbon credits issued by these programs
differ in quality. The aim of the Integrity Council’s CCPs and Assessment Framework is to help
VCM participants identify the high-quality carbon credits and to evolve a threshold for quality and
integrity across the VCM that will build confidence and comparability.

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Two levels of assessment

The Assessment Framework operates at two different levels:

Program: The ICVCM Assessment Framework establishes eligibility requirements at the program-
level through the application of specific criteria and requirements for carbon-crediting programs.
Carbon-crediting programs will apply to be assessed on whether they meet the requirements, and
successful programs will become CCP-Eligible.

Categories of carbon credits: The ICVCM also establishes criteria and requirements for categories
of carbon credits (“Categories”). Individual Categories will be assessed, and those meeting the
associated requirements will become CCP-Approved. Carbon credits belonging to CCP-Approved
Categories may then be ‘tagged’ by CCP-Eligible programs accordingly. CCP-Approved Categories
may also be tagged with supplemental identifying criteria, known as CCP Attributes, which
identify additional high-quality aspects of the carbon credits that may be of interest to market
participants.

The process by which carbon-crediting programs and Categories are assessed is contained in the
Assessment Procedure.

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A. Governance

Governance includes four of the CCPs: Effective Governance, Tracking, Transparency, and Robust
Independent Third-party Validation and Verification. Taken together, these CCPs identify strong
governance provisions at the program-level. These provisions are critical to ensuring the
overall quality of carbon credits issued by the carbon-crediting programs and maintaining and
strengthening an environment of trust that supports the long-term integrity and growth of the
VCM.

Effective governance is important for integrity because it significantly improves transparency

and accountability, and can help to grow participation in the VCM. It may also increase the
responsiveness and engagement of the public and key stakeholders by providing increased
relevance, reliability, and comparability of reporting and improved insight into program
performance.

Tracking is accomplished through the use of registries. A registry is a secure central database for
recording comprehensive information about carbon credits that the program issues, including
the mitigation activity in which they were generated, their ownership, and their transaction
history. A registry uniquely identifies each carbon credit, the associated mitigation activity, and
any other associated attributes. Registry account controls ensure that there is comprehensive
information about mitigation activity proponents and VCM participants.

Transparency is achieved through the public availability of information. Availability of

information enables stakeholders to understand how the GHG emission reductions or removals
are calculated, including how additionality is assessed, GHG emissions reductions or removals
are quantified, and the environmental and social impacts of the mitigation activity.

Robust independent third-party validation and verification through third-party auditing is

a key tool for accuracy, consistency, transparency, and integrity in the VCM. Auditing by third
parties provides independent confirmation that the mitigation activity achieves GHG emission
reductions or removals. Requirements include rules that specify when and how validation of the
design of a mitigation activity and verification of GHG emission reductions and removals by third-
party auditors, plus verification of other aspects, are to occur and be implemented. The work of
VVBs is essential to the environmental integrity of carbon crediting and to ensuring confidence in
the VCM.

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The Program-level processes listed above are all important for ensuring effective governance.
Many of those have also been addressed in the requirements by the Carbon Offsetting and
Reduction Scheme for International Aviation (CORSIA), developed and adopted by the International
Civil Aviation Organisation (ICAO). In order to minimise the burden on the carbon-crediting
programs operating in the VCM, the ICVCM has determined that programs already eligible under
CORSIA shall also be eligible under this version of the Assessment Framework provided that they
meet the following requirements.

Carbon-crediting programs will be required to meet all requirements in the Assessment

Framework. Carbon-crediting programs that are CORSIA-eligible will not be required to
demonstrate that they meet CORSIA requirements related to effective governance, tracking,
transparency and robust validation and verification. CORSIA-eligible programs will have to
provide relevant information for the additional requirements detailed in the Assessment
Framework and included in the ICVCM Application Platform.

Carbon-crediting programs that have not yet applied for CORSIA eligibility will be required to
demonstrate to the Integrity Council that they meet all the requirements of CORSIA, through their
application to the ICVCM, as set out in the ICVCM Application Platform. They will also have to
demonstrate that they meet the additional requirements detailed in the Assessment Framework
and included in the ICVCM Application Platform.

