Green-e Climate Program
www.green-e.org/getcert_ghg.shtml
Overview
Additionality and Quantification Procedures
Overview
Type of Standard and Context
Green-e Climate is a certification program launched in 2008 for carbon offsets sold to consumers in the voluntary offset market. Green-e Climate was developed and is administered by the Center for Resource Solutions (CRS), a non-profit organization based in California. CRS was founded in 1997 to identify, promote and implement sustainable development solutions. In addition to Green-e Climate, CRS manages two other certification programs:
Green-e Energy is the leading US independent certification and verification program for RECs. This Green-e program is not discussed further in this report .
Green-e Marketplace is a program that allows companies to display the Green-e logo when they have purchased a qualifying amount of renewable energy and passed verification standards. This program is not discussed further in this report.
In addition, as part of the Green-e Climate program CRS developed the:
Green-e Climate Protocol for Renewable Energy, a component of the Green-e Climate Program, which determines the eligibility of renewable facilities in the United States to sell GHG offsets through Green-e Climate (for details, see Green-e Climate Protocol for Renewable Energy).
Green-e Climate has a slightly different focus and is complementary to all the other voluntary GHG offset standards described in this report. Green-e Climate is a certification and verification standard for retailers’ offset products. It ensures that retailers have actually purchased and retired the types of offsets that they have sold, that there is full disclosure of project information and that no false or misleading claims are made to customers. Green-e Climate endorses other existing GHG offset standards (see Recognition of Other Standards below). Sellers who seek Green-e Climate certification for their sales of offsets must source from projects that are certified by one of the endorsed Programs. Generally, retailers mix together offsets that originate from a variety of projects to create an end product that is sold to consumers. Green-e Climate certifies these retail products:
Use of the Green-e Climate logo requires an annual independent audit of the seller’s supply and sales to ensure that there is no double selling of reductions sold as offsets; and a twice-annual marketing compliance review to ensure customers were told what they were buying in the form of a detailed product content label, which specifies information about their offset, including the project type, which Endorsed Program certified the project, and the location of the project (Green-e, 2008).
Standard Authority and Administrative Bodies
Green-e Climate was developed and is administered by the CRS. The administrative structures of Green-e Climate are outlined below.
The Green-e Governance Board is an independent body with primary responsibility for oversight and policy setting for all Green-e Programs. The Green-e Governance Board is comprised of environmental organizations, consumer groups, public policy advocates, regulatory agencies and offset market experts. To avoid conflicts of interest, market actors do not have a vote but they are represented through a non-voting seat.
The Greenhouse Gas Subcommittee is a subcommittee of the Green-e Governance Board with primary responsibility for the independent oversight of Green-e Climate. It reviews stakeholder comments on proposed revisions to the Green-e Climate Program and provides input on such revisions to the Green-e Governance Board.
CRS collects comments from stakeholders when it is considering substantive changes to the Green-e Standards. The Stakeholder Committee is open to anyone and has traditionally included representatives from environmental organizations, consumer organizations, power marketers, renewable developers, GHG reduction project developers and marketers, regulators, energy and climate policy experts, and other interested parties.
The Green-e Climate Marketers Advisory Committee (CMAC) is composed of representatives of the program’s participant marketers. The CMAC makes suggestions to the Green-e Governance Board on program issues associated with the feasibility and practicality of various implementation options and details, and makes recommendations for changes that improve the effectiveness of Green-e Climate. The CMAC does not have a vote on the Green-e Governance Board.
Regional Scope
Green-e Climate has a US focus, but has endorsed several international standards (see below) and is open to certifying products sold anywhere.
Recognition of Other Standards/ Linkage with Other Trading Systems
Through the use of the Green-e Climate Program, the Green-e Governance Board endorses select offset standards to serve as eligible sources of supply for the Green-e Climate retail certification program. As of May May 2009, Green-e Climate has endorsed four GHG offset standards. For an updated list see Green-e Climate Endorsed Programs. The endorsed programs and any specific restrictions are set out below:
All Gold Standard VERs and CERs are eligible, with the following restrictions regarding hydropower production:
- Outside the US, only hydropower projects with a capacity under 10 MW are eligible.
