Data and Insights
VCS Quarterly Update
Issue #5 - Q4/2020
We are pleased to share with you the final quarterly Data & Insights brief for 2020 with updated information about project types, issuances, and retirements under the Verified Carbon Standard (VCS) Program as well as high-level overview data for 2019 and 2020.
The past year was a turbulent one everywhere and will forever be viewed through the lens of COVID-19 and the impacts it had on all aspects of life and the economy. And while we saw a drop in VCU issuances early on in the year, the VCS Program ended 2020 with a record-setting 140.5 million VCUs issued, an increase of more than 20 million tonnes compared to 2019. We see this growth as an indicator that the private sector is following through on its climate commitments – in spite of a global pandemic that is overshadowing everything.
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The final three months of 2020 saw over 50 million VCUs issued — by far the most VCUs ever issued in one quarter.
Nearly 69 million credits were retired this year alone, 25% more than in 2019 when just over 50 million VCUs were retired, an indicator that VCUs are actively being used to meet climate commitments. Cumulatively, retirements have surpassed the milestone of 300 million VCUs, the equivalent of almost 5 million tree seedlings grown for 10 years.
After a drop in early 2020, VCU issuances in both the AFOLU and Non-AFOLU sectors have been increasing, with non-AFOLU issuances rebounding more strongly than AFOLU issuances in Q4.
*One VCU represents one tonne of carbon dioxide equivalent that was removed from the atmosphere or not emitted.
Greenhouse gas equivalencies for emission reductions and removals were calculated using the EPA Greenhouse Gas Equivalencies Calculator
| Region | Projects | Percentage of Total |
|---|---|---|
| Asia | 1,160 | 69.2% |
| North America | 96 | 5.7% |
| South and Central America | 257 | 15.3% |
| Oceania | 8 | 0.5% |
| Africa | 101 | 6% |
| Europe | 54 | 3.2% |
| Region | VCUs | Percentage of Total |
|---|---|---|
| Asia | 313,952,154 | 58.1% |
| North America | 29,965,899 | 5.5% |
| South and Central America | 115,707,728 | 21.4% |
| Oceania | 1,608,511 | 0.3% |
| Africa | 67,980,130 | 12.6% |
| Europe | 11,209,464 | 2.1% |
| Region | Projects | Percentage of Total |
|---|---|---|
| Asia | 44 | 22.2% |
| North America | 10 | 5.1% |
| South and Central America | 88 | 44.4% |
| Oceania | 6 | 3% |
| Africa | 50 | 25.3% |
| Europe | 0 | 0% |
| Region | VCUs | Percentage of Total |
|---|---|---|
| Asia | 60,593,782 | 26.8% |
| North America | 4,093,256 | 1.8% |
| South and Central America | 96,734,631 | 42.8% |
| Oceania | 1,527,135 | 0.7% |
| Africa | 62,964,737 | 27.9% |
| Europe | 0 | 0% |
| Type | Projects | Percentage of Total |
|---|---|---|
| WRC | 1 | 0.5% |
| REDD | 78 | 39.4% |
| ALM | 3 | 1.5% |
| IFM | 21 | 10.6% |
| ARR | 95 | 48% |
| Type | VCUs | Percentage of Total |
|---|---|---|
| WRC | 19,080,138 | 8.4% |
| REDD | 185,065,945 | 81.9% |
| ALM | 325,825 | 0.1% |
| IFM | 6,765,389 | 3% |
| ARR | 14,676,244 | 6.5% |
ALM – Agricultural Land Management
ARR – Afforestation, Reforestation and Revegation
IFM – Improved Forest Management
REDD – Reducing Emissions from Deforestation and Forest Degradation
WRC – Wetland Restoration and Conservation
The overall market outlook continues to be strong. The many corporate commitments on net-zero or carbon-neutral targets allowed an otherwise tumultuous year to end on a strong note. The outcome of the US election and the prospect of the US rejoining the Paris Agreement under the Biden Administration is also likely to fuel further confidence in the demand for carbon offsets.