Changes in CORSIA requirements, and/or changes in relation to the carbon-crediting programs

and carbon credits listed as eligible in the CORSIA Eligible Emission Units will be addressed, to
the extent required, at the discretion of the ICVCM, through the Assessment Procedure.

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1 Effective Governance

Effective governance is a core feature of

well-operated carbon-crediting programs.
Effective governance requirements on public
availability of documents and information
enables transparent decision-making, effective The carbon-crediting
and inclusive participation, and feedback to program shall have
support continuous improvement.
effective program
In addition to meeting governance governance to
requirements set out in CORSIA, the ensure transparency,
carbon-crediting program will need to meet accountability,
requirements that demonstrate effective continuous improvement
governance through a transparent and and the overall quality
robust corporate governance framework for
their organisations, including reporting and
of carbon credits.
disclosure, and risk management policies
and controls such as anti-bribery and anti-
corruption. The Integrity Council’s requirements
on effective governance ensure processes are
in place that support an organisation’s long-term resilience and provide a framework of checks
and balances to guide the organisation’s governing body and staff.

The criteria under this CCP requires carbon-crediting programs to have an independent board,
publish annual reports and have robust processes relating to corporate social and environmental
responsibility, and effective anti-money laundering rules.

Effective governance requires that normative program documents relevant to decision-making

are publicly available, subject to compelling confidentiality constraints, including data protection
and privacy. Normative program documents include standards, methodologies, procedures, tools,
guidelines, supplementary information, and project documentation.

Carbon-crediting programs must also have processes in place that provide for public engagement
through local and global stakeholder consultation and for independently addressing grievances.

In the Assessment Framework, ICVCM makes use of CORSIA rules in relation to effective
governance and has additional requirements that ensure CCP-Eligible programs have
comprehensively effective governance.

See Criteria 1.1 to 1.2 for Effective Governance in Part I of the Assessment Framework.

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2 Tracking

A registry is an information technology system

used by a carbon-crediting program to identify
mitigation activities and track each carbon
credit from its issuance through subsequent
transactions to its retirement or cancellation. The carbon-crediting
Registries, therefore, play a critical role program shall operate
in ensuring high integrity by providing a
transparent and secure platform to track
or make use of a registry
and verify carbon credits. The criterion and to uniquely identify,
requirements ensure that a carbon-crediting record and track
program has processes and procedures in mitigation activities and
place to provide clarity with respect to the carbon credits issued
issuance and retirement of carbon credits. to ensure credits can be
Specifically, the carbon-crediting program’s
registry should identify by whom and on whose
identified securely and
behalf a carbon credit was retired, identify unambiguously.
the purpose of retirement, have procedures to
address erroneous issuance of carbon credits
and procedures and requirements to ensure
no more than one carbon credit is issued per
tonne of CO2 equivalent.

In the Assessment Framework, the ICVCM combines CORSIA rules in relation to registries with
additional requirements that help ensure that CCP-Eligible carbon-crediting programs operate
registries of the highest standards.

See Criterion 2.1 for Tracking in Part I of the Assessment Framework.

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3 Transparency

The design and implementation of a mitigation

activity is an intensive process requiring
significant qualitative and quantitative
documentation. Making this information
publicly available through a registry is key The carbon-crediting
to promoting transparency. The Assessment program shall provide
Framework’s criterion on Transparency requires
public disclosure of all relevant project
comprehensive and
documentation. To meet the requirements transparent information
under this criterion, the carbon-crediting on all credited
program needs to ensure the registry contains mitigation activities.
detailed information about each mitigation The information shall
activity and is searchable by the general public. be publicly available
By making this information publicly available
interested stakeholders will be able to
in electronic format
understand how the GHG emission reductions and shall be accessible
or removals are calculated, including how to non-specialised
additionality is assessed, GHG emissions audiences, to enable
reductions or removals are quantified, and scrutiny of mitigation
the environmental and social impacts of the activities.
mitigation activity.

Information about the activity should be

publicly available electronically, subject
to compelling confidentiality constraints. It is also important that information requests from
stakeholders are appropriately addressed, and that stakeholders are provided with and directed to
that information on the program’s website, including on information from its website.

In the Assessment Framework, the ICVCM combines CORSIA rules concerning transparency with
additional requirements that ensure CCP-Eligible programs operate with full transparency about
mitigation activities.

