> For the complete documentation index, see [llms.txt](https://documentation.carbonregistry.com/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documentation.carbonregistry.com/documentation/icr-program/project-development/criteria/icr-requirement-document-v6.2.md).
# ICR Requirement Document v6.2
#### *Summary*
ICR serves as a framework for *climate projects* of any size, promoting environmental integrity by accelerating credible action and ensuring credibility, consistency, and transparency in quantification, *monitoring*, reporting, *validation*, and *verification*.
| Version no. | 6.2 |
| --------------- | --------------- |
| Date of Version | 9. October 2026 |
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## Introduction
To achieve the goal of the Paris Agreement to limit global warming to 1.5 degrees Celsius, the global community must reach net-zero emissions no later than 2050. A decade later, the world is falling behind its goals, with emissions still rising. Immediate climate action is imperative to transition the world into a low-carbon economy. The need grows more urgent by the day, as evidenced in Working Group I's contribution to the Sixth Assessment Report[\[1\]](#footnote-1) by the Intergovernmental Panel on Climate Change (*IPCC*) and further emphasized in the latest Synthesis Report published in March 2023, based on findings of the April 2022 report by Working Group III's *Climate Change 2022: Mitigation of Climate Change*[\[2\]](#footnote-2). Although the primary focus of governments and corporations should be to reduce emissions, establishing a credible carbon market mechanism is paramount to support the goals of the Paris Agreement and those of the United Nations for Sustainable Development. The voluntary carbon market (*VCM*) has the potential to significantly accelerate efforts to mitigate climate change and achieve these goals.
*Carbon credits* enable *organizations* to *compensate* for emissions by financing the avoidance/reduction of emissions from other sources, or by removing greenhouse gases from the atmosphere, thus contributing to the global net-zero transition. *Carbon credits* can also support emerging climate technologies by providing financial incentives, enabling earlier market entry, and accelerating innovation in pursuit of financing. Financing can then enable deployment of emerging innovative methods, in a more competitive position against carbon-intensive alternatives. Therefore, it is urgent to enable emerging technologies to enter the *VCM* to access finance which will help deploy these solutions. Such global deployment can decrease the rate at which emerging economies need to rely on fossil-fueled solutions to meet their energy needs. The investments needed to scale emerging low-carbon technologies do not meet today's markets' risk and return expectations. An effective and adaptable carbon market can facilitate capital flows to these technologies through carbon accounting mechanisms established on the principles that emerged in initiatives such as the Clean Development Mechanism and the Kyoto Protocol and later adapted to the Paris Agreement Crediting Mechanism (*PACM*).
ICR is a greenhouse gas (*GHG) program* and an initiative in Iceland established to facilitate financing *climate projects* while safeguarding environmental integrity and contributing to a sustainable and low-carbon economy, with reliance on international standards systems, conformity assessment, and assurance systems. ICR serves as a platform for *climate projects* of any size, where environmental integrity is promoted with credibility, consistency, and transparency of quantification, *monitoring*, reporting, *validation*, and *verification*.
ICR recognizes the need to scale and accelerate credible decarbonization of the economy, with climate financing for *climate projects* avoiding or reducing *GHG emissions* and sequestering or removing GHG from the atmosphere. ICR also recognizes the need to bring prominent technologies and nature-based solutions to light which have yet to establish a *methodology* according to the *CDM/PACM* or other *GHG programs* but need the financial support of the emerging carbon markets to be viable. Therefore, ICR is based on the *ISO* family of standards, enabling the registry to complete a more effective and efficient review of emerging *methodologies*. ICR places particular emphasis on decarbonizing energy production and utilization and technological development for carbon removal projects and includes sectors that have not historically participated in the emerging global carbon market.
ICR's mission is to build confidence in the carbon market for investors, insurance companies, *project developers*, *validation and verification bodies* (*VVBs*), *accreditation bodies*, corporations, the environmental community, authorities, and the public. The goal is to facilitate the necessary scaling of the *VCM* and the underlying climate solutions and utilize the market mechanism for real climate impacts. This mission can accelerate financing of *climate projects* viable for a fast transition to a low-carbon economy.
### Objectives
The objectives of ICR are to:
1. provide accessible requirements structured around *ISO 14064-2* (see Section 0.2), applicable to all types of climate-related mitigation projects, facilitate and promote transparency by all parties involved in the *VCM*, including governments, corporates, *project proponents*, *VVBs*, *market participants* and general public;
2. ensure the quality and consistency of \_project design description\_s and *monitoring* *reports* prepared by *project proponents* submitted to ICR during the project cycle;
3. ensure consistency and quality of *validation* and *verification reports* prepared by *VVBs* submitted to ICR during the project cycle;
4. promote efficiency, effectiveness, integrity, traceability and transparency of *climate projects*;
5. promote innovation and development of emerging technology and climate solutions, facilitating a fast transition to a low-carbon economy.
6. Promote collaboration and partnerships to drive progress and broaden the reach of our initiatives.
### Reference Standards
The ICR Requirement Document is structured to be consistent with the principles, requirements, and guidance of:
* International Organization for Standardization (*ISO*) and related conformity assessment standards, including *ISO 14064-2*, *ISO 14064-3*, *ISO 14064-5,* *ISO 14065*, and *ISO 14066* and *ISO 17029.*
* *Clean Development Mechanism/Joint Implementation (CDM/JI)* emerged during the Kyoto Protocol.
* *Paris Agreement Crediting Mechanism (PACM)* established under the Paris Agreement.
*ISO* standards for GHG accounting and assurance provide clarity and consistency for quantifying, *monitoring*, reporting, *validating*, and *verifying* *GHG emission mitigation outcomes* and support sustainable development through a low-carbon economy and benefit *organizations*, *project proponents*, and interested parties. Specifically, the use of the *ISO 14060* family of standards:
* Enhances the environmental integrity of GHG quantification.
* Enhances the credibility, consistency, and transparency of GHG quantification, *monitoring*, reporting, *verification*, and *validation*.
* Facilitates the development and implementation of GHG management strategies and plans.
* Facilitates the development and implementation of mitigation actions through *GHG emission mitigations*.
* Facilitates the ability to track performance and progress in reducing *GHG emissions* and/or increase in *GHG removals*.
The *ISO* standards contain consistent general requirements for quantifying GHG mitigations which result from project-based activities, including requirements for:
* Establishing GHG accounting boundaries.
* Estimating *baseline* emissions.
* Determining project-case emissions.
* *Monitoring* *project activities*.
ICR relies on terminology from *ISO* standards and *CDM/PACM* frameworks, depending on context. *CDM/PACM* and other *GHG programs* also set out principles regarding *additionality* and crediting mechanisms. In general, under the *ICR program*, *climate projects* and emerging climate solutions shall conform to the requirements of *ISO 14064-2*. *Validation* and *verification* shall be conducted in accordance with *ISO 14064-3* and the ICR Validation and Verification Specifications. The applicable accreditation and competence framework for VVBs is based on *ISO 14065, ISO 14066 and ISO 17029*. *ISO 14064-5* provides guidance for remote validation and verification activities, where applicable.Together these standards support credibility and trust in the project activities and impacts of the climate solution based on international standards, conformity assessments, and accreditation.
### Methodologies and Tools
A *methodology* refers to a systematic approach or a set of *criteria* and procedures used to quantify and measure *GHG emission mitigations*. *Methodologies* provide a standardized framework for estimating, *monitoring* and *verifying* *emission mitigations*, allowing for consistent and comparable results across different projects. In addition to *methodologies*, *tools* and *modules* have been developed to provide supplementary guidelines or procedures which support the application of *methodologies*. They provide detailed instructions on specific aspects of project development and *monitoring*. *Methodologies* and *tools* typically prescribe procedures for projects to follow for establishing *baseline*, data collection, quantification, *monitoring*, and reporting of *GHG emission mitigations* for projects *ex-ante* and *ex-post*.
*GHG programs* generally require projects to follow specific *methodologies* for the implementation of climateprojects to promote consistency and accountability. Projects must conform to *methodologies* for eligibility under the *GHG program. Methodology* development and approval by *GHG programs* can, however, delay implementation and decelerate scaling of climate solutions or deter the use of *VCM* to support their implementation.
ICR approves the application of relevant active *PACM* *methodologies,* *modules* and *tools*, subject to their applicability conditions and conformity with applicable ICR Program requirements and *ISO 14064-2*. The PACM is established under Article 6.4 of the Paris Agreement and provides the current UNFCCC methodological framework for crediting GHG emission mitigations.
The PACM builds on substantial methodological experience developed under the Clean Development Mechanism (CDM). The CDM methodological framework represents an extensive body of established practice concerning baseline determination, additionality, project boundaries, quantification, monitoring, leakage and other aspects of project design. Relevant active CDM methodologies, modules and tools may therefore continue to inform project design and project-specific criteria and procedures as good practice guidance, subject to current ICR Program requirements and developments under the PACM.
ICR also approves methodologies and modules through the ICR Methodology Approval Process and develops and approves tools under that process. Projects may also apply eligible external or project-specific criteria and procedures in accordance with Section 5.3.1, subject to validation and applicable ICR Requirements.
#### *ISO 14064-2*
As the climate closes upon various tipping points, there is an urgent need for an effective and progressive response to the threat of climate change based on the current best available scientific knowledge. At the same time, there is a call for the standardization of *VCM* to enhance comparability and consistency.
