> 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/version-history/icr-requirement-document-v6.1.md). # ICR Requirement Document v6.1
***Summary*** ICR serves as a framework for *climate projects* of any size, promoting environmental integrity through accelerating credible action and ensuring credibility, consistency, and transparency in quantification, *monitoring*, reporting, validation, and verification | Version no. | 6.1 | | --------------- | ----------------- | | Date of Version | 14. November 2025 | {% file src="/files/aODLOzdYnRUIga6X6R67" %} ## Introduction To achieve the goals of the Paris Agreement to limit global warming to 1.5 degrees Celsius, the global community needs to reach Net-zero emissions no later than 2050. The goal that was set in 2015, 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 focus on reducing 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 has the potential to significantly accelerate efforts to mitigate climate change and achieve the goals of the Paris Agreement. *Carbon credits* enable organizations to compensate for emissions by financing the avoidance/reduction of emissions from other sources or removing greenhouse gases from the atmosphere, thus contributing to the transition to global Net-zero. *Carbon credits* can also support emerging climate technologies by providing financial incentives and enabling earlier market entry and accelerating innovation seeking 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 voluntary carbon market to access finance that 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 by relying on international standards systems, conformity assessment, and assurance systems. The 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 that 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, the ICR is based on ISO standards, resulting in a more effective and efficient review of emerging methodologies. ICR sets particular emphasis on decarbonizing energy production and utilization and technological development for carbon removal projects and includes sectors that have not participated in this 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 voluntary carbon markets and the underlying climate solutions and utilize the market mechanism for real climate impacts. By that, financing *climate projects* viable for a fast transition to a low-carbon economy can be accelerated. ### 0.1 Objective The objectives of ICR are to: 1. provide accessible requirements structured around *ISO 14064-2*, applicable to all types of climate-related mitigation projects, facilitate and promote transparency by all parties involved in the VCMs, governments, corporates, project proponents, *VVBs*, market participants and general public; 2. ensure the quality and consistency of project design descriptions 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 the 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. ### 0.2 Reference standards ICR requirement document is structured to be consistent with principles, requirements, and guidance of: * International Organization for Standardization (ISO) standards, *ISO 14064-2*, *ISO 14064-3*, *ISO 14065*, and *ISO 14066.* * *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, and validating and verifying GHG 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*. All contain consistent general requirements for quantifying GHG mitigations that 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* depending on context. Further, *CDM/PACM* and other *GHG programs* set out principles regarding *additionality* and crediting mechanisms. In general for the *ICR program*, *climate projects* and emerging climate solutions shall conform to the requirements of *ISO 14064-2* *Greenhouse gases — Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements*, *and validation (ISO 14064-2)* of projects and methodologies and verification of *GHG emission mitigation outcomes* shall be according to current versions of *ISO 14064-3* *Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements (ISO 14064-3)*, *ISO 14065* *General principles and requirements for bodies validating and verifying environmental information* *(ISO 14065)* and *ISO 14066 Greenhouse gases — Competence requirements for greenhouse gas validation teams and verification teams (ISO 14066).*Together these standards are built on establishing credibility and trust in the project activities and impacts the climate solution brings based on international standards, conformity assessment and accreditation. ### 0.3 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 assist further as supplementary guidelines or procedures that 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 climate projects that projects need to conform to for eligibility under the *GHG program* to promote consistency and accountability. *Methodology* development and approval by *GHG programs* can however delay implementation and decelerate scaling of climate action where solutions cannot utilize VCMs to support the implementation of impactful solutions. ICR approves the application of all relevant active *CDM/PACM* methodologies and tools as *CDM/PACM* is a mechanism with strong foundation under the Kyoto Protocol and continues to be operated under the Paris Agreement. Methodologies and tools developed under the *CDM/PACM* are widely accepted and used in various carbon markets and mechanisms worldwide, providing a benchmark for best practices. #### 0.3.1 ISO 14064-2 As the climate closes upon tipping point there is an urgent need for an effective and progressive response to the urgent threat of climate change based on the current best available scientific knowledge. At the same time, there’s a call for the standardization of VCMs to enhance comparability and consistency. ISO is an independent, non-governmental international organization with a membership of 174[\[3\]](#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 scientific knowledge transformation 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 the *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 haven't 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 VCMs with the *issuance* of *carbon credits* prior to or in parallel to *methodology* development and approval. At the same time, providing a framework to follow for development and approval of new methodologies. ## 1. 