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25. 11. 202417:52
ETS. ETS2. Carbon credits

Model project for carbon credits

Based on the EU regulation on the certification of carbon removal, I bring you the outline of a sample project for carbon credits. This sample project takes into account all the requirements of the Carbon Removal Certification Framework (CRCF/2024) and contains hypothetical values that illustrate the quantifiable benefits of the project.

1. Identification and description of the project

  • Type of activity:
    • Temporary carbon removal from carbon agriculture a reduction of emissions from land. A peatland restoration project includes both of these categories, as restoration leads to carbon sequestration in biomass (temporary removal) and at the same time to reduced emissions from degraded peatlands (reduction of emissions from soil).
  • Description of procedures and processes:
    • The project includes the removal of invasive plant species, such as common reed and sea buckthorn willow.
    • Restoration of water courses will be implemented through damming drainage channels and building small water reservoirs, which will increase the groundwater level and restore the water regime of the peatland.
    • Protective measures will include fencing of restored areas to prevent the entry of farm animals and building information boards to increase public awareness of the importance of peatlands.
    • The activity time is scheduled for 10 years and subsequent monitoring will take place for 20 years, which ensures long-term monitoring of carbon storage and early identification of potential leakage risks.
  • Identification of carbon sources and sinks:
    • Source: Atmospheric CO₂.
    • Pitfall: Organic soil and bog vegetation, while it is assumed that carbon storage will take at least 50 years.
  • Geographical location:
    • Cadastral territory of Oravská Lesná village, plot no. 1501/5 and 1502/3, with the exact boundaries of the project marked on the attached on a map basis in a scale of 1:5000.
  • Identification of the operator/group of operators:
    • The main operator of the project is Civic association Zelené rašeliniská, the contact person is Ing. Jana Vzorná, email: jana.vzorná@zeleneraseliniska.sk.
    • They are also involved in the project land owners, with which OZ Zelené rašeliniská concluded a cooperation agreement.
    • All the actors involved create group of operators responsible for project implementation and monitoring.

2. Quantification and verification

  • Baseline calculation:
    • Current emissions from degraded peatlands are set at 20 tons of CO₂ per year per hectare based on measurements and analyses Institute of Forest Ecology SAV.
    • This value takes into account average CO₂ emissions from comparable degraded peatlands in the region and was determined in accordance with the IPCC methodology.
  • Quantification of total emission reductions/carbon removals:
    • After the restoration of peatlands, emissions are expected to decrease to 5 tons of CO₂ per year per hectare.
    • This reduction will be achieved through renewed water regime, decomposition of organic matter and growth of bog vegetation, which act as a CO₂ trap.
    • Total savings in emissions for 10 years of activity it is calculated as follows: (20 t/ha – 5 t/ha) × 500 ha × 10 years = 75,000 tons of CO₂.
  • Calculation of emissions associated with the project (GHGassociated):
    • CO₂ emissions associated with the implementation of the project are estimated at 2,500 tons of CO₂ for the entire implementation period.
    • This value includes emissions from of transport, uses machines and materials in the restoration of peatlands, as well as emissions associated with production and disposal of protective measures.
  • Consideration of uncertainties:
    • Quantification of CO₂ emissions and sinks was performed using conservative approach and takes into account uncertainty ±10 %.
    • This uncertainty was determined based on the analysis of input data variability and methodological uncertainties in calculations.
  • Verification by an independent certification body:
    • He will ensure the certification of the project certification company TÜV SÜD, which is accredited by the Slovak National Accreditation Service (SNAS) in accordance with the EU regulation.
    • SNAS is a member of the European Organization for Accreditation (EA), which guarantees that the certification will meet the requirements of the regulation.
    • Verification will include inspection all aspects of the project, including quantification of CO₂ emissions and sinks, additionality, sustainability and monitoring mechanisms.