*ISO* is an independent, non-governmental international organization with a membership of 177[\[3\]](#footnote-3) national standards bodies. *ISO* brings together experts to share knowledge and develop voluntary, consensus-based, market-relevant international standards through its members. International organizations, governmental and non-governmental, in liaison with *ISO*, take part in the work of developing standards. Standards are developed by sector-specific experts. *ISO* produces documents, supporting the transformation of scientific knowledge into *tools* that will help address climate change. *ISO* standards, therefore, support innovation and provide solutions to global challenges such as climate change.
Development of *ISO 14064-2* started in the early 2000s with the aim of providing *tools* to support the implementation of the Kyoto Protocol and other climate-related initiatives, officially published in 2006. *ISO 14064-2*, last updated in 2019, provides principles and requirements for determining *baselines*, and *monitoring*, quantifying, and reporting of project emissions. It focuses on *GHG projects* or project-based activities specifically designed to reduce *GHG emissions* and/or enhance *GHG removals*. To provide a platform for climate actions that do not have a go-to approved *methodology* and support accelerated deployment of prominent climate solutions, ICR allows *registration* of projects that conform to *ISO 14064-2* and the requirements herein, providing them with access to *VCM* with the *issuance* of *carbon credits* prior to or in parallel to *methodology* development and approval. ICR simultaneously provides a framework to follow for development and approval of new *methodologies*.
## Scope
This document specifies principles and requirements and provides guidance at the project level for the quantification, *monitoring* and reporting of activities intended to cause *greenhouse gas (GHG) emission mitigations* for *proponents* who intend to register their project(s) with International Carbon Registry (*ICR*) and *issue* international carbon credits (*ICCs*). It includes requirements for planning a *GHG project*, identifying and selecting *GHG sources*, *sinks* and *reservoirs* (*SSRs*) relevant to the project and *baseline scenario*, *monitoring*, quantifying, documenting and reporting *GHG project* performance and managing data quality. *ISO 14064-2* is indispensable for applying this document.
## Normative References
* ICR Definitions
* ICR Additionality Specifications
* ICR Tool for Environmental and Socio-economic Safeguards and Sustainable Development
* ICR Process Requirements
* ICR Methodology Requirements
* ICR Methodology Approval Process
* ICR Approved Methodologies, Modules and Tools
* ICR Article 6.2 Procedures
* *ISO 14064-2*
* *ISO 14064-3*
* *ISO 14064-5*
* *ISO 14065*
* *ISO 14066*
* *ISO 17029*
## Terms and Definitions
For the purposes of this document, the terms and definitions given in the ICR Definitions apply. In addition, definitions and acronyms from *ISO 14064-2* and *ISO 14064-3* apply. If there is a discrepancy between definitions, ICR definitions prevail.
## Principles
The principles of the *ICR program* are adapted from *CDM/PACM*, *ISO 14064-2*, and *ISO 14064-3*. All *climate projects* and *methodologies* shall strive to follow these principles and adopt them as fundamental principles. Applying the principles is crucial to safeguarding GHG-related information as a true and fair account. The principles are the basis for and will guide the application of the requirements in *ISO 14064-2*, *ISO 14064-3*, and this document, resulting in impactful *climate projects* and solutions.
**Relevance —** Use data, methods, criteria, and assumptions which are appropriate for the intended use of reported information.
**Completeness —** Consider all relevant information that may affect the accounting and quantification of *GHG emission mitigations.*
**Consistency —** Enable meaningful comparisons for GHG-related information.
**Accuracy —** Reduce bias and uncertainties as far as is practical/cost-effective.
**Transparency —** Provide clear and sufficient information for reviewers to assess the credibility and reliability of *GHG emission mitigations* *claims*.
**Conservativeness —** Use conservative assumptions, values, and procedures to ensure that *GHG emission mitigations* are not over-estimated.
**Impartiality** — Impartial *validation* and *verification* of *GHG emission mitigations* by a competent, accredited third-party organization.
ICR sets further requirements consistent with the *CDM/PACM* and other *GHG programs* facilitating the *registration* of *climate projects* and *issuances* of *carbon credits* that can be traded and used by *organizations* to contribute to climate actions, compensate for, and *offset* *GHG emissions*.
## General Requirements
*Climate projects* eligible for *registration* and *issuance* of *ICCs* shall include physical action/implementation or prevent actions that lead to increase in *GHG emissions*.
*Project activities* shall demonstrate statutory additionality in accordance with section 6.4.1.2. They shall comply with all applicable *statutory requirements* and shall conform to the applicable environmental and socio-economic safeguards requirements in Section 6.2.1. Projects shall deliver real, measurable, and *additional* *GHG emission mitigation outcomes* compared to their *baseline*.
*GHG emission mitigations* recognized as *ICCs* are equal to one metric ton of *carbon dioxide equivalent* (*CO2-e*) avoided, reduced, destroyed, sequestered, or removed. After projects are *registered*, *ICCs* may be *issued* based on the amount of GHG avoided, reduced, destroyed, sequestered, or removed and reported by the *project proponent,* according to the ICR Process Requirements and *validated* and *verified* by an *approved VVB* following *ISO 14064-3* and the ICR Validation and Verification Specifications. *ICCs* may be *ex-ante* *instruments* or *ex-post* *instruments*. *Ex-ante* *ICCs* represent *validated* estimations of *GHG emission mitigations* expected in the future, and *ex-post* *ICCs* represent *verified* impacts based on historical information. Only *ex-post* credits can be *retired* for *offsetting* emissions.
### General
Projects shall conform to all requirements included herein, the requirements set out in *ISO 14064-2*[\[4\]](#footnote-4), and follow the ICR Process Requirements and any other referenced requirements and procedures.
While designing, implementing, and *monitoring* a *project activity* or any activities within a *multiple project activity*, the *project proponents* shall consider and use any applicable standards, *methodologies*, methodological *tools*, guidelines, and other regulatory documents available. All *criteria* and procedures applied shall ensure conservativeness and scientific integrity, and shall be supported by credible, transparent, and relevant scientific or technical evidence. Where peer-reviewed literature is not available or is not sufficient for the project context, the criteria and procedures shall be supported by other credible and transparent evidence, with appropriate justification.
Unless stated otherwise, requirements and principles provided in this document apply both to stand-alone projects and to *project activities* included in *multiple project activities* and shall be interpreted as applying to each. Additional requirements for *project activities* included under *multiple project activity* are provided in Section 7.
*Project proponents* shall use the most recent version of the ICR templates for readability and consistency.
### Documentation
*Project proponents* applying to have a *project activity* registered with ICR shall prepare a *project design description* (*PDD*) or *project design description* and *monitoring report* (*PDDMR*) using the most recent version of the applicable *PDD* or *PDDMR* template and have it *validated* by an *approved VVB*.
When completing the *PDD* or *PDDMR*, the *project proponent* shall provide all necessary information and documentation to demonstrate the conformity of the *project activity* with all applicable requirements herein and the requirements of *ISO 14064-2*.
The *project proponent* planning to *issue* *ex-post* *ICCs* for *GHG emission mitigations* achieved by the implemented and *registered* *project activity* shall prepare, for each *monitoring* period, a *monitoring* *report* (*MR*) using the most recent version of the ICR Monitoring Report template and have it verified by an *approved VVB*.
When completing the *MR*, the *project proponents* shall provide all necessary information and documentation to demonstrate the conformity of the implemented registered *project activity* to\_,\_ and monitor the *GHG emission mitigations* related to, all applicable requirements herein, *ISO 14064-2* and the *validated* *PDD*.
When completing the *PDD*, *PDDMR,* or *MR*, the *project proponent* shall follow the instructions outlined in the templates. Note that the instructions should not be considered exhaustive.
### Eligibility Criteria
All projects which lead to *GHG emission mitigations*, conforming to requirements herein and in *ISO 14064-2*, are eligible for *registration*. *Projects* may follow *methodologies* and apply *tools*, e.g. approved *methodologies* and *tools,* in order to facilitate implementation, subject to conformity to the requirements herein and in *ISO 14064-2*.
All projects with a crediting start date after 1. January 2020 are eligible for *registration* with ICR subject to conformity to other requirements. Projects with a crediting start date more than 24 months before *registration* shall demonstrate historical *additionality* (Section 6.4.1) from the project’s implementation and ongoing *additionality* at *validation*.
#### Methodologies, Modules and Tools
Projects *validated* and *verified* following an approved *methodology* are eligible if they conform to the current version of this document and the current version of the applied *methodology*, following any transitional requirements provided by the relevant *GHG program*. Approved *methodologies*, *modules* and *tools* are:
* *Methodologies*, modules, and *tools* valid and active under the *Paris Agreement Crediting Mechanism,* and *Clean Development Mechanism* methodologies, modules and tools accepted by ICR subject to applicable transitional requirements.[*\[5\]*](#footnote-5)
* *Methodologies*, modules, and *tools* developed by ICR and approved through the *methodology* approval process.
* New *methodologies* and modules developed by *methodology developers* and approved through the *methodology* approval process.
Approved *methodologies* are listed in the ICR Approved Methodologies, Modules and Tools document. When *project proponents* apply a *methodology*, they shall demonstrate its applicability to their project.