See Criterion 3.1 for Transparency in Part I of the Assessment Framework.

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4 Robust Independent Third-party Validation and Verification

Third-party auditing of the design of mitigation

activities and monitoring of GHG emission
reductions or removals is critical to ensuring
that each mitigation activity meets all of
the relevant program rules specified in the The carbon-crediting
normative program documents. program shall
To meet the criterion and requirements under
have program-level
Robust Independent Third-party Validation and requirements for
Verification, the carbon-crediting program’s robust independent
normative documents must set out the rules third-party validation
for how VVBs become and remain accredited and verification of
in relation to the carbon-crediting program, mitigation activities.
review the performance of VVBs, and set
standards and develop procedures that
guide VVBs in their work. These rules include
provisions on VVB organisational structure
and management, organisational resources,
validation and verification processes, and information requirements, penalties for rule breaches
and rules ensuring the impartiality of the VVB and the avoidance of conflicts of interest.

In the Assessment Framework, the ICVCM combines CORSIA rules on third-party validation
and verification with additional requirements that ensure CCP-Eligible programs are applying
validation and verification best practices.

See Criterion 4.1 for Robust Validation and Verification in Part I of the Assessment Framework.

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B. Emissions
Impact

5 Additionality (Category-level – Release 2, Q2 2023)

The GHG emission reductions or removals

from the mitigation activity shall be
additional, i.e., they would not have occurred
in the absence of the incentive created by
carbon credit revenues.

6 Permanence (Category-level – Release 2, Q2 2023)

The GHG emission reductions or removals from

the mitigation activity shall be permanent or,
where there is a risk of reversal, there shall be
measures in place to address those risks and
compensate reversals.

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7 Robust Quantification (Program-level)

A crucial consideration in strengthening

the integrity of the VCM is ensuring that
GHG emission reductions or removals are
robustly quantified so that their levels are not
overstated. Carbon-crediting programs must, The GHG emission
inter alia, address the level of uncertainty of reductions or removals
emission reductions or removals and ensure
the conservativeness of quantification
from the mitigation
methodologies. It is critical for carbon- activity shall be
crediting programs to understand the level robustly quantified,
of uncertainty associated with the data and based on conservative
the assumptions used for quantifying GHG approaches,
emission reductions or removals to ensure completeness and sound
they are estimated conservatively.
scientific methods.
Ensuring robust quantification requires that
carbon-crediting programs have a thorough
methodology approval process that includes
public stakeholder consultations and reviews
by independent experts. Moreover, carbon-crediting programs must have robust requirements
and principles governing the quantification of GHG emission reductions and removals. In
addition, robust quantification requires that carbon-crediting programs ensure that GHG
emission reductions or removals are verified ex-post. Some carbon-crediting programs also issue
carbon credits ex-ante. In such instances, only carbon credits issued ex-post may be CCP-Eligible.

In addition to the requirements established in the Assessment Framework, the ICVCM refers to
CORSIA rules on Clear Methodologies and Protocols, and their Development Process.

This section will be updated once requirements for Robust Quantification at the Category-level are
released (Q2 2023).

See Criteria 5.1 to 5.3 for Robust Quantification in Part I of the Assessment Framework.

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8 No Double Counting

Double counting of carbon credits and/or GHG

emission reductions or removals undermines
the integrity of the VCM on reducing or
removing GHG emissions. Double counting can
manifest in a number of ways and the ICVCM The GHG emission
requirements ensure that the carbon-crediting reductions or removals
programs manage the risks of double counting.
from the mitigation
Double issuance: This occurs when two or activity shall not be
more carbon credits co-exist at the same time double counted, i.e., they
for one GHG emission reduction or removal, shall only be counted
under the same or different carbon-crediting once towards achieving
or other programs. Double issuance can also mitigation targets or
occur where two or more mitigation activities
have overlapping GHG accounting boundaries,
goals. Double counting
and carbon-crediting programs need to have covers double issuance,
provisions avoiding issuance of more than one double claiming, and
credit in relation to the same GHG emission double use.
reduction or removal in such cases.

Double use: This occurs when one carbon

credit is claimed towards multiple mitigation
targets/goals (e.g., once each by two different
entities or twice by one entity).

