Monitoring, reporting and verifying carbon removal

Creating frameworks for scale

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foreword

In June 2024 during London Climate Action Week, Isometric hosted a two-day workshop on the future of monitoring, reporting and verification (MRV) in carbon dioxide removal (CDR).

Over two days, more than 100 attendees from across industry, policy and the scientific community discussed and debated the most pressing problems in MRV.​

All CDR pathways share one fundamental challenge: how to best apply MRV practices to increase high-quality supply, generate greater demand and scale the carbon removal industry.

This paper distills hours of discussions centered around answering that question. Participants shared their views on best practices in MRV and the conditions needed to ensure carbon removal credits are properly verified.

Nine key principles emerged from the discourse between the industry’s leading buyers, suppliers and scientists. This paper sets out those principles of rigorous MRV. Isometric remains committed to supporting the implementation of these principles in order to help achieve our mission—to scale carbon removal responsibly and fast. We encourage readers to do the same.

Buyers just want to buy, but we can’t…because we have to worry about everything else.

We shouldn’t have to bear the burden that the supplier didn’t do what they said they would do.

If buyers have to bear this risk, most will just stay out of the market…(Ideal MRV) is embedded in the fabric of everything that is bought and sold.

It is the product—fundamentally the thing that buyers are buying. It’s not a ‘nice to have’.”

—  a North American buyer
Principle 1

Standardization is needed in CDR

A lack of agreed definitions for CDR terms and concepts creates confusion across the ecosystem.

For buyers, the lack of standardization creates risk and uncertainty, which suppresses demand. Buyers are forced to navigate complex concepts without knowing how their work will be understood by the public. Procurement cycles and contracts are inefficient as basic terms get redefined for each CDR purchase. Comparing different projects and making purchasing decisions is difficult as pathways and technologies do not have universal definitions.

Beyond hindering demand, a lack of standardization is also a drag on scientific development. Terms like system boundaries, additionality, durability, uncertainty levels and more are debated ad nauseum and regularly (re)defined in new research papers.

Although perfect standardization and taxonomy is unlikely, the CDR industry should create and agree on a clearly defined set of terms. This will significantly accelerate the science of CDR and faster commercialization, reducing the inefficiencies created by disparate terminology.

“There’s a lack of alignment on definitions and how things are measured… We don’t want terms to get bastardized in the way that Carbon Neutral & Net Zero got bastardized”

—  a buyer from North America
Principle 2

Governments should define minimum quality for CDR

Governments should create national definitions of quality for CDR.

Defining what constitutes sufficiently high quality in a carbon removal credit (“credit”) will go a long way to pulling the market forward. This is a well-established role for regulators around the world in other important sectors of the economy. 

Today, in the absence of regulation, definitions of quality need to be agreed in every contract and agreement for the sale of CDR. The creation of government-backed standards will help streamline transactions, creating efficiency in the market and allowing buyers to have trust and confidence in their purchases.  

Crucially, legislated quality standards for credits can raise the bar for rigorous MRV across the whole market so that buyers of credits can be confident that what they are buying represents genuine climate impact. 

A range of approaches to regulating CDR are now underway. Some governments are directly writing methodologies for what constitutes high quality CDR. Other jurisdictions are creating national procurement programs for CDR—which will create implicit quality standards. Whichever approach governments do take, consistency between national standards will be critical to achieving scale.

Such standards must cover 7 key topics.

  1. Durability

    Defining how long carbon removal activity must sequester carbon dioxide from the atmosphere. For example, the European Union’s Carbon Removal Certification Framework (CRCF) has set a minimum durability threshold for CDR of 200 years.

    See the programs:
  2. Additionality

    Defining what criteria must be consider when evaluating whether a project would have occurred without revenue from the sale of credits.
  3. Uncertainty

    Defining how to conservatively incorporate uncertainty parameters into crediting decisions.
  4. Reversals

    Defining how to deal with risks of reversals, including where liability sits and how buffer pools (or insurance products) should be used.
  5. System boundaries

    Defining what emissions should be taken into account in the creation of boundaries and net carbon removal calculations.
  6. Statistical significance

    Defining minimum expectations for statistical significance across different pathways (and how suppliers should implement such expectations).
  7. Accuracy guidelines

    MRV should require guiding principles for when precise measurements must be utilized and in what circumstances modeling an accurate range of outcomes is acceptable.

