Underlying Credit Value & Uncertainty
Underling Credit Value
The underlying credit value must be equal to one tonne of CO2e removed or avoided in the atmosphere. This is ensured within the methodology development process. In order for a methodology to pass, the expert panel must positively attest to the statement: “ If a project developer complied with this methodology, would each carbon credit produced by the project represent one tonne of CO2e avoided or removed?”
Uncertainty
Carbon Markets are still inherently uncertain - the majority of projects are operating at the forefront of scientific understanding of the systems they operate in and the best technology for measuring the impact of specific intervention
They way we approach uncertainty at the OCP is to build processes to capture new developments and ensure they are integrated into past, present, and future calculations of credits
Every year, all methodologies and project types are audited to ensure they are still up-to-date. If they aren’t, an expert panel is assembled to discuss and update any relevant parts of the methodologies, either internally or using industry or sector-level standards.
If projects are found to be under-crediting, we work with the Project Developers and credit owners to rightsize the credits.
We believe that companies should move to a ‘Living Ledger’, where carbon credits are treated as assets, recorded on a company’s environmental balance sheet next to its environmental liabilities. This allows companies to ensure any carbon credits they buy are always matching their environmental liabilities, reducing the risk of inaccurate climate claims.
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