"Verra Verified Carbon Standard (VCS)" Vs "Gold Standard" Voluntary Reduction Project Plan (International Program) 

In the global effort to combat climate change, carbon markets play a significant role. Carbon credit trading systems enable businesses and individuals to offset their carbon emissions by purchasing carbon credits, which are generated through certified emission reduction projects. The Verra Verified Carbon Standard (VCS) and Gold Standard are two major carbon credit standards widely used in the carbon market. This article will delve into the background, scope, rigor, market acceptance, and key differences between these two standards. 

A. Verra Verified Carbon Standard (VCS) 

1. Background 

The VCS, managed by the non-profit organization Verra, is one of the world's largest voluntary carbon market standards. VCS was established to provide a reliable, transparent, and operational mechanism for measuring and verifying greenhouse gas emission reductions. It encompasses various emission reduction activities, including reforestation, renewable energy, energy efficiency, and waste management, among others. 

2. Scope 

The scope of the VCS standard is very broad and applicable to various emission reduction activities. This wide applicability makes it very popular in the global market, adapting to the environmental policies and market needs of different countries and regions. Project developers can use VCS to develop various types of emission reduction projects, including land-use change, energy efficiency improvement, and waste management. 

3.Rigor 

VCS standards are relatively flexible, allowing project developers to innovate and introduce new methodologies. This flexibility allows it to adapt to changing technologies and market demands, and encourages innovation. The verification process of the VCS includes detailed project document submission, third-party review, and final approval by Verra, ensuring the authenticity of the project and the accuracy of emission reductions. 

4. Market Acceptance 

As one of the world's largest voluntary carbon market standards, VCS has broad market acceptance. Many businesses and organizations choose VCS-certified carbon credits to offset their carbon emissions. VCS's carbon credits, known as Verified Carbon Units (VCUs), have high liquidity and recognition in the market. 

B. Gold Standard 

1. Background 

The Gold Standard is managed by the Gold Standard Foundation, which was founded in 2003 by the World Wide Fund for Nature (WWF) and other environmental organizations. The Gold Standard was established to ensure that carbon emission reduction projects not only achieve greenhouse gas reductions but also bring significant social and environmental benefits.

 2. Scope 

The scope of the Gold Standard includes energy, forest and land use, water resources management, etc. Unlike VCS, Gold Standard not only focuses on carbon emission reduction but also emphasizes the Sustainable Development Goals (SDGs), ensuring multiple benefits for local communities and the environment. For example, Gold Standard's projects may simultaneously improve the living conditions of local residents, promote biodiversity conservation, and improve water resource management efficiency. 

3. Strictness 

The requirements of the Gold Standard are usually stricter, especially in terms of social and environmental benefits. This standard emphasizes stakeholder engagement and transparency, requiring project developers to fully consider the needs of local communities and the environment during project design and implementation. Gold Standard's verification process includes rigorous audits and ongoing oversight to ensure the quality and long-term benefits of the project.

 4. Market Acceptance 

The Gold Standard is considered a high-quality and high-impact standard in some markets, especially among buyers who prioritize sustainability benefits. The carbon credits generated by Gold Standard are called Gold Standard Verified Emission Reductions (GS-VERs) and are also highly recognized in the market, especially among companies that prioritize social responsibility and environmental protection. 

C. Key Differences 

1. Strict and Key Standards 

The standards of VCS are relatively flexible, allowing project developers to innovate and introduce new methodologies to adapt to changing technologies and market demands. In contrast, the Gold Standard has stricter standards, especially in terms of social and environmental benefits. Gold Standard emphasizes stakeholder engagement and transparency, ensuring multiple benefits for the project's local communities and the environment. 

2. Project Scope 

The VCS covers a wide range of projects, including reforestation, renewable energy, energy efficiency and waste management. The Gold Standard focuses more on projects with significant social and environmental benefits, such as renewable energy, forest and land use, water resource management, etc. 

3. Market Positioning 

VCS have a larger market share in the global carbon market and have broad market acceptance. Gold Standard is more favored in specific markets due to its high-quality standards, especially among companies that prioritize sustainable development benefits and social responsibility. 