3. Redundancy and sustainability

  • Demonstration of additionality:
    • Peatland restoration project it goes beyond current agricultural practice in the region, which is characterized by intensive drainage and use of bogs for agricultural purposes.
    • Restoration of bogs it is not legally binding, though Act on the Protection of Nature and Landscape it imposes an obligation to protect bogs as valuable biotopes, it does not define concrete measures for their restoration.
  • Ensuring long-term carbon storage:
    • They will be introduced as part of the project measures to protect restored peatlands from drainage and mechanical damage, such as construction of protective zones around bogs and regulation of the water regime.
    • To ensure the long-term sustainability of the project, it will be created maintenance and inspection fund in height EUR 100,000, which will be used to finance regular inspections and maintenance of protective measures.
    • The project defines monitoring period of 50 years, during which it will regularly monitored carbon storage in the peatland.
  • Accountability mechanisms:
    • He assumes responsibility for any CO₂ leakage from the peatlands OZ Green bogs as the main operator of the project.
    • In the event of CO₂ leakage, OZ will be obliged to implement corrective measures, such as for example addition of peat material, restoration of the water regime or afforestation of affected areas.
    • Financing of corrective measures will be provided from the fund for maintenance and control, or from other sources, for example from insurance against CO₂ leakage.
  • Meeting sustainability requirements:
    • In addition to reducing CO₂ emissions, the peatland restoration project will also positive impact on biodiversity region, because bogs are home to many rare and endangered species of plants and animals.
    • The project will also contribute to improvement of water quality in the region because peatlands act as natural filters that retain pollutants.
    • Implementation of the project will create jobs for 20 people on a part-time basis throughout the duration of the project, which will contribute to the development of the local economy.

4. Certification and registration

  • Choosing a certification scheme:
    • The project will be certified according to the scheme Verra Carbon Standard.
    • Although sources cite Verra as a proven standard, it is necessary independently verify, whether this scheme meets all the requirements of the EU Carbon Removal Certification Regulation.
  • Obtaining a certificate of conformity:
    • Project certification is planned until June 2025 after the completion of basic peatland restoration activities.
    • To obtain a certificate of conformity it will be necessary submit complete documentation to the certification body (TÜV SÜD). about the project, including the project plan, monitoring plan, calculations of CO₂ emissions and sinks, additionality and sustainability analysis and other relevant documents.
  • Project registration and issuance of carbon credits:
    • After obtaining the certificate of conformity, the project will be registered in CRCF unified register.
    • Based on verified data on the reduction of CO₂ emissions, they will carbon credits issued in total volume 72,500 tons of CO₂ (after deducting the emissions associated with the implementation of the project).
    • Registration in the CRCF and issuance of carbon credits is expected until the end of 2025.
    • They will be in the registry published information about the project, including the name of the project, identification data of the operator, location of the project, type of activity, verified reduction of CO₂ emissions, number of issued carbon credits and other relevant data.

Expected benefits of the project

  • Environmental:
    • Reduction of CO₂ emissions by 72,500 tons.
    • Support of biodiversity and protection of endangered species.
    • Improving water quality in the region.
  • Social:
    • Creation of jobs for 20 people on a part-time basis.
  • Economical:
    • Expected revenues from the sale of carbon credits at an estimated price of €15 per credit: 72,500 credits × €15/credit = EUR 1,087,500.
    • This value is hypothetical and depends on of the current market price of carbon credits.

Risks and their mitigation strategies

  • Risk of CO₂ leakage:
    • Mitigation: Introduction of protective measures, creation of a fund for maintenance and control, insurance against CO₂ leakage, development of a corrective action plan.
  • Risk of changes in legislation:
    • Mitigation: Regular monitoring of changes in legislation, consultations with legal experts, adjustment of the project in accordance with new requirements.
  • Risk of insufficient demand for carbon credits:
    • Mitigation: Diversification of sales channels, building partnerships with potential buyers, monitoring market trends.

Added model project for carbon credits provides a more comprehensive overview of the peatland restoration project and takes into account relevant requirements of the EU regulation on certification of carbon removal.

It is important to emphasize that some information in the project is hypothetical and theirs the final form will depend on the details of the implementation and verification of the project.