What is Carbon Verification?

For carbon offset programs and emissions trading schemes to function properly and achieve their goals of reducing greenhouse gas emissions, verification is crucial. Carbon verification involves third-party auditors evaluating emission reduction projects or company compliance to ensure reported emissions or emission reductions have integrity and are real, measurable, and additional. Without proper verification, there is risk of inflated or non-existent claims entering the carbon market, undermining environmental integrity.

The verification process

The Carbon Verification process generally follows these steps:
1) A verification body is contracted by the project proponent, offset program, or regulated entity. Verification bodies must be accredited and independent of the client.

2) Documentation is collected such as monitoring reports, data on technology employed, evidence supporting baseline scenarios, financial records, invoices etc. On-site visits are conducted to inspect equipment and interview staff.

3) The reported emissions or reductions are recalculated and compared to the monitoring plan and methodology. Default factors are checked, calculations are reviewed for errors or omissions, and consistency over time is evaluated.

4) Supporting evidence is evaluated such as photographs, invoices, maintenance records etc. Qualitative assessment is made of data collection and management system.

5) Findings of non-conformities, if any, are identified and must be cleared prior to a positive verification statement.

6) A final verification report is issued detailing the scope, approach, findings, conclusions and level of assurance of the verification process.

Lifecycle emissions accounting verified

For offsets and carbon neutral claims, it is important to account for all stages of emissions in the project lifecycle or product system boundary. Verifiers check:

– Emissions from construction, manufacturing, transportation are considered
– Biogenic carbon changes and carbon pools in scenarios are properly modeled
– Leakage risks to other regions or activities are evaluated
– Credits are only issued for net reductions over an appropriate baseline
– Project duration, crediting period and long term monitoring plans are assessed

Company emissions verified for compliance

For compliance with emissions cap and trade programs, verifiers ensure:
– Monitoring plans and calculation methodologies are followed
– Emissions data has been gathered, recorded, calculated and reported correctly
– Any errors or deviations are identified, assessed and corrected
– Reported emissions conform to all regulatory requirements
– Data exists to back up reported emissions figures

Strengths and limitations of the verification process
While verification provides confidence in carbon market integrity, it also has limitations:
– Scope is risk-based sampling rather than full audits of all self-reported data
– Findings may be subjective depending on verifier expertise and project complexity
– Fraud cannot be fully prevented, only detected, and still relies on honesty of some self-reported data
– Cost can be significant, especially for small projects or entities

Overall though, verification is seen as an essential safeguard for credibility and serves to minimise errors and validate claims in carbon markets and climate actions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it