- In the US only hydropower projects creating emission reductions from new generation capacity on a non-impoundment, or new generation capacity on an existing impoundment, that meet one or more of the following conditions are eligible:
- the hydropower facility is certified by the Low Impact Hydropower Institute;
- the facility is a run-of-the-river hydropower facility with a total rated nameplate capacity equal to or less than 5 MW. Multiple turbines will not be counted separately and cannot add up to more than a 5 MW nameplate capacity; and/or
- the hydropower facility consists of a turbine in a pipeline or a turbine in an irrigation canal.
- In the US and Canada, the Green-e Governance Board will consider on a case-by-case basis GHG emission reductions resulting from new incremental capacity on an existing dam, where the “new” output is equal to or less than 5 MW. Green-e Climate will not certify GHG emission reductions from new impoundments of water.
Voluntary Carbon Standard (VCS) 2007
All VCUs certified under VCS 2007 are eligible with the following exceptions:
- VCS Agriculture, Forestry and Other Land Use (AFOLU) projects are eligible as long as the seller provides proof that the native species requirements under the Green-e Climate Program are met.
- Projects that qualify as additional using the VCS “Test 2: Performance Test” are eligible if the applied performance standard explicitly lists the eligible technologies.
- Projects certified according to the previous version of the VCS that are grandfathered in under VCS 2007 are not eligible under Green-e Climate.
- For hydropower, the same rules listed above under the GS apply.
CERs are eligible with the following exceptions:
- Due to permanence issues, CDM land use, land-use chance and forestry projects are ineligible.
- No hydropower projects with a capacity over 10 MW are eligible.
Green-e Climate Protocol for Renewable Energy
All offsets certified under the Green-e Climate Protocol for Renewable Energy are eligible (see Green-e CPRE)
Market Size and Scope
Tradable Unit and Pricing Information
Green-e Climate program tradable units are VERs and CERs. Pricing will vary according to the type of project, the standard used and the quantities purchased.
Participants/Buyers
Carbon offset retailers in North America, but in the future offset retailers may be from any region.
Current Project Portfolio
As of May 2009, eight retailers are selling Green-e Climate Certified Products. For the most up to date list of retailers see Green-e Climate Certified Carbon Offsets.
Offset Project Eligibility
Project Types
Project type eligibility is defined by the endorsed standards and programs, with the restrictions outlined in the section Recognition of Other Standards (above). Nuclear power, large hydropower, bio-sequestration projects that do not address prevention or reversibility or non-permanence, and bio-sequestration projects using non-native species are ineligible.
Project Locations
Project location restrictions, as defined by the endorsed standards and programs, apply; there are no additional Green-e Climate limitations.
Project Size
As defined by the endorsed standards, large hydro power projects are ineligible.
Start Date
GHG emission reductions are only eligible if they are from projects that became operational on or after January 1, 2000 and if they meet the timing requirements of the endorsed programs. Exceptions might be approved if project additionality can be clearly established for projects with earlier start dates.
Crediting Period
The following crediting periods are acceptable for endorsed programs:
- up to 15 years; or,
- 10 years with the option of one renewal; or,
- seven years with the option of two renewals.
- Biological carbon sequestration or conservation projects may permit crediting periods of up to 50 years or the lifetime of the project management plan, whichever is shorter.
Exceptions can be approved if clear justification is provided for crediting period requirements that vary from these guidelines.
Co-benefit Objectives and Requirements
Green-e Climate does not generally require additional co-benefits beyond those which are required by the endorsed standards. One exception is the requirement for bio-sequestration projects to use native species.
Additionality and Quantification Procedures
Additionality Requirements
The endorsed standards must require that all their projects pass a legal, regulatory or institutional test, as well as a timing test (see Green-e CPRE). In addition, all projects must pass one of the following additionality tests:
- Common Practice Test and Financial Test (both required); or
- Common Practice Test and Barriers Test (both required); or
- Technology Test and Performance Test (both required).
Quantification Protocols
Not specified.