Double claiming with mandatory domestic mitigation schemes: This occurs when a carbon-
crediting program issues a carbon credit in respect of GHG emission reductions or removals that
are covered by a mandatory domestic mitigation scheme (e.g., emissions trading system). In the
context of the ICVCM, it is considered that a Nationally Determined Contribution (NDC) under the
Paris Agreement does not constitute a mandatory domestic mitigation scheme. While a NDC may
be put into effect through a variety of instruments, including mandatory domestic mitigation
schemes, it is considered to be separate from the latter.

The Integrity Council has established a CCP Attribute in relation to host country authorization for
use towards ‘other international mitigation purposes’ pursuant to Article 6 of the Paris Agreement
(See section D below). The question of how to manage double counting in all its forms in the
context of Article 6, and whether double claiming with NDCs should be avoided on the basis of a
corresponding adjustment as set out in Article 6 implementing guidance, will be addressed in the
ICVCM work program, described in section E below.

Double claiming with mitigation incentivisation schemes: This occurs when a carbon-crediting
program issues a carbon credit for a GHG emission reduction or removal for which another
environmental credit is being issued and traded under a different environmental market (such as
Renewable Energy Certificates).

See Criteria 6.1 to 6.5 for No Double Counting in Part I of the Assessment Framework.

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C. Sustainable
Development

The carbon-crediting
9 Sustainable Development Benefits program shall have
and Safeguards clear guidance, tools
and compliance
procedures to ensure
In a high-integrity VCM, carbon-crediting
mitigation activities
programs take steps to ensure that mitigation conform with or
activities adhere to environmental and social go beyond widely
safeguards and contribute to the Sustainable established industry
Development Goals (SDGs). Carbon-crediting best practices on social
programs have measures in place to ensure
and environmental
that in the context of the host country,
mitigation activity proponents inform how SDG
safeguards while
impacts are consistent with SDG objectives delivering positive
of the country, respect human rights and sustainable
comply with relevant safeguards. Program- development
level processes ensure that mitigation activity impacts.
proponents assess environmental and social
risks associated with proposed mitigation
activities, taking into account the size and
scale of the relevant mitigation activity.

Where the context requires, mitigation activities are required to ensure free, prior and informed
consent (FPIC) processes with Indigenous Peoples and Local Communities (IPs & LCs), protect
and improve livelihoods, protect and restore biodiversity and ecosystem services, enhance
climate resilience and adaptation, reduce pollution, and be transparent about the sharing of
benefits from the mitigation activity with IPs and LCs.

Carbon-crediting programs must also ensure compliance with relevant national requirements,
applicable laws and rules of the relevant jurisdiction. In that context, the Assessment Framework
builds on the work of widely applied best-in-class standards including World Bank, International
Finance Corporation, United Nations Development Programme, United Nations Declaration on the
Rights of Indigenous Peoples, United Nations Environment Programme, the Cancun Safeguards,
and the International Labour Organization Fundamental Conventions, among others.

See Criteria 7.1 to 7.11 for Sustainable Development Benefits and Safeguards in Part I of the Assessment
Framework.

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10 Contribution Towards Net Zero Emissions

(Category-level – Release 2, Q2 2023)

The mitigation activity shall avoid locking-in

levels of emissions, technologies or carbon-
intensive practices that are incompatible
with the objective of achieving net zero GHG
emissions by mid-century.

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D. CCP Attributes

Attributes can be used to identify additional features related to the mitigation activity for which
the carbon credit has been issued. Such identification enables mitigation activity proponents to
showcase the features of the mitigation activity and allows buyers to purchase carbon credits
that match their preferences. To facilitate the identification of these additional features the
ICVCM has included CCP Attributes in this Assessment Framework.

Carbon credits that are CCP-Eligible as a result of the assessment process may then, in
accordance with the Assessment Procedure, additionally be tagged with relevant CCP Attributes. A
carbon credit may have more than one CCP Attribute, but each must be distinguished from other
CCP Attributes that may be allocated to the carbon credit.

