Underlying Credit Value & Uncertainty

Underling Credit Value

• The underlying credit value must equal one tonne of CO2e removed or avoided in the atmosphere.

• The calculation methods of the CO2e removed or abated should be aligned with ISO 16064 practices.

• 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?”

• See the Methodology Development, Feedback & Approval Page

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.

• 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 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 uncertainty. Reach out to [e-mail] if you're interested in piloting this approach.