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)