ICR periodically reviews the continued applicability of externally developed methodologies, modules and tools and may revise, suspend or withdraw their acceptance where necessary to maintain conformity with applicable ICR requirements.
*Project proponents* may also adopt criteria and procedures from *methodologies* developed under other *GHG programs* where the originating *GHG program* is recognized by ICR based on its approval, endorsement or eligibility determination under a credible international program level integrity framework, including ICROA, CORSIA or ICVCM, or establish *criteria* and procedures for quantification of *GHG emission mitigations* provided that the *project proponent* demonstrates their applicability and conformity to the requirements herein and *ISO 14064-2*. The adopted or established criteria and procedures, including any modifications or deviations, shall be clearly identified and justified in the project documentation.
All *criteria* and procedures shall ensure conservativeness and scientific integrity, and shall be supported by credible, transparent, and relevant scientific or technical evidence. Where peer-reviewed literature is not available or is not sufficient for the project context, the applied criteria and procedures shall be supported by other credible and transparent evidence, with appropriate justification.
Where a project uses criteria and procedures that are not part of an approved methodology, the VVB shall assess them as part of project validation.
Establishment of project-specific criteria and procedures, or adoption of criteria and procedures from an external *methodology*, does not constitute approval of a *methodology* under the ICR Program.
Regarding the *registration* process, where the requirements and procedures provided for in an applied *methodology*, module, or *tool* conflict with the requirements herein and/or in *ISO 14064-2*, the ICRrequirements and *ISO 14064-2* take precedence. *Project proponents* may propose new *methodologies* for approval to facilitate the implementation of *projects* and their documentation. For a *methodology* to be approved, it shall be *validated* by an *approved VVB* for conformity to *ISO 14064-2* and the ICR Methodology Requirements and for conformity to the requirements herein, as is further outlined in the ICR Methodology Requirements.
### Crediting
*ICCs* may be *issued* when *projects* have been *validated* on an *ex-ante* basis (i.e. after *validation* of a project based on estimated *GHG emission mitigation outcomes*) subject to demonstration of *additionality* level 4b or insurance coverage by a licensed insurance company. The insurance coverage shall meet the applicable *insurance eligibility criteria* in Appendix II. *Ex-ante* *ICCs* cannot be used for *offsetting* purposes until the *GHG emission mitigations* have been *verified* and converted to *ex-post ICCs*, i.e. there is no option to *retire* *ex-ante* *ICCs*. *Ex-post* *ICCs* represent *verified* *GHG emission mitigations*, and only for *GHG emission mitigations* within the *monitoring* period. *Ex-post* *ICCs* may be *retired* and used for *offsetting* or for other environmental *claims* supported by the *retirement*.
*Ex-ante* *ICCs* are converted to *ex-post* *ICCs* subject to *verification* of the *GHG emission mitigation outcomes* reported in an *MR*. All *ICCs* have a unique serial identifier with embedded information identifying the *project type*, location, *sector*, project ID, *vintage*, and other environmental and non-environmental attributes. The unique serial identifier persists as *ICCs* are transferred between *accounts* or *retired*.
The process of *issuing* and converting *ex-ante* *ICCs* to *ex-post ICCs* is described in detail in Sections 7.7 to 7.9 of the ICR Process Requirements.
#### Crediting Start Date
The project crediting start date is the date when activities which result in *GHG emission mitigations* have been implemented, the *project's* operations commence, and *GHG emission mitigations* begin.
#### Crediting Period
The *crediting period* for *RAD* *project* *activities* is a conservative estimate of the technical lifetime of the installed technologies or implemented measures and associated impacts, or a maximum of 5 years. The *crediting period* may be renewed at maximum twice, or run for a maximum of 10 years, with no option for renewal. For *project* *activities* involving *CDR* or *AFOLU*, the *crediting period* is a conservative estimate of the technical lifetime of the installed technologies or implemented measures and their associated impacts, with a maximum of 15 years. The *crediting period* may be renewed at maximum twice. For hybrid projects involving both *RAD* and *CDR/AFOLU* activities, the *crediting period* shall be determined separately for each component of the *project activity*. The *RAD* component shall follow the *crediting period* and renewal provisions applicable to *RAD* projects, while the *CDR/AFOLU* component shall follow the provisions applicable to *CDR/AFOLU* projects.
**Renewal of Crediting Period**
*Project proponents* may apply at the end of the current *crediting period* to renew the *crediting period*, subject to conformity to all future requirements, an update of the *PDD/PDDMR*, a re-evaluation of *baseline scenarios* and *additionality* using *tools* and *methodologies* in effect at the time of renewal, and *validation* by an *approved VVB*.
### Adjustment
*Projects* shall, where applicable, deposit *ICCs* (*ex-ante* and *ex-post*) to *adjustment accounts* if risks of *non-performance, non-permanence* and *non-corresponding adjustment* exist.
#### Non-Performance
The risk of *non-performance* of *projects* *registered* with ICR is addressed through an *adjustment account* held and operated by ICR. *Projects* *issuing* *ICCs* *ex-ante*, not covered by an insurance policy for *non-performance* risk, shall deposit adjustment credits subject to risk assessment on *non-performance* into the *adjustment account* irrespective of *sector* and *project type*. To determine the *adjustment account* contribution amount, ICR conducts a risk assessment of *non-performance* of the project, utilizing insurance quality underwriting *criteria*. Risk factors considered include counterparty, country and project specific risk which could lead to *non-performance* of the *validated* *project*. Factors include but are not limited to:
1. Track record of the *project proponent* and *developer*;
2. Financial and *KYC/B* assessment of the *project proponent* and *developer* and implementation partners;
3. Natural catastrophe risk modeling;
4. Supply chain disruption;
5. Country risk, including land ownership rights, community engagement and benefit sharing, fraud and corruption indices, and wider political and regulatory risk considerations, for example across expropriation, confiscation, export license cancellation, contract frustration, war/terror/civil unrest; and
6. Technical risks which may vary by *project type*.
Irrespective of the risk assessment, the adjustment contribution shall never be less than 2% of *issued* *ex-ante* *ICCs* and shall not exceed 10% of *issued* *ex-ante* *ICCs*. To conduct the assessment, ICR may rely on *external risk advisors*.
Where an event occurs which is likely to result in a *non-performance event,* the *project proponent* shall notify ICR within 30 days of discovering the likely event, by submitting a *non-performance event* *report* using the ICR Non-Performance Report template. The proponent shall provide a conservative estimate of the *non-performance* impacts to any *ex-ante* *ICCs* *issued* due to the *non-performance* of the project and submit them to ICR.
Where *ex-ante* *ICCs* have been *issued* and *monitoring* results in lower *GHG emission mitigations* than estimated in the *PDD* or *PDDMR,* and the *validation report,* the *project proponent* shall report separately in a *non-performance* *report* using the ICR *non-performance* *report* template. If the *non-performance* is ongoing, the *project proponent* shall revise the *PDD* in accordance with Section 6.12.
*Non-performance events* are discussed further in Section 7.11.4.2 of the ICR Process Requirements.
#### Non-Permanence
*Non-permanence* risk adjustments are discussed in Section 6.8.2.
#### Non-Corresponding Adjustment
*Non-corresponding adjustments* relating to *double claims* are discussed in Section 5.10 and addressed in the ICR Article 6.2 Procedures.
### Project Types
All *project types* may be *registered* with ICR, provided the project demonstrates conformity with applicable ICR requirements. If *project proponents* apply a *methodology* in a geographic location outside its stated applicability, they shall demonstrate the *methodology’s* relevance and applicability with respect to the requirements herein and *ISO 14064-2*.
### Ownership
The project proponent shall demonstrate that it holds, or is duly authorized to exercise, the legal rights necessary to represent, control and operate the project and to claim the GHG emission mitigations generated by the project.
Where relevant rights are held by project beneficiaries or other parties, the project proponent shall demonstrate the transfer, assignment, license, mandate or other legally effective arrangement through which those rights are made available to the project proponent for project registration and crediting.
The project proponent shall disclose to ICR any material dispute, limitation or change affecting such rights. ICR may require additional evidence of ownership or authorization at registration, issuance or any later stage where the relevant rights are disputed or inadequately supported.
Following issuance, ICCs and the rights represented by them may be transferred through the ICR registry in accordance with the ICR Process Requirements, applicable Terms and Conditions and any documented ownership, custody or representation arrangements.
### Double Counting, Issuance and Claiming
*Projects* registered with ICR shall not *issue* *instruments* for the same *GHG emission mitigations* with another *GHG program* or scheme, e.g. renewable energy certificates.
*Projects* registered with other *GHG programs* may apply to transfer *registration* to ICR or remain concurrently registered, subject to the applicable ICR Process Requirements. When *registering* with ICR, all relevant prior and current registration, validation, verification, issuance and other project documentation shall be disclosed and made available to ICR and the VVB, and the project shall complete, at minimum, a gap *validation*. The *project* shall not *issue* *ICCs* for the same *GHG emission mitigations* for a monitoring period or vintage for which instruments have been or will be issued under another GHG program or scheme. Section 6.13 of the ICR Process Requirements sets out requirements for transitioning from, or maintaining concurrent registration under, other *GHG programs*.