Project Approval Process
Validation and Registration
Retailers
To use the Green-e Climate logo, a seller of Green-e Climate certified emission reductions must agree to undergo twice yearly marketing compliance review by CRS and an annual independent verification audit. If a seller is found to be out of compliance, the seller will either have to revise its marketing materials to meet the requirements within 30 days of receiving notice from CRS, or immediately desist using the Green-e Climate logo or making reference to Green-e Climate in any of its marketing materials for this product.
There are two product types eligible for certification under Green-e Climate. A Fixed Mix Product has the same combination and proportion of GHG emission reductions from project type(s), location(s) and endorsed programs/standards (e.g. 45% Gold Standard energy efficiency from India, 55% VCS renewable energy from the US) for all customers. Customized Mix Products allow the customer to choose a unique combination and proportion of GHG emission reductions from a specified list of project type(s), location(s) and endorsed program(s).
Endorsed Programs and Standards
The Green-e Governance Board evaluates and approves GHG Offset Programs and Standards that seek to be endorsed under the Green-e Climate Program based on stakeholder feedback. GHG offset programs and standards cannot be endorsed without stakeholders having had the opportunity to comment.
Program requirements and procedures consist of:
- procedural and technical standards for the validation, monitoring and verification of GHG emission reduction projects;
- contractual standards for information disclosure and avoidance of double issuance and double counting of GHG emission reductions; and
- accounting standards that specify consistent methods for estimating baseline emissions, accounting for emission leakage and establishing project additionality.
All projects except small-scale projects require an initial validation.
Monitoring, Verification and Certification
Retailers
The verification protocol requires sellers offering a Green-e Climate certified product to demonstrate through the use of company contracts, invoices, reports from endorsed standards, reports from registries and billing statements that:
- the seller retired or transferred to customers GHG emission reductions in quantity and type sufficient to meet customer sales for each specific product;
- the GHG emission reductions came from eligible GHG emission reduction projects, certified by an endorsed program;
- the information provided to customers on the product content label is accurate; and
- by attestation, the seller has no knowledge of double counting, double selling or double claiming of the GHG emission reductions used to supply the certified product.
Endorsed Programs and Standards
All projects, except for small-scale projects, require an on-site verification of GHG emission reductions. On-site verification must subsequently occur every five to seven years, at a minimum.
Endorsed programs must either certify the verified GHG emission reductions based on a review and the approval of these verification reports, or require certification of the verified GHG emission reductions from an independent third-party auditor. The auditors have to be accredited either by the International Organization for Standards (ISO) standard 14065; the United Nations Framework Convention on Climate Change (UNFCCC); a national, state or provincial governmental accreditation program; or, with the approval of the Green-e Governance Board, broadly accepted professional accreditation programs.
Registries and Fees
All endorsed programs and standards must have registries in place to prevent double counting, double issuance and double selling, and to ensure that GHG emission reductions are not registered more than once.
The annual base fee for Green-e Climate certification is USD 6,000 per year. Carbon retailers also pay a fee based on aggregate metric ton volumes of Green-e Climate sales. Such fees range from USD 9,000 per year for 100,000 metric tons to USD 24,000 and up for upwards of 1M metric tons.
Protocol for Renewable Energy
If the carbon retailer uses the Green-e Climate Protocol for Renewable Energy as an endorsed program, there is a single annual USD 3,000 certification fee in addition to the base and volumetric fees.
Endorsed Program Fee
The fee for each additional endorsed program certification is USD 2,000 per year. For a seller using one endorsed program for verification (as long as that endorsed program is not the Protocol for Renewable Energy), there is no additional endorsed program fee. For a seller using the Green-e CPRE and an additional endorsed program, the total fee is USD 9,000 in addition to any volumetric fees. For a seller using the VCS and the Gold Standard, the fee is USD 8,000 in addition to any volumetric fees.
Selected Issues
The Green-e Climate Program is the first program to address retailer accountability for the voluntary market and fills an important niche for quality assurance.
References
Green-e (2008). Climate Standard Version 1.1. Green-e Climate Program.
Green-e (2008). Green-e Climate Overview.