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 intending to register the project with the 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. ## 2. Normative references * ICR definitions * ICR additionality specifications * ICR process requirements * ICR methodology requirements * ICR methodology approval process * ICR approved methodologies and tools * ICR Article 6.2 procedures * ISO 14064-2, Greenhouse gases — Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements. * ISO 14064-3, Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements * ISO 14065, General principles and requirements for bodies validating and verifying environmental information * ISO 14066, Greenhouse gases — Competence requirements for greenhouse gas validation teams and verification teams ## 3. 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 exists inconsistency in definitions, ICR definitions prevail. ## 4. Principles The principles of the *ICR program* are adapted from *CDM/PACM*, and *ISO 14064-2* and *ISO 14064-3*. All *climate projects* and methodologies shall strive to follow these principles and adopt these 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 the *ISO 14064-2*, *ISO 14064-3* and of this document resulting in impactful *climate projects* and solutions. **Relevance** - Use data, methods, criteria, and assumptions that 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 in 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 3rd 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, to compensating for, and *offsetting* *GHG emissions*. ## 5. 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*. *Projects* shall not be implemented due to *statutory requirements* in the *host country*, or they are systematically not enforced, and non-compliance with those requirements is widespread in the *host country*. They shall comply with all applicable *statutory requirements* and do not cause net environmental or socio-economic harm. Projects shall deliver real, measurable, and additional *GHG emission mitigation outcomes* compared to their baseline. *GHG emission mitigations* recognized as *ICCs* equal to one metric ton of *carbon dioxide equivalent* (*CO**2**-e*) avoided, reduced, destroyed, sequestered, or removed. After projects are registered, *ICCs* may be *issued* based on the amount GHG avoided, reduced, destroyed, sequestered, or removed and reported by the *project proponent* according to ICR process requirements and validated and verified by an *approved VVB* following *ISO 14064-3* and ICR validation and verification specifications. *ICCs* may be *ex-ante* instruments or *ex-post* credits. *Ex-ante* *ICCs* represent validated estimation of *GHG emission mitigations* in the future and *ex-post* *ICCs* represent verified impacts based on historical information. Only *ex-post* credits can be retired for *offsetting* emissions. ### 5.1 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 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 be based on best practices, on the basis of the best available scientific knowledge, and technical advancements, are scientifically proven and/or peer-reviewed. Unless stated otherwise, requirements and principles provided in this document apply both to stand-alone projects and project activities included in *multiple project activities*. Requirements for projects shall be read in terms of both stand-alone projects and *project activity* included under a *multiple project activity*. Additional requirements for project activities included under *multiple project activity* are provided in section 7. *Project proponents* shall use the most recent version of ICR templates for readability and consistency. ### 5.2 Documentation *Project proponents* applying to have a *project activity* registered with the 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 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* and monitor *GHG emission mitigations* 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, the instructions should not be considered to be exhaustive. ### 5.3 Eligibility criteria All projects that lead to *GHG emission mitigations*, conforming to requirements herein and *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 *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 earlier than 24 months before *registration* shall demonstrate historical *additionality* (section 6.4.1) from its implementation and continuance of *additionality* at *validation*. #### 5.3.1 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 transitional requirements provided by the relevant *GHG program*. Approved *methodologies*, modules and tools are: * *Methodologies*, modules, and tools valid and active under the *Clean Development Mechanism and the* *Paris Agreement Crediting Mechanism*. * *Methodologies*, modules, and tools