American Carbon Registry
www.americancarbonregistry.org
Overview
Additionality and Quantification Procedures
Overview
Type of Standard and Context
The American Carbon Registry (ACR) was founded in 1997 as the GHG Registry, the first private voluntary GHG registry, by the environmental non-profit Environmental Resources Trust (ERT). In 2007, ERT and its registry became part of Winrock International, a non-profit based in the US. The registry was relaunched as American Carbon Registry (ACR) in 2008 ACR has published its American Carbon Registry Technical Standard 2009 v.1.0, in July 2009 which outlines the eligibility requirements for registration of project-based carbon offsets. The American Carbon Registry Standard, will incorporate the information of the ACR Technical Standard and will also include requirements for methodology validation and verification and other procedural requirements and information on general use of the American Carbon Registry. The ACR Standard is currently in the process of publication.
Standard Authority and Administrative Bodies
The Director of ACR has ultimate decision-making power for ACR-related decisions. Technical decisions are made by lead team member experts in the subject matter.
ACR’s standard and protocols are developed by staff of ACR’s parent organization Winrock International, and by external consultants with specialized expertise not available internally. To date, standards have been a synthesis of project monitoring and verification protocols that have been written or vetted by ERT. Standards undergo internal and external peer review. Winrock has partnered nationally and internationally with leading environmental NGOs, to develop its standard and protocols. Current and previous NGO partners include The Nature Conservancy, Wildlife Conservation Society, Conservation International, World Wildlife Fund, American Land Conservancy and Environmental Defense Fund.
ACR approved verifiers can currently be chosen from a list on ACRs website or from verifiers who are approved under CDM, JI, VCS and CAR. Beginning in October 2010, the Registry will require that all verifiers be ANSI certified.
Regional Scope
ACR registers project-based carbon offsets from around the globe.
Recognition of Other Standards/ Linkage with Other Trading Systems
The American Carbon Registry methodologies and protocols are all based on International Standards Organization (ISO) 14064.
ACR allows project developers to use methodologies and tools for GHG measurement from the Clean Development Mechanism (CDM), EPA Climate Leaders, and Voluntary Carbon Standard (VCS) and WRI/ WBCSD GHG Protocol to the extent that they comply with the Registry’s published standards.
Market Size and Scope
Tradable Unit and Pricing Information
To date, ACR is the largest voluntary carbon market registry in terms of tradable project-based carbon offset tons. ACR has issued over 30 million project based carbon offsets since 1997, and in 2008 was the most widely used voluntary carbon market registry in the world.
The American Carbon Registry holds serialized offsets called Emission Reduction Tons (ERTs). One ‘ERT’ represents the reduction or removal from the atmosphere equivalent to one metric ton of carbon dioxide.
Participants/Buyers
The main buyers of ERTs include corporate pre-compliance buyers, hedge funds, carbon retailers and non-profit organizations.
Current Project Portfolio
As of July 2009, 22 projects were listed on the ACR website: http://www.americancarbonregistry.org/carbon-registry/projects
Offset Project Eligibility
Project Types
ACT does not explicitly exclude any project types. All projects that meet the ACR Technical Standard are eligible for registration.
Current registered project types:
Afforestation / Reforestation (in registration pipeline)
Carbon Capture & Storage
Fuel Switching
Industrial Gas
Landfill Gas
Livestock Waste Management
Renewable Energy
Transport
Project Size
No limitations for project size except for developing country indirect emissions from renewable energy projects , which have a limit of 100 MW.
Project Locations
There are no restrictions on project location.
Current registered projects are located in the US, Bolivia, Nicaragua and El Salvador.
Start Date
The American Carbon Registry requires all project types, with the exception of forest projects, to have a start date that is no earlier than 01 January 2000. Forest and land-use-change projects with a start date of 01 November 1997 or later are eligible for ACR registration. Forest and land-use-change projects with an earlier start date will be evaluated on a case-by-case basis.
Crediting Period
ACR non-forest projects have a crediting period of ten (10)years with opportunities for renewal. When the crediting period is over, project developers must re-verifying the project, or cease to generate offsets from that project for ACR registration.
There are no restrictions on renewal as long as the project is verified to meet eligibility requirements.
