Verra aligning its Jurisdictional REDD+ framework with high-integrity labels

Verra, the world's largest issuer of carbon credits, is making key updates to its Jurisdictional REDD+ program to align it with the Integrity Council for the Voluntary Carbon Market's Core Carbon Principles label.

In a statement Aug. 19, the carbon registry said it was revising its Jurisdictional and Nested REDD+ Framework within the Verified Carbon Standard Program, so it meets all criteria of the CCPs for high-quality carbon credits.

The JNR Framework is the world's first accounting and verification framework for jurisdictional REDD+ programs and nested projects.

REDD+ encompasses all activities aimed at protecting forests from deforestation, and these projects aim to contribute to the fight against climate change by preserving existing forests in specific areas that are considered at risk of deforestation. The projects make up almost a quarter of all carbon credits issued, making it a popular category type.

The nature-based offsets and REDD+ market is moving towards a jurisdictional approach now known as Jurisdictional REDD+, with governments increasingly taking ownership of voluntary carbon activity.

Jurisdictional carbon credits are backed by the government of a project host country and buyer country, with bilateral agreements to ensure that each carbon credit transferred can only be counted toward one country's emissions reduction target under the UN's Paris Agreement.

ICVCM, which is tasked with setting threshold standards for high-quality carbon credits, has come up with CCP labels and an assessment framework to help define high-integrity carbon offsets.

To receive a CCP label, carbon crediting programs need to provide comprehensive and accessible disclosure on how each project calculates and quantifies its emissions impact, and how it assesses additionality and social and environmental impacts.

The CCPs include 10 codes that will help identify carbon credits that "create real, additional and verifiable climate impact with high environmental and social integrity, based on sound science and evolving best-practice," according to ICVCM.

Nature-based credits

The Platts Nature-Based Avoidance price, which reflects the most competitive internationally fungible carbon credits issued by nature-based projects such as REDD+ projects, is starting to rise after it reached record lows earlier this year.

The Platts Nature-Based Avoidance 2024 was assessed at $4.70/mtCO2e on Aug. 19, according to S&P Global Commodity Insights data.

But the REDD+ segment has seen a scarcity of firm bids and trades in the secondary spot market due to a lack of demand amid multiple integrity concerns hitting the sector, coupled with a European summer lull, markets sources told Commodity Insights.

Buyers focused on credits perceived as high integrity and quality are looking towards removals credits for their net-zero pathways, while buyers concerned about price points are looking towards competitively priced renewable energy credits, according to a Europe-based trader.

"We are not looking to purchase or trade any REDD+ credits at the moment," the trader said.