We are pleased to share with you the quarterly update for Q3/2020 about project types, issuances, and retirements under the Verified Carbon Standard (VCS) Program. We hope this first year of quarterly reports has provided valuable insight to you and that you find them to be useful resources.
The COVID-19 pandemic continues to impact economic activity around the globe and the question of how it is affecting the voluntary carbon markets is on the minds of many. At Verra, we are starting to see VCU issuances strongly rebounding. Read on for more detail and other findings.
While we saw a temporary dip in VCU issuances in Q1 and early Q2 of 2020, the end of Q2 saw a resurgence. In Q3, this trend continued, showing a substantial uptick in VCU issuances. Each month of Q3 far surpassed the historical average of VCU issuances, and July and September issuances even had the highest issuances ever for these months.
While non-AFOLU issuances have been surpassing AFOLU issuances during the past year, in Q3 of 2020 AFOLU issuances were significantly higher than in Q2.
*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 | 1,145 | 69.5% |
North America | 95 | 5.8% |
South and Central America | 253 | 15.4% |
Oceania | 8 | 0.5% |
Africa | 94 | 5.7% |
Europe | 53 | 3.2% |
Region | VCUs | Percentage of Total |
---|---|---|
Asia | 280,810,319 | 58.3% |
North America | 28,565,075 | 5.9% |
South and Central America | 106,829,476 | 22.2% |
Oceania | 1,406,509 | 0.3% |
Africa | 55,912,791 | 11.6% |
Europe | 8,122,278 | 1.7% |
Region | Projects | Percentage of Total |
---|---|---|
Asia | 43 | 22.2% |
North America | 10 | 5.2% |
South and Central America | 88 | 45.4% |
Oceania | 6 | 3.1% |
Africa | 47 | 24.2% |
Europe | 0 | 0% |
Region | VCUs | Percentage of Total |
---|---|---|
Asia | 57,890,981 | 28.4% |
North America | 3,244,764 | 1.6% |
South and Central America | 88,851,537 | 43.6% |
Oceania | 1,325,133 | 0.7% |
Africa | 52,551,405 | 25.8% |
Europe | 0 | 0% |
Type | Projects | Percentage of Total |
---|---|---|
WRC | 1 | 0.5% |
REDD | 76 | 39.2% |
ALM | 3 | 1.5% |
IFM | 21 | 10.8% |
ARR | 93 | 47.9% |
Type | VCUs | Percentage of Total |
---|---|---|
WRC | 18,191,030 | 8.9% |
REDD | 166,937,715 | 81.9% |
ALM | 325,825 | 0.2% |
IFM | 5,684,797 | 2.8% |
ARR | 12,724,453 | 6.2% |
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 is strong. Despite being a rocky year, 2020 has shown the durability of corporate commitments. Every week, or even every day, seems to result in a new corporate announcement on a net-zero or carbon-neutral target. The strong resurgence of issuances despite rising global COVID-19 cases indicates that companies are moving forward with their goals. The news of a vaccine and the beginning of vaccination campaigns bodes well for continued market growth.