Verified Carbon Standard (VCS)
Introduction
The Verified Carbon Standard (VCS) is the world’s leading greenhouse gas crediting program.
VCS projects implement a wide variety of activities that reduce or remove greenhouse gas emissions, improve livelihoods, and protect nature.
The VCS program focuses on four main areas:
Blue carbon, which is carbon stored above-ground and below-ground of biomass and sediments of coastal and marine environments.
Carbon capture and storage.
Agriculture, forestry and other land use (AFOLU), and REDD.
Energy transition and decarbonisation of hard-to-abate sectors.
Projects and programs registered in the VCS Program are issued unique carbon credits known as Verified Carbon Units (VCUs). Each VCU represents a reduction or removal of one tonne of carbon dioxide equivalent (CO2e) achieved by a project.
To date (Nov 2024), the VCS standard has registered 2,361 projects. From these projects, it has issued approximately 1.29 billion VCUs and retired about 0.76 billion of them.
Sectrol scopes
VCS projects are categorized under 16 sectoral scopes:
1) Energy (renewable/non-renewable)
Based in Namibia, the Ombepo wind project involves the construction of a 10 MW power plant which would produce electricity for export to the national grid.
This project was proposed to happen in two phases. The first phase would involve installation of wind turbines with a capacity of 6MW , while the second phase would see this capacity extended by 4MW.
2) Energy distribution
This project involves the installation, operation, and maintenance of EV charging infrastructure across India to scale the EV market in the country.
By switching from fossil fuels to electric vehicles, this project estimates total GHG reduction of 123,340 tCO2e over ten years with annual average emission reduction of 12,334 tCO2e per year.
3) Energy demand
The aim of this project is to improve the household conditions of rural and semi urban communities living in Maharashtra state of India via the distribution of improved cookstoves, which are more efficient, emit less smoke and are safer than the traditional cook stoves.
The use of improved cookstoves reduces fuel-wood consumption and hence forest conservation and improves the health conditions of users by reducing smoke emissions in the air.
The annual average GHG emission reduction for this project activity is estimated to be 2,031,111 tCO2e, amounting to 20,311,115 tCO2e in 10 years.
4) Manufacturing industries
This project entails switching from coal to natural gas ( which has a lower CO2 emission factor than coal) in two cement kilns at Atocongo Cement Plant, in Peru.
Prior to this, the fuel mix used in the kilns was mainly coal (which made up 80% of the fuel mix), while the rest was fuel oil and petcoke as well as small quantities of diesel (0.05%).
The implementation of this project was expected to generate GHG emission reductions due to the substitution of the previous fuel mix by natural gas.
5) Chemical industry
Based in India, the aim of this project was to produce biodiesel from vegetable oils. The project was expected to produce 500 litres of biodiesel and 70 litres of glycerine (as a by product) per day.
6) Construction
Partanna proposed to produce a type of concrete that performs as well or better than traditional concrete and completely eliminates the use of conventional Portland cement, which is responsible for 8-9% of global CO2 emissions. This project was expected to reduce greenhouse gas emissions by producing concrete that eliminates the need for carbon-intensive Portland Cement and captures atmospheric CO2.
Partanna’s alternative cement-making process employs natural or recycled ingredients that do not require the clinkering process, its extremely high temperatures or its release of process CO2 emissions. Therefore, the technology generates avoidance credits from the displacement of cement.
The company aimed to produce up to an average of 1.46 million cubic yards of concrete per year from its production sites in the Bahamas. This would construct around 5,798 homes, which would yield an estimated an average of 547,605 tCO2eq reduced per year for a total of 5,476,049tCO2eq over the crediting period.
7) Transport
This project focuses on Electric & Plug-In Hybrid Vehicle Technologies, to replace traditional internal combustion engines (ICE) which use emissive diesel and petrol fuel sources. Verified Carbon Units (VCUs) would be generated through EV charging systems.
The use of electricity powered cars instead of fossil fuel powered ones leads to lower GHG emissions per distance driven.
The project was estimated to reduce an average of 7,801 tCO2 per annum.