If the project boundary overlaps with a *project* of a similar nature, whether *registered* with the *ICR program* or another *GHG program*, the *project proponent* shall demonstrate that there is no *double counting* of *GHG emission mitigations*.
The *project proponent* shall not account for any *ICCs*, or *GHG emission mitigations* resulting from *project activities*, that have been retired by another *organization* for their own *GHG* reporting. For any public reporting of *GHG emissions*, the *project proponent* shall publicly report the *baseline* emissions but may report separately on any *instruments* *issued* from the *project activities*. If the *project proponent* intends to publicly report actual *GHG emissions*, they shall *retire* the corresponding *ICCs* and account for the benefit associated with the project implementation. The *project proponent* shall sign a declaration for *GHG* accounting and *double counting* to participate in the *ICR program,* and address during each *monitoring* period that claimed *GHG emission mitigations* are not otherwise required under regulatory, financial, or contractual obligations.
### Other Benefits (SDGs)
By generating *GHG emission mitigations*, projects contribute to SDG 13 (Climate Action). The *project proponent* should also consider how the *project activity* contributes to other relevant Sustainable Development Goals and the sustainable development priorities of the *host country*.
Information on additional claimed contributions to *SDGs* shall be demonstrated using Section 2 of the ICR Tool for Environmental and Socio-Economic Safeguards and Sustainable Development and summarized in the *PDD*. All additional claimed contributions shall be *monitored*, *validated* and *verified*.
### International Transfers
Where *GHG emission mitigations* will be used for an international transfer or other use subject to the accounting framework of the Paris Agreement\_,\_ they shall conform to all relevant requirements applicable to the intended use, including measures to prevent *double claiming* and, where applicable, host-country authorization and *corresponding adjustment*.
*Project proponents* shall provide evidence that the *GHG emission mitigations* generated by their *project* conform, or are subject to arrangements intended to ensure conformity, with the applicable requirements for the intended use. The status and evidence of such conformity are used to determine the applicable designation of the *ICCs*.
Additional requirements and processes applicable to *international transfers* are provided in the ICR Article 6.2 Procedures.
### Project Risk Assessment
The *project proponent* shall conduct a risk assessment of the project’s implementation and operation and take action to reduce any risks which are identified. The *project proponent*, in their risk assessment, shall consider the following:
1. Project design
2. Environmental and socio-economic safeguards
3. Boundary (and application of *methodology*)
4. *Baseline* determination (and application of *methodology*)
5. *Additionality* (and application of *additionality* tools)
6. *GHG SSRs* relevant to the *baseline scenario* and conservativeness
7. *GHG SSRs* relevant to the project and conservativeness
8. *GHG emission mitigations* quantification and conservativeness.
9. *Leakage*
10. *Non-performance*
11. *Non-permanence* (where relevant)
12. *Non-corresponding adjustments* (where relevant)
13. *Monitoring*
This project-level risk assessment is distinct from any risk assessment conducted or required by ICR in accordance with the ICR Process Requirements.
## Project Design
This section is intended to align with the structure of Section 6 of *ISO 14064-2*. All requirements herein are in addition to the requirements of *ISO 14064-2*.
### General Requirements
Projects may be designed as a single project or as a *multiple project activity*.
Requirements set out in this section apply to all *project activities*, including those under *multiple project activities* which are seeking *registration* with ICR.
When submitting to ICR for the purpose of *registration*, *project proponents* shall design projects according to the requirements of *ISO 14064-2*, the requirements herein, and, where applicable, the requirements of the applied *methodology*. For demonstration of conformity, *project proponents* may rely on the relevant current *good practice guidance* *tools*[\[6\]](#footnote-6).
If applying an approved *methodology*, the project shall adhere to the requirements provided and apply the approved *tools* and modules referred to in the *methodology*, subject to Section 6.12.
When more than one *methodology* is applied to a project or *multiple project activities* are included in the *PDD* or *PDDMR*, the *PDD* or *PDDMR* shall specify each activity separately. Applicability conditions, demonstration of *additionality*, determination of the *baseline scenario*, quantification, and permanence risk assessment (where applicable) shall be applied separately to each *project activity* unless applied *methodologies* refer to the same *tools*. The *project proponent* shall consider all cross effects of applying different *methodologies*.
Where the requirements and procedures provided for in an applied *methodology*, module, or *tool* conflict with the requirements herein and/or *ISO 14064-2*, for the purposes of the *registration* process, the *ICR requirements* and the requirements in *ISO 14064-2* take precedence. Any conflicts shall be addressed in the *PDD* or *PDDMR*.
### Describing the Project
To submit projects to ICR, the *project proponent* shall use the ICR Project Design Descriptiontemplate or the ICR Project Design Description and Monitoring Reporttemplate to provide details of the project and its *GHG emission mitigations*, including schematics, specifications, and a description of how the *project activity* mitigates *GHG emissions*. The *project proponent* shall follow the instructions in the template and in Section 6.2 of *ISO 14064-2*.
The *project proponent* shall provide a detailed description of the geographical boundary of the *project* *activities* and the physical location of facilities as applicable to *project activities*. The physical boundary shall be documented with GPS coordinates. The *project proponent* shall provide maps, shapefiles, and other relevant information to delineate the project boundary as applicable.
All *GHG emission mitigations* shall be expressed in units of t *CO2-e.*
The *project* shall be implemented and operated in accordance with the PDD or PDDMR. Any changes or deviations from the validated project design shall be documented and addressed in accordance with Section 6.12.
The *project proponent* shall provide details on whether the implementation involves reduction, avoidance or destruction (*RAD*) of *GHG emissions*, if it removes and sequesters CO2 (*CDR*), or is a hybrid project including both *RAD* and *CDR*, along with the appropriate *sector* of the project implementation. For hybrid projects, the project shall estimate the portion attributable to *RAD* and the portion attributable to *CDR*. For each *monitoring* period, the project shall report *RAD* and *CDR* components separately.
#### Safeguards
*Project proponents* shall identify and evaluate the project's potential environmental and socio-economic impacts arising from the *project* *activities*. The *project proponent* shall avoid and, where avoidance is not reasonably possible, minimize, mitigate and monitor identified negative environmental and socio-economic impacts and associated risks.
The *project proponent* shall recognize, respect, and support local property rights and not infringe on private or public property. The *project proponent* shall not relocate people off their lands without consent, and when relocation occurs, it shall be carried out with just and fair compensation.
*Project proponents* shall use the ICR Tool for Environmental and Socio-Economic Safeguards and Sustainable Development to address any negative environmental and socio-economic impacts associated with project implementation and monitor the ongoing operation of the project and its impacts using the ICR Tool for Monitoring Environmental and Socio-Economic Safeguards and Sustainable Development for each *monitoring* period. Considering all applicable environmental and socio-economic safeguards, the project shall not cause material environmental or socio-economic harm that has not been adequately avoided, minimized or mitigated.
The *project proponent* shall consider input from the local *stakeholder* consultation on the environmental and socio-economic impact assessment.
Additional certification standards may be applied to demonstrate socio-economic and *environmental benefits* beyond the project’s *GHG emission mitigations*. When applying additional standards, the proponent shall demonstrate their applicability.
**Local Stakeholder Consultation (LSC)**
The *project proponent* shall identify and engage with local *stakeholders* during the *project* design phase and during implementation of the *project activities*.
In identifying local *stakeholders*, the *project proponent* shall consider:
1. Population(s) likely to be impacted by the project activities;
2. Legal or traditional rights to access and use territories and resources, including collective and/or conflicting rights, held by local populations;
3. Social, economic and cultural diversity within local populations and differences and interactions between identified populations;
4. Any significant changes anticipated in the makeup of the affected population during the project’s lifetime;
5. Anticipated changes in well-being under the *baseline scenario*, including any impacts on resources deemed important by the local population.
6. Locations of populations, indigenous peoples, local communities, customary rights holders, and areas outside the project boundary which are expected to be affected by the project.
7. Locations of territories and resources owned by individuals or to which they have customary access.
8. Any obstacles to *stakeholder* engagement, such as literacy, geographical location, and access to electricity or telecommunication.
During the LSC, the *project proponent* shall safeguard and respect inclusiveness, cultural diversity and knowledge. The LSC shall include, at minimum:
1. Presentation about the *PDD*/*PDDMR*, implementation, impacts, risk assessment and effect on local *stakeholder* groups.
2. Presentation about the assessment of environmental and socio-economic safeguards.
3. Relevant *statutory requirements* in the *host country*(*ies*), e.g. workers’ rights, environmental legislation.
4. Presentation about impacts on property rights.
5. Presentation about benefit sharing where relevant.
6. *Registration* process and involvement of *VVBs*.
7. Information about ongoing communication, the grievance mechanism and consultation.
The *project proponent* shall ensure that the physical meeting is advertised through appropriate media at least fourteen (14) days in advance, and location and timing of the physical meeting are suitable for all relevant stakeholders and accompanied by a clear agenda. The project proponent shall also present information in a manner that is easily understood and tailored to the target audience. During the *stakeholder* consultation, the project title or name shall be prominently displayed for the audience.
Where the LSC is not relevant to the project, the *project proponent* shall demonstrate and justify irrelevance.