Verra Verified Carbon Standard (VCS) and Gold Standard each have their advantages and features. VCS occupies an important position in the global carbon market due to its wide scope and flexible standards. Gold Standard has won the favor of specific markets with its strict standards and multiple benefits, especially in terms of sustainable development goals. Which criterion to choose depends on the specific needs of the project and the emission reduction and sustainability goals it hopes to achieve. Through the implementation of these two standards, the global carbon market can more effectively respond to climate change and promote sustainable development. 

The process of a voluntary greenhouse gas reduction project from application to obtaining emission credits is broadly divided into the following stages:

 First, the preparation phase includes understanding the program requirements, forming a team, communicating with stakeholders, and selecting or developing appropriate reduction methodologies. Secondly, conduct information collection and analysis, including materiality assessment, data collection, and risk and opportunity assessment. Next, a project plan is developed, covering content structure planning, writing, internal review, and modification. After that, third-party verification is conducted, including selecting a verification agency, conducting baseline scenario and project scenario verification, and preparing a verification report. Then, submit the project plan and confirmation report to the Climate Change Agency for follow-up communication. The implementation phase involves the actual operation of the project and monitoring its effectiveness. Finally, during the verification and certification stage, a third-party verification of the project's effectiveness is conducted, and the entire process is completed by managing and applying for reduction quotas based on the verification results. 

 A. Preparation Stage

A1. Understand the requirements of the Voluntary Greenhouse Gas Reduction Plan: 

• Visit the Greenhouse Gas Voluntary Reduction and Offset Information Platform to read relevant regulations and management measures. 

• Study the Climate Change Response Act and the Greenhouse Gas Voluntary Reduction Project Management Regulations. 

A2. Establish a reporting team: 

• Cross-departmental teams within the organization, including environmental management, technical support, financial planning, etc.

•  Consider hiring external experts or consultants to provide technical support and strategic planning. 

A3. Stakeholder Identification and Communication: 

• Identify internal and external stakeholders, including employees, suppliers, customers, local communities, etc.

•  Design a communication plan that ensures transparency and engagement.

 A4. Select Applicable Reduction Methodology: 

• Visit the Voluntary Greenhouse Gas Reduction and Offset Information Platform to inquire about available reduction methodologies. 

• Based on the type and characteristics of the project, the most suitable reduction methodology is selected.

•  Research the specific requirements and guidelines for the selected methodology to ensure that the project design meets the standards. 

B. Information Collection and Analysis 

B1. Materiality Assessment: 

• Assessing the impact of business activities, products, or services on greenhouse gas emissions. 

• Determine the scope and boundaries of the reduction project. 

B2. Data Collection: 

• Collect data on greenhouse gas emissions from the baseline year. 

• Confirm the source of emissions and calculation methodology. 

B3. Risk and Opportunity Assessment: 

• Identifying risks and opportunities related to greenhouse gas emissions. 

• Evaluate potential reduction strategies and techniques. 

B4. Inquiry and Review Methodology: 

• Visit the Greenhouse Gas Voluntary Reduction and Offset Information Platform again to learn more about the selected reduction methodology. 

• Consult relevant case studies or implemented projects to learn how to apply methodologies effectively.

•  Review the updates or revisions of the methodology to ensure that you are using the latest version. 

C. Plan and Report Preparation 

C1. Content Structure Planning: 

• Design the structure of the project plan, including goals, strategies, action plans, etc. 

• Prepare the required documents and supporting materials. 

C2. Write Reports: 

• Write a project plan based on information from the preparation phase. 

• Including reduction targets, implementation strategies, expected results, etc. 

C3. Internal audit and revision: 

• Organize internal audit project plans. 

• Make necessary modifications and refinements based on feedback. 

C4. Integrate reduction methodology into the project plan: 

• Clearly explain the selected reduction methodology and its application methods in the project plan. 

• Describes how to calculate greenhouse gas emissions and estimate reduction effectiveness based on methodological requirements. 

