Applying Carbon Removals Best Practice
Native CarbonCrop Units are high-integrity nature-based carbon removals. They can be applied directly to your carbon inventory under carbon accounting or as carbon removal offsets.
Best Practice for Applying Carbon Removals for Carbon Accounting
The New Zealand Ministry for the Environment endorses the use of the GHG Protocol Corporate Accounting and
Reporting Standard (GHGP) and ISO 14064-1:2018. ISO 14064 is consistent with, and derived from, the GHGP. Using ISO 14064 is consistent with the Intergovernmental Panel on Climate Change (IPCC) reporting guidelines and United Nations Framework Convention on Climate Change (UNFCCC).
Native CCUS
MfE Guidance for Carbon Accounting
Conservatism
I know we are more conservative on CCUs… just not sure exactly how conservative…
ISO 14064-1
Use conservative assumptions, values, and procedures when uncertainty is high. Conservative values and assumptions are those that are more likely to overestimate GHG emissions and underestimate removals, rather than underestimate emissions and overestimate
removals.
Relevance
I’m not sure if this is the section to talk about rights to the removal? That they are within the business boundaries?
ISO 14064-1
Select the GHG sources, GHG sinks, GHG reservoirs, data and methodologies appropriate to the needs of the intended user.
Completeness
Something about how our AI + satellite imagery does this?
ISO 14064-1
Include all relevant GHG emissions and removals.
Consistency
Something about tracked methodology versioning?
Availability of methodology on website?
ISO 14064-1
Enable meaningful comparisons in GHG-related information.
Transparency
Native CCUs are designed to ensure transparency and long-term traceability.
Each CCU has a unique ID and date stamp and can be traced back to the original forest using CarbonTracer. This provides clarity, visibility and accountability within the buying process.
Our detailed methodology is published on our website for anyone to review.
ISO 14064-1
Disclose sufficient and appropriate GHG-related information to allow intended users to make decisions with reasonable confidence.
Accurate
We pay for performance, not promises.
Native CCUs represent a tonne of CO2 removed from the atmosphere and locked up in native forest.
We never recognise 'avoided' or 'reduced' emissions. Those offsets won't get us to net-zero.
We use AI, aerial and satellite imagery to accurately measure and verify vast areas of high biodiversity forest down to one square metre resolution. These assessments are further supported and calibrated by verified field surveys.
Our methodology and the data behind each CCU are independently auditable by third parties.
We conduct identity and ownership checks as we don’t own the land or forest ourselves. We maintain a register of CCUs on issue, which third parties can verify on request.
ISO 14064-1
Reduce bias and uncertainties as far as is practical.
Permanence
When Native CCUs are issued, the landholder agrees to maintain sequestration for 100 years from that date. This is a binding agreement and must be transferred on change of ownership.
We monitor this commitment ongoing, and if the forest is deliberately cleared, landholders are contractually responsible for replacing the offsets.
We hold back 10% of each offset distribution in a cross-project ‘buffer’ pool. This acts as insurance for all our landholders to access in the instance of any accidents that reverse the forest’s sequestration ability, such as storm damage.
This is consistent with best practices across the voluntary forest offset sector.
ISO 14064-1
ISO 14064-1 does not have a requirement for Permanence, avoidance of Double Counting or Addressing Leakage, but we have included this information anyway for the avoidance of doubt.
Not being double-used
We maintain a register of all CCUs issued (and cancelled, where applicable), uniquely identifying the location and data of issuance. We then perform checks against the MfE LUCAS dataset, NZ ETS registrations, and major international voluntary project registers to confirm there is no overlap of issuances.
Double counting is a major risk in carbon offsetting globally. We think technology can help and are working on a process to streamline detecting this worldwide, and intend to make it openly available.
ISO 14064-1
ISO 14064-1 does not have a requirement for Permanence, avoidance of Double Counting or Addressing Leakage, but we have included this information anyway for the avoidance of doubt.
Addressing leakage
Native CCU criteria significantly reduces the risk of leakage. We do not issue CCUs for avoided emissions or avoided deforestation. We only issue CCUs for areas where restoration isn’t likely to result in agricultural conversions elsewhere.
ISO 14064-1
ISO 14064-1 does not have a requirement for Permanence, avoidance of Double Counting or Addressing Leakage, but we have included this information anyway for the avoidance of doubt.
Certifiable
Native CCUs have been certified in projects under ISO 14604-1:2018.
Application
When applied to your carbon accounting inventory, Native CCUs are non-tradable units of carbon sequestration from biodiverse native forest.
CarbonCrop Units are not interchangeable for NZUs and cannot be used to meet compliance obligations under the NZ ETS.
