WASHINGTON — Verra, the nonprofit that serves as the leading standards setter for the voluntary carbon market, today announced the rejection of 37 rice cultivation projects in China and imposed, for the first time, significant sanctions against the project proponents and validation/verification bodies (VVBs) involved in a project. The unprecedented action is the result of a rigorous quality control review by Verra, following section 6 of its Verified Carbon Standard (VCS) Registration and Issuance Process (PDF) and its new VVB Performance Monitoring Program.
All 37 projects used the UNFCCC Clean Development Mechanism (CDM) methodology AMS-III.AU.: Methane emission reduction by adjusted water management practice in rice cultivation (external) in the VCS Program. In March 2023 Verra permanently inactivated the use of the methodology in the VCS Program.
“Today’s announcement of sanctions against project proponents and VVBs demonstrates Verra’s commitment to ensuring greater integrity, transparency, and quality in the voluntary carbon market. There are consequences for failing to follow the rules and requirements in place. This action should send a signal that inclusion in the Verra Registry is a sign of integrity and quality.”
The decision was based on serious issues identified during the quality control review related to insufficient demonstration of additionality, projects being designated as small scale, project areas being overstated, and the lack of sufficient evidence to confirm the baseline and project scenario implementation. It was also supported by an analysis of remote sensing data.
Verra will also seek compensation for excess issuances of Verified Carbon Units (VCUs) from project proponents for their failure to meet VCS Program rules and requirements.
Verra issued non-conformity reports to four VVBs – China Classification Society Certification Company, China Quality Certification Center, Shenzhen CTI International Certification Co., Ltd and TÜV Nord Cert GmbH – outlining issues identified with their audits of the projects. The organizations have 15 days to demonstrate a strong corrective action plan to prevent issues from recurring. Failing to do so, these VVBs face temporary suspension by Verra to conduct audits of other projects under VCS sectoral scope 14: Agriculture, Forestry and Other Land Use (AFOLU).
“The issues identified with the VVBs are the culmination of an intensive and rigorous investigation and were not taken lightly. Our quality control review identified serious failures that required a serious response. What we have learned in this process will also support the development of a more effective and credible rice cultivation methodology for future projects.”
Forthcoming New Rice Methodology
The suspension and sanctions conclude a process begun in March 2023, when, following a thorough review, Verra permanently inactivated the use of AMS-III.AU. In December, Verra announced the development of a new rice cultivation methodology in the VCS Program to include robust provisions for the following:
- Guidance for field stratification
- Consideration, accounting, or monitoring changes in nitrous oxide emissions and soil organic carbon stocks
- Standardized guidance for conducting methane measurements
The new methodology will enable project proponents to credibly achieve emission reductions and generate high-quality VCUs. The methodology will incorporate clear and concise guidance as well as efficient processes for the determination of additionality, quantification of emission reductions, and transparent data and measurement, reporting, and verification (MRV) procedures. The consultation for the new methodology just closed, and it is expected to be officially launched later this year.
Status of Projects Under the Inactivated Rice Methodology
The suspension and sanctions conclude a process begun in March 2023, when, following a thorough review, Verra permanently inactivated the use of AMS-III AU: Methane emission reduction by adjusted water management practice in rice cultivation. Through that time, Verra had registered 37 projects applying this methodology, of which 25 projects have issued VCUs (totaling 4.56 million, or 0.43% of all VCUs).
The following is a list of projects registered in the VCS Program as applying AMS-III.AU. Those that have issued VCUs are indicated with an asterisk (*).
| Project Number | Location |
|---|---|
| 2362* | Tongcheng City |
| 2396* | Nanling County |
| 2397* | Chizhou City |
| 2398* | Qiantai |
| 2399* | Wangjiang County, Susong County |
| 2476* | Huaining |
| 2477* | Wanfan |
| 2504* | Xuanzhou District |
| 2506* | Northern Lujiang County |
| 2507* | Southern Lujiang County |
| 2629* | South Jiangjin District |
| 2630 | Yongchuan District |
| 2631* | Dazu District |
| 2632* | Eastern Hechuan District |
| 2633* | Nanchuan District |
| 2634* | Tongnan District |
| 2769* | Pinghu City |
| 2770 | Yulin |
| 2771* | Futong |
| 2845 | QiDa |
| 2850 | Chishui |
| 2851 | Xihuai |
| 2853 | Yufeng |
| 2854 | Hongmei |
| 2855 | Zhengtongsui |
| 2856 | Wudao |
| 2891 | Jiangxia District |
| 2892 | Wuxue City |
| 2894 | Xinzhou District |
| 2899* | Dawu County |
| 2902* | Huangmei County |
| 2903* | Xiqochang County |
| 2909* | Yingcheng City |
| 2910* | Wude |
| 2911* | Haiyan County |
| 2912* | Tongxiang City |
| 2917* | Shengzhou City |
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Verra is a global leader helping to tackle the world’s most intractable environmental and social challenges. As a mission-driven nonprofit organization, Verra is committed to helping reduce greenhouse gas emissions, improve livelihoods and protect natural resources by working with the private and public sectors. We support climate action and sustainable development with standards, tools and programs that credibly, transparently and robustly assess environmental and social impacts and enable funding for sustaining and scaling up projects that verifiably deliver these benefits.