• Prepare relevant technical documents and evidence to support the application of methodologies and effectiveness evaluation. 

D. Third-party verification 

D1. Select a third-party accreditation body: 

• Select a suitable third-party accreditation body based on the list of organisations recognized by the Climate Change Agency.

 D2. Conduct baseline scenario and project scenario validation:

•  According to the project plan, cooperate with third-party organizations to complete the baseline scenario and project scenario validation work.

 D3. Prepare a corroboration report: 

• Prepare relevant verification reports based on the third-party verification results. 

E. Application for Submission of Plan 

E 1. Submission of Project Plan and Methodological Application Certificate and Confirmation Report: 

• Submit the project plan and related documents and third-party confirmation report to the Climate Change Agency

•  including relevant supporting documents for methodological application, such as calculation tools, data sources, monitoring plans, etc.

 E2. Follow-up and Communication: 

• Follow up on the progress of the application and maintain communication with the Climate Change Agency. 

• Be prepared to respond to possible queries and supplemental data needs. 

F. Implementation and Monitoring 

F1. Project Implementation: 

• Execute reduction activities according to the plan and reduction methodology.

 F2. Effectiveness Monitoring and Reporting: 

• Regularly monitor and evaluate the effectiveness of reduction, and prepare and submit monitoring reports. 

G. Verification and Certification 

G1. Project Effectiveness Verification: 

• Again select a third-party verification agency for third-party verification of project effectiveness.

•  Submit a verification report to obtain a reduction credit certification. 

G2. Reduction Credits Management:

•  Manage and record the reductions earned. 

• Consider the use of reduction credits or trading strategies 

Voluntary Reduction Project Plan with "No Reduction Methodology"

 (Application Process) 

When a voluntary reduction project cannot find an applicable reduction methodology and needs to apply for a review of the new reduction methodology according to the regulations of the Climate Change Agency, and considering that the project needs to undergo a third-party verification process before submitting the plan to the Climate Change Agency, the following is the adjusted complete step process:  

 A. Preparation Stage 

A1. Understand the requirements of the Voluntary Greenhouse Gas Reduction Plan: 

• Visit the Greenhouse Gas Voluntary Reduction and Offset Information Platform to read relevant regulations and management measures. 

A2. Assemble a reporting team: 

• Organize an internal cross-departmental team and consider hiring external experts or consultants.

 A3. Stakeholder Identification and Communication: 

• Identify and communicate with internal and external stakeholders.

 A4. Confirm No Applicable Reduction Methodology: 

• Conduct a detailed methodological query to confirm that the existing methodology is not applicable to the project. 

B. Develop new reduction methodology 

B1. Prepare a new reduction methodology application:

•  Prepare a proposal for a new reduction methodology according to the requirements of the Climate Change Agency, including scientific basis, calculation methods, monitoring and reporting requirements, etc. 

B2. Submission of Application for New Reduction Methodology: 

• Submit application documents for new reduction methodology to the Climate Change Agency. 

B3. Follow up on the progress of application review: 

• Maintain communication with the Climate Change Agency to follow up on the progress of the review of the new methodology. 

C. Information Collection and Analysis 

C1. Materiality Assessment: 

• Assessing the impact of business activities, products, or services on greenhouse gas emissions. 

C2. Data Collection: 

• Collect data on greenhouse gas emissions from the baseline year. 

C3. Risk and Opportunity Assessment: 

• Identify risks and opportunities related to greenhouse gas emissions. 

D. Project Plan Preparation 

D1. Content Structure Planning: 

• Design the structure of the project plan and integrate the new reduction methodology to be reviewed. 

D2. Write a Project Plan:

•  Write a project plan based on information from the preparation phase. 

D3. Internal Audit and Revision: 

• Organize internal audits and make necessary modifications based on feedback. 

E. Third-Party Corroboration 

E1. Select a third-party accreditation body: 

• Select a suitable third-party verification body based on the list of organisations recognized by the Climate Change Agency. 