Best Practice for Applying Carbon Removals for Offsets
The New Zealand Ministry for the Environment has guidelines for good voluntary offsets practices.
The guidance on the much-debated principle of additionality is insufficient so we have referenced the draft guidelines issued by the Integrity Council for the Voluntary Carbon Market (ICVCM) on this point.
** To be added after 28th July [The Core Carbon Principles and Assessment Framework has just been finalised and released. We will review these guidelines and update our position in due course.]
Transparency
Native CCUs are designed to ensure transparency and long-term traceability.
Each CCU has a unique ID and date stamp and can be traced back to the
original forest using CarbonTracer. This provides clarity, visibility and accountability within the buying process.
Our detailed methodology is published on our website for anyone to review.
MfE Guidance
The details of the source of [the offset] and how the voluntary action meets the other five principles [outlined below] should be clearly stated and publicly available.
Real, measurable & verified
We pay for performance, not promises.
Native CCUs represent a tonne of CO2 removed from the atmosphere for 100 years.
We never recognise 'avoided' or 'reduced' emissions. Those offsets won't get us to net-zero.
We use AI, aerial and satellite imagery to accurately measure and verify vast areas of high biodiversity forest down to one square metre resolution. These assessments are further supported and calibrated by verified field surveys.
Our methodology and the data behind each CCU are independently auditable by third parties.
We conduct identity and ownership checks as we don’t own the land or forest ourselves. We maintain a register of CCUs on issue, which third parties can verify on request.
MfE Guidance
The offset represents a tonne of CO2 (or equivalent) emissions reduced or removed from the atmosphere, from tangible activities that have been implemented.
The reduction or removal is supported by evidence from credible monitoring and reporting and should be verified by a third party to a reputable, and publicly disclosed, carbon standard (including the New Zealand Emissions Trading Scheme).
Additionality
Additionality is based on a theoretical scenario of what would have happened without carbon finance. It’s hard to measure and can’t be directly observed. The baseline (theoretical scenario) has a high risk of over-crediting, as was highlighted by the Guardian earlier this year.
Native CCUs are only issued for carbon actually removed from the atmosphere. Extra carbon removals are achieved by creating an effective incentive mechanism - reward further removals, and penalise reversals.
Carbon locked up in these regenerating native forests is at risk without carbon finance. It is dependent on carbon revenue to be economically viable.
Regenerating native forests earn no income but cost landholders. So far, 100% of carbon finance from Native CCUs has been reinvested into pest control, stock exclusion and/or enrichment planting. Read more here.
This is how Native CCUs achieve sequestration beyond business as usual.
MfE Guidance
The greenhouse gas (GHG) emissions reductions or removals are due to a specific intervention and would not have occurred under business as usual.
This means the voluntary offset cannot be issued for an action or activity that was going to happen anyway, something that is already required under existing regulation or incentivised by other policy measures.
Permanence
When Native CCUs are issued, the landholder agrees to maintain sequestration for 100 years from that date. This is a binding agreement and must be transferred on change of ownership.
We monitor this commitment ongoing, and if the forest is deliberately cleared, landholders are contractually responsible for replacing the offsets.
We hold back 10% of each offset distribution in a cross-project ‘buffer’ pool. This acts as insurance for all our landholders to access in the instance of any accidents that reverse the forest’s sequestration ability, such as storm damage.
This is consistent with best practices across the voluntary forest offset sector.
MfE Guidance
Reductions or removals must be maintained over time and be unlikely to be reversed. Any subsequent reversal of credited climate change mitigation must be fully compensated for.
Not being double-used
We maintain a register of all CCUs issued (and cancelled, where applicable), uniquely identifying the location and data of issuance. We then perform checks against the MfE LUCAS dataset, NZ ETS registrations, and major international voluntary project registers to confirm there is no overlap of issuances.
Double counting is a major risk in carbon offsetting globally. We think technology can help and are working on a process to streamline detecting this worldwide, and intend to make it openly available.
MfE Guidance
Organisations must ensure the GHG emission reductions or removals are only used once to achieve emissions reduction targets or for compliance.
Addressing leakage
Native CCU criteria significantly reduces the risk of leakage. We do not issue CCUs for avoided emissions or avoided deforestation. We only issue CCUs for areas where restoration isn’t likely to result in agricultural conversions elsewhere.
MfE Guidelines
The activity of reducing or removing emissions within the boundary of the offset activity does not result in increases to emissions elsewhere.
Certifiable
Native CCUs are not yet certified by a third-party
Application
When applied as carbon offsets, Native CCUs are tradable units of carbon sequestration from biodiverse native forest.
CarbonCrop Units are not interchangeable for NZUs and cannot be used to meet compliance obligations under the NZ ETS.
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