developed by ICR and approved through the methodology approval process. * New *methodologies*, modules, and tools 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 their applicability. *Project proponents* may also rely upon other *methodologies* developed under other *GHG programs* that are endorsed by *ICROA*, *CORSIA* or *ICVCM*, or establish *criteria* and procedures for quantification of *GHG emission mitigations* if their applications demonstrate conformity to the requirements herein and *ISO 14064-2*. All *criteria* and procedures applied shall be based on best practices, on the basis of the best available scientific knowledge, and technical advancements and are scientifically proven and/or peer reviewed. Where the requirements and procedures provided for in an applied *methodology*, module, or tool conflict with the requirements herein and/or *ISO 14064-2* and regarding the *registration* process, *ICR requirements*, and *ISO 14064-2* take precedence. *Project proponents* may propose new *methodologies* for approval in order to facilitate the implementation of *projects* and their documentation. For a *methodology* to be approved, it shall be *validated* for conformity to *ISO 14064-2* and the ICR methodology requirements by an *approved VVB* and for conformity to the requirements herein as further outlined in the ICR methodology requirement document. ### 5.4 Crediting *ICCs* may be *issued* when *projects* have been *validated* on an *ex-ante* basis (i.e. after *validation* of project based on estimation on *GHG emission mitigation outcomes*) subject to demonstration of *additionality* level 4b or insurance cover by a licensed insurance company. The insurance cover shall be in kind. *Insurance eligibility criteria* are provided 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 for *retiring* *ex-ante* *ICCs*. *Ex-post* *ICCs* represent *verified* *GHG emission mitigations* and only for *GHG emission mitigations* within the *monitoring* period. *Ex-post* *ICCs* can 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 *GHG emission mitigation outcomes* reported in a *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 are *retired*. The process of *issuing* and converting *ex-ante* *ICCs* to *ex-post ICCs* is described in detail in the ICR process requirements. #### 5.4.1 Crediting start date The project crediting start date is the date when activities that result in *GHG emission mitigations* have been implemented, the *project's* operations start and *GHG emission mitigations* begin. #### 5.4.2 Crediting period *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 a maximum of twice, or a maximum of 10 years with no option of renewal. Regarding *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 associated impacts, with a maximum of 15 years. The *crediting period* may be renewed at a maximum of 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. **5.4.2.1 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, update of the *PDD/PDDMR*, re-evaluating *baseline scenarios and* *additionality* using tools and *methodologies* in effect at the time of renewal, and *validation* by an *approved VVB*. ### 5.5 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*. #### 5.5.1 Non-performance The risk of *non-performance* of *projects* *registered* with ICR is addressed with an *adjustment account* held and operated by ICR. *Projects* *issuing* *ICCs* *ex-ante*, not covered by an insurance for *non-performance* risk, shall deposit to the *adjustment account* irrespective of *sector* and *project type* adjustment credits subject to risk assessment on *non-performance*. To determine *adjustment account* contribution ICR conducts a risk assessment of *non-performance* of projects, utilizing insurance quality underwriting criteria. Risk factors considered include counterparty, country and project specific risk that 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 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*. Irrespective of the risk assessment, the 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 that is likely to result in a *non-performance event,* the *project proponent* shall notify ICR within 30 days of discovering the likely event in a *non-performance event* *report* using the ICR *non-performance event* *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 to ICR. If *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* and have re-validated. *Non-performance events* are discussed further in section 8.5.1.1 in the ICR process requirements. #### 5.5.2 Non-permanence *Non-permanence* risk adjustment is discussed in section 6.8.2 #### 5.5.3 Non-corresponding adjustment Non-corresponding adjustments relating to *double claims* are discussed under section 5.10 and addressed under the ICR Article 6.2 procedures. ### 5.6 Project types All *project types* are eligible to be registered with ICR. If project proponents apply a *methodology* in other geographic locations than its applicability, they shall demonstrate its relevance with regards to the requirement herein and the requirements of *ISO 14064-2*. ### 5.7 Ownership Full and uncontested legal ownership to represent, control and operate projects and any transferable *instruments* *issued* shall be demonstrated. If the ownership of *legal title* to *GHG emission mitigations* is transferred from the project beneficiaries, it shall be demonstrated. When the *project proponent* has *issued* *ICCs* and transfers via the ICR platform, he transfers the *legal title* to corresponding *GHG emission mitigations*, see also section 5.8. ### 5.8 