E2. Conduct baseline scenario and project scenario validation: 

• Collaborate with third-party organizations to complete baseline scenario and project scenario validation work according to the project plan.

E3. Prepare a corroboration report: 

• Prepare relevant corroboration reports based on the third-party verification results. 

F. Submit Project Plan 

F1. Submit Project Plan and Confirmation Report: 

• Submit the project plan and third-party corroboration report to the Climate Change Agency. 

F2. Follow-up and Communication: 

• Follow up on the progress of the application and prepare to respond to possible inquiries and supplementary information requests. 

G. Implementation and Monitoring 

G1. Project Implementation: 

• Implementation of reduction activities according to the plan and new reduction methodology (once approved). 

G2. Effectiveness Monitoring and Reporting: 

• Regularly monitor and evaluate the effectiveness of reduction, and prepare and submit monitoring reports.

 H. Verification and Certification

 H1. Project Effectiveness Verification: 

• Again select a third-party verification agency for third-party verification of project effectiveness. Submit a verification report to obtain a reduction credit certification.

 H2. Reduction Quota Management:

•  Manage and record the reduction credits obtained. Consider the use of reduction credits or trading strategies. 

Through this process, even if it is necessary to develop new reduction methodologies, it ensures that the entire process of the project, from the preparation stage to verification and certification, meets the requirements of the Climate Change Agency, and ensures the accuracy and reliability of the project.  

Voluntary Greenhouse Gas Reduction and Carbon Offset Projects (Domestic Regulations) 

Explanation of terms 

A. Carbon credit, also known as carbon right: 

that is, an organization or enterprise that is not a regulatory authority that regulates emissions and quantifiables, adopts corresponding international methodologies and introduces designated reduction measures to plan corresponding project plans, and after confirming the feasibility of its project plan by a third-party impartial verification agency, registers with the competent authority that issues the credit line (carbon credit) and implements the corresponding project plan. and the set acceptance date to verify the actual reduction quota (third-party organization), and then apply to the competent authority that issued the quota to obtain the carbon credit for the actual reduction space.

 B. Carbon neutrality or carbon neutrality: 

For organizations that have been regulated by regulatory authorities and have actually exceeded the scope of emission permits, in order to offset the excess carbon emission allowance space, or to obtain carbon credits through public bidding or purchase from external rights holders holding carbon credits. (Please refer to Figure 1.1 Relationship Chart of Voluntary Greenhouse Gas Reductions and Carbon Offsets Projects) 

Explanation of terms for reduction and acquisition of carbon credits (Article 25, Paragraph 4 of the Climate Change Response Act; Article 2 of the Regulations Governing Voluntary Greenhouse Gas Reduction Projects) 

1. Project boundary: refers to the scope of implementation of voluntary reduction projects planned by enterprises or governments at all levels in accordance with the design framework and requirements of greenhouse gas reduction methods, including the greenhouse gas emission sources and carbon sinks that they have control over before and after the implementation of reduction measures. 

2. Baseline scenario: refers to the scenario in which the voluntary reduction project activity is not implemented, which is an existing measure or activity. 

3. Additive analysis: refers to the analysis of regulatory additions, financial additions, prevalence, and obstacles to the voluntary reduction projects proposed by the enterprise or governments at all levels to confirm that they are not required by regulations, have no investment benefits, are not technical, or have technical obstacles. 

4. Project scenario: refers to the scenario in which voluntary reduction project activities are implemented. 

5. Verification: refers to the process of evaluating the reasonableness of various assumptions, limitations, and methods for the statements made by enterprises or governments at all levels regarding the future activities of voluntary reduction projects. 

6. Verification: refers to the process by which the inspection agency evaluates whether it is substantively correct based on historical data and information on the results of the implementation of voluntary reduction projects by enterprises or governments at all levels.

 7. Inclusion period: refers to the implementation period during which the voluntary reduction project can obtain the reduction quota after the registration is approved. 