Following the local stakeholder consultation, the *project* shall undergo a minimum 30-day public comment period with local *stakeholders,* and the *project proponent* shall implement a process of continuous communication. The *project proponent* shall respond to all comments received and document how relevant comments have been considered and any resulting actions or mitigation measures, where applicable. *Stakeholders* may continue to submit comments during the *crediting period,* which shall be considered during the subsequent *verification* event\_.\_ The *project proponent* shall conduct the consultation in the local language.
### Identifying GHG SSRs Relevant to the Project (Boundary)
The *project proponent* shall describe, identify, and assess all relevant *GHG SSRs* to the project and the *baseline scenario* and determine if they are controlled, related, or affected by the project (*leakage*), and if they shall be included or excluded. Any grounds for exclusion shall be demonstrated and justified. The *project proponent* may follow or rely on a *methodology* to determine the project boundary.
### Determining the GHG Baseline
The *baseline scenario* represents the activities and *GHG emissions* that are most likely to occur in the absence of the *project activity*. The *project proponent* shall select (or establish), describe, and apply *criteria* and procedures to identify, determine, and justify the *GHG baseline scenario*. The *baseline scenario* shall be accurately determined so that an accurate comparison can be made between the *GHG emissions* which would have occurred under the *baseline scenario* and the *GHG emission mitigations* achieved by the *project activities*. In developing the *baseline scenario, project proponents* shall justify assumptions, values, and procedures so that the most plausible *baseline scenario* leads to a conservative estimation of *GHG emission mitigations*.
When applying a *methodology*, the *project proponent* should establish and describe the *baseline scenario* according to the applied *methodology's* requirements and justify any deviations from the *methodology.*
*Project proponents* should check that the data needed to determine the *baseline scenario* is available before attempting to identify the *baseline scenario*. Available data shall be relevant, reliable, and *verifiable* and may involve industry, country, regional, and local information. All sources for obtaining necessary information shall be documented.
Where appropriate, *project proponents* are encouraged to apply dynamic *baseline* approaches that incorporate regular updates to *baseline* assumptions and data over the project *crediting period*. Dynamic *baselines* may be particularly relevant in contexts where sectoral trends, regulatory environments, or technological *baselines* are likely to shift significantly over time.
Dynamic *baseline* approaches shall be:
* Clearly defined within the applied *methodology* or justified in the project documentation,
* Supported by accessible, transparent data sources, and
* Subject to appropriate *monitoring* and *verification* procedures.
Where a dynamic *baseline* is applied, the *project proponent* shall specify the update frequency, data inputs, and any models or *tools* used, ensuring ongoing conservativeness and *verifiability*.
Where material new information or changed circumstances affect the continued suitability of the validated baseline, the project proponent shall assess and document the effect and, where necessary, update the relevant project documentation in accordance with Section 6.12.
#### Additionality
The concept of *additionality* is a vital consideration for quantifying project-based *GHG emission mitigations*. *Additionality* represents a net *environmental benefit* and real mitigation of *GHG emissions* additional to the *baseline scenario.* *Additionality* shall be demonstrated with a positive outcome of a project-specific *additionality* test or applying a standardized test. Applying a standardized test, the result shall align transparently with the levels below.
| | Obligatory | Optional |
| ------- | ---------- | -------- |
| Level 1 | X | |
| Level 2 | X | |
| Level 3 | X | |
| Level 4 | | X |
| Level 5 | | X |
ICR defines *additionality* as a multilevel principle comprised of five levels (Levels 1 through 5). Levels 1 to 3 are obligatory and cumulative, a project shall meet Level 1, either Level 2a or 2b, and Level 3. Levels 4 and 5 are optional and are demonstrated independently of each other. A project that meets Levels 1 to 3 may also demonstrate Level 4a or 4b, Level 5, or both.
**Level 1 Additionality – *****ISO 14064-2***** GHG Emissions Additionality**
*GHG emission mitigations* shall be additional to the *baseline scenario*. *ISO 14064-2* addresses *additionality* as: the *project proponent* shall select or establish, justify, and apply *criteria* and procedures for demonstrating that the project results in *GHG emission mitigations* that are additional to what would occur compared to the determined *GHG baseline scenario*.
**Level 2 Additionality – Statutory Additionality**
The *project* shall be additional to *statutory requirements*. *Project proponents* may apply either Level 2a or Level 2b *additionality* criteria, based on whether the project exceeds *statutory requirements* or operates in a non-enforcement context.
**Level 2a Additionality – Statutory Additionality**
The *project* shall implement activities that go beyond *statutory requirements*. The *project* is statutory additional if its implementation and/or operation is not required by *statutory requirements* requiring implementation and operation or requiring implementation of similar measures that would result in the same levels of *GHG emission mitigations* in the *host country*.
**Level 2b Additionality – Non-Enforcement Additionality**
The *project* is non-enforcement additional if its implementation and/or operation is subject to *statutory requirements* that are systematically not enforced and where non-compliance with those requirements is widespread in the *host country* without consequences.
**Level 3 Additionality – Technology, Institutional, Common Practice Additionality**
The *project* shall implement climate actions that are subject to barriers to implementation or accelerate the deployment of technology or activities.
The *project* is technological, institutional, or *common practice* additional if it faces significant organizational, cultural, social, or technological barriers to implementation, and carbon market incentives are essential in overcoming these barriers. These barriers may include a lack of trained personnel, infrastructure to support implementation, logistics for maintenance, or a lack of knowledge on practices. The *project activity* may lead to accelerated technological deployment that would unlikely have occurred otherwise. If an action can demonstrate the promotion of an accelerated deployment of a technology that would otherwise face difficulties and have slower penetration, then it is assumed that the increased deployment rate results in greater *GHG emissions mitigations*.
**Level 4 Additionality – Financial Additionality**
Financial *additionality* is a criterion to assess the additional *environmental benefits* of a *climate project* seeking support or financing within a climate mitigation framework. It determines whether the project's *GHG emission mitigations* would not have occurred without the financial incentives or support provided by the *GHG program*. *Project proponents* may apply either Level 4a or Level 4b *additionality* criteria based on the specific financial circumstances of their *project*.
**Level 4a Additionality – Financial Additionality I**
A project is considered Level 4a additional if it faces financial limitations that can be mitigated by revenues from the sale of *carbon credits*. *Carbon credit* revenues shall be reasonably expected to incentivize the implementation of the project\_,\_ or critical to maintaining the project operations’ ongoing financial viability after the project has been implemented.
The project is considered Level 4a additional if the *project activity* results in higher costs or relatively lower profitability than would have occurred in the *baseline scenario,* and if the *project activities* are not *common practice* in the project’s geographical area.
**Level 4b Additionality – Financial Additionality II**
The *project* is considered level 4b additional if it faces significant financial limitations that can be mitigated or avoided through revenues from the sale of *carbon credits*, where *carbon credit* revenues are the major or only source of revenue. In addition, carbon *credit* revenues are a precondition for the implementation of the *project* and/or *carbon credits* revenues are essential in maintaining the *project* operations and ongoing financial viability after the project has been implemented, and the *project activities* are not *common practice* in the *project’s* geographical area.
**Level 5 Additionality – Policy Additionality**
The *project* is considered Level 5 additional if its implementation lies outside the scope of the climate action strategy towards the *host country's* *NDCs,* or *GHG emissions* or removals are not included in the *host-country* national *GHG* inventory.
**Additionality Demonstration**
The *project proponents* shall demonstrate the project's *additionality* and, at a minimum, meet Level 1, either Level 2a or 2b and Level 3. The project may demonstrate conformity with the optional *additionality* levels, Level 4a or 4b, Level 5, or both.
When applying a *methodology*, the *project proponent* should follow that *methodology’s* *additionality* testing guidelines. Irrespective of whether an applied *methodology* stipulates automatic *additionality*, applies an activity or performance method, or refers to positive lists, projects shall demonstrate *additionality*, unless an ICR *methodology* has demonstrated *additionality* in its documentation.
For each *monitoring* period, the *project proponent* shall report on conditions relevant to the continued validity of the project's validated additionality demonstration throughout the project’s *crediting period*. The *monitoring* report shall describe whether conditions relevant to the project’s *additionality* test(s) remain valid, including the legal/regulatory environment, financial viability without carbon revenues, market and technology penetration (*common practice*), and any other material factors relevant to the additionality demonstration.
Further specifications relating to the *additionality* demonstration and reporting are provided in the ICR Additionality Specifications.
### Identifying GHG SSRs Relevant to the Baseline Scenario
The *project proponent* shall identify *GHG SSRs* relevant to the project *baseline* and its boundary to the extent possible. This means applying conservative assumptions, *GHG emission factors*, and calculation methods, taking *criteria* and procedures according to Section 6.3 in *ISO 14064-2* into account, or following the applied *methodology*.
The *project proponent* shall justify the exclusion of any *GHG SSRs*. *GHG emission factors* shall be 100-year *GWP* values from the Intergovernmental Panel on Climate Change (*IPCC*). The *project proponent* shall use *GWP* values from *IPCC’s* Sixth Assessment Report (*AR6*) or later unless it can justify the use of other more conservative and/or accurate *GWP* values.
### Selecting GHG SSRs for Monitoring or Estimating GHG Emissions and Removals (GHG Emission Mitigations)
The *project proponent* shall follow the applied *methodology* or establish and apply *criteria* and procedures for selecting *GHG SSRs* for *monitoring*. When establishing *criteria* and procedures, the *project proponent* should consider and follow Annex A.3.2 in *ISO 14064-2*.
