What Are VCU Labels?
A VCU label indicates that a unit meets the requirements of other (non-VCS) standards programs or is eligible/qualifies to be traded in specific markets. A VCU can be associated with multiple labels.
Certification Labels
Certification labels relate to standards or programs developed by non-profit or governmental organizations
Upon submission of the required documentation to the Verra Registry, certification labels can be applied to VCUs if units comply with the requirements from the following approved standards.
Required Documentation:
Required Documentation:
Required documentation is a certificate issued by the Thailand Greenhouse Gas Management Organization (TGO) indicating a project’s conformance with the Crown Standard. View information about the required documentation.
Required Documentation:
Notice: SOCIALCARBON labels will only be applied to VCUs with a monitoring period end prior to 1 January 2024, and only for projects using SOCIALCARBON Version 5 or previous.
Projects proponents may apply both the VCS Program and W+ Program to their projects. Projects that follow the respective requirements of each program for registration, validation, and verification are eligible to receive W+ labeled Verified Carbon Units (VCUs).
- Verra and Women Organizing for Change in Agriculture and Natural Resource Management (WOCAN) co-hosted a webinar on Wednesday, July 10, 2024, at 2:00 pm ET, to provide an overview of the updated label guidance document and the process of acquiring W+ labels for VCUs. Watch the webinar recording here (YouTube).
- On June 25, 2024, Verra released an updated guidance document for project proponents applying W+ labels to VCUs issued to projects registered under the VCS Program and the W+ Standard. The W+ Label Guidance, v1.0 (PDF), is now available on the VCS Rules and Requirements page.
Project proponents who wish to apply the W+ label to their VCUs must supply the following required documentation to the Verra Registry with their project requests:
The required documentation (see below) is available on the W+ Standard website.
- All required VCS Program documentation (see the VCS Program Registration and Issuance Process)
- W+ Project Idea Note (PIN)
- W+ Project Design Document (PDD)
- W+ Monitoring and Results Report
- W+ Verification Report
Market Labels
Market labels identify credits eligible or preferred for use in certain domestic, sectoral, or investor-specific markets. The Verified Carbon Standard has been accepted to supply emission reduction and removal units in various markets for compliance and voluntary purposes.
Upon submission of the required documentation to the Verra Registry by a project (or program) proponent, VCU labels can be applied to units that comply with the eligibility criteria for the following markets
The Integrity Council for the Voluntary Carbon Market (ICVCM) has approved the first set of methodologies that meet its Core Carbon Principles (CCPs). CCP labels are now active on the Verra Registry and may be applied to Verified Carbon Units (VCUs) from projects using ICVCM-approved methodologies eligible under VCS Program.
A guidance document outlining Verra’s process for CCP labeling, the ICVCM CCP Label Guidance (PDF), is available on the VCS Rules and Requirements page.
This list provides the CCP Eligible methodologies and additional criteria under the VCS.
| Methodology Number | Title | Version | Additional Criteria |
|---|---|---|---|
| AMS-III.G | Landfill methane recovery | v9.0-v10.0 |
|
| ACM0001 | Flaring or use of landfill gas | v15.0-v19.0 |
|
| AM0023 | Leak detection and repair in gas production, processing, transmission, storage and distribution systems and in refinery facilities | v4.0 |
|
| VM0047 | Afforestation, Reforestation, and Revegetation | v1.0 | |
| VM0048 | Reducing Emissions from Deforestation and Degradation | v1.0 |
|
| VM0050 | Energy Efficiency and Fuel-Switch Measures in Cookstoves | V1.0 |
|
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) has set specific rules covering the eligibility of emission units, pertaining to, for example, activity types, crediting period start, and vintage dates. For more details, see the VCU eligibility criteria for use in CORSIA transactions.
VCUs may receive Article 6 Label(s) to indicate they have been authorized for specific uses by host countries (“Parties”) under Article 6 of the Paris Agreement. Specific guidance for authorization of internationally transferrable mitigation outcomes under Article 6 of the Paris Agreement and for obtaining Article 6 Label(s) for VCUs on the Verra Registry, is available in the new Article 6 Label Guidance, v1.0 (PDF).
An Article 6 Letter of Authorization Template, v1.0 (DOC) is also available. The template is intended to assist project proponents in approaching a host Party to request Article 6 authorization. Using the template is optional and the host Party may provide a LOA in
any format of their choice, provided all required information is included.
Labels may be applied to differentiate VCUs which are based on greenhouse gas (GHG) emission reductions and/or carbon dioxide removals. The methodology applied by the project specifies whether it results in reductions, removals or both. The methodology must be compatible with the label for the project to receive these VCU labels. The mitigation outcome type and compatibility with the label are included on the individual webpage of each methodology.
The mitigation outcome type labels are based on stakeholder feedback received in the July 2022 public consultation.