 Voluntary Greenhouse Gas Reduction and Carbon Offset Project 

The Voluntary Reduction and Carbon Offset Platform is an important climate policy tool, and by participating in this platform, companies can participate in domestic carbon credit acquisition and offsetting, while using carbon credits as an investment tool for climate policy and decision-making. In addition, the platform also supports companies to implement greenhouse gas reduction projects to obtain carbon credits. 

I. Purpose of the establishment of the voluntary reduction and carbon offset platform: 

1. Enterprise carbon credit management plan: 

The platform provides transparent information on emission reduction allowances for holders or demanders of greenhouse gas reduction quotas. Enterprises can disclose or inquire about the issuance of emission reduction allowances in Taiwan and the expected sources of future emission reduction allowances to assist them in formulating carbon credit management plans as soon as possible.

 2. Successfully fulfilling the EIA commitments:

 In order to support the developer's acquisition of offsets, the platform has established a plan for the development unit to apply for offset acquisition in accordance with the relevant principles of the Climate Change Agency of the Ministry of Environment, Executive Yuan, including functions such as reporting the implementation results of the offset acquisition plan. This helps the developer to grasp the progress of the project review and successfully achieve the EIA commitment. 

II. Types of voluntary reduction and carbon offset projects: 

1. Voluntary Reduction Projects: 

After the implementation of the "Climate Change Response Act", in order to encourage businesses and governments to voluntarily reduce emissions, the platform has formulated the "Greenhouse Gas Voluntary Reduction Project Management Measures", aiming to simplify procedures, encourage participation, and expand effectiveness. Projects are divided into two types: "Removal" and "Reduce or Avoid Emissions", and offer two types of crediting periods: extended and fixed, to ensure the steady implementation of reduction targets. 

2. The types of reduction projects include: 

Removal type project: Extended type: Extended for up to 20 years, each extension for 10 years. Fixed type: up to 30 years fixed. Emissions reduction or avoidance type projects: Extended type: Up to five years of extension, each time for five years. Fixed type: Up to 10 years fixed.  

(1) Reduction project approach: 

The implementation of reduction projects is divided into project scenarios and baseline scenarios, and the comparison of emissions between the two forms a reduction space. The specific steps are as follows: 

A1. Project scenario: When implementing voluntary reduction projects, the greenhouse gas emissions generated by emission sources are involved. 

A2. Baseline scenario: Greenhouse gas emissions generated by normal operations as usual.

 A3. Reduction Credit: The reduction quota refers to the greenhouse gas reduction performance formed between the above project scenarios and the baseline scenarios. This reduction performance can be approved by the Environmental Change Agency or the Ministry of Environment to obtain the corresponding reduction quota. 

(2) Application for post-reduction credit: 

Applicants for voluntary reduction quotas must follow the following procedures to ensure the standardized implementation of the project and obtain the reduction quota: 

A1. Registration application : The applicant cites reduction methods approved by the Ministry of Environment and writes a voluntary reduction project plan. If confirmation is required, an inspection agency approved by the Ministry of Environment should be selected for plan verification. Inspection agencies with greenhouse gas inspection business qualifications can carry out relevant procedures on the "Greenhouse Gas Emissions Information Platform of the Climate Change Agency of the Ministry of the Environment". After the plan is confirmed and approved by the inspection agency, the applicant submits an application for registration to the Climate Change Agency of the Ministry of Environment. After the plan is reviewed and approved by the Climate Change Agency of the Ministry of Environment, the registration of planned voluntary reductions will be completed. 

A2. Quota application: After the project is registered, the project will be executed and monitored according to the registered project plan. Calculate the reduction performance based on the actual monitoring results and submit a monitoring report. At the same time, an inspection agency approved by the Ministry of Environment should be selected to verify the monitoring report. After the monitoring report is verified and approved by the inspection agency, the applicant may submit an application form and other relevant documents to the Climate Change Agency of the Ministry of Environment to apply for a reduction quota. 

Through the above process, the strict implementation of voluntary reduction projects is ensured and legal reduction quotas are obtained.  