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 be jointly registered. When registering with ICR, all previous documentation regarding the *project* *activities* shall be made available for ICR and the *VVB* and the *project* shall complete at a minimum a gap *validation*. The *project* shall not *issue* *ICCs* for the same *monitoring* period as have or will be *issued* in the corresponding *GHG program* or scheme. The ICR process requirements represent requirements for transitioning from other *GHG programs*. If the project boundary overlaps with a *project* of a similar nature, *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 *GHG emission mitigations* resulting from the *project activities* for any *ICCs* 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 report publicly actual *GHG emissions* he shall *retire* *ICCs* and account for the benefit associated with the project implementation. The *project proponent* shall sign a declaration for GHG accounting and *double counting* due to participation of the project under the *ICR program* and for each *monitoring* period addressing that claimed GHG emission mitigations are not otherwise required under regulatory, financial, or contractual obligations. ### 5.9 Other benefits (SDGs) The *project proponent* should demonstrate how the *project activity* is consistent with the *sustainable development goals (SDG)* objectives of the *host country*. Information on any claimed contributions to sustainable development goals shall be demonstrated using section 2 of ICR ESES-SD tool and summarized in the *PDD*. All claimed contributions shall be *monitored*, *validated* and *verified*. ### 5.10 International transfers Where *GHG emission mitigations* will be used for reporting purposes under the accounting rules set out by the Paris Agreement or other emission trading programs (such as *CORSIA*) operating under the accounting framework of the Paris Agreement (*international transfer),* they shall conform to all relevant requirements of that market, including measures to prevent *double claiming*, i.e. *corresponding adjustment*. *Project proponents* shall provide evidence that the *GHG emission mitigations* generated by their *project*, and used for reporting, have fully conformed (or will conform) with all relevant market requirements. This evidence shall be utilized to designate *ICCs* that meet the specific market *criteria*. Additional requirements and processes applicable for projects applying for eligibility of *international transfers* are provided for in the ICR Article 6.2 procedures which shall be followed. ### 5.11 Risk assessment The *project proponent* shall conduct a risk assessment of the *project’s* implementation and operation and implement actions to reduce any risks identified. The *project proponent* in its risk assessment shall consider the following: 1. Project design 2. Environmental and socio-economic safeguards 3. Boundary (and application of a *methodology*) 4. Baseline determination (and application of *methodology*) 5. *Additionality* (and application of *additionality* tools) 6. *GHG SSR* relevant to the *baseline scenario* and conservativeness 7. *GHG SSR* 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* ## 6. Project design This section is intended to align with the structure of section 6 of *ISO 14064-2*. All requirements are in addition to the requirements of *ISO 14064-2*. ### 6.1 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* that seek to be *registered* under ICR. For submission of *projects* to ICR for the purpose of *registration*, *project proponents* shall design the *project* 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 relevant current *good practice guidance* tools[\[5\]](#footnote-5). If applying an approved *methodology*, the application shall be according to the requirements provided and application of approved tools and modules referred to, 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* and regarding the *registration* process, *ICR requirements*, and *ISO 14064-2* take precedence. Any conflicts shall be addressed in the *PDD* or *PDDMR*. ### 6.2 Describing the project For submitting *projects* to ICR, the *project proponent* shall use the ICR *PDD* template or the ICR *PDDMR* template 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 section 6.2 in *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 t *CO**2**-e.* If deviations have been applied for a project that has been validated and is no longer consistent with the validated *PDD* or *PDDMR* and the validated estimated *GHG emission* *mitigations*, the *project proponent* shall have the project re-validated for it to be eligible to *issue* *ex-post* (or additional) *ICCs* subject to verification. 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. The *project* shall be implemented and operated following and conforming to the *PDD* or *PDDMR*. The *project proponent* shall indicate any short-term deviations from the *PDD* or *PDDMR*, applied *methodologies*, other applied documents, in a *MR*, or permanent changes to the registered *project activity*. All permanent deviations shall be reported in an updated version of the *PDD* and *validated* under subsequent *verification*. #### 6.2.1 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 or minimize potential risk of any identified negative impacts. 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 social impact associated with the *project* implementation and monitor ongoing operation and impacts using the ICR Environmental and Socio-Economic Safeguards Monitoring report template for each *monitoring* period. Considering all environmental and socio-economic safeguards the *project* shall result in net-positive environmental and socio-economic contributions. The *project proponent* shall consider input from local *stakeholder* consultation on the environmental and socio-economic impact assessment. Additional certification standards may be applied to demonstrate social-economic and environmental benefits beyond *GHG emission mitigations*. When applying additional standards, the proponent shall demonstrate their applicability. **6.2.1.1 Local stakeholder consultation (LSC)** The *project proponent* shall identify and engage with local *stakeholders* during the *project* design and implementation of the *project activities*. In identifying local *stakeholders*, the *project proponent* shall consider: 1. Population likely 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 population and differences and interactions between identified populations; 4. Any significant changes anticipated in the makeup of affected population during the *project* lifetime; 5. Anticipated changes in well-being under the *baseline scenario*, including impacts on resources deemed important by the local population. 6. Locations of population, indigenous peoples, local communities, customary rights holders, and areas outside the project boundary, 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, 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, grievance mechanism and consultation. The project developer shall ensure that the location and timing of the physical meeting is suitable for all relevant stakeholders, accompanied by a clear agenda. They should 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 not relevant the *project proponent* shall demonstrate and justify irrelevance. All *projects* shall undergo a minimum of 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 demonstrate mitigation actions implemented. *Stakeholders* may continue to submit comments during the *crediting period,* which shall be considered during subsequent *verification.* The *project proponent* shall conduct the consultation in the local language. ### 6.3 Identifying GHG SSRs relevant to the project (boundary) The *project proponent* shall describe, identify, and assess 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. ### 6.4 Determining the GHG baseline The *baseline scenario* represents 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* that would have occurred under the *baseline scenario* and the *GHG emission mitigations* achieved by *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* unless a more conservative baseline is established. *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. #### 6.4.1 Additionality The concept of *additionality* is a vital consideration for quantifying project-based *GHG emission mitigation*. *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 result in aligning with the levels below transparently. Table : Guidelines for additionality | | Obligatory | Optional | | ------- | ---------- | -------- | | Level 1 | X | | | Level 2 | X | | | Level 3 | X | | | Level 4 | | X | | Level 5 | | X | ICR defines *additionality* as a multilevel principle, comprising five levels (Levels 1 through 5). Each successive level builds upon the requirements of the preceding one. Accordingly, to demonstrate Level 5 additionality, a project shall first meet the criteria for Level 4, which in turn requires fulfillment of the requirements for Level 3. ![Figure 1 : Flowchart of step-wise additionality approach](https://content.gitbook.com/content/fIdoGcZZdvap67xjb5h1/blobs/xLeSAQMHYVfQXnq6Ltep/Unknown%20image) **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*, or *statutory requirements* are systematically not enforced if imposed. *Project proponents* may apply either Level 2a or Level 2b *additionality* criteria based on whether the *project* exceeds statutory requirements or operates within a context of non-enforcement. **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, where carbon market incentives are essential in overcoming these barriers. These barriers may be a lack of trained personnel, supporting infrastructure for implementation, logistics for maintenance, and 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 rate results in increased *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* where *carbon credit* revenues are reasonably expected to incentivize the implementation of the *project* or *carbon credit* revenues are important in maintaining the *projects'* operations' ongoing financial viability post-implementation. The project is Level 4a financially additional if the *project activity* results in higher costs or relatively lower profitability than would have otherwise occurred in the *baseline scenario* and 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 by revenues from the sale of *carbon credits*, where *carbon credit* revenues are the major or only source of revenues. *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 post-implementation 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 it meets level 4 and 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 2a or 2b and level 3. The project may demonstrate if it conforms to other *additionality* levels (level 4a or 4b and level 5). When applying a *methodology*, the *project proponent* should follow *additionality* testing guidelines. Irrespective if an applied *methodology* stipulates automatic *additionality*, applies activity or performance method or refers to positive