ACR requires afforestation / reforestation projects to have a crediting period of thirty-five (35) years or less, with opportunities for renewal. Improved Forest Management (IFM) and REDD projects to have a crediting period of ten (10) years or less, with opportunities for renewal. There are no restrictions on renewal as long as the project is verified to meet eligibility requirements.
Co-benefit Objectives and Requirements
Co-benefits are not required, but are desirable. Additional certifications such as CCB Standards can be used with ACR standards.
Additionality and Quantification Procedures
Additionality Requirements
All projects must have a clear project action that is different from what likely would have happened in the absence of the project. ACR requires every project to pass either an approved performance standard and a regulatory additionality test or a three-pronged test of additionality in which the project must:
1) exceed regulatory / legal requirements;
2) go beyond common practice; and
3) overcome one of three implementation barriers: institutional, financial or technical.
Quantification Protocols
ACR allows the use of specific protocols from the CDM, U.S. EPA Climate Leaders, and the VCS for calculating and updating baselines.
ACR also develops its own project protocols. ACR has published a forest carbon project standard, project-specific protocols for landfill methane, livestock waste management (biodigester) and industrial gas substitution and has several others sector standards and protocols in various stages of development.
If no protocol exists for a particular offset project type, the project developer may submit a proposed methodology to ACR for validation. ACR evaluates the methodology through a scientific peer review process. The developer may also work directly with the ACR to design a new methodology, which is also evaluated through a scientific peer review.
ACR requires that all LULUCF projects calculate the baseline at the project start. Reforestation baselines are valid for the life of the project. REDD baselines are valid for up to ten years.
Project Approval Process
Validation and Registration
The steps to submit a project for offset registration are:
- Carbon offset project proponent submits PDD for review to determine eligibility .
- If project passes eligibility screening, it is ready for independent verification from an American Carbon Registry approved verifier
- Once verified, the Registry issues and registers “ERTs”.
Leakage
Project developers are required to follow guidelines in the approved methodology. ACR requires project developers to assess, account for, and mitigate leakage, and provide documentation to support mitigation assertions. Project developers must deduct all leakage that reduces the GHG emissions reduction and/or removal benefit of the project. ACR assesses leakage on a case-by-case basis.
Permanence
ACR requires projects to address the risk of reversal by use of one of the following:
- an approved insurance product to guarantee offsets;
- dedication of offsets to a buffer pool;
- access to a secure source of replacement offsets.
Monitoring, Verification and Certification
ACR requires third party verification with an ACR approved verifier. Methodologies must be validated to be approved for use. Verification is project-specific against an approved (validated) methodology.
Registries and Fees
In spring 2009 ACR announced a partnership with Markit Environmental Registry. Markit will provide an online registry infrastructure to the ACR. The registry is planned to go live in August2009.
Fees
Transaction fees depend on the type of transaction and vary between US$0.05 – US$0.12 per ERT transacted.
Selected Issues
With over a decade of operational experience in carbon offset issuance, serialization and transparent on-line transaction reporting, ERT/ACR is a pioneer in creating a transparent system for carbon trading. ACR methodologies and standards are developed by long-term experts in the field: Winrock staff have authored and co-authored carbon protocols and methodology manuals and guidelines for a wide range of organizations including U.S. Environmental Protection Agency, U.S. Department of Agriculture, USDA Forest Service, U.S. Agency for International Development, World Bank, International Tropical Timber Organization, United Nations programs, Intergovernmental Panel on Climate Change, Electric Power Research Institute) and Climate, Community and Biodiversity Alliance.
Transparency
ACR requires that all accounts be public. Other registry systems allow for (and many account holders opt for) private accounts that are not viewable by the public.
Separation of Verification and Approval of Projects
ACR staff reviews each project before and after verification to ensure it meets ACR Standards and reserve the right to reject any project, even if it has been verified.
Co-Benefits
ACR does not focus on enhancing co-benefits. An exception to this is its forestry standard, which requires assessment of social and ecological effects and efforts to mitigate of negative effects. ACR could potentially be used in conjunction with a co-benefit standard such as Social Carbon or CCB Standards to ensure that a project delivers additional sustainability benefits.