For more information and guidance on these labels, see the Mitigation Outcome Labels Guidance, v1.2 (PDF).
Verra has launched the ABACUS label, a new market that can be applied to Verified Carbon Units (VCUs) from projects validated and verified to Verra’s afforestation, reforestation, and revegetation (ARR) methodology if these units meet a set of key quality requirements. The ABACUS label is intended to catalyze the growth of nature-based GHG removal credits.
The ABACUS Label Guidance, v1.0 (PDF) is now available on the VCS Rules and Requirements page.
Before the ABACUS label launch, Verra hosted two public consultations as part of the process to vet new market label proposals.
- A pre-consultation on the ABACUS label was held from on 7 July 2022 through 7 August 2022.
- A public consultation on the ABACUS Market Label for Nature-Based Removal Credits ran from 15 November 2023 through 8 January 2024. See the Summary of Comments and Responses: Public Consultation on ABACUS Market Label for Nature-Based Removal Credits (PDF)
The label was proposed by the ABACUS Working Group,* members of which are:
Bronson Griscom (Senior Director of Natural Climate Solutions, Conservation
International),
Barbara Haya (Director, Carbon Trading Project, University of California, Berkeley),
Kyle Hemes (Research Scientist, Amazon Sustainability Science & Innovation),
Ruben Lubowski (Associate VP Climate & Forests, Environmental Defense Fund),
Campbell Moore (Carbon Markets Lead, The Nature Conservancy),
Jamey Mulligan (Senior Scientist, Amazon Sustainability Science & Innovation),
Connor Nolan (Postdoctoral Scholar, Stanford Woods Institute for the Environment),
Christie Pollet-Young (Managing Director, SCS Global Services),
Matthew Potts (Chief Science Officer, Carbon Direct; Professor, University of
California, Berkeley),
David Shoch (Director of Forestry, TerraCarbon), and
Carlos Silva (Forest Carbon Scientist, Pachama).
*Note: Participation in the working group does not reflect endorsement by members’ organizations.
New VCU Label Qualification Procedure
Eligibility Criteria
Verra may, at its discretion, approve the creation of new VCU labels when they meet the criteria set out below.
The eligibility criteria for new certification labels are as follows:
- The standard administrator is a non-profit organization, government, or other regulatory body.
- The standard administrator does not have any involvement in GHG project development that would represent a conflict of interest with respect to administering the standard.
- The standard has been developed through a process of public stakeholder consultation or is the result of regulations that have been developed and implemented through a process of public stakeholder consultation.
- The standard is publicly available.
- The standard administrator maintains a public record of all projects that have been certified.
- The standard administrator issues a certification statement to the project that indicates compliance with the standard’s requirements, and the standard administrator uses consistent procedures for issuing certification statements and/or specifies such procedures for accredited entities to issue such statements. Where accredited entities may issue certification statements, the standard clearly specifies which accredited entities can issue such statements.
- The standard is complementary to the objectives and scope of the Verra program to which the label will be applied. For example, a label to be applied to a VCU may provide certification with respect to a project’s social and environmental co-benefits.
- The standard is applicable to project or program-level activities and to the emission reductions or removals or sustainable development benefits generated by such projects (e.g., it is not a certification that applies at the organizational level).
| # | Criterion | Demonstration |
|---|---|---|
| 1. | The qualities represented by this label need to stay with that unit through its retirement (i.e., cannot be unbundled and marketed/sold as a separate asset) | Explain how the environmental and/or social benefits associated with the proposed label cannot be double-claimed or counted by end users |
| 2. | The label has the potential for a significant scale of use | Provide a list of existing or planned methodologies that could generate units with the potential to meet the proposed label’s criteria Provide a list of existing or planned methodologies that could generate units with the potential to meet the proposed label’s criteria |
| 3. | The label is expected to garner strong, and ideally unlock significant new, demand | Provide a list of existing or potential project investors or unit buyers that are committed to supporting projects that use this label |
| 4. | The label is expected to increase a project’s climate and/or sustainable development impact | Based on expected supply and demand, estimate the proposed label’s impact over the first three years Quantify emission reductions and/or sustainable development benefits where possible |
| 5. | The label will not result in a significant risk of inappropriate devaluation of other projects’ units or compromise other projects’ impact | Describe the risk of other units, whether labeled or unlabeled, experiencing significant price deflation due to unfavorable comparison to units with this label, including related to potential claims associated with the proposed label |
| 6. | The label will not result in a significant risk of unhelpful label proliferation and/or market fragmentation | Describe what percentage of projects under the relevant scope(s) and/or methodology(ies) could achieve the use of this label in the next three years and within the next ten years |
| 7. | The label could be implemented with existing or proposed Verra program rules and requirements | Describe how the potential label could be fully, credibly, and effectively verified and reported according to Verra’s existing or proposed rules, requirements, and methodology elements, clearly identifying any additions or changes that may be required to operationalize the label |
The requirements for all Verra labels must be posted publicly and linked to from this page. VCS Program validation/verification bodies must be able to verify compliance with market label requirements in their assessment of a project’s VCS monitoring report.