3. Documents to be submitted for the application for voluntary reduction projects: 

The "registration application" and "quota application" of the voluntary reduction project shall be submitted in accordance with the following documents in accordance with the management regulations: 

(1) Project plan registration The project plan registered with the project plan application form and confirmed by the third-party inspection agency must include, application description of greenhouse gas reduction methods, baseline calculation methods, additive analysis, reduction calculation descriptions, monitoring methods, project activity schedules, environmental impact analysis, public opinions, confirmation summary report issued by the inspection agency, reduction effectiveness calculation table (including calculation formulas and application values), relevant documents for application and approval of registration with foreign agencies (institutions) or affidavits of unrepeated registered projects, Other documents designated by the central competent authority. 

(2) The application for quota for the project plan shall be based on the application form for the project plan and the monitoring report verified by the third-party inspection agency, which shall include a description of the project activities, a description of the monitoring situation, reduction calculations, an analysis of the additiveness of regulations, a verification summary report issued by the inspection agency, and the relevant certificates of non-double calculation of greenhouse gas reduction and other documents designated by the central competent authority. 

4. What is a carbon offset project

 In order to promote the early participation of domestic industries in reducing greenhouse gas emissions, the Ministry of Environment promulgated the "Principles for the Promotion of Greenhouse Gas Advance Projects and Offset Projects of the Environmental Protection Agency of the Executive Yuan through administrative rules on September 10, 99", referred to as the "Promotion Principles". The formulation of this principle aims to serve as an incentive mechanism for industry emission reduction, encouraging companies to participate in reduction efforts in advance to address global climate change challenges. At the same time, in order to manage greenhouse gas reduction actions more comprehensively and effectively, my country implemented the "Greenhouse Gas Reduction and Management Act" on July 1, 104, referred to as the "Law". The promulgation of this law marks a significant progress in China's emission reduction regulatory system, aiming to regulate and promote corporate emission reduction to ensure that the reduction mechanism can operate effectively. 

In order to ensure the continuous operation of the domestic reduction mechanism after the implementation of this law, the Climate Change Agency followed legal procedures and issued the "Greenhouse Gas Offset Project Management Measures" on December 31, 104 in accordance with the provisions of Article 22, Paragraph 3 of this law. The formulation of the management measures fully refers to the actual experience of the United Nations Clean Development Mechanism and its promotion principles, aiming to improve the effectiveness and effectiveness of China's emission reduction mechanism. In order to encourage emission sources to participate more actively in greenhouse gas reduction efforts, the Climate Change Agency has also set up a case management area for offset projects and reduction methods in the district, serving as a window for companies to apply for the issuance and approval of reduction credits. The establishment of this zone not only provides a clear application process but also encourages more companies to actively participate in emission reduction efforts, further promoting the actual promotion of greenhouse gas reduction in Taiwan. 

It is worth noting that according to the evolution of regulations, the application for the preliminary project has been terminated after July 1, 104 in accordance with Article 3, Paragraph 13 of the Act. This means that the early projects provide valuable emission reduction opportunities for enterprises during specific periods, and it also shows that Taiwan's regulatory system is constantly improving and upgrading to ensure that reduction efforts can be carried out in a more orderly manner. The formulation of this series of laws and management measures has laid a solid foundation for Taiwan to achieve more positive results in addressing the challenge of climate change. 

5. What are the types of carbon offset projects:

 Offset projects are divided into plan-type and solution-type according to the applicant's qualifications, and the application qualifications for plan-based offset projects are the actual project implementers or investors, while the application qualifications for program-based offset projects are the single responsible agency (institution) for integrated management of projects and allocation of reduction quotas.

 (1) Offset project practices: 

(a) Project scenario: Greenhouse gas emissions generated after the implementation of offsetting project emission sources. 

(b) Baseline scenario: and greenhouse gas emissions incurred during business as usual. The above two scenarios have caused greenhouse gas reductions, and this reduction performance can be applied to the Climate Agency for approval to obtain emission reduction credits. Applicants who wish to apply for offsetting the project reduction quota should submit a project plan according to the reduction method approved by the Climate Change Agency and confirm it with the inspection agency before applying for registration with the Climate Change Agency.