Verra Rejects 37 Rice Cultivation Projects In China, Sanctions Auditors And Proponents
Verra has rejected 37 rice cultivation projects in China, imposing sanctions on involved project proponents and validation/verification bodies. This decision follows a quality control review highlighting issues with the UNFCCC CDM methodology AMS-III.AU., which Verra inactivated in March 2023. Problems included inadequate additionality and evidence. Verra plans to seek compensation for overissued Verified Carbon Units and is developing a new methodology.
Veera, the nonprofit organization that sets standards for the voluntary carbon market (VCM), announced on Wednesday the rejection of 37 rice cultivation projects in China and imposed unprecedented sanctions on the project proponents and validation/verification bodies (VVBs) involved.
This significant action follows a comprehensive quality control review under Verra’s Verified Carbon Standard (VCS) Registration and Issuance Process and its new VVB Performance Monitoring Program.
The rejected projects utilized the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) methodology AMS-III.AU.: Methane emission reduction by adjusted water management practice in rice cultivation within the VCS Program.
In March 2023, Verra permanently inactivated the use of this methodology due to concerns over its effectiveness.
Farhan Ahmed, Verra’s Chief Program Management Officer, stated that the recent sanctions against project proponents and VVBs reflect Verra’s dedication to maintaining higher standards of integrity, transparency, and quality in the voluntary carbon market.
He emphasized that there are consequences for not adhering to established rules and requirements and that this action should serve as a clear message that being included in the Verra Registry signifies a commitment to integrity and quality.
The decision to reject these projects stemmed from several critical issues identified during the quality control review, including inadequate demonstration of additionality, overstatement of project areas, and insufficient evidence to support baseline and project scenarios, which have been further substantiated through an analysis of remote sensing data.
Verra also announced plans to seek compensation for the overissuance of Verified Carbon Units (VCUs) from the project proponents who failed to comply with VCS Program rules.
Four VVBs—China Classification Society Certification Company, China Quality Certification Center, Shenzhen CTI International Certification Co., Ltd, and TÜV Nord Cert GmbH—received non-conformity reports and have 15 days to propose corrective actions to avoid temporary suspension from conducting future audits under the VCS sectoral scope 14: Agriculture, Forestry, and Other Land Use (AFOLU).
Janice O’Brien, Director of Auditing and Accreditation at Verra, emphasized the rigorous investigation process, stating that the issues identified were severe and warranted a strong response.
The lessons learned will help develop a more effective and credible rice cultivation methodology for future projects, she added.
Looking ahead, Verra is developing a new rice cultivation methodology with provisions for field stratification, accounting for changes in nitrous oxide emissions and soil organic carbon stocks, and standardized methane measurements.
The new methodology aims to ensure credible emission reductions and high-quality VCUs, with a planned launch later this year.
This concludes a process initiated in March 2023, which resulted in the permanent inactivation of the AMS-III.AU. methodology.
Of the 37 projects using this methodology, 25 have issued VCUs, totaling 4.56 million, representing 0.43% of all VCUs.
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