8) Mining/Mineral production
Based in Karnataka, India, this project involves using methane generated from Tiefa Coal Mine, which would otherwise be vented into the atmosphere, for power generation. The electricity produced would supply the mines, displacing part of the power consumption supplied by the Northeast Power Grid (NEPG).
9) Metal production
10) Fugitive emissions – from fuels (solid, oil, and gas)
Based in the People’s Republic of Bangladesh, the aim of this project was to reduce gas leakages from components in the natural gas transmission and distribution system operated by Titas Gas Transmission and Distribution Company Limited (Titas).
At Titas, leaks in the transmission/distribution system are caused by normal component wear, thermal and vibrational stresses and seasonal expansion/contraction cycling from ambient air temperature changes. Natural gas leaks occur through various sources including, thread connections of gas pipes, broken gaskets and other broken parts of ball/plug valves, broken membranes of pressure regulators and connectors, etc.
Previously, the company relied on odor and soap bubbles to identify leaks. This approach was ineffective as odor does not allow a repairman to pinpoint a leak or its size. This project sought to use advanced leak detection and repairs (LDAR) procedures using advanced technology such as HiFlow Samplers to identify leaks and repair the transmission/distribution system. This would lead to the reduction of methane emissions at valves, insulating joints, pressure regulators and other above ground gas transmission/distribution infrastructure.
This project is estimated to reduce emissions by 1,124,113 tCO2e annually, amounting to 10,909,925 tCO2e over the 10-year crediting period.
11) Fugitive emissions – from Industrial gases (halocarbons and sulphur hexafluoride)
This project involved the capture and destruction of methane at the Beatrix Mine, which is a gold mine located in South Africa.
The project developers proposed to carry out the project in two phases. The first phase entailed the destruction and utilisation of mine methane, which originates in the main Beatrix mine, from intersecting geological faults whilst mining. The second phase involved the destruction of non-mine methane, which is methane emitted from boreholes drilled for exploration purposes by the Beatrix mine.
12) Solvents use
13) Waste handling and disposal
Based in Malaysia, the purpose of this project was to implement biogas recovery, flaring and/or utilization systems for industrial waste water treatment.
The project would reduce greenhouse gas (GHG) emissions from industrial facilities by capturing biogas generated in open waste-water treatment systems instead of allowing it to escape to the atmosphere.
The first phase of this project was estimated to achieve annual average GHG emission reductions of 34,395 tCO2e/year, totalling to 240,952 tCO2e at the end of the first 7-year crediting period.
14) Agriculture, forestry and other land use (AFOLU)
This is a revegetation project aimed at restoring key watershed areas in Rwanda, through planting of select species of sympodial (clumping) bamboos as riparian buffers.
The vegetation along the riverbanks was cleared decades ago due to demand for agricultural land. In 2010, the Government of Rwanda prohibited farming or agricultural production on these lands. At the start of the project, these lands were typically bare or with grass cover. No forests had been present on these lands for the last 10 year period before the project start date.
The initial estimates of total potential GHG emission removals were an average of 51,964 tCO2e per year and 1,039,272 tCO2e over the 20-year project period.
15) Livestock and manure management
In this project, animal waste management systems will be installed to treat the manure from 5 swine farms in Henan Province, China. The purpose of treating manure and waste water is to avoid methane emissions generated in the baseline uncovered anaerobic lagoons. All the manure and wastewater will be collected, flushed and pumped to the aerobic treatment system.
The biogas generated during the treatment process will be captured for heat generation and food processing facility for self-use. After anaerobic digestion, the digestate will be sent out and used for agriculture fertilization aerobically in the nearby farmlands for free. The effluent will be used for agricultural irrigation.
The project is expected to avoid GHG emission of methane through recovery and destruction of biogas. It is estimated that 22,432 tCO2e emission reductions will be generated annually and 224,320 tCO2e at the end of the 10 years’ fixed crediting period.
16) Carbon capture and storage
Methodologies
Methodologies provide requirements and procedures to determine project boundaries, identify the baseline, assess additionality, monitor the relevant parameters, and ultimately quantify the GHG emission reductions or removals. They are essential to quantifying real and accurate greenhouse gas (GHG) benefits of a project and to generate VCUs.
Examples: