🔄ICR Process Requirements v6.0
Last updated
Last updated
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. | 6.0 |
Date of Version | 15. October 2024 |
This document specifies processes and procedures for registration of projects under the ICR program. The project cycle, issuance, transfers, retirements and cancellations of ICCs. It further specifies criteria for transfers of projects from other GHG programs, withdrawals from the ICR program. In addition, it specifies any assessment of projects, GHG emission mitigations adherence to the ICR program principles. Other issues addressed are stakeholders’ engagement, sharing information and exemption requests.
ICR definitions
ICR requirement document
ICR approved methodologies and tools
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
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.
The principles of the ICR program are adapted from WBCSD/WRI, CDM, and ISO 14064-2, ISO 14064-3 and ISO 14065. All climate projects shall strive to follow these principles, and methodology development shall adopt these as fundamental principles. Applying the principles is crucial to safeguarding GHG-related information and impact 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 out requirements consistent with the CDM and other GHG programs facilitating 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.
The International Carbon Registry (ICR) is a GHG program and a comprehensive registry platform that adheres to the principles and goals of the Paris Agreement and the ISO 14064 series of standards, providing a robust framework for managing and validating and verifying climate projects and impacts. The ICR program is operated and managed by International Carbon Registry ehf. ICR offers a user-friendly registry platform for project proponents to manage the entire lifecycle of climate projects, including tracking carbon credit inventories, facilitating market reach, and managing carbon credit portfolios by organizations.
This document summarizes the ICR processes, i.e., for
pre-registration of projects,
registering projects,
issuing ICCs,
conversion of ex-ante ICCs to ex-post ICCs,
transferring and retiring/cancelling ex-post ICCs or other environmental instruments according to the ICR requirement document or other scheme requirements,
Transition from other GHG programs,
Withdrawals from the ICR program,
Assessment of conformity to ICR program requirements, and
Other relevant processes and procedures relating to the ICR program.
This document intends to serve project proponents, project developers, companies, market participants, validation and verification bodies (VVBs), and other entities participating in the VCMs. Still, the focus is on project proponents registering their climate projects, issuing carbon credits, interacting with VVBs and ICR. The ICR requirement document, ISO 14064-2, and related documents provide rules and requirements for climate projects to be eligible for registration. This document, ICR process requirements, complements the ICR requirement document and other normative references. Further, the ICR registry user guide provides guidance for users and organizations in familiarizing themselves with the ICR registry platform.
Projects may have one or more project proponents and may be supported by project developers and have more partners. For readability, this document uses project proponent in the singular tense, and project developer and proponents are not distinct unless specifically addressed.
The project proponent interacts with ICR when they have project concepts, pre-register projects under development, when undergoing validation, finalizing registering projects post validation, during issuance of ex-ante or ex-post ICCs, and conversion of ex-ante ICCs post verification of GHG emission mitigations.
All supporting documentation shall be uploaded to the ICR registry by the project proponent, its authorized representative, and the VVB for any documentation relating to validation and verification.
Validation and verification bodies (VVBs) are responsible for validating climate projects and verifying their GHG emission mitigations.
ICR is responsible for managing the ICR program, conducting completeness review, administering registration, issuance, conversion of ex-ante ICCs to ex-post ICCs, and other aspects of administering the ICR program and registry as further outlined in the ICR terms and conditions, in ICR terms and conditions for projects, and the ICR registry user guide.
The ICR registry platform provides a central source for all information and documentation relating to projects registered or pre-registered under the ICR program. The ICR registry platform also provides assurance of the uniqueness of projects and their GHG emission mitigations, and issuance of serialized ICCs, and tracking of transfers, retirements, and cancellations. ICR makes information and documentation of projects publicly available. Some information may not be publicly disclosed when information is subject to confidentiality and/or intellectual property rights. All documentation is, however, available for VVBs and the ICR. ICR is responsible for reviewing project documentation and overseeing VVBs accreditation to ensure the integrity of projects and ICCs within the registry platform.
The ICR process requirements is updated periodically, and project proponents or other stakeholders shall ensure that they are using the most current version of this document or other documentation issued by the ICR.
Increasing transparency in VCMs is pivotal for fostering trust and ensuring the effectiveness of climate projects and trust from their supporters. To achieve this, it's essential to implement standardized reporting, third-party validation and verification, public disclosure, clear framework, price transparency, oversight, and global alignment of transparency standards.
Clear reporting: Clear and standardized reporting requirements for climate projects.
Third-party validation/verification: Third-party verification of project GHG statement, ensuring impartial assessment by a competent and accredited VVB.
Public disclosure: Public access to relevant project information, including project documentation, monitoring data, and validation/verification results.
Standardization: Adherence to standardized rules and requirements governing climate projects, ensuring consistency and integrity.
Additionality transparency: Make details on the significance of support projects needs to scale, facilitating fair market pricing and accuracy in reflecting climate impact.
Oversight: Oversight to ensure compliance with relevant laws and regulations.
Global alignment: Harmonize transparency standards, i.e., CDM, at a global level, aligning with the Paris Agreement and frameworks under article 6 of the Paris Agreement and ISO standards.
In addition, the presentation of information in an understandable and user friendly format.
Enhancing traceability in VCMs by replacing outdated technology with modern solutions, particularly by leveraging blockchain as a native database and tokenizing carbon credits, is pivotal in scaling climate action. The phased transition to new technology ensures that carbon credits and climate projects can be accurately tracked, preventing double counting and fostering trust and transparency.
Blockchain's role as a native database is crucial because it provides immutable and transparent ledgers, making data tamper-proof and accessible to all stakeholders. This enhanced traceability, facilitated by blockchain and tokenization, builds confidence, attracts more participants, increases investments, and accelerates climate action. It ensures that the market operates efficiently and with integrity, ultimately driving the transition to a more sustainable, low-carbon future.
ICR relies on native issuance of carbon credits (tokens) on the Polygon blockchain, which is a public blockchain. As such all transactions can be audited by the public.
Figure 1: Comparison of business-as-usual credit issuance and tokenization utilizing public blockchain.
The ICR registry platform leverages blockchain technology to issue carbon credits and transactions with carbon credits. The blockchain-backed nature of the ICR registry platform permits live inventory management and dissemination to marketplaces and end users of tools, enhancing transparency and favouring all stakeholders involved. Utilizing blockchain technology, numerous difficulties confronted by VCMs are tackled right from the beginning as it provides for the traceability of credits in a manner that is auditable by any stakeholder.
Thus, the blockchain functions as a public record, maintaining a permanent and unalterable log where sellers, buyers, and other stakeholders can inspect and authenticate, thereby eliminating the possibility of duplication and fraudulent activities.
Tokenization is the process of converting rights to an asset into a digital token on a blockchain.
Centralized Control: Without blockchain, tokenization would need a centralized authority or database to keep track of ownership and transactions. Limited Trust and Security: The central system could be susceptible to manipulation, errors, or hacking. Lower Liquidity: Traditional systems may not support fractional ownership to the same extent as blockchain, making some assets less liquid. Opacity: Transactions may not be as transparent or easily verifiable by all parties involved. Limited Interoperability: Tokens might be confined to specific platforms or systems and may not be easily transferable.
Security and Trust: The blockchain ensures the tokens are secure and the ownership records are tamper-proof. Decentralization: The information is not stored in a centralized server, making it resistant to hacking or manipulation. Liquidity: Tokenization on blockchain allows fractional ownership, improving the liquidity of assets. Transparency: Every transaction is recorded on the public ledger, ensuring transparency. Interoperability: Tokens can be easily exchanged and used across different applications and platforms. Smart Contracts: Automate processes like dividend payments or voting rights.
Tokenization with blockchain provides more security, transparency, and liquidity compared to traditional tokenization/crediting methods.
All credits/tokens issued on the ICR registry platform are tokenized on the public blockchain Polygon POS, more info on polygon found at https://polygon.technology/. Polygon POS is an Ethereum sidechain.
Further documentation on blockchain applications can be reviewed in the ICR documentation.
ICR's registry platform is electronic and can be accessed through all internet-connected computers, tablets, or mobile devices at www.app.carbonregistry.com. ICR's registry platform Carbonregistry.com is developed by Mojoflower ehf. (Mojoflower) www.mojoflower.io. Mojoflower and ICR are fully owned by Gaia Group ehf.
Figure 1: Organizational structure of Gaia Group ehf.
The registry has user accounts and organizational accounts. Projects belong to organizational accounts, but ICCs may belong to users or organizations. Users make all actions and transactions on behalf of organizations based on their administrative privileges.
Figure 2: Create an account
User accounts are created from app.carbonregistry.com and organizational accounts are created by users within the registry platform.
Figure 3: Accounts relationship.
To effectively prevent double counting in all its forms, it is essential to have a robust and transparent registry platform, which includes a publicly accessible, transparent, and easily searchable project, credit and transaction database. The platform needs to provide all relevant information necessary to avoid double counting and build trust by interested parties.
A registry and its infrastructure need to facilitate project registration by assigning a unique identifier to each project. This identifier should be cross-referenced with carbon credits issued in the program's carbon credit registry, ensuring that project information can be tracked for every carbon credit issued.
ICR’s registry platform meets these requirements, offering the functionality and transparency needed to prevent double counting.
Securely and transparently managing the issuance, transfer of ex-ante and ex-post ICCs and retirement, and cancellation of ex-post ICCs.
Serialization and tagging of issuances to ensure each ICC is clearly linked to a specific project, country, issuance block, and vintage, thereby facilitating the assignment of information necessary to avoid double counting.
Implementing retirement and cancellation procedures that clearly indicate the removal of units, ensuring the process is irreversible and unambiguously designated for a specific purpose. For retirements under CORSIA, information includes the aeroplane operator for whom the ICCs were retired and the calendar year in which the underlying requirements are fulfilled through the retirement.
Providing public, downloadable, and sortable reports on all ICCs, including project details, issuances, retirements, and cancellations, with the following project information:
A description of the project, including details on the GHG emission mitigations technologies used.
The GHG emission SSRs, as well as the GHGs considered in calculating the project’s GHG emission mitigations.
The host country and geographical location where the project is implemented.
The project proponent.
The year(s) in which the GHG emission mitigations occurred (vintage).
Any additional information required to unambiguously identify the project and distinguish it from other projects in the same location.
indication of whether the project’s activities and GHG emission mitigations are covered by the host country’s NDC targets (sector and target years) for post-2020 credits.
A letter of attestation and authorization from the host country, which is publicly available on the registry once obtained and submitted to the ICR.
Designation of the credits as eligible as Article 6.2 ICCs once the host country letter of authorization is obtained.
Notice that the host country has applied a corresponding adjustment, once evidence is obtained.
Further information about the functionality of the ICR registry is available in the ICR registry user guide found on the ICR documentation site.
To benefit from using the ICR program, an ICR registry account needs to be opened to pre-register, register, issue, trade, or retire ICCs. The ICR registry is administered by ICR and maintained by Mojoflower.
Everyone can join the ICR registry. Individuals can establish a user account from the ICR registry platform by providing the necessary information.
Figure 4: Create a user account
For users to be able to perform specific actions, they need to be verified, i.e., complete the Know your Customer (KYC) checks ("verified users"). The KYC check is completed within the registry platform.
Figure 5: KYC
For organizations to participate in the ICR program as a project proponent, project developer, market participant, general organization or other stakeholder for issuing, transferring, trading, or retiring ICCs or providing services for proponents or stakeholders, they need to establish a registry account with ICR. Users can create a registry account for organizations, i.e., project proponent, developer, market participants, etc, from their user account[1].
Figure 6: Create organizational account
The account opening is completed via the ICRs platform by a user who has the authority to represent the organization (Authorized representative). Organizations that want to have a public profile or intend to participate as a project proponent, project developer, VVBs, market participant or other need to complete a Know Your Business (KYB), and the user creating the organizational account shall be a verified user. Note: Different fees are applicable for organizations based on the type of organizations and their verification.
Figure 7: KYB
Organizations (project proponents or project developers) who want to register climate projects and issue ICCs shall have a verified account with ICR before any documentation review can proceed and listed publicly. For further information on the criteria for registration, refer to the ICR requirement document.
A proponent intending to submit a project to ICR needs to open an account by a user with the authority to represent the organization through the ICR registry platform and register as a project proponent or a project developer.
Other organizations may open registry accounts as applicable for their use[2]. User permissions are limited to the purpose of use, and some are subject to special agreements with ICR, e.g., market participants, insurance companies, rating agencies and VVBs.
Market participants who want to act as custodians of ICCs for users or trade or retire ICCs on behalf of organizations shall establish a market participant account with ICR and sign a market participant agreement with ICR.
Insurance companies need to adhere to ICRs insurance eligibility criteria.
VVBs need to establish an account with ICR. When an agreement has been signed with ICR, the VVB is explicitly identified in the registry. Only VVBs with an agreement for conducting validation and verification with ICR program are identified as approved VVB.
Organizations holding ICCs need to have an account with ICR if they intend to retire or hold carbon credits for use later and publicly disclose their aggregated holdings of ICCs and retirements.
All applicants for organizational account opening ne sign terms and conditions for organizations and are subject to Know Your Business (KYB) check with ICR for them to be verified ("verified organization"). Only verified organizations may have a public profile.
ICR will inform the organization of the review of the KYB and accompanying documentation. If further documentation is needed, ICR will inform the organization.
When all applicable fees have been paid, the account is verified, and the verified organization may perform its actions with the ICR registry platform.
Authorized representatives of organizations can invite individuals to join the organizational account and become members of the organizational account by adding them to the account. The invitation is delivered by email[3]. The users may be subject to KYC upon request. Users identified as members in organizational accounts have different roles, administrative rights (admin), content editing rights (editor users), viewing (partner) or an assessor (auditor). All user invitations to the organization's account and their roles are the organization's and authorized representatives' responsibility. At all times, at least one member needs to be an admin.
Detailed information on the ICR registry platform, including step-by-step instructions for creating accounts, entering information, issuing, transferring, and retiring instruments, can be found in the ICR user guide.
Note that some organizations may publicly or privately disclose ICC inventory ownership. Private disclosure is only allowed for certain account types. Proponents and developers shall always have information about their inventory public.
Project registration involves the formal process of submitting a PDD or PDDMR to ICR and to an approved VVB for assessment, providing detailed information about the project's objectives, procedures, and expected (and monitored) GHG emission mitigations. The registration ensures transparency, accountability, and credibility in projects, allowing them to issue ICCs that may be traded and used to compensate for GHG emissions or contribute towards reducing or removing atmospheric GHG emissions by organizations or individuals. The timing of project registration may be independent of its start date. In other words, projects may be submitted after they begin operation (subject to eligibility) or before they begin operation. However, the steps outlined in this section shall be followed.
The lifecycle of a project may generally be described according to the following diagram.
Figure 8: Project cycle
Projects have different status based on their project cycle. The status of a project may be:
Concept (concept, section 7.2)
Under development (pre-registration, section 7.3)
Under validation (pre-registration, section 7.3)
Validated (registered, section 7.5)
Closed (crediting period finished, section 7.8)
Retracted (section 7.3.1)
Withdrawn (section 11)
The status represents the stage in the project cycle it is in.
A methodology refers to a systematic approach or set of procedures used to quantify and measure GHG emission mitigations. These methodologies provide a standardized framework for estimating, monitoring, and verifying emission mitigations, allowing for consistent and comparable results across different projects applying the methodology. These methodologies typically establish criteria and prescribe procedures for projects to follow for data collection, quantification, monitoring, and reporting GHG emission mitigations for projects ex-ante and ex-post and serve as good practice guidance.
Project proponents developing a climate project should review approved methodologies under ICR for their applicability and follow them where possible.
Figure 9: Methodologies
The ICR has approved methodologies listed in ICR approved methodologies and available on the ICR documentation page.
When an approved methodologies do not cover the project activities, the project proponent may develop a project by establishing methodological criteria and procedures following to the requirements of ISO 14064-2 and the ICR requirement document, e.g. establishing criteria and procedures for:
Boundary
Baseline
Additionality
Quantification
Monitoring
When establishing methodological criteria and procedures, ISO 14064-2 states in section 6.1 that project proponents shall identify, consider, and use all relevant criteria and procedures for every stage of the GHG project cycle where these are available. Here, consideration of section 0.3 in ISO 14064-2 is relevant.
If criteria and procedures are not available, the project proponent shall use relevant current good practice guidance. The project proponent shall select and apply established criteria and procedures from a recognized origin if available. Often, methodologies developed under GHG programs are considered a recognized origin.
If the project proponent intends to develop a new methodology, please refer to the ICR methodology approval process.
All documentation, irrespective of the origin of methodology, criteria, and procedures, shall use available ICR templates and follow any instructions outlined. Note, however, section 10.
Copyright of methodologies developed by entities other than ICR, following the ICR methodology approval process are theirs, not ICR's. Methodologies developed by ICR are the copyright of ICR.
Methodologies not developed by ICR or methodology developers developing methodologies under the ICR, may be subject to copyright. Methodologies, however, contain standardized processes for, e.g., measuring and verifying GHG emission reductions or removals associated with a project or activity. They outline systematic approach for establishing criteria and procedures, e.g. for baseline, boundary, monitoring, and quantifying the amount of GHGs that are reduced, avoided, reduced, destroyed or removed from the atmosphere due to the project implementation compared to the baseline scenario.
Copyright law protects original works of authorship fixed in a tangible medium of expression, like a published methodology. However, it does not protect ideas, procedures, methods, or systems, even if they are included a methodology. Therefore, applying or referencing processes, methods, and procedures in a methodology typically does not violate its copyright (if it exists).
Processes, methods, or procedures may be eligible for protection under different forms of intellectual property, including patents. Nevertheless, the ICR does not have any records of GHG programs or methodologies developed under GHG programs being protected under patent law. Should a methodology's processes be patented, the methodology documentation should explicitly mention this information and any application of such methodology shall disclose such intellectual property rights.
ICR, however, respects the associated cost of developing methodologies. Where a methodology has been developed partially or entirely by third parties (other than a GHG program) approved and published by other GHG programs and is applied in all significant aspects, as a good practice guidance, to demonstrate conformity to ISO 14064-2 and ICR requirements, the methodology developer(s) may be eligible to receive royalties from project proponents applying the methodology for developing and registering projects under the ICR program.
Where ICR deems a methodology has been applied, developers may apply for entitlement of royalties according to the ICR fee schedule as a compensation for their contribution. ICR determines eligibility on a case-by-case basis. Methodology fees are collectible for 12 months from first transfers of ICCs applying the respective methodology. If not collected, ICR will deposit the methodology fee to amethodology development fund.
ICR acknowledges and makes explicit the copyrights of approved methodologies (or other methodologies). ICR respects and preserves the existing trademarks and logos in the published materials (methodologies from other GHG programs).
A project concept refers to the basic outline and description of an initiative to reduce, avoid or destroy GHG emissions or sequester carbon dioxide from the atmosphere. Project proponents may submit a project concept in the ICR registry where they have not completed the project documentation according to the ICR requirement document and procedures.
For stakeholders, viewing project concepts, they should be aware that there's no certainty that the project will be implemented or issue ICCs in the future. Projects listed as a "Project concept" are not considered pre-registered or registered.
Information needed to be eligible for listing a project concept is submitting a project concept description. If the project proponent intends to develop a methodology, he may submit a methodology concept note (see ICR methodology requirements and ICR methodology approval process).
Information to complete in the registry platform for project concept:
Descriptive project name
Short descriptive summary of project activities
Website
Estimated start date
Sector
Estimation of additionality levels
Other SDGs
Project type
Location of the project
Documentation:
A project concept note
A methodology concept note (optional)
Projects may be listed as a project concept for up to 6 months. If the project concept status has not been updated to "under development" and has been pre-registered after six months, the concept listing will be redacted from the public registry.
After the project proponent has submitted the project concept for review, ICR shall respond within two weeks from submission of the project concept.
When ICR has no further observations of the information provided or the documentation, ICR approves the project concept 2 week after the proponent has responded to findings raised by ICR.
Where a project requesting a listing of a project concept has not followed the instructions, suspects that the information and documentation submitted are false or misleading or ICR consider is spam, ICR reserves the right to reject the listing request without providing any findings to the proponent.
Figure 10: Project concept listing
The ICR registry features a project pipeline that showcases projects before their official registration. Projects can be pre-registered during initial development stages, identified as "under development," or "under validation" when prepared to initiate the validation process.
Project proponents applying for pre-registration in the ICR registry can do so at any time before or during the implementation of the actual project and its implementation. Pre-registration may be to showcase projects in implementation for potential off-takers or investors or to increase awareness of prominent climate actions being developed. Pre-registration of a project does not constitute a validation or approval by the ICR of the project or its eligibility for final registration. Pre-registration solely constitutes is a preliminary review by ICR of project information provided by the proponent to the ICR. It is not a final determination of the project's eligibility or validation, nor does it guarantee the issuance of ICCs.
When validating or verifying the project activities, the VVB shall check the project's status in the ICR registry. If the project has not been pre-registered with the ICR, the VVB shall advise the proponent to do so. When the VVB has been contracted for validation/verification, he shall be identified as the VVB for the project along with the criteria for validation/verification. The validation/verification team shall have access to all documentation submitted to the ICR and shall be added as an auditor of the project on the ICR registry. See further in the ICR validation and verification specifications.
Figure 12: Pre-registration
When the project proponent has completed a draft PDD, an admin initiates registration of a new project from the ICR registry platform's organizational account. An editor user can modify information. See the ICR user guide for details of pre-registration items.
The project proponent appoints an individual(s) or an entity responsible for communication with ICR throughout the crediting period of the project activities depicted in the PDD as an "Authorized representative." The appointment is done in a representation deed[4], only users identified as authorized representatives shall be added as an admin for the project. Others shall be editor users or viewers, (or auditors).
If the individual is not already holding a user ID, the organization provides the individual authorization to be associated with the project with a user ID with admin rights for the project during the completion of the registration form. See details in the ICR user guide.
The admin can invite other users to edit and modify information about the project. They are added as editor users to the project.
Note: editor users may edit information about the project, upload documentation, and share insights, but admins are also permitted to submit projects for review by the ICR and request issuances.
Figure 11: Pre-registration process under development
Projects eligible for pre-registration shall submit the following documentation and approve terms and conditions applicable for projects in the registry platform ("project agreement"):
Proof of ownership (private document)
A draft PDD (or PDDMR) with the following sections completed[5] (public/private document):
1.1 - 1.17
2.1 – 2.4
4.1 – 4.4 (if applicable)
A draft ICR environmental and socio-economic safeguards.
Representation deed (private document)
All documents regarding the project shall be submitted in electronic format.
The project proponent uploads all relevant documents to the ICR registry. The project proponent shall use information from the project documents to complete the registration form in the ICR registry. All documents uploaded should be posted publicly, except for commercially sensitive information and proof of contracting.
When the registration form has been completed and all documentation uploaded, the admin submits the project for pre-registration in the ICR registry platform as "under development", for review.
The project proponent pays all relevant outstanding fees according to applicable terms and conditions and the fee schedule.
When fees have been received, ICR reviews submitted documents and information provided in the registry platform for completion and consistency.
If the submitted documentation are insufficient, the proponent is informed of corrections/improvements needed.
The project status is confirmed by ICR as "under development" subject to review of the documentation and confirmation by ICR.
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All submitted documents and records are kept for at least seven years after the last retirement of the instrument issued and activated resulting from the project activities. If the project that has been pre-registered fails to complete registration (retracted) and no ICCs are issued, documents and records are kept for at least seven years.
All information about a project that is registered on-chain can't be removed[6].
If a project has been pre-registered and does not complete validation within 12 months. from initial pre-registration, the project is identified as "Inactive." Subject to objective evidence of ongoing implementation, the status is updated or reverted. Pre-registered projects shall complete validation and registration within 24 months from initial pre-registration date. If projects do not complete validation and registration within 24 months, they're retracted from the ICR registry.
If ICR suspects that information and documentation submitted are false or misleading, ICR reserves all rights to retract the project and disclose the occasion.
When the project has been pre-registered on the ICR registry and relevant documentation made available on the ICR registry platform, stakeholders may comment on the project and its public documentation. Comments on the project activities shall be submitted to admin@carbonregistry.com with information, e.g. name, organization, address, and email address of the disclosing party. Comments received are shared with the project proponent and the VVB for consideration.
Where the project requesting pre-registration has not followed the instructions and ICR believes it is spam, ICR reserves the right to reject the pre-registration request without providing any findings to the proponent.
When ICR determines that the project does not meet eligibility criteria of the ICR program, ICR will reject the pre-registration request.
After the proponent has requested a review by the ICR for pre-registration and all fees paid, the ICR shall respond with findings within two weeks. When the proponent has resolved all outstanding issues raised by ICR, ICR shall complete the pre-registration within one week.
When a project has not updated the status to “under validation” within 12 months, the project is identified as inactive.
Figure 2: Pre-registration process under validation
For projects initially pre-registered as under development, the status shall be updated to "under validation" before the validation starts, providing all necessary documentation listed for projects "under validation" and selecting the VVB contracted to conduct the validation (and verification) and the criteria, from the registry platform. The proponent shall further add the validation team members as auditor users of the project.
To update the registration of the project as "under validation," the following documentation shall be submitted or updated as relevant:
Proof of ownership (private document)
Completed PDD (or PDDMR) with all sections completed (public document)
ICR environmental and socio-economic safeguards template (public document)
Proof of contracting a VVB, proof of contracting can be in the form of a legal agreement, letter of intent/memorandum of understanding (private document)
Validation plan (or validation and verification plan for PDDMR)
Representation deed (private document)
The proponent shall further update all information about the project on the registry and maintain consistency in information provided in the project documentation and on the registry. The proponent shall identify the relevant criteria for validation and verification in the registry platform. See the ICR user guide.
The difference between under development and under validation represents the status of implementation and the contractual relationship with a VVB and ongoing validation or validation and verification. Those under validation are projects that have completed the PDD or PDDMR and contracted a VVB for validation (and verification for joint validation and verification engagements), while projects "under development" have not.
When a project has not updated the status to “validated” within 12 months, the project is identified as inactive.
Before a project may be registered, it needs to be validated by an approved VVB. A list of approved VVBs may be found on ICR's website and the registry platform. All documentation uploaded to the registry shall be accessible for the VVB to conduct its assessment.
Figure 13: Validation and registration process
When projects have been pre-registered, and the PDD (or PDDMR) has been completed, projects can undergo validation[7].
Before initiating the validation, the PDD (or PDDMR) shall be completed and submitted to ICR as it is submitted to the VVB for assessment (same version).
The project proponent shall use all applicable templates from ICR for the documentation and follow all outlined instructions.
If the project includes other environmental or social benefits subject to validation, the proponent shall inform the VVB and add it as criteria for validation, and necessary documentation shall be made available for the VVB for validation. ICR allows for additional labelling of other certifications or other benefits, such as the SDGs.
Other benefits shall be described in the PDD (or PDDMR) and on the project registration page.
For validation to be completed, the PDD (or PDDMR) shall meet the validation criteria, i.e., conform to all requirements of ISO 14064-2, the ICR requirement document, and, where relevant, the applied methodology. Note that the minimum criteria for validation are the ICR requirement document and ISO 14064-2. The project proponent may decide to have an approved methodology as an added criterion for validation (see section 7.1).
The project proponent shall adhere to and demonstrate conformity to all applicable requirements.
All documents regarding the project shall be submitted to the VVB in electronic format or a format requested by the VVB.
The proponent shall not request to change the registration status to "Validated" until it has completed validation, received the ValR, and the VVB has uploaded the ValR to the registry platform and submitted the report to ICR.
The validation process shall be completed for projects to be eligible for registration and issuance of ICCs. With limitations, projects are eligible to issue ex-ante ICCs post validation (prior to monitoring and verification). See section 5.4 in the ICR requirement document. If project proponents issue ex-ante ICCs after validation of projects, they are inactive and, as such, can't be retired by organizations holding them or used to support any offsetting claim. Ex-ante ICCs can, however, be transferred. Issuance of ex-post ICCs is subject to verification of GHG emission mitigations by the VVB. Note that issuance of ICCs ex-ante does not guarantee them becoming ex-post ICCs, as discussed under section 8.2.1 but safeguards are in place to guaranteeing compensation of any non-performance of projects issuing ex-ante ICCs, see section 8.5.1.1.
Criteria for validation, including requirements for VVB, are set out in the ICR requirement document. Further guidance and specifications on validation and verification may be found in ICR validation and verification specifications. Projects shall complete validation before requesting registration and issuance of ICCs. The process for requesting issuance of ICCs is discussed under section 8.
The VVB shall review if the information in the project registration aligns with the documentation. Further, any images or posts the project proponent has shared relate to the project activities.
Project proponents shall submit documentation to the VVB according to requests by the VVB.
The VVB assesses the documentation and accompanying evidence of conformity to ISO 14064-2 requirements, the ICR requirement document, and, where applicable, the applied methodology or other criteria.
The VVB submits findings to the project proponent with findings and requests for corrective actions as applicable.
If applicable, the project proponent responds to the requests for corrective actions, and the VVB assesses the measures taken.
The VVB submits the final ValR or VVR with findings to the project proponent and uploads it to the registry platform.
The project proponent shall review that all relevant and necessary documentation has been uploaded to the registry and that relevant documents are available for public access.
PDD or PDDMR,
ValR or VVR,
Methodology specific documentation,
Environmental and socio-economic safeguards assessment,
Documentation relating to other criteria,
Representation deed.
Validation plan or validation and verification plan,
Validation agreement or validation and verification agreement,
Ownership proof.
Statement of no double issuance and counting.
Letter of attestation and authorization (if applicable)
When the proponent has confirmed that all documentation necessary for the registration has been uploaded, the project status may be changed to "Validated." A project proponent admin shall request a review of the project for registration from the registry platform.
ICR reviews the documentation and ValR (or VVR) for completeness, findings, and opinion.
If the ValR (or VVR) or supporting and required documents are insufficient or need clarification, ICR advises the VVB and/or the project proponent, respectively.
The project proponent initiates the final registration process from the ICR platform. The project review process is initiated when relevant documentation for registration or renewal of the crediting period is submitted to ICR via the registry platform. The process initiates no sooner than when all necessary documentation has been submitted to ICR and a request has been submitted by an authorized representative (admin) from the ICR registry platform by changing the status of the project to “Validated”. The project review process consists of a documentation review.
Figure 14: Registration process
Registration is possible when the project has been validated, the proponent has resolved all non-conformities raised by the VVB, and the VVB has submitted the ValR (or VVR) to the ICR.
The project review fee shall be paid before ICR completes the project review and the project is registered in the registry.
When a project is registered, relevant documents shall be made available in the registry platform as follows and are disclosed publicly[8]:
PDD or PDDMR,
ValR or VVR,
Environmental and socio-economic safeguards assessment,
Methodology specific documentation,
Documentation relating to conformity to other criteria,
letter of attestation and authorization (if applicable)
The following documents shall be provided to the ICR and are not disclosed publicly:
Representation deed.
Validation plan or validation and verification plan,
Validation agreement or validation and verification plan,
Ownership proof.
Project proponents shall advise ICR before disclosure, if any documentation is subject to non-disclosure or confidentiality.
The purpose of ICR review is to ensure that all applicable documents are complete and signed where necessary. When an approved VVB has completed the validation and/or verification, GHG emission mitigations have not been issued as instruments under another GHG program (or been cancelled as appropriate), appropriate information has been used to complete all project documents, the VVB holds required accreditation, and the competence of the audit team is appropriate. Further, check if the newest versions of methodologies or tools have been applied and if all information provided in the registry platform is consistent with the project documentation. Further to guarantee consistency in the documentation from the proponent and from the VVB and overall quality of the documentation.
If information is missing, incorrect or inconsistent, ICR will request that project documentation be updated, or information be revised on the registry platform. Any findings from the review shall be addressed before the registration or issuance request for instruments can be completed.
Both the project proponent and the VVB conducting the validation (and verification) will receive a review report issued by the ICR disclosing the findings from the review. The ICR review report will be publicly disclosed.
If the project proponent or VVB fails to address findings from the ICR, the ICR informs the VVB and/or the project proponent that the project has failed to demonstrate conformity to the ICR program requirements and is ineligible for registration or issuance.
Note that documentation review is also applicable for all issuances of ICCs ex-post. See section 8.4.
The registry stores all project documents in its record-keeping system for at least seven years from the retirement date of the last ICC to which the project documents relate.[9]
When the project has completed both validation and verification, the sections below are also applicable, but monitoring reporting shall be included in a PDDMR.
Figure 15: Review process
After the proponent has requested a review by the ICR for registration, the ICR shall respond with findings within four weeks after all fees have been paid. When the proponent (or VVB) has responded to findings raised or resolved all outstanding issues raised by ICR, ICR shall complete a review of responses and/or the registration within two weeks.
After validation and final step in the registration process of a climate project, ICR publishes publicly the validated estimation of GHG emission mitigations for the crediting period as an estimated supply for each vintage of the project on chain. This involves no-issuance event but merely a transparent public disclosure of validated projected GHG emission mitigations, which may be compared later to actual GHG emission mitigations of the project.
Figure 16: Project review timelines
During the project's operation, the GHG emission mitigations shall be monitored according to the monitoring plan and reported in a MR. Any deviations from the monitoring plan shall be addressed and justified in the MR.
If a deviation has been made to the PDD (or PDDMR), a revised PDD shall be issued and validated by the VVB and uploaded to the registry as a public document, along with the updated ValR.
When a VVB has been contracted, the project proponent shall submit a verification agreement and verification plan to the registry. Further, the proponent shall select the contracted VVB from the registry platform and add the verification team members as auditor users of the project.
Proponents shall select the monitoring period and monitored GHG emission mitigations when they submit MR. An admin shall upload the MR to the registry. See further section 8.3 for ex-post ICC issuances.
After monitoring, the GHG emission mitigations shall be verified by an approved VVB to be eligible for issuance of ex-post ICCs. If ex-ante ICCs have been issued, verification is mandatory to convert ex-ante ICCs to ex-post ICCs.
Figure 17: Submitting monitoring and verification reports
When GHG emission mitigations have been monitored according to the monitoring plan and verified by the VVB, ex-post ICCs may be issued, and/or ex-ante ICCs converted to ex-post ICCs; see section 8.2.1 and 8.3.
Criteria for verification, including requirements for VVB, are set out in the ICR requirement document. Further guidance and specifications on validation and verification may be found in ICR validation and verification specifications. Projects shall complete verification before requesting issuance of ex-post ICCs. The process for requesting issuance of ex-post ICCs post-monitoring is discussed under sections 8.2.1 and 8.3. The proponent shall identify the relevant criteria for verification in the registry platform. See the ICR user guide.
When the proponent has contracted a VVB for verification, the VVB is selected in the registry platform that will conduct the verification of the GHG emission mitigations along with the criteria for verification. When the VVB has been selected, the verification team shall have access to all information relevant to the project on the registry platform. See further in the ICR user guide.
The VVB shall review if the information in the project registration aligns with the documentation. Further, assess any images, videos or insights the project proponent publicly has shared and confirm that they relate to the project activities.
Project proponents shall submit documentation to the VVB according to VVB's request.
The VVB assesses the monitoring and accompanying evidence of conformity to the verification criteria.
The VVB submits findings to the project proponent with findings and requests for corrective actions as applicable.
If applicable, the project proponent responds to the requests for corrective actions, and the VVB assesses any measures taken.
The VVB submits the final VerR or VVR with findings to the project proponent and uploads it to the registry platform.
The project proponent shall indicate the monitoring period in the registry and review that all relevant and necessary documentation has been uploaded to the registry and that relevant documents are available for public access.
Updated PDD (if applicable),
New ValR (if applicable),
Monitoring report,
Verification report,
Statement of no double issuance and counting for the monitoring period,
and the following documents are private
Validation plan (if applicable)
Verification plan
Verification agreement.
ICR reviews the request to ensure all documents are complete and signed where necessary. An approved VVB has conducted the verification, instruments have not been issued under another GHG program (or been cancelled as appropriate) for the same GHG emission mitigations, and appropriate information is included in all documentation. The VVB holds the necessary accreditation, and the competence of the verification team is appropriate. Further, to check if the newest versions of methodologies or tools have been applied and all information provided in the registry platform is consistent with the project documentation.
The project proponent may issue ex-post ICCs according to monitoring and verification findings as stated in the MR and VerR or VVR, see section 8.3.
When the verification has been confirmed, ICCs are issued and delivered to the proponent (subject to any deduction due to ICR adjustment account deposits, see section 8.5). The supply of verified ex-post ICCs for the monitoring period is provided on-chain. Ex-ante ICCs issued are converted to ex-post ICCs
Figure 18: Verification review
If the crediting period has been renewed, a revised PDD and new ValR and validation agreement and validation plan shall be provided to ICR.
If the crediting period has been renewed, the following documents shall be uploaded to the registry as public documents.
Revised PDD
Methodology specific documentation
Environmental and socio-economic safeguards assessment
New ValR
Letter of attestation and authorization (if applicable)
and the following documents are private
Validation agreement
Validation plan
Ownership proof.
Representation deed.
For renewal, the proponent shall follow section 7.4.
If the crediting period is not renewed or expires the project is identified as “Closed”.
Issuing carbon credits on a blockchain offers several advantages in terms of transparency and security compared to traditional databases. Blockchain operates on a decentralized network of computers, which means that the data is not stored in a single location; see section 5.4 further. This enhances transparency, as every transaction on the blockchain is recorded on a public ledger accessible and auditable by anyone. This means that all ICC transactions, e.g., issuances, transfers, and retirements, are publicly visible, making it easier to track their origin and ensure they are not double-counted. Once a transaction is recorded on a blockchain, it cannot be altered or deleted. This immutability provides a high level of security against tampering and fraud. This ensures that the records are accurate and remain unaltered, thereby maintaining the integrity of the credits.
Ex-ante and ex-post ICCs differ primarily in terms of the timing of the realization of the GHG emission mitigations activities they represent:
Ex-ante ICCs are issued based on projected or expected GHG emission mitigations that will occur in the future. They are issued before the actual GHG emission mitigations, based on predictive calculations or models of the project's expected impact. Ex-ante ICCs are converted to ex-post ICCs subject to successful verification of GHG emission mitigations.
Ex-post ICCs are issued after the GHG emission mitigations have occurred and have been verified. Ex-post ICCs represent real, measurable GHG emission mitigations that have been achieved and verified, confirming the project's actual GHG emission mitigations.
Figure 19: Ex-post vs. ex-ante.
Issuance of ICCs, either ex-ante ICCs or ex-post ICCs may generally be described according to the following diagram.
Figure 20: Ex-ante ICC issuance.
Figure 21: Ex-post ICC issuance.
Ex-ante ICCs | Ex-post ICCs | |
Definition | ICCs that have been issued in the ICR registry from a registered project that an approved VVB has validated. Ex-ante ICCs can’t be retired. | ICCs that have been verified that GHG emission mitigations are real and can be used for offsetting emissions or for other environmental claims. |
Issued on carbonregistry.com | Yes – after validation, subject to limitations and safeguards | Yes – after verification |
Transferrable | Yes – can be transferred to buyers account on the ICR registry. | Yes – can be transferred to buyers account on the ICR registry. |
Retirable | No | Yes |
Cancellable | Yes – if ex-ante ICCs have not been transferred from proponent | Yes |
Convertable | Yes – subject to verification ex-ante ICCs are converted to ex-post ICCs. | No |
Ex-ante ICC issuance refers to the issuance of ICCs before GHG emission mitigations, and ex-post ICC issuance refers to issuance after verification of real GHG emission mitigations. At issuance ex-ante ICCs have vintages in the future, while ex-post vintages in the past.
Issuances are either pre-monitoring (ex-ante) or post-verification (ex-post). The ICR registry displays the status of every ICC that has been issued. ICR allows projects that have been validated to issue ex-ante ICCs. ICCs may have a different status that represents the attribute of the credit. ICCs may be inactive (ex-ante ICC), active (ex-post ICC), retired, or cancelled. Please refer to ICR definitions for detailed definitions on different statuses. The project proponent may request partial or complete issuance of ICCs in the registry, subject to limitations.
When a proponent requests partial issuance of ex-ante ICCs, it shall be no less than 10.000 t CO2-e for each issuance unless validated GHG emission mitigations are less than 10.000 t CO2-e. No limitations apply for ex-post ICC issuances as they’re all issued after MR or PDDMR and VerR or VVR have been reviewed and confirmed.
When registration and issuance coincide, the documentation review is completed in parallel.
Serial numbers play an important role in ensuring the integrity and traceability of carbon credits. Even though the tokenization of credits on chain ensures the uniqueness of a project and a credit, a credit serial number further serves as a consistent unique identifier assigned to each vintage of each project, representing a reduction, avoidance, destruction sequestration or removal of CO2-e. The serial number ensures that each credit is distinct and traceable. Relying on serial numbers helps prevent double counting and fraud. It ensures that a specific carbon credit can be tracked throughout its lifecycle, from issuance to retirement, which is essential for maintaining credibility.
The serialization of ICCs helps to see the credits' attributes and compare projects easily. ICR serialization structure is provided below.
Component | Order | Type | Length | Range | Comment |
Credit identifier | 1 | Letter | 3 | Text | Fixed value. Unique registry identifier. (ICC, FCC) |
Project country | 2 | Letter | 3 | ISO 3166-1 | Three-letter country code for the project (e.g., Iceland is ISL). |
Project country dialling code | 3 | Numeric | 3 | 1-999 | Three-digit country code for the project (e.g., Iceland is 354). |
Project ID | 4 | Numeric | 4 | 1-9999 | Registry assigned identifier for the project, unique in the registry. |
Sector | 5 | Numeric | 2 | 1-16 | Primary sector |
Type | 6 | Letter | 1 | A, R, H | Avoidance, Removal, Hybrid |
Host country attestation | 7 | Numeric | 1 | 1;0 | 1 = Yes, 0 = No attestation |
Vintage (Year) | 8 | Numeric | 4 | 0-9999 | The vintage year of the credits. |
Multiple project activities | 9 | Numeric | 3 | 0-999 | ID of a sub-project. If not multiple project activities, this identifier is not used. |
Example: ICC-ISL-354-33-13-A-0-2022
GHG program: International Carbon Registry
Project Country: Iceland
Dialling code: 354
Project ID: 33
Sector: Waste handling and disposal
Type: Avoidance
Host country attestation: No approval for ITMO transfer.
Vintage: 2022
Multiple project activities: Not a multiple project activity.
ICR acknowledges the importance of early funding projects to cover associated costs, access to funding, and the possibility of quickly scaling climate methodologies/projects. Transparency of such funding is important for sake of reporting and trust. Therefore, project proponents can issue ex-ante ICCs after projects have been validated and before GHG emission mitigations have been verified, subject to limitations, as further discussed in the ICR requirement document. This may ease funding efforts, facilitate climate actions, scale climate actions, and provide market visibility and credibility to climate projects. Note that ex-ante ICCs are issued based on validated estimation of GHG emission mitigations. Ex-ante ICCs do not represent real GHG emission mitigations by definition and thus cannot be retired until verified and converted to ex-post ICCs.
Any terms of transactions with ex-ante ICCs should clearly define compensation mechanisms for non-performance events. This could involve risk-sharing arrangements where all parties involved in the transaction proportionally share the risk, or other specified options. If no specific terms of delivery have been agreed upon out in the agreement section 8.5.1 applies.
Ex-ante ICC issuance is allowed for projects if they meet additionality level 4b or have insurance cover or warranty to compensate for any non-performance of the projects. Meeting level 4b allows issuing up to 50% of validated GHG emission mitigations for each vintage for the crediting period, notwithstanding ex-ante ICCs demarcated for adjustment account(s). Projects with insurance cover or warranty may issue ex-ante ICCs up to 100% of the validated GHG emission mitigations, see requirements relating to insurance requirements in Appendix II in the ICR requirement document. Further see Appendix II on examples for ex-ante ICCs conversion to ex-post ICCs and compensations for non-performance events.
Figure 22: Ex-ante issuance.
When ex-ante ICCs are issued, the project shall either:
Meet additionality level 4b, or
Have insurance cover for non-performance events.
Project meeting additionality level 4b issuing ex-ante ICCs shall deposit minimum of 2% to a non-performance adjustment account, the percentage is determined by a non-performance risk assessment. The non-performance adjustment account is to rectify issued ex-ante ICCs that fail to result in real GHG emission mitigations.[10] See section 8.5.1.1 on compensation mechanism on non-performance events. After the request for issuance ICR performs the risk assessment for non-performance for non-performance adjustment account contribution.
Projects are allowed to issue up to 50% of validated GHG emission mitigations of each vintage for the crediting period, notwithstanding ICCs demarcated for non-performance adjustment account, if the meet additionality level 4b, see section 4.4.
Projects with insurance cover for non-performance may issue up to 100% of validated GHG emission mitigations of each vintage for the crediting period. The insured entity shall publicly disclose that the project has insurance coverage. Please see Appendix II in the ICR requirement document for insurance eligibility criteria.
All ex-ante ICCs have not been verified for real GHG emission mitigations and are inactive. As such, they can't be retired and used by organizations to offset emissions. When an approved VVB has verified GHG emission mitigations, ex-ante ICCs are converted to ex-post ICCs that can be retired and used for offsetting or for other claims (see section 4.2.1).
Vintages are ICCs based on validated estimates in the PDD and ValR for ex-ante ICC issuance.[11]
Requests for issuance of ex-ante ICCs are made by an admin from the registration platform. See the ICR user guide for further information. Ex-ante ICCs are delivered to the proponents account upon all fees received by ICR.
Please see below ICR's eligibility requirements for suitable insurance coverage, including safeguards to ensure fungibility when the insurance claim is paid in-kind. ICR only approves insurance products that meet the insurance eligibility criteria as a basis for ex-ante ICC issuance.
This process relates to verification submission when projects have issued ex-ante ICCs.
For each verified monitoring period, the project proponent shall submit a MR and a VerR and request the conversion of ex-ante ICCs to ex-post ICCs.
Figure 23: Ex-ante post verification
When monitoring and verification have been completed, the proponent shall submit the MR and the VVB the VerR from the registry and request review. When ICR has completed the review, ICR converts the corresponding number of ex-ante ICCs to ex-post ICCs.
If verified GHG emission mitigations are greater than issued ex-ante ICCs, ex-post ICCs are delivered directly to current holders of the ex-ante ICCs, and ex-ante ICCs are converted to ex-post ICCs, subject to confirmation by ICR.
If verified GHG emission mitigations are less than issued ex-ante ICCs and the monitoring period for the respective vintage has not been closed, ex-post ICCs (according to the verified GHG emission mitigations) are delivered to the ICR escrow account. The ex-post ICCs remain on the ICR escrow account until the monitoring for the respective vintage has been completed and verified. The project proponent shall complete verification of the respective vintage within 12 months.
If, after the completion of the verification of the monitoring period, verified GHG emission mitigations are greater than issued ex-ante ICCs, ex-post ICCs are delivered from the ICR escrow account, to the current holders of ex-ante ICCs replacing the ex-ante ICCs and any excess ex-post ICCs may be issued according to the VerR.
If, after verifying the monitoring period, verified GHG emission mitigations are still less than issued ex-ante ICCs, 3. applies.
If monitoring for a monitoring period, where a vintage has been completed, and verification confirms fewer GHG emission mitigations than the number of issued ex-ante ICCs for the respective monitoring period (vintage), the project proponent is responsible for compensating for excess ex-ante ICCs issued. If insurance or warranty is in place to cover non-performance of the project, then that insurance or warranty cover shall be called upon, as outlined in the insurance / warranty policy. See details in section 4.4.1.1
If the VVB has verified that GHG emission mitigations are more than issued ex-ante ICCs, the project proponent may issue the ex-post ICCs not eligible for ex-ante ICC issuance at registration, see section 4.3. Further, if monitoring confirms fewer/more mitigations than estimated in the PDD and verified by VVB, additional issuance can be made accordingly for the respective vintage.
For each monitoring period that has been verified, the ex-post ICCs may be issued, subject to ICR review and confirmation.
Figure 24: Ex-post issuance.
When ICCs are issued for a monitoring period, relevant documents shall be provided to ICR that are disclosed publicly:
MR or PDDMR,
VerR or VVR[12],
Methodology specific documentation,
Documentation relating to conformity to other criteria,
Documentation regarding cancellation of GHG credits under another GHG program (if applicable) or
Statement of no double issuance and counting.
Letter of attestation and authorization (if applicable)
Further, the following documents shall be provided to the ICR and are not disclosed publicly:
Verification plan,
Verification agreement
Other documents relevant subject to confidentiality.
If material deviation to the PDD has been applied during implementation and a revised PDD has been issued, the new version of the PDD shall be provided to the VVB for validation and submitted to ICR, accompanied by a new/updated ValR. The new version of the ValR and the previous version are publicly available.
Project proponents shall advise ICR before disclosure if any documentation is subject to non-disclosure or confidentiality. The proponent shall identify which documents are private or public.
After issuance, ICCs are deposited to the proponent’s registry account unless other means for delivery has been requested by the authorized representative. ICR only invoices issuance of ICCs after the ICCs has been transferred from the delivery account.[13] See further information about transfers, retirements and cancellations under section 9 and the ICR registry user guide.
All documentation shall be submitted to ICR via electronic means.
ICR reviews the MR and VerR (or PDDMR and VVR) for completeness, findings, and opinion and issuance of ICCs is subject to a successful documentation review.
The purpose of documentation review is to ensure that all applicable documents are complete and signed where necessary. When an approved VVB has completed the verification, GHG emission mitigations have not been issued as instruments under another GHG program (or been cancelled as appropriate), appropriate information has been used to complete all project documents, the VVB holds required accreditation, and the competence of the audit team is appropriate. Further, check if the newest versions of methodologies or tools have been applied and if all information provided in the registry platform is consistent with the project documentation. Further to guarantee consistency in the documentation from the proponent and from the VVB and overall quality of the documentation.
If information is missing, incorrect or inconsistent, ICR will request that project documentation are updated, or information be revised on the registry platform. Any findings from the documentation review shall be addressed before the issuance request for ICCs can be completed.
Both the project proponent and the VVB conducting the verification will receive a review report from the ICR disclosing the findings of the review. If the VerR, supporting and/or required documents are insufficient, ICR advises the VVB and/or the project proponent, respectively. The ICR review report will be publicly disclosed.
ICR addresses the risk associated with project activities' non-permanence, non-performance of estimated GHG emission mitigations or non-corresponding adjustment of host countries by requiring the project proponent to set aside non-tradable adjustment ICCs to adjustment accounts or presenting an insurance policy covering the respective risk. This is to cover unforeseen losses in carbon stocks, unforeseen obstacles in the operations of projects and any double claim under international transfers (see ICR Article 6.2 procedures).
Non-performance: Adjustment ex-post ICCs are cancelled if projects fail to produce real GHG emission mitigations.
Non-permanence: Adjustment ex-post ICCs are cancelled upon a non-permanence (reversal) event of carbon stocks.
Non-corresponding adjustment: Adjustment Article 6.2 ICCs are cancelled upon a non-corresponding adjustment event.
Deposits to adjustment accounts are completed during issuance of ICCs.
When ex-ante ICCs are issued which are subject to non-permanence risk, the non-permanence adjustment is also applicable for the ex-ante ICCs. In time during monitoring and verification of respective vintages ex-ante ICCs are converted to ex-post ICCs.
For risk associated with project activities' non-permanence, non-performance of estimated GHG emission mitigations or non-corresponding adjustment of host countries, ICR performs a risk assessment considering the respective risk.
Before any issuances of ICCs (ex-ante or ex-post), ICR conducts the applicable risk assessment. The risk assessment is publicly available.
ICR manages risk on ICR’s adjustment accounts to proactively identify, manage and mitigate risks via upfront insurance-driven risk assessment of projects, liquidity management and transparent reporting. This includes:
Risk assessment, permanence scoring and scenario analyses across the entirety of the ICR project portfolio to ensure projects can be compared on a ‘like for like’ basis.
Risk adjusted contribution per project, utilizing insurance quality underwriting criteria to assess level of adjustment contribution. Risk assessment factors shall include counterparty, country and project specific risk that could result in lead to under-performance and/or reversal, leading to non-permanence. Factors include but are not limited to:
track record of the project proponent and/or developer;
financial and KYC/B assessment of the project proponent and developer and any implementation partners;
natural catastrophe risk modelling;
supply chain disruptions;
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 (including those leading to issues like revocation of corresponding adjustments), war/terror/civil unrest; and
technical risks which will vary by project type.
Ongoing portfolio management and reporting on liquidity and risk in-line with financial industry standards. This includes regular reporting on adjustment account performance, systemic risk factors, adjustment depletion scenario analyzes to ensure adjustment depletion risks are mitigated and transparent reporting on results that can be made publicly available.
Analysis on where further incorporation of insurance could be beneficial for ICR and/or its stakeholders.
ICR may work with an external risk advisor(s) to perform ongoing monitoring and consulting of its adjustment accounts to enable regular reporting on adjustment account performance, systemic risk factors, and adjustment account depletion scenario analyses to ensure adjustment depletion risks are mitigated and transparent reporting on results that can be made publicly available.
Figure 26: non-performance account allocation.
Project proponents issuing ex-ante ICCs (when not insured) shall deposit non-performance adjustment ex-ante ICCs into the ICR non-performance adjustment account, following.
The number of ex-ante ICCs to be deposited to the non-performance adjustment account is based on non-performance risk assessment but never lower than 2% of issued ex-ante ICCs, irrespective of the timing of issuance prior to verification. Maximum number of ex-ante ICCs deposited to the non-performance adjustment account is never higher than 10%.
Non-performance adjustment ex-post ICCs are only eligible for compensation for non-performance events. Non-performance adjustment ex-ante ICCs are not subject to any issuance fees, same applies at verification and conversion to ex-post ICCs.
At verification events, ex-ante ICCs are converted to ex-post ICCs and eligible to compensate for non-performance. Upon verification ex-ante ICCs, on the ICR non-performance adjustment account have priority for conversion to ex-post ICCs over any other outstanding ex-ante ICCs.
At the end of each project crediting period, the project proponent may apply for reimbursement of deposits of adjustment ex-ante ICCs that have been converted to ex-post ICCs. They are reimbursed by ICR's sole discretion and with respect to the status of the ICR non-performance adjustment account and cancellations made by the ICR due to non-performance events and consideration of depletion risk.
Non-performance events
In the event of a non-performance of a project, the project proponent shall notify ICR within 30 days of discovering non-performance event. If there have been any previous issuances of ex-ante ICCs, a report shall be prepared and submitted to the ICR. The proponent is responsible for compensating for the non-performance event irrespective of any non-performance adjustment account deposits, according to the following:
For the non-performance event the proponent shall use the ICR non-performance event report template. It shall contain a conservative estimation of the impacts on previously validated GHG emission mitigations due to the non-performance of the project based on monitoring.
The non-performance event report shall be submitted to the ICR within six months from the discovery date of non-performance of the project. Failure to submit the non-performance report within this timeframe may result in sanctions towards further issuances of ICCs. The non-performance report shall be publicly available.
The ICR will temporarily withhold ex-post ICCs from the non-performance adjustment account and deposit to ICR escrow account, equivalent to the estimated difference stated in the non-performance report affecting any ex-ante ICC holders.[14]
The proponent shall account and report for the non-performance event in the next monitoring report and the VVB in the following verification report.
If the net GHG emission mitigations verified are less than issued ex-ante ICCs for the monitoring period in the following order:
the project proponent shall compensate for the difference; and/or
notify the insurer of non-performance and exercise the insurance or warranty policy.
If the proponent can't compensate for the non-performance event or is not covered by an insurance or warranty policy, ex-post ICCs are cancelled from the ICR escrow account, and any remaining non-performance adjustment ICCs are released from the escrow account to the non-performance adjustment account.
If the GHG emission mitigations are greater than issued ex-ante credits, the ex-ante ICCs are converted to ex-post ICCs, and the allocated ex-post ICCs from 3 will be released to the non-performance adjustment account. The proponent can issue ex-post ICCs for the remaining GHG emission mitigations verified after the ex-ante ICC to ex-post ICC conversion.
The following applies for compensation according to 4 a) i. by the proponent:
Within 30 days from the submission of the VerR the project proponent shall deposit ex-post ICCs of earlier vintage to the ICR escrow account. ICCs shall be owned by the project proponent. Excess ex-post ICCs shall be deposited from the project proponent's registry account and shall not have been retired or cancelled. Such ex-post ICCs deposited to the ICR escrow account shall be delivered to the current holders of ex-ante ICCs with ex-post ICCs issued for the respective vintage subject to the non-performance event, proportionally.
The proponent can also deposit of issued ex-post ICCs from subsequent vintages of ex-post ICCs to the ICR escrow account following the same requirements as in i. If the project proponent has insufficient holdings on the account for i and ii, any remaining deposit shall follow iii.
Purchase by the project proponent of an equivalent number of replacement ex-post ICCs or equivalent ex-post carbon credits issued by at minimum ICROA-endorsed GHG program for the same project type, sector, and vintage, determined by the ICR. Such ex-post ICCs shall be deposited to the ICR escrow account. Other ex-post carbon credits shall be cancelled for the same amount and confirmed by ICR. The deposit or cancellation shall be completed within 60 business days of receiving formal notification of such required action from ICR. Ex-post ICCs deposited or remaining on the ICR escrow account shall be delivered to the affected holders of ex-ante with ex-post ICCs issued for the respective vintage subject to non-performance proportionally. When other ex-post carbon credits have been cancelled, confirmation from the ICR of such cancellation shall be delivered to the affected ex-ante holders.
The following applies for compensation according to 4 a) ii. When insurance or warranty covers part or total non-performance, the insurance or warranty policy shall compensate for the non-performance of the ex-ante ICC issuances according to the policy terms. The policy shall be according to Appendix II of the ICR requirement document.
The following applies for compensation in cases where the project proponents fail to compensate for the non-performance event in part or full. ICR will deliver ex-post ICCs from the non-performance adjustment account to the ICR escrow account according to 3 above. Such ex-post ICCs deposited to the ICR escrow account shall be delivered to the current holders of ex-ante, proportionally for the respective vintage subject to the non-performance event.
Following the compensation according to 7 the proponent shall reinstate any deductions from the non-performance adjustment account after subsequent monitoring and verification.
Where the project proponent fails to compensate for non-performance event, ICR may act against the project proponent, including applying sanctions with respect to its registry account activities and/or suspend any issuances of ICCs until the non-performance event has been compensated for according to 8.
Figure 25: non-permanence account allocation.
Project proponents issuing ex-ante or ex-post ICCs (when not insured) shall deposit non-permanence adjustment ICCs into the ICR non-permanence adjustment account, following:
The number of ex-ante or ex-post ICCs deposited to the non-permanence adjustment account is based on non-permanence risk assessment conducted by ICR but never lower than 10% of issued ex-ante or ex-post ICCs, irrespective of the timing of issuance, prior to or post verification.
Non-permanence adjustment ex-post ICCs are only eligible for compensation for non-permanence events. Non-permanence adjustment ex-ante or ex-post ICCs are not subject to issuance fees.
At issuance of ex-ante or ex-post ICCs, ICR allocates the non-permanence ICCs to the ICR non-permanence adjustment account based on risk assessment for non-permanence.
Ex-post ICCs within the pooled non-permanence adjustment account from different projects are functionally distinct, although managed in one pooled account in the ICR registry. Therefore, ex-post ICCs from the same project types can compensate for non-permanence events for the same or similar project type or durability. ICR will retire ex-post ICCs from the non-permanence adjustment account to compensate for non-permanence events on a first-in, first-out rule after identifying which ex-post ICCs meet the criteria above for non-permanence compensation. ICR performs an ongoing risk assessment and reporting of against required permanence criteria with transparent reporting.
Any ex-ante ICCs issued, subject to non-permanence risk, deposited to the non-permanence adjustment account are converted to ex-post ICCs subject to monitoring and verification.
Non-permanence events
The project proponent shall notify ICR within 30 days of discovering an actual or potential non-permanence (reversal) event. If there have been previous issuances of ex-ante or ex-post ICCs, the report shall be prepared and submitted to ICR, following these guidelines:
The non-permanence event report shall use the ICR non-permanence event report template. Based on monitoring the entire affected area and/or locations, it shall contain a conservative estimation of the reversal of previously verified GHG emission mitigations due to decreases in carbon stocks from the event.
The non-permanence event report shall be submitted to the ICR within 6 months from the discovery date of the event. Failure to submit the report within this timeframe may result in sanctions towards further issuances of ICCs or transactions with ICCs from the project proponent’s account.
ICR will temporarily allocate non-permanence adjustment ex-post ICCs from the ICR non-permanence adjustment account to the ICR escrow account, equivalent to the estimated reversal stated in the report.
The project proponent shall account for the reversal in the following MR and the VVB in its VerR after the event.
If the verified net GHG emission mitigations are net-negative compared to issued ex-post ICCs, the allocated ICR escrow account non-permanence adjustment ex-post ICCs shall be cancelled, and any remaining ex-post ICCs released.
If the reversal is greater than stated in the initial reversal event report, an equivalent number of non-permanence adjustment ex-post ICCs allocated to the ICR escrow account is updated and the equivalent number of ex-post ICCs cancelled to meet the non-permanence event.
If the GHG emission mitigations are positive, the allocated non-permanence adjustment ex-post ICCs are released from the ICR escrow account and returned to the non-permanence adjustment account.
If the proponent has in place an insurance for meeting non-permanence events, and the policy is according to ICR’s insurance eligibility requirements, the proponent, ICR and the insurance company shall resolve how the non-permanence event is compensated for and responsibility of each party. If the non-permanence event has not been resolved between the parties within 90 days, ex-post ICCs from the ICR escrow account are cancelled and ICR shall become the beneficiary of the insurance policy.
When non-permanence adjustment ex-post ICCs are cancelled, the non-permanence event initiating the cancellation is disclosed as the reason for the cancelation.
ICR non-permanence event report shall be publicly available.
Figure 26: Non-corresponding adjustment account allocation.
Project proponents issuing Article 6.2 ICCs (when not insured) shall deposit adjustment Article 6.2 ICCs to the ICR Article 6.2 adjustment account following:
The number of Article 6.2 ICCs to be deposited to the Article 6.2 adjustment account is based on ICR’s risk assessment for non-corresponding adjustment by the host country.
Deposits to ICR Article 6.2 adjustment account are irrespective of the estimated time of CA by the host country.
Non-corresponding adjustment Article 6.2 ICCs are only eligible for compensation for non-corresponding adjustment events. Non-corresponding adjustment Article 6.2 ICCs are not subject to any issuance fees, unless released to the proponent after a corresponding adjustment has been confirmed.
Non-corresponding adjustment events
See section V in ICR Article 6.2 procedures.
ICR manages ICCs deposited to any adjustment accounts, based project types and type of adjustment, i.e. non-performance, non-permanence and non-corresponding adjustment risks.
ICR manages risk in relation to its adjustment account management in relation to double claiming risk, non-performance risk and non-permanence risk proactively identify, manage and mitigate risks via upfront risk assessment, liquidity management and transparent reporting. Key elements of the risk management include:
Risk assessment, permanence scoring and scenario analyses across the entirety of the ICR project portfolio to ensure projects can be compared on a ‘like for like’ basis.
Risk adjusted contribution per project, utilizing high-quality underwriting criteria to assess level of buffer contribution. In relation to the Article 6.2 account, political and regulatory risk scoring tools to determine contributions to the Article 6.2 account.
Ongoing portfolio management and reporting on liquidity and risk in-line with financial industry standards including regular reporting on performance, systemic risk factors, Article 6.2 account depletion scenario analyzes to ensure depletion risks are mitigated and transparent reporting on results that can be made publicly available.
Advice on where further incorporation of insurance and/or guarantee could be beneficial for ICR and/or its stakeholders, including ongoing best practice advice in relation to section (1) above.
ICR may contract a third-party external risk advisor to support ICR in its adjustment account risk management. The role of the external risk advisor is to support ICR in risk management for non-performance risks, non-permanence risk, double claiming risks, helping ICR proactively identify, manage and mitigate risks via upfront risk assessment, liquidity management and transparent reporting.
Transfers, retirements, and cancellations have specific meanings. A transfer meanstransferring an instrument from one account to another, representing a transfer of beneficial ownership of GHG emission mitigations entitlements. Retirement means permanently removing an ex-post ICC from circulation in the registry system, representing of one metric tonne of CO2 equivalent (CO2-e) due to a claim. Cancellation means permanently removing an ICC from circulation in the registry system for purposes other than retirement (e.g., converting ICCs into another form of GHG credit, compensating for excess ICC issuance, expiry, etc.). See further in ICR definitions. The ICR user guide provides details about transfers, retirements, cancellations, and other credit actions.
Transfers involve transferring a set number of ICCs from one registry account to another. This process includes changing beneficial ownership of GHG emission mitigations they represent as defined in ICR definitions. ICR registry functionality always guarantees instrument delivery, and buyers can always expect to have ICCs delivered.
Each transfer and related information, including the address of each ICC, is traceable in the platform or through the blockchain ledger. Historical transfer can be accessed on the platform and public blockchain ledger.
From a registry account, an authorized representative (admin) initiates a transfer. There are two instances of transfers.
Transfer to organizations or individuals that have accounts with within the registry
Transfer to organizations or individuals that don't have an account within the registry
Figure 27: Transfers
From the registry account, an admin either searches for the name of the organization receiving the ICCs or provides an account number of the organization registry account. The project, vintage, and number of ICCs to be transferred are provided, and then the transfer is completed and confirmed. Both entities receive a notification and confirmation of the transfer with an email and within the registry platform to account admins.
If the receiving entity has not established an account with ICR yet, the transferring organization needs to collect information about it to deliver the ICCs. Information required is.
Name (max 100 characters)
Email of contact
By providing this information, the transferring organization can complete the transfer.
When completing the transfer, the transferring organization may choose to provide a comment to the receiving organization and, if the credits will be transferred in a retired state (only applicable for ex-post ICCs), and a retirement reason (max 500 characters). When transferring ex-post ICCs in a retired state, the receiving organization is the beneficiary of the retirement, and the transferring organization shall provide a reason and comment for the retirement.
After the transferring organization has confirmed the transfer, the contact receives an email invitation to claim his/hers user account and is provided with login details to access the ICCs in the ICR registry, where he/she can complete onboarding an organization receiving the ICCs, view inventory of ICCs and downloads certificates of retirement.
By default, the organizational account created is private, with no public disclosure of inventory of ICCs or details of the organization. See further section 6.2 and 6.3 and the ICR registry user guide. Beneficiaries, comments and reason for retirements of retired ICCs are always public.
The process of retiring ICCs in the registry is set out below.
An organization account admin needs to initiate a retirement from his respective user account and selecting the organization holding the ICCs.
Details of all retirements are stored on-chain on a public ledger, also shown in the ICR registry platform.
The admin selects the respective ex-post ICCs, vintage, and the number of ex-post ICCs for retirement.
The admin provides information about the reason and comment for retirement.
Ex-post ICCs are retired from the registry account holder's ICC holdings (i.e. when the holder requests ex-post ICC retirement of a part of its holdings).
A retirement certificate can be downloaded from the platform when the retirement has been completed.
Figure 28: Retirement process
A cancellation of ICCs is initiated by the registry account holder, the other GHG program in which the registry account holder may participate, or ICR. Note that the initiator and recipient of an ICC cancellation request depend on the circumstances of cancellations (e.g., whether ICCs are being converted into another form of GHG credit). The cancellation request may be submitted to ICR by the other GHG program in which the registry account holder participates.
An admin for a registry account initiates a cancelation from his user account.
The account holder may execute a cancellation through its ICR registry account. Details of all cancellations are recorded on the blockchain and mirrored in the registry platform.
The registry account holder may be asked to confirm the details of the request for ICC cancellation.
Ex-post ICCs with a vintage T – 10 years, issued T – 3 years, and are cancelled by the ICR and are ineligible for retirement. ICR will not reimbursement any issuance fees due to such cancellations.
Ex-ante ICCs may be cancelled, only if they have not been transferred from the proponent’s account. If the proponent requests cancellations of ex-ante ICCs, e.g. due to withdrawal from the ICR (section 11) shall demonstrate that all current holders of affected ex-ante ICCs have been compensated with ex-post ICCs or carbon credit from at minimum ICROA endorsed GHG program.
Projects registered under a GHG program may transfer their registration, renew the crediting period or also register their projects with the ICR. In such cases, the documentation required for the project registration process is the same as required for projects registering under the ICR requirements only, but noting the following:
Reference to the project in the other GHG program registry. For dual registration, confirmation from the other GHG program.
The latest version of the PDD and MR from the other GHG program and the latest version of ValR and VerR shall be uploaded to the ICR registry.
Submission of the reason for transfer, renewal of crediting period or dual registration with ICR. The reason for transfer shall be in a formal letter and will become public document.
The proponent shall further complete the ICR PDD template by providing information in the following sections in addition to the cover page.
1.1 - 1.12
2.1 – 2.2
4.1 – 4.4
During the next verification event, the VVB shall complete validation on conformity to the ICR program criteria, i.e., ICR requirement document and ISO 14064-2, and if the project follows a methodology that is listed under the ICR approved methodologies the applied methodology
If the project remains registered with another GHG program and has completed monitoring and verification which the proponent intends to split up the GHG emission mitigations between the ICR program and the approved GHG program. The proponent shall provide evidence that any GHG emission mitigations presented for ex-post ICCs issuance have not been and will not be issued as an instrument under another GHG program or scheme or if such instruments have been issued under the GHG program or scheme that they have been cancelled. The project proponent shall also sign and submit to ICR a formal letter of conversion to ex-post ICCs and provide evidence of cancellation and follow section 5.8 of the ICR requirement document.
Projects subject to non-permanence risk are subject to section 8.5.2 above and 6.8.2 in the ICR requirement document. A risk assessment determines the non-permanence deposit and shall be applied to the ex-post ICCs to be issued under the ICR program and deposited to the non-permanence adjustment account.
When a project, previously registered with another GHG program, seeks a renewal of the crediting period with the ICR, the PDD shall be updated using the ICR PDD template with relevant sections complete, as set out in the ICR requirement document and following instructions in the ICR PDD template. The criteria for validation shall be according to the ICR program. For the renewed crediting period, the ICR crediting period applies, and the project shall conform to ICR requirements. Further, the project shall follow section 7 of the project cycle.
If projects have created another form of GHG-related environmental instruments, such as renewable energy certificates, evidence shall be provided to ICR demonstrating that the GHG emission mitigations presented for ex-post ICCs issuance have not also been recognized as another GHG-related environmental instrument or that any such instrument has not been used and have been cancelled under the relevant program. Especially considering section 5.8 of the ICR requirement document.
If a project proponent wishes to withdraw a project from ICR program (e.g. to transfer the project to another GHG program), the following applies:
The project proponent shall request formally that the project requests to be withdrawn from ICR. The letter shall, for a minimum, include the following:
Project name
Project ID
Reason for withdrawal
Signature of the authorized representative of the project.
ICR reviews the request and may request further information, e.g., outstanding fees payable or outstanding ex-ante ICCs have been transferred and not been converted to ex-post ICCs or ex-post ICCs have been transferred and not retired.
If ex-ante ICCs have been transferred and have not been converted to ex-post ICCs, ICR may reject the request or require the project proponent to compensate for any ex-ante ICCs that have not been converted to ex-post ICCs.
Upon approval of the request, the project's status is updated to "Withdrawn" in the ICR registry, and details of the withdrawn project remain publicly available. The letter of withdrawal will by publicly availably along with ICR confirmation for withdrawal.
The confirmation may be subject to conditions, e.g. limits to certain vintages, deductions, or public announcement of withdrawal.
Any ICCs deposited to adjustment accounts cannot be reimbursed for the withdrawn project.
The process shall, from the time of submission of withdrawal, not exceed four weeks, subject to responses from the proponents to ICR clarification requests.
Figure 29: Project withdrawal.
Withdrawn projects may rejoin the ICR subject to a formal letter requesting re-registration and updated documentation.
PDD or PDDMR
New Valr or VVR
any methodology-specific documentation or other applicable documentation.
Other documentation as per section 7.5
ICR reviews the documentation according to section 7.5 and determines if the project is eligible for re-registration. ICR reserves all right to deny re-registration.
If the project is accepted, its status is updated accordingly and all relevant information becomes public, i.e. request to rejoin, PDD/PDDMR, ValR/VVR, other documentation.
All projects are subject to validation of projects and mitigations are subject to verification. Validation/verification bodies (VVBs) assess projects for conformity to ICRs requirements, ISO 14064-2. VVBs are qualified, independent third parties that ICR approves for validation and verification based on their accreditation. Validation and verification bodies are eligible to provide validation and verification services under the ICR if they have signed an agreement with ICR and are accredited under an ICR approved GHG program and/or accredited under ISO 14065 by an accreditation body that is a member of the International Accreditation Forum (IAF).
Figure 30: VVB approval
VVBs meeting the criteria may apply to be approved as a VVB under the ICR program following:
An authorized representative of the VVB completes an application form available on ICR's documentation page and submits it to ICR along with supporting evidence of accreditation.
ICR confirms receipt of the application within 24 hours, reviews the application for completeness, and further requests the VVB to sign up for the ICR registry and create a registry account and complete KYC and KYB. If improvements are needed, the applicant is informed. The process continues when KYC and KYB have been completed.
ICR suggests an introductory meeting for ICR to introduce the ICR program, the program documentation, registry platform, and the role of VVBs and responds to questions from the VVB. After the meeting ICR shares a standard VVB agreement for review.
If both parties agree upon the terms of the VVB agreement, it is electronically signed by both parties, formalizing the contractual relationship between the parties and disclosing the terms and conditions of the relationship.
ICR will provide the details of the VVB on its registry account, sectoral scope of accreditation, and other relevant information. The authorized representative will be assigned an admin role for the account.
Further, the VVB is added to the project registration form in the ICR registry as an option for VVB.
If the VVB does not comply with the terms and conditions of the VVB agreement, ICR may suspend or terminate the agreement. In such cases, ICR will change the status of approval and remove from the project registration form as approved VVB.
Details about validation is outlined in ICR validation and verification specifications. VVBs validating projects and ex-ante estimation of GHG emission mitigations and requesting registration with the ICR shall follow ICR validation and verification specifications in addition to ISO 14064-3 when validating projects intending to register with the ICR.
Details about verification is outlined in ICR validation and verification specifications. VVBs verifying monitoring reports and ex-post GHG emission mitigations shall follow ICR validation and verification specifications in addition to ISO 14064-3 when verifying projects' GHG emission mitigations and intending to issue ex-post ICCs with the ICR.
The project registration, issuance, activation, or project crediting period renewal request process may be subject to an assessment of conformity by ICR. An assessment may be initiated at ICR's sole discretion.
ICR may, at its discretion, undertake an assessment of registration, issuance, activation, or project crediting period renewal request, to safeguard conformity to the principles and ICR program requirements.
If ICR undertakes such an assessment, ICR informs the project proponent and the VVB before any inspection is conducted. Any findings raised during the assessment shall be addressed before further actions are completed in relation to the project.
The assessment may include sampling of ICR requirements conformity or a detailed assessment where all relevant ICR program requirements are assessed relating to the project activities and VVB assessment.
If no issues are raised during the assessment, ICR informs the project proponent and the VVB thereof and no further actions are needed.
ICR may, at its sole discretion, decide to outsource the assessment.
Where the assessment of conformity is initiated due to routine operation or internal audit ICR bears the cost of the assessment.
If non-conformities are identified during the assessment, the project proponent and/or the VVB shall respond to the non-conformities raised by ICR. All communications shall be in writing by electronic means.
Where significant non-conformities are identified during the assessment, ICR informs the project proponent and/or the VVB and requests corrective action and/or clarification.
The project proponent and/or the VVB shall provide a written response to each non-conformity, undertake, or ensure that the project proponent undertakes, as appropriate, improvements to the documentation or other measures if necessary and submit all revised documents to ICR. Follow-up actions of the VVB and/or project proponent shall include as applicable:
Detailed response to the findings raised.
Root cause analysis.
VVB or project proponent, as appropriate, shall revise project documents and implement corrective actions.
The project proponent and the VVB upload revised project documentation to the registry.
If the project proponent and/or the VVB fails to address findings within 60 business days, ICR reserves the right to assume that the proponent does not intend to pursue further actions. If ICR determines this to be the case, requests are not accepted, and ICR notifies the project proponent and the VVB.
If findings are significant and not corrected to the satisfaction of ICR, ICR may conclude that the project has failed to demonstrate conformity to the principles, ICR program requirements, and/or applied methodology, and further registration, issuances, or activations are suspended until further notice or entirely withdrawn. ICR notifies the project proponent and the VVB.
At its discretion, ICR may review registered projects, issued ICCs (ex-ante and/or ex-post) if ICR has concerns about project conformity to the principles, ICR requirements, and/or the applied methodology. Any of the following may initiate a review:
VVB identifies an error or quality issue in a previous validation or verification (see section 10 of ICR validation and verification specifications and ISO 14064-3.
A project proponent identifies an error or quality issue after registration, issuance, or activation.
Interested party has concerns about a registered project.
ICR identifies error(s) or quality issues as part of routine operations or internal auditing.
Other applicable concerns.
The assessment may include focusing of areas of concerns raised or a detailed assessment where all relevant ICR program requirements are assessed relating to the project activities and the VVB assessment.
If an assessment of conformity is initiated, ICR informs the project proponent and the VVB of the review and may impose temporary sanctions on ICC transfers from the registry account and/or postpone further issuance/activation while the assessment is performed. Any findings raised during the assessment shall be addressed before further actions are completed in relation to the project.
If no issues are raised during the assessment, ICR informs the project proponent and the VVB thereof and no further actions are performed, and sanctions lifted.
ICR may, at its sole discretion, decide to outsource the assessment.
The project proponent pays all costs associated with the assessment of conformity when it relates integrity assessment.
If non-conformities are identified during the assessment, the project proponent and/or the VVB shall respond to the non-conformities raised by ICR. All communications shall be in writing by electronic means.
Where significant non-conformities are identified during the assessment, ICR informs the project proponent and/or the VVB and requests corrective action and/or clarification.
The project proponent and/or the VVB shall provide a written response to each non-conformity, undertake, or ensure that the project proponent undertakes, as appropriate, improvements to the documentation or other measures if necessary and submit all revised documents to ICR. Follow-up actions of the VVB and/or project proponent shall include as applicable:
Detailed response to the findings raised.
Root cause analysis.
VVB or project proponent, as appropriate, shall revise project documents and implement corrective actions.
The project proponent and the VVB upload revised project documentation to the registry.
If the project proponent and/or the VVB fails to address findings within 60 business days, ICR reserves the right to assume that the proponent does not intend to pursue further actions. If ICR determines this to be the case, requests are not accepted, and ICR notifies the project proponent and the VVB.
If findings are significant and not corrected to the satisfaction of ICR, ICR may conclude that the project has failed to demonstrate conformity to the principles, ICR program requirements, and/or applied methodology, and further registration, issuances, activations or transfers are suspended until further notice or entirely withdrawn. ICR notifies the project proponent and the VVB.
When severe issues are ongoing and non-conformity to the principles, ICR program requirements, and/or, where relevant, applied methodology exists, ICR may suspend future issuances of ICCs and/or registration and impose sanctions to transfers of any affected ICCs.
If ICR determines that ICCs have been issued in excess of the actual GHG emission mitigations, the following applies:
The project proponent shall deposit ICCs on ICR's escrow account.
Where excess ICCs remain in the project proponent's registry account, and it can be demonstrated that they have not been used for compensation purposes, immediate deposit to ICR escrow account and cancellation of the ICCs.
Replacement of ICCs through immediate cancelation from subsequent issuances of ICCs from the project. If the project proponent has no holding on its registry account, deductions shall transfer to the subsequent issuances of ICCs.
Purchase by the project proponent of an equivalent number of replacement ex-post ICCs or instruments determined to be equivalent to the affected ICCs and cancellation of the same within 60 business days of receiving formal ICR notification of such required action.
Where the project proponent fails to compensate for excess issuance, ICR may act against it, including applying sanctions with respect to its registry account activities until such time as the excess issuance has been compensated.
ICR will, if applicable, inform the relevant accreditation body of its findings.
If the assessment of conformity relates to validation and/or verification, the project proponent shall not bear the cost of any additional assessment.
All project proponents need to submit a representation deed to the ICR.