Attribute 1 is about “Host country authorization pursuant to Article 6 of the Paris Agreement”.
This attribute refers to whether the host country has authorised the carbon credit (“mitigation
outcomes”, the GHG emission reductions or removals represented by the carbon credit) for “other
international mitigation purposes” under guidance adopted pursuant to Article 6 (specifically
cooperative approaches referred to in Article 6, paragraph 2) of the Paris Agreement. Some buyers
are keen to purchase carbon credits in respect of which there is a host country authorization for
Article 6 purposes. This attribute facilitates identifying such carbon credits.1

Attribute 2 “Share of Proceeds for Adaptation” refers to whether the mitigation activity makes a
voluntary contribution to the Adaptation Fund of the UNFCCC.

Attribute 3 is “Quantified positive SDG impacts”. This attribute refers to whether the mitigation
activity quantifies a positive contribution to Sustainable Development (excluding SDG 13).
It differs from requirements in Section 4.C.7 of the Assessment Framework (criteria related
to Sustainable Development Benefits and Safeguards) because the attribute relates to
quantification of impacts. This will facilitate the identification of carbon credits with quantified
positive impacts of this type. Such quantified positive SDG impacts must align with the
sustainable development priorities of the host country, where those are relevant to the mitigation
activity.2

Other attributes may be developed at the discretion of the ICVCM.

1 This issue is also connected to section 4.B.6 Assessment Framework (criteria related to No Double counting) and the work
program to be undertaken by the ICVCM described in section E below.
2 The ICVCM will undertake a work program on related matters (see section E below).

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E. Continuous
Improvement of
the Assessment
Framework

In line with best practices in standard setting, the Integrity Council has designed a process for
continuous improvement of the CCPs and the Assessment Framework. The process ensures the
continued relevance and effectiveness in meeting the stated objectives of the Integrity Council.

Work on developing the next iteration of the Assessment Framework begins after the release of
this version. It will include input by multi-stakeholder work programs detailed in the sections
below. It will include consultation processes (public and via workshops with stakeholder groups
such as carbon-crediting programs, project developers, academics, IPs & LCs, etc.) and analysis
necessary to inform its development.

The first revision process for the CCPs and the Assessment Framework is expected to be launched
in 2025, and ready for implementation in 2026.

Paris Alignment

Corresponding Adjustments pursuant to guidance on Article 6, paragraph 2 of the Paris

Agreement

It is broadly understood that double counting must not occur where carbon credits are transferred
internationally for use towards NDCs under the Paris Agreement. This understanding is also
reflected in Article 6 guidance agreed at the UNFCCC COP26 in 2021. There is, however, an active
debate in the VCM about how to manage double counting in all its forms in the context of Article
6, and whether double claiming with NDCs should be avoided on the basis of a corresponding
adjustment as set out in Article 6 implementing guidance, in the context of companies using
carbon credits towards voluntary climate commitments. The ICVCM considers that this issue
remains open after UNFCCC COP27 and needs further study.

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As countries move to implement systems to deliver on their Paris Agreement commitments the
VCM and host country systems will increasingly interact. The ICVCM and VCMI will co-lead a joint
work program to consider:

„ Identification and assessment of scenarios related to corresponding adjustments.

„ Impacts of corresponding adjustments and implications for carbon credit integrity.

Share of Proceeds for Adaptation Finance

In addition to the CCP Attribute for a Share of Proceeds for Adaptation Finance (SOPA)3, the
Integrity Council will establish a work program to consider:

„ Whether SOPA should be mandatory or voluntary.

„ Potential exemptions based on mitigation activity type or size based on the mitigation and
adaptation impacts, and on benefits and revenues to communities participating in GHG
mitigation activities/programs in developing countries.

„ The readiness of buyers of carbon credits to make such a contribution.

„ The merits of voluntary compared to mandatory approaches.

„ The appropriate destination of any carbon credits/revenue.

„ The impact on market participants and the incentives created.

Sustainable Development Benefits and Safeguards

In addition to the requirements under Section 4.C.7 Sustainable Development Benefits and
Safeguards and the CCP Attribute for quantified positive SDG impacts4, the Integrity Council
recognises that approaches to environmental and social safeguards are currently evolving
and that this is a clear area for improvement in the VCM. The ICVCM will consult with relevant
stakeholders to understand how current practice can be improved in order to develop new
requirements for the next iteration of the Assessment Framework. The work program will include
all elements listed in table 7.12 of the Assessment Framework.

3 See Section D, CCP Attribute 2: Share of Proceeds for Adaptation

4 See Section D, CCP Attribute 3: Quantified positive SDG impact

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