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Options for addressing the risk of non-permanence for land-based mitigation in carbon crediting programmes

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Other publication

Options for addressing the risk of non-permanence for land-based mitigation in carbon crediting programmes

SEI senior scientist Derik Broekhoff informed this publication from the Food and Agriculture Organization of the United Nations discussing the mitigation of reversal risks in carbon crediting programmes.

Derik Broekhoff / Published on 1 January 2024

Citation

Schneider, L., Broekhoff, D., Haase, I. and Neeff, T. (2024). Options for Addressing the Risk of Non-Permanence for Land-Based Mitigation in Carbon Crediting Programmes. FAO. DOI:10.4060/cd3083en.

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Carbon crediting programmes are a method to incentivize reductions in greenhouse gas emissions. These programmes issue tradable credits equivalent to each tonne of carbon dioxide removed from the atmosphere. However, not every carbon reduction method is equal, and certain methods may rerelease carbon into the atmosphere much faster than others due to natural and human disturbances. This is known as non-permanence, or reversal risk. If non-permanence is left unaccounted for, carbon crediting programmes may not accurately reflect reduced emissions, contributing to greenwashing and lessening the impact of these programmes.

This UN publication recommends three ways to design carbon crediting programmes to avoid reversal risks:

  • dynamic carbon crediting that includes monitoring for reversals,
  • setting expiry dates for carbon credits, and
  • issuing credits only for a fraction of the reduced emissions.

Additionally, the UN also recommends host countries of carbon crediting programmes to carefully assess emissions in their regions. This will ensure contributions to the Paris Agreement are properly captured.

SEI author

Derik Broekhoff

Senior Scientist

SEI US

Topics and subtopics
Economy : Bioeconomy / Climate : Climate policy
Related centres
SEI US