lists, projects shall demonstrate *additionality*, unless an ICR *methodology* has demonstrated *additionality* according to this section within the *methodology* documentation. For each monitoring period, the project proponent shall report on additionality to ensure continuous additionality throughout the project’s crediting period. The monitoring report shall describe whether conditions relevant to the project’s additionality test(s) remain valid, including legal/regulatory environment, financial viability without carbon revenues, market and technology penetration (common practice), and any other material factors that could undermine the project’s continued additionality. Further specifications relating to additionality demonstration and reporting are provided in the ICR additionality specifications. ### 6.5 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 any 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* fifth assessment report (AR5) or later unless it can justify the use of other more conservative and/or accurate *GWP* values. ### 6.6 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*. ### 6.7 Quantifying GHG emissions and/or removals *GHG emission mitigations* achieved by the *project activity* and addressing *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 the quantification. The quantification shall include all *GHG SSR*s identified and all *GHGs* and shall be reported in t *CO**2**-e*. The *project proponent* shall estimate *GHG emission mitigations* for selected *GHG SSRs* separately for: 1. each relevant *GHG* for each *GHG SSRs* relevant for the project; 2. each *GHG SSRs* relevant for the baseline scenario. Net *GHG emissions* and/or *removals* generated by the *project activities* shall be quantified and reported. ### 6.8 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 undertake *ex-post* calculations of *GHG emission mitigations*. The *project proponent* shall describe all steps to be undertaken, resulting in quantification as the net difference between the baseline and the project considering *leakage*. The *project proponent* shall provide *ex-post* calculation and quantification of *GHG emission mitigations* for each *monitoring* period. Where projects include both RAD and CDR (hybrid) the ex-post calculations shall be separated. The *project proponent* shall provide *ex-ante* projections for each *monitoring* period in the *PDD* or *PDDMR* and for the total projections for the *GHG emission mitigations* for the *crediting period*. Where projects include both RAD and CDR (hybrid) the ex-ante calculations shall be separated. The quantification shall convert all *GHGs* to t *CO**2**-e*. All *ex-ante* estimates, and *ex-post* calculations shall be converted to *CO**2**-e* using *GWP* values from the *IPCC* AR5 unless other more conservative and/or accurate *GWP* values can be justified. #### 6.8.1 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. Any *leakage* assessment shall be conservative, shall not account for positive *leakage*, and shall be subtracted from the quantification of *GHG emission mitigations* of the project. Any potential *leakage* identified shall be *monitored*. All *leakages* shall be deducted from the total *GHG emission mitigations* of the *project*. The project proponent should consider available *leakage* tools from the CDM/PACM when identifying and quantifying *leakage*. #### 6.8.2 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 a risk 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 cover shall be in kind. *Insurance eligibility criteria* are provided 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* climate benefits achieved by *projects* registered. The *non-permanence* *adjustment account* is managed by ICR. To determine *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. Where an event occurs that is likely to result in a *non-permanence event*, the *project proponent* shall notify ICR within 30 days of discovering the likely event in a *non-permanence event report* using the ICR *non-permanence event report* template. Where *instruments* have previously been *issued*, the *project proponent* shall prepare a *non-permanence event report* including a conservative estimate of the *reversal* of previously verified *GHG emission mitigations* due to losses in carbon stocks from the *project*, based on *monitoring* of the event, and submit to ICR. At the next *verification*, subsequent to the *non-permanence event*, the *monitoring report* shall restate the *reversals* from the *non-permanence event* and calculate net *GHG emission mitigations* for the *monitoring* period in accordance with the quantification procedures provided in the *PDD*. More details about *non-permanence events* and compensation are provided in the ICR process requirements. ### 6.9 Managing data quality The *project proponent* shall ensure that data and information are maintained securely and retrievable and implement measures to prevent loss of data. The *project proponent* shall establish and implement quality management procedures to manage data and information. ### 6.10 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 identified in section 6.6, *GHG SSR* identified and 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 procedures established according to section 6.10 of *ISO 14064-2* and the established *monitoring* plan. If the *project* has other environmental and/or social benefits being verified, the *monitoring* plan shall also outline measurements or otherwise obtain, record, compile, and analyze data and information important for quantifying