Methodology for Low-Carbon Cryptocurrencies

This proposed methodology applies to low-carbon cryptocurrencies (e.g., Proof of Stake) that displace more energy-intensive cryptocurrencies using Proof of Stake (e.g., Bitcoin) for customer order transactions. The proposed methodology is globally applicable.

The draft methodology was submitted by Carbon Reduction Initiative Ltd (opens on external site), and Climate Neutral Business Network (opens on external site. The development of the draft methodology is currently on hold, as per Section 2.1.5(3) of the VCS Methodology Development and Review Process, 4.3 (PDF).

The draft methodology was put on hold due to unmitigable risks associated with:

• the lack of regulations and oversight by authorities;
• recent fraudulent activities in the cryptocurrency space;
• the lack of VVB capacities to assess the methodology and project activities against the VCS Program rules and requirements, and mitigate the associated risks; and
• the current evolution of the cryptocurrency market that may impact common practice and additionality.

Verra will reassess whether to resume the development of this methodology in Q1 2024.

Stakeholders interested in collaborating during methodology development or developing projects that this methodology might enable are encouraged to contact methodologies@verra.org. Please include the Methodology Development ID# CN0125 in the subject line.