### Quantifying GHG Emissions and/or Removals
*GHG emission mitigations* achieved by the *project activity* which have addressed any *leakage* (*GHG SSRs affected* by the project) lay the foundation for the volume of *ICCs* that can be *issued*. The *project proponent* shall follow a *methodology* to quantify *GHG emission mitigations* or establish *criteria* and procedures for quantification. The quantification shall include all *GHG SSRs* identified and all *GHGs* and shall be reported in units of t *CO2-e*.
The *project proponent* shall estimate *GHG emission mitigations* for the selected *GHG SSRs* separately for:
1. each relevant *GHG* for each *GHG SSR* relevant to the project; and
2. each *GHG SSR* relevant for the *baseline scenario*.
The project proponent shall identify, assess, and account for uncertainty associated with activity data, emission factors, measurements, models, assumptions, default values, and other parameters used to quantify GHG emissions and/or removals. Where uncertainty is material, the project proponent shall apply conservative assumptions, values, procedures, or deductions to ensure that quantified GHG emission mitigations are not overestimated. Conservativeness shall be applied in the direction that avoids over-crediting, including, where applicable, by applying lower estimates for credited mitigation outcomes and higher estimates for project emissions, leakage, or other deductions.
Net *GHG emissions* and/or *removals* generated by the *project activities* shall be quantified and reported.
### Quantifying GHG Emission Reductions and Removal Enhancements (GHG Emission Mitigations)
Based on *criteria* from Section 6.7, the *project proponent* shall select and follow *criteria* from a *methodology,* or establish *criteria* and procedures, for quantifying aggregated *GHG emission mitigations* during the implementation and operation of the *project,* to calculate *ex-post* *GHG emission mitigations*. The *project proponent* shall describe all steps to be undertaken, resulting in a quantification of the net difference between the *baseline* and the project scenarios, considering *uncertainty* and *leakage*. The *project proponent* shall provide an *ex-post* calculation and quantification of *GHG emission mitigations* for each *monitoring* period, considering uncertainty. Where projects include both *RAD* and *CDR* (hybrid), the *ex-post* calculations shall be separated by *project type*.
The *project proponent* shall provide *ex-ante* projections for each *monitoring* period in the *PDD* or *PDDMR*, and projections for the total *GHG emission mitigations* for the *crediting period*. Where projects include both *RAD* and *CDR* (hybrid), the *ex-ante* calculations shall be separated by *project type*.
The quantification shall convert all *GHGs* to units of t *CO2-e*.
All *ex-ante* estimates and *ex-post* calculations shall be converted to *CO2-e* using *GWP* values from the *IPCC* *AR6* unless more conservative and/or accurate *GWP* values can be justified.
#### Leakage
Potential sources of *leakage* (*affected GHG SSRs*), as identified in Section 6.3, and the location of areas where *leakage* could occur, shall be identified, accompanied by a description of any appropriate mitigation measures. The identification of leakage shall include all relevant *GHG SSRs* outside the project boundary that may reasonably be affected by the *project activity*, including but not limited to activity shifting *leakage*, market *leakage*, ecological or biophysical *leakage*, and any other indirect effects attributable to the project. The assessment shall consider plausible leakage pathways that are relevant and attributable to the *project activity*.
Where relevant *leakage* risks cannot be credibly accounted for at the *project* level, an appropriately broader boundary, standardized approach, accounting framework or other conservative method shall be applied, as applicable.
Any *leakage* assessment shall be conservative and positive *leakage* shall not be credited. Quantified leakage shall be subtracted from the quantification of *GHG emission mitigations* of the project. Where *leakage* cannot be quantified with reasonable certainty, conservative assumptions or standardized deduction factors shall be applied.
Any potential *leakage* identified shall be *monitored* throughout the *crediting period* and reassessed at each *verification* event. All *leakage* shall be deducted from the total *GHG emission mitigations* of the *project*. The *project proponent* should consider available *leakage* *tools* from *CDM/PACM* when identifying and quantifying *leakage,* provided these *tools* are consistent with the ICR Requirement Document and *ISO 14064-2*.
#### Non-Permanence
For *projects* where *non-permanence* risk exists, the *project proponent* shall define the permanence of the *GHG emission mitigations*. The project shall be designed for a minimum operational lifespan of 40 years (*AFOLU*) or 65 years (non-*AFOLU*) including the *crediting period(s)*.
The permanence term begins after the final *crediting period* ends. *Projects* shall select one of the following permanence terms:
* Short-term permanence: 10 years
* Medium-term permanence: 25 years
* Long-term permanence: +50 years
Non-*AFOLU* projects shall have long-term permanence. *AFOLU* projects may select short-, medium-, or long-term permanence.
If the *crediting period* is renewed, the permanence term resets accordingly, beginning after the end of the renewed *crediting period*.
*Project proponents* implementing projects subject to *non-permanence* risk shall deposit non-tradable *adjustment* *ICCs* to cover unforeseen losses in carbon stocks, or be covered by an *insurance policy* by a licensed insurance company for any *non-permanence events*. The insurance coverage shall meet the applicable *insurance eligibility criteria* in Appendix II.
If not covered by an *insurance policy,* a proportion of *GHG emission mitigations* *issued* as *ICCs* (*ex-ante* or *ex-post*) shall be transferred to an *adjustment account* to protect registered *projects* with the *ICR program* from unexpected reductions in carbon stocks or increases in GHG emissions. The ICR *non-permanence adjustment account* serves as a reserve to address any future *reversals*, safeguarding the integrity and permanence of the *verified* *GHG emission mitigations* achieved by registered *projects*. The *non-permanence* *adjustment account* is managed by ICR.
To determine the *non-permanence* risk adjustment contribution, ICR conducts a risk assessment of *non-permanence* of projects, utilizing insurance quality underwriting criteria. Risk factors considered include counterparty, country and project specific risk that could result in under-performance and/or *reversal*, leading to *non-permanence*. Factors include but are not limited to:
1. Track record of the *project proponent* and *developer*;
2. Financial and *KYC/B* assessment of the *project proponent* and *developer* and implementation partners;
3. Natural catastrophe risk modelling;
4. Supply chain disruption;
5. Country risk, including land ownership rights, community engagement and benefit sharing, fraud and corruption indices, and wider political and regulatory risk considerations, for example across expropriation, confiscation, export license cancellation, contract frustration, war/terror/civil unrest; and
6. Technical risks which may vary by *project type*.
To conduct the assessment ICR may rely on *external risk advisors* from the insurance industry.
Irrespective of the risk assessment, the contribution shall never be less than 10% of *issued* *ICCs* for *AFOLU* *projects* and 2% for non-AFOLU and shall not exceed 20% of *issued* *ICCs* for *AFOLU* *projects* and 10% for non-AFOLU.
Further details about *non-permanence events* and compensation are provided in Section 7.11.5 of the ICR Process Requirements.
### Managing Data Quality
The *project proponent* shall ensure that data and information are retrievable and maintained securely and implement measures to prevent loss of data. The *project proponent* shall establish and implement quality management procedures to manage data and information.
### Monitoring the GHG Project
The impacts of *project* *activities* on identified *GHG SSRs* shall be monitored in order to determine the realized net *GHG emission mitigations,* and for the purpose of issuing *ex-post* *ICCs* or converting already *issued* *ex-ante* *ICCs* to *ex-post ICCs*. The *project proponent* shall develop a *monitoring* plan for the project. The *monitoring* plan shall include details on *monitoring* parameters and *GHG SSRs* (as identified according to Section 6.6), and/or be in line with the applied *methodology* and the requirements of *ISO 14064-2*.
All data and information related to the *monitoring* of the *GHG project* shall be recorded and documented following the procedures established in Section 6.10 of *ISO 14064-2* and the established *monitoring* plan.
If the *project* has other environmental and/or socio-economic benefits being *verified*, the *monitoring* plan shall also specify how data and information relevant to quantifying and reporting those impacts will be obtained, recorded, compiled and analyzed. The *monitoring* plan may refer to other sections of the *PDD*, *PDDMR,* or the ICR Tool for Environmental and Socio-Economic Safeguards and Sustainable Development.
According to the *monitoring* plan, the *project proponent* shall provide *monitoring* results to the *VVB* where verification is undertaken. *Project proponents* shall use the ICR Monitoring Report template for reporting. The *MR* shall include schedules, roles and responsibilities, equipment, resources, and *methodologies* to obtain, estimate, measure, calculate, compile and record *GHG* data and other information for the *project* and its *GHG emission mitigations*. This shall be considered during *monitoring* of other benefits of the *project*, i.e. Sections 5.9 and 6.2.1.
*Project proponents* shall continue to monitor the project in accordance with the registered PDD or PDDMR, the monitoring plan, the applied methodology or project-specific criteria and procedures, ISO 14064-2, and applicable ICR requirements, regardless of whether issuance, conversion of ex-ante ICCs to ex-post ICCs, crediting period renewal, or another ICR action is requested.
Where verification has not been completed for a monitoring period, the project proponent shall submit a monitoring report, updated monitoring information, and supporting information to ICR at least once every five years, unless a shorter reporting interval is required by the registered monitoring plan, applied methodology, project-specific criteria and procedures, applicable ICR requirements, or another timeframe accepted by ICR. The five year period shall be counted from the project start date, the end of the previous verified monitoring period, the date of the previous monitoring report submitted to ICR, or another date accepted by ICR, as applicable.