Submission and Review Process
Label proposals must include the complete label requirements and demonstrate how the proposed label meets the corresponding certification or market criteria. Proposals should be submitted to programupdates@verra.org.
Certification label proposals must include an example certification statement and the name(s) of the body/bodies that will be issuing certification statements, and guidance on how Verra should ascertain the authenticity of certification statements.
Market label proposals should use the Verra Market Label Proposal Form (DOC).
Certification label proposals should use the Verra Certification Label Proposal Form (DOC).
Verra will vet the label requirements to ensure that they meet the above certification or market label criteria.
Market label requirements that meet the above eligibility criteria will undergo at least one 30-day public consultation. Verra may issue a pre-consultation announcement for certain potential market labels to obtain early stakeholder feedback. Following public consultation, the label developer shall respond to comments received and revise the label proposal as necessary.
Verra will approve or reject the label.
If a proposed VCU label is accepted, Verra will announce the label and the timeframe for its implementation (based on the potential changes required to internal procedures, program rules and requirements, and updates to the Verra Registry). The requirements for the respective label will be added to this webpage.
Limitation of Verra Liability
This clause supplements and forms part of the Verra Programs. Without prejudice to the terms of the Verra Registry Terms of Use and the Verra Programs:
Neither Verra, the Verra Registry, nor any of their respective affiliates, directors, employees, agents, licensors, and/or contractors (together, the “Verra Parties“) shall be liable with respect to any claims whatsoever arising out of any certification labeling within the Verra Registry whether for direct economic or commercial losses, indirect, consequential, special, punitive, or exemplary damages or otherwise, including without limitation losses resulting from claims of any nature (including in respect of any erroneous additional certification labeling) brought against any Verra Party by registry account holders, project proponents, validation/verification bodies (“VVBs“), or any other third party. This paragraph shall apply regardless of any actual knowledge or foreseeability of such damages.
Labeling any instruments (including Verified Carbon Units (“VCUs“) with additional certifications within the Verra Registry is undertaken on a reasonable efforts basis. Save for the labels reflecting the information provided by the respective administrators of participating standards, or the respective VVBs to Verra in relation to the project activity, none of the Verra Parties warrant or represent that the labels applied are otherwise accurate.
The administrators of participating standards are responsible for overseeing certification against their standards and maintaining public records of certification statements issued.
Verra may suspend or terminate arrangements for labeling any instruments (including VCUs) with the certification of a given standard at any time by providing notice to the standard administrator and citing the reason(s). Likewise, a standard administrator may instruct Verra to suspend or terminate labeling any instruments (including VCUs) with their certification at any time.
Any documentation maintained within the Verra Registry with respect to such certification statements represents a secondary repository only, and the standard administrators remain the primary source of information and documentation with respect to certification against their standards. Market participants should not place any reliance on the certification labels.
No Verra Party shall be liable with respect to any claims whatsoever arising out of any market labeling within the Verra Registry whether for consequential, special, punitive, or exemplary damages or otherwise, including without limitation losses resulting from claims of any nature (including in respect of any erroneous additional market labeling) brought against any Verra Party by registry account holders, project proponents, VVBs, or any other third party. This paragraph shall apply regardless of any actual knowledge or foreseeability of such damages.
In relation to any liability arising from market labels of an instrument (the “Labeled Instrument“), Verra’s total liability to any and all persons relating in any way, whether directly or indirectly, whether caused by the negligence of Verra or otherwise, and regardless of whether any claim for damages is based on contract, tort, strict liability or otherwise, is limited to an aggregate amount equal to the fees paid by the Registry User requesting for the market labeling of that Labeled Instrument (being the proportion of fees attributed to that Labeled Instrument in the batch of affected instruments which the Labeled Instrument forms part of), at the point of issuance of the Labeled Instrument.
Labeling any instruments (including VCUs) within the Verra Registry is undertaken on a reasonable efforts basis. Save for the labels reflecting the information provided by the respective responsible persons referred to in the paragraph immediately below, the project proponents and/or the respective VVBs to Verra in relation to the project activity, none of the Verra Parties warrant nor represent that the labels are otherwise accurate.
Markets with specific rules or eligibility criteria for labels are responsible for setting out, maintaining, and enforcing any specific rules or requirements for the respective label. For example, in the case of CORSIA eligible standards, ICAO ensures compliance with the relevant requirements.
Subject to the abovementioned qualification on Verra’s warranty and representation, Verra also assesses whether any instruments (including VCUs) fulfill the requirements set out by the respective market to which they can be supplied. The Verra Registry is the primary repository for such instruments, regardless of the market in which they are used.