Carbon registry Verra rejects China rice projects

illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:

🗞️ Driving the news: Verra, a leading U.S.-based carbon registry, has rejected 37 low-emission rice cultivation projects in China due to concerns about their quality and integrity
• These projects, which used alternative irrigation methods to reduce methane emissions, were found to have overstated their emission reduction potential
• Verra's decision follows a thorough quality control review and calls for compensation from project backers for the issuance of excess credits

🔭 The context: The voluntary carbon market, where companies buy credits to offset their emissions, has faced criticism over the credibility of its offsets, often seen as enabling "greenwashing"
The Chinese rice projects' methodology for calculating emission reductions has been permanently deactivated by Verra due to significant calculation errors
This move is part of Verra's effort to maintain transparency and uphold standards in the carbon market

🌍 Why it matters for the planet: Ensuring the credibility of carbon offset projects is crucial for genuine climate action
• Projects that overstate their environmental benefits undermine global efforts to reduce greenhouse gas emissions
• Verra's action signals a commitment to improving the integrity of carbon credits, which is vital for fostering trust and effectiveness in carbon markets

⏭️ What's next: Verra is developing a new methodology to accurately calculate emissions reductions in rice cultivation
• New projects utilizing alternative wet and drying (AWD) techniques are underway, aiming to incentivize farmers to adopt more sustainable practices
• Companies like Shell, which have used these offsets, will need to reassess their carbon credit portfolios to ensure compliance with stricter standards

💬 One quote: “The move demonstrates Verra's commitment to ensuring greater integrity, transparency and quality in the voluntary carbon market,” said Farhan Ahmed, Verra's chief programme management officer

📈 One stat: Rice production is responsible for around 10% of global greenhouse gas emissions

Click for more news covering the latest on carbon market