and reporting impacts on relevant environmental and/or social impacts, the *monitoring* plan may refer to other sections of the *PDD* or *PDDMR* or the *ESES-Tool*. According to the *monitoring* plan, the *project proponent* shall provide *monitoring* results to the *VVB*. *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 *GHG emission mitigations*. This shall be considered for *monitoring* of other benefits of the *project*, i.e. section 5.9 and 6.2.1. The frequency of *monitoring* and *verification* for *projects* that have been validated, registered and *issued* *ex-ante* *ICCs* shall be annual, for AFOLU *projects*, the *monitoring* and *verification* frequency may be up to five years. For projects that are subject to non-permanence risk, the project proponent shall include a monitoring plan post the end of the last crediting period for the permanence term. Monitoring reports shall be submitted to ICR every five years until the end of the permanence term. ### 6.11 Documenting the GHG project The *project proponent* shall continuously document records of 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 after the end of the last *crediting period* or the end of the permanence term for projects subject to non-permanence risk. ### 6.12 Deviation *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 or are more conservative. The *project proponent* shall demonstrate how deviation from the applied *methodology* will result in the same level of accuracy or are more conservative. When applying or relying on *methodologies* for demonstrating conformity to the *criteria* the *project proponent* shall report any deviation. Any short-term deviations from the *monitoring* plan, applied *methodologies*, other applied documents, or permanent changes to a validated *project activity* shall be reported following update of documentation for *VVB* for *validation*, and further submission to ICR. If a deviation has been applied to a *project* and the deviation affects the relevance 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 deviation in an updated *PDD* and request for revalidation. If the deviation doesn't 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 deviation in the *MR*. ## 7. Multiple project activities ### 7.1 General *Project proponents* may group several *projects* to represent a *bundled* or\_ grouped project.\_ Projects in different host countries can’t 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. For submission of a *bundled* or *grouped project* to ICR for the purpose of *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 *PDD* template or ICR *PDDMR* template 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 its *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. ### 7.2 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 bundle of proposed *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 each *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* apply sampling approach, then it shall address specificities of 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 *PDDMRs* 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 size 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 *GHG emission mitigations*. #### 7.2.1 Monitoring For 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 *MR* each corresponding to each *project* *activity* in the bundle if a separate *PDD* was prepared for the *bundled projects*. If the project proponent prepares a single *MR*, monitoring for each project activity shall be identifiable. If the *project proponent* prepares separate *MR* for a registered *bundled project* activity, each *project* *activity* shall be included in only one of the *monitoring* *reports* and all the *monitoring* *reports* shall collectively contain all *monitoring* results of all *project* *activities* in the bundle. All *project* *activities* shall use the same *monitoring* period. ### 7.3 Grouped project activities #### 7.3.1 Eligibility criteria for inclusion of additional project activities Eligibility criteria shall be established for inclusion of new *project* activity instances post *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 *project* instances on demonstrating conformity may be established, e.g. *additionality*. #### 7.3.2 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 that are 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 instances of *projects* included in the *grouped project* at validation. If a *grouped project* involves application of multiple methodologies as well as multiple *sectoral scopes*, each *project* *activity* shall be separated in the *PDD/PDDMR* and eligibility criteria 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 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. #### 7.3.3 Inclusion of project activities post registration For inclusion of a *project* *activity* post *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 group *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 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 the original grouped start date or later. The *PDD* shall be updated if the new *project* instance includes a new *project proponent*. #### 7.3.4 Monitoring For registered *grouped project* activity, the *project proponent* shall prepare for each *monitoring* period a single *monitoring report* covering all *project* activities in the *grouped project*. All project instances shall be identified specifically. All *project* *activities* shall use the same *monitoring* period. ## 8. Validation and verification *Validation* and *verification* are two important