Domestic carbon credit mechanisms: how do they stack up?
Domestic carbon credit mechanisms, with methodologies specified or defined by governments, are proliferating globally. Many of these mechanisms produce credits eligible for compliance schemes.
It is critical that governments set high standards for project-level information disclosure within these mechanisms to enable third-party scrutiny and incentivise a “race to the top”.
We have assessed several of the most significant domestic carbon credit mechanisms against six key areas where we believe information disclosure is vital, including carbon accounting, retirement disclosures and co-benefits.
Contents
Integrating carbon credits into compliance schemes
Carbon market design - avoiding mistakes of the past
Tonne-for-tonne accounting
Assessing existing schemes - six factor framework
Traffic light threshold tests for relevant parameters
How do domestic carbon standards stand up?
Conclusion