The frequency of *monitoring* and *verification* for *projects* that have been *validated*, *registered,* and have *issued* *ex-ante* *ICCs* shall be annual. For *AFOLU* *projects*, not subject to the annual requirement above, *monitoring* and *verification* shall occur at least once every five years.
For projects that are subject to *non-permanence* risk, the *project proponent* shall include a *monitoring* plan for the duration of the *crediting period* and following the end of the last *crediting period* for the permanence term. *Monitoring* reports shall be submitted to ICR at least once every five years, or more frequently where required by the applicable methodology, project-specific criteria and procedures, or monitoring plan, until the end of the permanence term.
### Documenting the GHG Project
The *project proponent* shall continuously document evidence of *project* conformity to the registration *criteria*. The documentation shall be available and accessible to the *VVB* or ICR upon request for at least three years following the end of the last *crediting period,* or the end of the permanence term for projects subject to *non-permanence* risk.
### Deviation and Project Changes
*Projects* may deviate from procedures set out in *methodologies* where alternative methods may be more efficient, and where the deviation will achieve the same level of accuracy as, or is more conservative than, the *methodology* as written. The *project proponent* shall demonstrate how the deviation provides the same level of accuracy or is more conservative. When applying or relying on *methodologies* for demonstrating conformity to the *criteria,* the *project proponent* shall report any deviations.
Any short-term deviations from the *monitoring* plan, applied *methodologies*, or other applied documents, material changes to a validated project activity, or material new information or changed circumstances affecting the project, shall be reported by updating the documentation provided to the VVB, with the updated documentation also submitted to ICR.
If a deviation, project change, new information or changed circumstance affects the applicability or suitability of the established *criteria* and procedures for the quantification of *GHG emission mitigations*, the *project's* *additionality*, or the suitability of the *baseline scenario*, the *project proponent* shall explain and justify the effect in an updated *PDD* and obtain re-*validation* where required under the ICR Validation and Verification Specifications. If the matter does not affect the applicability of the established *criteria* and procedures for the quantification of *GHG emission mitigations*, the *project*'s *additionality*, or the suitability of the *baseline scenario*, and the *project* still conforms to the *criteria* for *validation*, the *project proponent* shall describe and justify the matter in the *MR*.
## Multiple Project Activities
### General
*Project proponents* may group several *projects* to represent a *bundled* or *grouped project.* Projects in different *host countries* cannot be bundled or grouped, except where *host countries* are members of a formally recognized supranational jurisdiction or regional entity with a broadly harmonized legal and regulatory framework.
When submitting a *bundled* or *grouped project* to ICR for *registration*, the *project proponent* shall design it in accordance with the requirements of *ISO 14064-2*, the requirements herein, and where applicable, the requirements of applied *methodology*.
The *project proponent* shall use the ICR Project Design Descriptiontemplate or the ICR Project Design Description and Monitoring Reporttemplate for submitting a *grouped project* to ICR. The *PDD* or *PDDMR* shall provide details of all *project* *activities* included in the *multiple project activities* and the projects’ *GHG emission mitigations*, including schematics, specifications, and how the *project* mitigates *GHG emissions*. The *project proponent* shall follow the instructions provided in the template.
The spatial boundary for *multiple project activities* shall be defined, and geographic coordinates for each *project* *activity* shall be provided to delineate the *grouped project* boundary. The *project proponent* shall provide a delineation of the project area where *project* *activities* are not isolated to single or multiple geographic coordinates.
### Bundling of Projects
More than one proposed *project* *activity* may be bundled and *registered* as a single *project* *activity* applying the same *methodology* and/or technology.
For a proposed bundle of *project* *activities*:
1. The *project proponent* shall prepare a single *PDD* or *PDDMR* covering all *project* activities in the bundle or separate *PDDs* or *PDDMRs*, each of which corresponds to a *project* *activity* in the bundle;
2. The *project* *activities* in the bundle may apply the same *baseline*. The *project proponent* shall justify the use of the same *baseline*, considering the particular situation for each *project* *activity* in the bundle;
3. If the *project* *activities* in the bundle use different *baselines* and the *project proponent* applies a sampling approach, then it shall address the specificities of the different *baselines*, including the proportionate representative samples of each *baseline* used;
4. The *project proponent* shall prepare a common *monitoring* plan in the single *PDD* or *PDDMR,* or separate *monitoring* plans in the separate *PDDs* or *PDDMRs*.
All proposed *project* *activities* in the bundle shall have the same *crediting period* (i.e. the same start date and duration of the *crediting period*).
The maximum aggregate *GHG emission mitigations* of a *bundled project* shall not exceed 250.000 t *CO2-e*/yr.
A single *VVB* may *validate* the bundle of *project* *activities* and *verify* its *GHG emission mitigations*.
#### Monitoring
For a *registered* bundle of *project* *activities*, the *project proponent* shall prepare, for each *monitoring* period:
1. A single *monitoring report* covering all *project* *activities* in the bundle, if a single *PDD* for the bundle was prepared; or
2. Multiple separate *MRs,* each corresponding to a *project* *activity* in the bundle, if a separate *PDD* was prepared for each of the *bundled projects*.
If the *project proponent* prepares a single *MR*, *monitoring* for each *project activity* shall be clearly identifiable. If the *project proponent* prepares separate *MRs* for each *registered* *bundled project* activity, each *project* *activity* shall be included in only one of the *MRs* and the *MRs* shall collectively contain all *monitoring* results of all *project* *activities* in the bundle.
All *project* *activities* shall use the same *monitoring* period.
### Grouped Project Activities
#### Eligibility Criteria for Inclusion of Additional Project Activities
Eligibility *criteria* shall be established for inclusion of new *project* *activity* instances following *registration* of the *grouped project*.
The eligibility *criteria* shall include conditions, specifications, and requirements for inclusion, corresponding to the requirements herein, *ISO 14064-2*, and any applied *methodologies*. All project instances shall be subject to the determined *baseline scenario* in the project description and *additionality* characteristics consistent with the original *project* *activities*. When establishing eligibility *criteria*, all requirements herein, *ISO 14064-2*, and *methodology* specific requirements shall be considered and followed. Guidelines for demonstrating conformity of project instances to additional requirements may be established, e.g. *additionality*.
#### Description of Project Activities Under the Grouped Project
As part of the *grouped project*, the *project proponent* shall include a detailed generic description of the type of *project* *activities* included in the *grouped project*. Common elements and characteristics shall be described, and eligibility for inclusion of project instances established according to Section 7.3.1.
When describing the *project* *activity*, the *project proponent* shall conform to requirements set out for project design in Section 6 for the *grouped project* design and for all project instances included at the time of *validation*.
If a *grouped project* involves application of multiple *methodologies* as well as multiple *sectoral scopes*, each *project* *activity* shall be separately addressed in the *PDD/PDDMR* and eligibility *criteria* shall be established for each activity.
*Project* *activities* within a *grouped project* may vary in terms of ownership, location, boundary, start date, duration, level of *additionality*, *baseline*, relevant *GHG SSRs,* *leakage*, permanence risk, and the specific technology applied. If there are variations in any of the aforementioned factors, they shall be stated and justified in the generic description of *project* *activities* that are included under the *grouped project* and in the eligibility *criteria*.
The *grouped project* shall consider measures and management of centralized data collection and *monitoring* of the *grouped project,* according to Sections 6.9 and 6.10.
#### Inclusion of Project Activities Post-Registration
To include a *project* *activity* following *registration* of the *grouped project*, a description of the proposed *project* *activity(ies)* shall be included in the *monitoring report*. The description shall demonstrate conformity to the already *registered* *grouped* *project's* eligibility *criteria*. The project instance shall conform to the requirements of *ISO 14064-2*, the requirements of this document, and the requirements of the applied *methodology* (where applicable).
The *project* instance shall be validated for conformity to the eligibility *criteria* and other applicable requirements of *ISO 14064-2,* and the requirements herein.
The start date shall be the same as, or later than, the original grouped start date.
The *PDD* shall be updated if the new project instance includes a new *project proponent*.
#### Monitoring
For a *registered* *grouped project*, the *project proponent* shall prepare a single *monitoring report* for each *monitoring* period covering all *project* *activities* in the *grouped project*. All project instances shall be identified specifically. All *project* *activities* shall use the same *monitoring* period.
## Validation and Verification
*Validation* and *verification* are two important concepts in the context of *climate projects*.
*Validation* is an independent third-party assessment of the project design and ex-ante GHG emission mitigation statement against the applicable validation criteria, including ICR requirements and *ISO 14064-2*.
*Verification* is an independent third-party assessment of the implemented project and the GHG emission mitigations reported for a monitoring period, based on historical data and information, to determine conformity with applicable ICR requirements, *ISO 14064-2* and the validated project documentation.
Details on *validation* and *verification* and *VVB* eligibility are provided in the ICR Validationand Verification Specifications.
### Validation
All projects are subject to *validation*. The *validation report* shall be made public. The *VVB* shall use the latest *ValR* corresponding to the *PDD* version.