concepts in the context of *climate projects*. *Validation* is a third-party independent assessment of the validity and accuracy of the *PDD* to the validation criteria. *Validation* is the process of evaluating the reasonableness of the assumption, limitations, and methods that support the statement of the *ex-ante* *GHG emission mitigation outcomes* of the implementation of the *project* and its activities and *project's* conformity to the *ICR requirements* and *ISO 14064-2*. *Verification* is a third-party independent assessment involving the process of evaluating and independently determining if the *GHG emission mitigations* and implementation of the *project* *ex-post* and its activities reported in a *MR*, conforms to the ICR requirement document and *ISO 14064-2* based on historical data and information to ensure that the claimed *GHG emission mitigations* in form of *ICCs* are accurate and in line with the *PDD*. Details about *validation* and *verification* and eligibility of *VVB* are available in ICR validation and verification specifications. ## 8.1 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 pre-registration of the *project*. *Projects* may deviate from the validated *project design description* in order to accommodate changing circumstances post-validation. All such deviations shall be described and assessed by *VVB* during the subsequent *verification* for conformity to the requirements herein and *ISO 14064-2*. The *PDD* shall be updated accordingly. The *project proponent* shall inform the ICR of any adverse *validation opinion* and is ineligible for *registration* until implementation of *corrective actions* and the *VVB* has closed any *non-conformities* and provided an unmodified or modified *validation opinion*. ## 8.2 Verification All *projects* are subject to *verification* of the implementation of *projects* and *GHG emission mitigation outcomes*. The *verification report* shall be made public. The first *verification* can be conducted at the same time as *validation*. The VVB shall use the latest VVR template corresponding to the PDDMR version or the *VerR* corresponding to the MR version. The *project proponent* shall inform the ICR of any adverse *verification opinion* and 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*. If the *project* implementation has deviated from the validated *project design description*, the *VVB* shall be informed to determine if the deviations are *material*. ## 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.5.0 Clarifications 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. | ## Appendix II – Insurance Eligibility Criteria ICR only approves insurance products that 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 against under or *non-performance*, *non-permanence*, non-corresponding adjustment or other risks being insured for leading to a shortfall in delivery, either as a standalone “all risks” policy or as a suite of policies that cover the key categories of risk, at minimum risks identified under ICR risk assessment, for example: * Unavoidable risk: for example, natural catastrophe, business interruption * Avoidable risk: for example, fraud, negligence, insolvency, abandonment The *insurance policy* shall have a clear loss trigger event that is aligned to the *ICR program*, such as a *monitoring* or verification event. The insured party and/or loss payee can be: * **The project proponent:** to cover their risk of failing to meet delivery expectations, *reversals* or *double claim*. * **A third party:** investor, lender or buyer; covering their risk of delivery expectations, *reversals* or *double claim* * **ICR:** to safeguard its ability to make good, losses across underperforming projects, thus safeguarding the integrity of the *ICR program*. ### A.II.3 Requirements for insurance claim payment Insurance claims can be paid in either financial or ‘in-kind’ compensation. For insurance claims paid ‘in kind’, the process to ensure suitable fungibility with high integrity *criteria* is as follows: * The insurance company shall provide to ICR a clear procedural and governance framework outlining how they will source and assess replacement *carbon credits*, including “required” and “comparison” attributes of replacement *carbon credits*. * Required attributes shall include at minimum *instruments* from an ICROA-endorsed *GHG program*. * The replacement shall be according to best match method meaning, in terms of sector, type and *durability* of the replacement. * Any changes to the framework and/or list of “required” and “comparison” attributes shall be documented with appropriate procedures as part of a legally binding contract with the Insured party, and in consultation with ICR. The Insurer shall demonstrate a suitable mechanism such that financial compensation or in-kind compensation can address equivalent value for *carbon credits* to be sourced. ### 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* demonstrates replacement or other means of covering risk covered by the policy. ## Footnotes 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/). [↑](#footnote-ref-1) 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_AR6_SYR_LongerReport.pdf)​. [↑](#footnote-ref-2) 3. September 2025. [↑](#footnote-ref-3) 4. *ISO 14064-2* may be found on International Standards Organizations website. [↑](#footnote-ref-4) 5. *Good practice guidance* can come from a recognized origin, such as industry practices and associations, similar projects, benchmarking, *GHG program* tools, or others that are fit for the purpose [↑](#footnote-ref-5)