The purpose of a representation deed is to establish an authorized representation for a project by appointing a focal. This representative is selected by the project proponent(s) to serve as their focal in matters concerning a project and/or the organizational account(s). Templates for representation deeds are available on the ICR documentation page.
Where multiple project proponents are involved, they all need to sign the representation deed, which is then submitted to the ICR and the registry platform. The focal can either be a third party or selected from among the project proponents themselves.
A communications agreement can also be used to appoint representation authority for projects with a single proponent.
To revoke the authority of representation, the sole project proponent (in single proponent projects) or all the proponents (in multi-proponent projects) shall provide a signed written notice of this termination to ICR. Following this, the project proponent(s) need to adhere to the stipulations above to create a new representation deed, as applicable. The new representation deed overrides any previous (terminated) representation of the project.
At any given time, a project may only have one designated focal, as determined through the representation deed.
The focal shall appoint individual users from the registry platform who are allowed to act as authorized representatives for the project.
The authorized representatives are identified as "admin" in the registry platform of each project.
Project details may be updated regularly by the project proponent, and as necessary, further information on reasons may be provided.
Any changes to the validated PDD shall be documented and submitted as soon as they occur. An updated PDD shall be uploaded to the registry, along with an updated ValR as applicable.
Project proponents shall respectfully submit MR and VerR following the monitoring and verification plans. If the project proponent fails to submit a MR and/or VerR to the registry within six months according to the monitoring plan and verification plan, the following applies:
ICR requests evidence from the project proponent showing that the project is still active.
The project proponent shall submit reason for the delay and objective evidence of ongoing operations within 60 days of receiving the request.
If the project proponent fails to confirm continuing implementation/operation, ICR may act against the proponent, including applying sanctions regarding its registry account activities until continuing implementation/operation has been confirmed.
When a project has not submitted a MR and VerR for 12 months according to the monitoring and verification plan, the project is identified as inactive.
Project proponents may upload media to the registry platform. Allowed form of media are images, videos or presentations. The project proponent shall guarantee that all media shared relate directly to the project and should be connected to any information that are available in the project documentation. If the media doesn’t relate to the project or its activities ICR reserves all right to delete the media from the registry platform. Where a project or a proponent has repeatedly shared media unrelated to the project or its activities ICR may remove all media shared on the project profile and prevent further sharing of media.
Project proponents may use the insights feature in the registry platform to share information about project activities. Note that insights shall be used conservatively, and when sharing insights about a project, they shall relate to that particular project. Images and videos shared shall directly relate to the project and include geo-location in the image or video file. If ICR discovers that the insights and media don’t relate to the project ICR reserves all right to delete the insight from the registry. Where a project or a proponent has repeatedly shared insights unrelated to the project or its activities ICR may remove all media and insights shared on the project profile and prevent further sharing of insights.
Project proponents, developers, VVBs, or other organizations may use the insights feature to share insights about their organization unrelated to specific projects. When doing so, they shall choose that the insight is posted on behalf of the organization, not a project.
Stakeholders may submit comments about any project activities. Such comments shall be submitted to admin@carbonregistry.com. Comments may also be submitted via the projects page on the registry platform. Only users that are verified (have completed KYC) may comment on the live project page.
Comments received are shared with the project proponent, and the VVB performing validation/verification. Where the VVB has not been contracted, ICR shares comments received with the project proponent, and he shall provide the comments and any actions taken or comments responses to the validation/verification body.
Any comments received shall be addressed at the current or subsequent validation or verification unless ICR determines that an assessment of conformity is required, as described in section 13 above.
Proponents or VVBs may apply for exemptions from the stipulations in the ICR requirement document, ICR process requirements or ICR validation and verification specifications where the project can’t conform to the requirements stated or the validation/verification procedures prescribed can’t be met. Exemption shall be submitted in a formal letter and submitted to the ICR to admin@carbonregistry.com.
When considering exemptions, ICR takes due account that the exemption doesn’t affect the principles stated in section 4, should affect compliance to ISO 14064-2, ISO 14064-3 and ISO 14065 or sets a precedent that affects the overall integrity of the ICR program.
All exemptions are public for the relevant project granted such an exemption.
Version | Date | Comment |
2.0 | 11.8.2021 | Initial version under version 2.0. |
3.0 | 6.1.2022 | Main changes:
Flowcharts improved for clarity |
4.0 | 14.10.2022 | Alignment with revision of ICR requirements document and ICR methodology requirements in October 2022. |
4.1 | 28.2.2023 | Update due to new platform |
5.0 | 6.2.2023 | Alignment with of ICR requirement document v.5.0 and ICR validation and verification specifications v1.0. Better alignment with ICR registry platform, processes to address reversal events and non-performance. |
6.0 | 15.10.2024 | Process for applications for exemptions from ICR requirements. Reversal replaced with non-permanence. Adjustment account allocations details, Corresponding adjustment account allocation. Better alignment with structure of other ICR documentation. Procedures updated with revision to ICR requirement document and other relevant documentation. After public consultation language made clearer especially relating to ex-ante ICC issuance and conversion to ex-post ICCs, post verification and compensation mechanisms for non-performance and non-permanence events. Diagrams updated. Appendix added for examples for compensation for non-performance events. |
A project with start date 1.6.2023 will generate 150,000 t CO2-e over the crediting period of 15 years. Verification will be yearly. Joint validation and verification are conducted for the monitoring period 1.6.2023 – 1.1.2025. Assume that the project has not been insured for non-performance and thus only eligible to issue 50% of the validated estimation and no permanence risk.
Table AII1: Issuances at validation and verification.
Year | Validated | Ex- ante ICCs issued | Non-performance adjustment deposit | Delivered to proponent | Ex-post ICCs |
2023 (6 months) | 5,000 | - | - | - | 5,000 |
2024 | 10,000 | - | - | - | 10,000 |
2025 | 10,000 | 5,000 | 100 | 4,900 | - |
2026 | 10,000 | 5,000 | 100 | 4,900 | - |
2027 | 10,000 | 5,000 | 100 | 4,900 | - |
2028 | 10,000 | 5,000 | 100 | 4,900 | - |
2029 | 10,000 | 5,000 | 100 | 4,900 | - |
2030 | 10,000 | 5,000 | 100 | 4,900 | - |
2031 | 10,000 | 5,000 | 100 | 4,900 | - |
2032 | 10,000 | 5,000 | 100 | 4,900 | - |
2033 | 10,000 | 5,000 | 100 | 4,900 | - |
2034 | 10,000 | 5,000 | 100 | 4,900 | - |
2035 | 10,000 | 5,000 | 100 | 4,900 | - |
2036 | 10,000 | 5,000 | 100 | 4,900 | - |
2037 | 10,000 | 5,000 | 100 | 4,900 | - |
2038 (6 months) | 5,000 | 2,500 | 50 | 2,450 | - |
After 5 years the project has been verified yearly, confirming the following GHG emission mitigations:
Table AII2: Verification and conversion to ex-post ICCs.
Year | Verified | A: Ex- ante issued | Difference (ex-post ICC issuances) | Ex-ante -> ex-post ICC | Ex-post ICCs post verification |
2023 (6 months) | 5,000 | 0 | 0 | 0 | 5,000 |
2024 | 10,000 | 0 | 0 | 0 | 10,000 |
2025 | 11,000 | 5,000 | 6,000 | 5,000 | 11,000 |
2026 | 9,000 | 5,000 | 4,000 | 5,000 | 9,000 |
2027 | 12,000 | 5,000 | 7,000 | 5,000 | 12,000 |
2028 | 5,000 | 5,000 | 0 | 5,000 | 5,000 |
2029 | 4,500 | 5,000 | -500 | 4,500 | 4,500 |
Further the non-performance adjustment account has benefited from the ex-ante ICC to ex-post ICC conversion.
Table AII3: Non-performance adjustment account inventory in year 2029
Year | Non-performance adjustment account inventory (ex-ante ICCs) | Non-performance adjustment account inventory (ex-post ICCs) |
2023 (6 months) | 0 | 0 |
2024 | 0 | 0 |
2025 | 0 | 100 |
2026 | 0 | 100 |
2027 | 0 | 100 |
2028 | 0 | 100 |
2029 | 0 | 100 |
2030 | 100 | 0 |
2031 | 100 | 0 |
2032 | 100 | 0 |
2033 | 100 | 0 |
2034 | 100 | 0 |
2035 | 100 | 0 |
2036 | 100 | 0 |
2037 | 100 | 0 |
2038 (6 months) | 50 | 0 |
Total | 850 | 500 |
Yearly the following happens
Table AII4: Actions for vintages
Year | Actions needed | Ex-post ICCs post verification |
2023 (6 months) | No actions applicable (no ex-ante ICCs issued) | 5,000 |
2024 | No actions applicable (no ex-ante ICCs issued) | 10,000 |
2025 | No actions needed verified GHG emission mitigations greater that issued ex-ante ICCs. Proponent can issue 6,000 ex-post ICCs after ex-ante ICC to ex-post ICC conversion | 11,000 |
2026 | No actions needed verified GHG emission mitigations greater that issued ex-ante ICCs. Proponent can issue 4,000 ex-post ICCs after ex-ante ICC to ex-post ICC conversion | 9,000 |
2027 | No actions needed verified GHG emission mitigations greater that issued ex-ante ICCs. Proponent can issue 7,000 ex-post ICCs after ex-ante ICC to ex-post ICC conversion | 12,000 |
2028 | No actions needed verified GHG emission mitigations equal to issued ex-ante ICCs. Proponent can’t issue additional ex-post ICCs after ex-ante ICC to ex-post ICC conversion | 5,000 |
2029 | Compensation mechanism initiated as issued ex-ante ICCs are greater than verified GHG emission mitigations. | 4,500 |
For the year 2029 there needs to be a compensation done for excess issuances of ex-ante ICCs. For this the section 8.5.1.1 applies for the compensation.
Figure 3: Compensation hierarchy of non-performance events
VVBs, ratings agencies, insurance companies and some stakeholder types are also identified specifically, but identification is administered by the ICR. ↑
Temporary Organizational account may be created during retirements or transfers of ICCs, see section 5.1.2. ↑
Users may also be invited to join projects, see further in section 7 and in the ICR user guide. ↑
NOTE: Authorized representatives may be others than defined as admins to the organization ↑
Note that the draft rationale does not have to include evidence of conformity at this stage and does not need to be publicly available. ↑
Private documentation and confidential information are never published on-chain. ↑
Projects may complete validation and verification jointly if they have been implemented completed monitoring for a monitoring period and completed a PDDMR. ↑
For joint validation and verification refer to section 7.6 and 7.7 for documentation for verification and issuances of Ex-post ICCs ↑
Information stored on-chain can‘t be removed. No private data or confidential information are disclosed on-chain. ↑
Deposits to adjustment accounts are always made during the issuance of ICCs, e.g. if a project proponent issues 50% of estimated mitigation outcomes, he shall deposit 2% of the issuance, i.e. 2%*50%=0,1% of the total validated GHG emission mitigations. ↑
Additional credits can be added to each vintage based on findings in MR and VerR. ↑
Validation and verification can be reported in a validation and verification report. ↑
For example: Verification report confirms 100.000 t CO2-e of GHG emission mitigations. 100.000 ICCs are issued and delivered to the proponent’s registry account. The proponent transfers 10.000 ICCs to another account or retires on behalf of third party. The proponent is invoiced for issuance 10.000 * Ex-post issuance fee at transfer event. ↑
Example: Non-performance event is expected to result in 40% of the validated estimated GHG emission mitigations for affected vintage. The proponent issued 50% of the validated estimation as ex-ante ICCs and transferred 45% to buyers. Ex-post ICCs from the non-performance amount to 5%. ↑