*Validation* shall be completed within two years of project *pre-registration.*
*Projects* may deviate from the *validated* *project design description* in accordance with Section 6.12. Changes or deviations shall be documented in the applicable project documentation and assessed by a VVB, as applicable, in accordance with the ICR Validation and Verification Specifications.
The *project proponent* shall inform the ICR of any adverse *validation opinion.* The project is ineligible for *registration* until *corrective actions* have been implemented and the *VVB* has closed any *non-conformities* and provided an unmodified or modified *validation opinion*.
### Verification
All *projects* are subject to *verification* of project implementation and *GHG emission mitigation outcomes*. The *verification report* shall be made public. The first *verification* may be conducted at the same time as *validation*.
The *project proponent* shall inform the ICR of any adverse *verification opinion.* The project is ineligible for *issuance* or *conversion* of *ex-ante* *ICCs* to *ex-post ICCs* until *corrective action* is taken and the *VVB* has closed any *non-conformities* and provided an unmodified or modified *verification opinion*.
Changes or deviations from the validated project design shall be addressed in accordance with Section 6.12 and the ICR Validation and Verification Specifications.
## Appendix I – Document History
| Version | Date | Comment |
| ------- | ---------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| 4.0 | 14.10.2022 | First version of ICR Requirement Document v.4.0 Enhanced alignment with the structure of *ISO 14064-2*. Addressing clarification requests from Technical Advisory Board (TAB) of ICAO on ICR submission for approval under CORSIA. Application of specific approved methodologies revised. *Additionality* benchmarking implemented. Requirements for \_grouped project\_s established. Definition on start date and *crediting period* revised. |
| 5.0 | 9.10.2023 | First version of ICR Requirement Document v.5.0Clarifications of requirements. Bundling of projects. *Double counting* and claiming. International trading. Expanding commenting on activities, Reporting on *non-performance* and reversal events. |
| 6.0 | 15.10.2024 | Inconsistency in % to be delivered to *non-permanence* adjustment account. Eligibility changed to 1.1.2020 aligned with cut-off date in previous version. Details on *validation* and *verification* now in ICR validation and verification specifications. Clarifications and further guidance provided. Risk assessment and adjustment contributions revised. Structure and content further aligned to *ISO 14064-2*. Environmental and socio-economic safeguards improved. Public consultation guidelines provided. Grammar. *Insurance eligibility criteria* defined.After public consultation some requirements were revised, i.e. language relating to *non-permanence*, safeguards, *SDG* contributions, local *stakeholder* consultation, max percentage for *adjustment account* deposits, allowing for standardized *additionality* methods and risk assessment. |
| 6.1 | 14.11.2025 | Additionality levels clarified and reporting of additionality introduced, refined permanence requirements defining short, mid and long term permanence with stipulation of monitoring after the crediting period, dynamic baselines introduced, clarification on non-permanence scope and contributions. Reporting requirements for hybrid projects clarified. Limitation of grouping/bundling projects within jurisdictions. Minor corrections of typographical errors, spelling, and cross-references.After public consultation minor changes were made relating to multiple project activities; no limitation on size and jurisdictions allowed. Clarification made for crediting periods for hybrid projects. |
| 6.2 | 9.10.2026 | Clarified the transition from CDM to PACM methodologies and the use of CDM methodologies, modules and tools as sources of good practice. Added scientific integrity and credible evidence requirements for project criteria and procedures and clarified the use of methodologies originating from other GHG programs. Strengthened requirements relating to project ownership and legal rights, environmental and socio-economic safeguards, baseline determination and additionality. Updated GWP reference from IPCC AR5 to AR6. Added uncertainty assessment and conservativeness requirements for quantification. Expanded leakage requirements for identification, assessment, conservative quantification, monitoring, and reassessment. Clarified local stakeholder consultation requirements and ongoing monitoring/reporting obligations. Clarified requirements for concurrent registration under other GHG programs, international transfers, project risk assessment, deviations and project changes, bundled and grouped project activities, and validation and verification. Clarified insurance eligibility and compensation arrangements. General grammar, terminology, cross-references, and readability improvements throughout the document. |
## Appendix II – Insurance Eligibility Criteria
ICR only approves insurance products which meet the following minimum requirements:
### A.II.1 Requirements for the Insurance Company
The insurance company shall have an investment grade credit rating and a valid license to operate.
### A.II.2 Requirements for the Insurance Policy
The *insurance policy* shall provide comprehensive coverage for *non-performance*, *non-permanence*, *non-corresponding adjustment* risk, or other risks which may lead to a shortfall in delivery, either as a standalone “all risks” policy or as a suite of policies which cover the key categories of risk, at minimum, risks identified by the ICR risk assessment, for example:
* Unavoidable risk: e.g., natural catastrophe, business interruption
* Avoidable risk: e.g., fraud, negligence, insolvency, abandonment
The *insurance policy* shall have a clear loss trigger event that is aligned with the *ICR program*, such as a *monitoring* or *verification* event.
The insured party and/or loss payee may be:
* **The *****project proponent*****:** to cover their risk of failing to meet delivery expectations, or the risks of *reversals* or *double claims.*
* **A third party:** investor, lender or buyer; to cover their risk of unmet delivery expectations, or the risks of *reversals* or *double claims*
* **ICR:** where designated as loss payee, to facilitate the sourcing, cancellation or application of eligible replacement carbon credits in accordance with applicable ICR requirements.
Where the policy permits financial settlement of a claim that requires replacement of carbon credits, the insurance arrangement shall identify the mechanism and responsible party for sourcing the required replacement carbon credits. The mechanism shall provide reasonable assurance that the financial settlement is applied to the procurement of eligible replacement carbon credits in accordance with Section A.II.3.
### A.II.3 Requirements for Insurance Claim Payments
Insurance claims may be settled through financial compensation or ‘in-kind’ compensation. In all cases where replacement of carbon credits is required, the required outcome of the insurance arrangement shall be in-kind compensation through eligible replacement carbon credits.
Where eligible replacement carbon credits are sourced following an insurance claim, the following requirements apply to ensure suitable fungibility and environmental integrity:
* The insurance company shall provide ICR with a clear procedural and governance framework outlining how replacement *carbon credits* will be sourced and assessed, including the roles and responsibilities of the party responsible for procurement and the required and comparison attributes of replacement *carbon credits*.
* Replacement carbon credits shall meet the following minimum eligibility criteria:
1. **Program eligibility**: The carbon credits shall be issued by a GHG program endorsed, approved or determined eligible under a credible international program level integrity framework, including ICROA, ICVCM or CORSIA where applicable, or another GHG program accepted by ICR on the basis of equivalent program-level integrity.
2. **Verification and status:** The carbon credits shall represent verified ex-post GHG emission mitigations and shall be valid, issued and available for the required replacement, retirement or cancellation. They shall not have been previously retired, cancelled or otherwise committed.
3. **Environmental integrity:** The carbon credits shall not be subject to a known invalidation, reversal, double counting event or other circumstance that would materially impair their use as replacement carbon credits.
4. **Intended-use requirements:** Where the affected carbon credits were subject to requirements associated with a specific intended use, the replacement carbon credits shall meet the corresponding eligibility and accounting requirements applicable to that use, including host-country authorization and corresponding adjustment where applicable.
* Eligible replacement carbon credits shall be selected using a best-match approach. Comparison attributes shall include, as applicable, project type, sector, durability and vintage, and may include other attributes relevant to the carbon credits being replaced. Where an exact match is not reasonably available, the replacement shall provide equivalent or greater environmental integrity.
* Any changes to the framework and/or applicable required and comparison attributes shall be documented through appropriate procedures and incorporated into the legally binding insurance arrangement and, where applicable, subject to consultation with ICR.
Where a claim is settled financially, the settlement shall be sufficient to enable procurement of the required volume and quality of eligible replacement carbon credits. The insurance arrangement shall provide a mechanism to address any shortfall where the initial financial settlement is insufficient to procure the required replacement carbon credits.
The insured loss is not considered fully compensated for the purposes of the ICR Program until the required replacement carbon credits have been sourced and applied in accordance with the applicable ICR requirements.
### A.II.4 Evidence of Eligibility
All *insurance policies* utilized under these *insurance eligibility criteria* are subject to confirmation from ICR.
If the insurance coverage is terminated, ICR shall be notified within 60 days, and the *project proponent* shall demonstrate replacement or another means of covering the risk covered by the policy.
1. **Intergovernmental Panel on Climate Change (*****IPCC*****)**. (2022). "Sixth Assessment Report: Overview of Working Group Contributions". Retrieved from [*IPCC* website](https://www.ipcc.ch/report/sixth-assessment-report-working-group-3/).
2. **Intergovernmental Panel on Climate Change (*****IPCC*****)**. (2023). *AR6 Synthesis Report: Climate Change 2023*. Retrieved from [IPCC website](https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC%5FAR6%5FSYR%5FLongerReport.pdf).
3. July 2026.
4. *ISO 14064-2* may be found on the International Standards Organizations website.
5. Projects applying CDM methodologies were required to be pre-registered by 30 June 2026 and shall complete validation by 31 December 2026. No new project may commence pre-registration under a CDM methodology after 30 June 2026.
6. *Good practice guidance* can come from a recognized origin, such as industry practices and associations, similar projects, benchmarking, *GHG program* *tools*, or others which are fit for the purpose.
