The Role of the ICVCM in the Voluntary Carbon Market: Integrity and Rigor

On April 25, the Verified Carbon Standard program, of which the Will Solutions’ Sustainable Community is a member, took its first step towards recognition in the voluntary carbon market: The Integrity Council for the Voluntary Carbon Market approved the program.

What is the ICVCM? 

The Council on the Integrity of the Voluntary Carbon Market (ICVCM) is an independent body whose mission is to promote the voluntary carbon market to achieve the goal of keeping climate change below +1.5◦. This council stems from the impetus of the TSVCM, a movement launched by Mark Carney in January 2021.

The voluntary carbon market is an initiative to stimulate the development of projects that reduce greenhouse gas (GHG) emissions. The ICVCM even calls it a “crucial tool for achieving the Net-Zero objective“. However, as the market is relatively new, it is still little known and sometimes lacks consistency between the various players and participants. To accomplish its mission, the ICVCM is looking into the market’s shortcomings to improve its reliability and transparency, so that it gains in value and importance. But how?

The fundamental principles of ICVCM carbon

The ICVCM action plan began with the establishment of the Core Carbon Principles. As stated on the home page of the ICVCM website, the Core Carbon Principles serve as a “global benchmark for high integrity credits” and aim to “set rigorous thresholds for disclosure and sustainability”. Drawing on scientific knowledge and best market practices, the ICVCM has developed 10 principles:

For more details on the principles, click here!

The ICVCM Assessment Framework

These 10 principles, published in March 2023, served as guidelines for the development of the evaluation framework. The latter is used to assess, on the one hand, the integrity of programs that serialize GHG reductions into carbon credits and, on the other, the integrity of the various categories of carbon credits.

Diagram inspired and simplified by the ICVCM diagram here.

Carbon credit programs

These programs, known as “GHG programs” or “GHG standards”, are organizations that assess whether a GHG reduction project meets the program’s objectives and whether the reductions are eligible for their carbon credits. For example, the Will Solutions Sustainable Community is part of the Verified Carbon Standard (VCS) program, so its carbon credits are Verified Carbon Units (VCU).

Each program has its own rules and objectives, which is a source of confusion for carbon credit buyers and project bidders. Some programs have more stringent rules than others. For example, some programs serialize carbon credits with higher integrity than others. Purchasing carbon credits therefore requires knowledge of these differences, in order to navigate the market and find carbon credits that meet the buyer’s values and objectives.

The evaluation framework aims to eliminate this confusion in the voluntary carbon market. By assessing each GHG program against the criteria contained in the evaluation framework, the ICVCM will determine which programs are worthy of receiving the “CCP-Eligible” label, which will be an indicator of high integrity. Last April, the Verified Carbon Standard program, of which Will Solutions is a member, was awarded this label, testifying to the program’s high integrity.

Carbon Credits categories

To evaluate the carbon credit categories, the ICVCM will assess the methodologies of programs that have received the “CCP-Eligible” label. The methodologies are verified, validated, approved and published procedures, made by the GHG programs that dictate how GHG emission reductions and removals for carbon credits are to be qualified and calculated. Methodologies will be grouped into similar categories. For example, methodologies relating to reforestation would be in a different category from those applying to renewable energy suppliers in the industrial sector.

Once the categories have been established, they are evaluated by panels of experts. Methodologies that meet the evaluation criteria will receive the “CCP-Approved” label. At present, the ICVCM is still in the process of categorizing methodologies and is in the very early stages of evaluation. Consequently, for the time being, only a few methodologies in the “Ozone-depleting Substances” and “Landfill Gas Capture and Utilization” categories are approved.

Thus, for a carbon credit to be labelled “CCP“, it must both be derived from an approved methodology (CCP-Approved) and certified/serialized by an eligible program (CCP-Eligible) such as Verified Carbon Standard.

Implications for Will Solutions and the Sustainable Community

By identifying high-integrity credits and distinguishing them from others, the ICVCM reduces confusion among the various players in the voluntary carbon market. It also helps to “give buyers confidence that they are financing projects that have a real impact on emissions”. This is one of the ICVCM’s fundamental carbon principles. In addition, the ICVCM’s rigorous procedures and criteria establish a uniform threshold of rigour that programs and methodologies will need to embrace to produce quality carbon credits. In this way, the ICVCM can only enhance the reliability of the market and public confidence in it, thereby increasing its value.

Towards CCP-labeled carbon credits

As the Will Solutions Sustainable Community is a Verified Carbon Standard registered project and is already CCP-Eligible, the first step has already been successfully completed.

The development and operation of a Sustainable Community is governed by our VM0018 methodology. In the near future, our methodology will be evaluated as well. As Will Solutions’ carbon credits are derived from emission reduction projects at source, which are among the least risky credits on the market, we are confident that VM0018 will be CCP-approved. At that point, we’ll be able to proudly produce CCP-approved carbon credits.

For more information on our carbon credits, our methodology and the Sustainable Community, click here!