Government-backed standards must be both robust and sufficiently high-level to be future proofed as science and technology evolves. There is an important role for independent registries to play in implementing such standards through more detailed protocols that suppliers then follow in their carbon removal processes (and which can be updated regularly as the state-of-the-art in technology and science evolves).

“Governments can help us get past the place where it feels like every transaction is bespoke”
—  a North American buyer
It is “especially important to set a quality bar if governments are thinking about incorporating CDR into climate targets."
—  a North American buyer
“I would like to see harmonized governmental structures. Everyone in the room is a global organization - [dealing with] 193 jurisdictions would be a challenge”
—  a North American buyer

“My analogy is the financial system, where the US GAAP is used (as a standard) by the government and firms do accounting in accordance with these.

This is kind of like MRV… the bar should be set [at that level]”

—  a global supplier
Principle 3

Guidelines are needed for use cases

Today buyers of carbon removal in the voluntary carbon market have to do their own due diligence on how to use a credit, even when they are working with high quality MRV partners. 

The lack of guidelines for use cases, when combined with a lack of minimum quality standards, allow poor MRV to exist and holds back demand. Buyers should not have to take the risk of acting without clarity of how they can use a carbon credit—and many companies do not. This approach will not scale.

Many potential buyers expect they will soon be required to make carbon credit purchases. Potential buyers that expect to face such compliance requirements are seeking to learn about carbon markets and action around credit quality and use cases is crucial to bringing forward this type of latent demand.

Governments or industry should take three key steps to address this ambiguity:

  1. Create use case guidelines so buyers are clear how they are able to use their credits. Today there is no binding guidance on how to use carbon credits for “compensatory claims” (i.e., when corporations wish to counterbalance their residual emissions footprint with carbon credits).
  2. Deliver clear ground rules for market participants including provisions for risk, liability and non delivery. Such guidance must clarify who holds risk and how it is managed (whether that be via warranties, buffer pools, insurance or something else entirely).
  3. Set a standard for fungibility so buyers and suppliers can address how to value, compare and use different types of credits.

“The end state will not be a universal global standard. That’s very unlikely.

We need an MRV system that can deliver evidence on the practice of removal rather than solely for compensatory claim(s)...We don’t want to repeat the challenges of the previous market.”

—  a North American buyer
Principle 4

MRV protocols must be both scientifically rigorous and flexible

The ultimate goal of MRV in carbon removal is to ensure that every credit is equal to one tonne of carbon dioxide removed from the atmosphere.

MRV protocols must be rigorous enough to prove that this goal has been met.

Those same protocols must also be flexible enough to incorporate key scientific advancements and new evidence that emerges from the deployment of projects. This is especially true in CDR where most suppliers are doing cutting edge science that will continue to advance the field.

Striking the right balance between scientific rigor and flexibility should be informed by three parameters:

  1. Defining uncertainty bounds and acceptable error margins so that future versions of protocols can incorporate lessons from deployment. Examples of real world applications that inform uncertainty boundaries include counterfactual storage estimates, replacement emissions accounting and adjustments for specific geographies.
  2. Ensuring registries have business models designed to maximize scientific rigor, transparency and aligned incentives. 
  3. Establishing transitional periods so that protocols can account for what MRV is possible today and how MRV will be able to evolve in the future.
“From a buyer’s perspective, a lot of the burden of failure falls on us (today). MRV is a be all, end all, but I want to add something that indicates its a journey and there will be changes.”
—  a sustainability leader at a multinational aviation company
Principle 5

Registry selection is crucial: suppliers need more information to decide

There are many early stage CDR suppliers that are preparing for their first deployments but haven’t yet had time or budget to think about MRV in a meaningful way.

Selecting a registry is a critical decision for them with long-lasting implications.

Many suppliers at this stage need more information and support to make a well informed choice. Registries have an important role to play in ensuring that their protocols and processes are transparent and easily accessible so that suppliers can properly consider MRV requirements to which they are signing up.

  1. How does a registry balance scientific rigor and operational feasibility
  2. How quickly can they onboard suppliers, conduct MRV and issue credits
  3. How do they support suppliers ramping from pilot stages to full commercialization
  4. How do they approach protocol development when there are not yet any applicable MRV protocols written
  5. What are the costs of compliance with MRV and how do they share data and develop technology to bring cost down over time (while still maintaining scientific rigor) 

“Picking a protocol and registry to work with will impact your company’s cost structure, operations, hiring practices, and more.

They are the rules that govern the entire company and they shape every team within the company”

—   a North American buyer
Principle 6

MRV requires effective collaboration and transparent results

The science of CDR is being done in a far larger set of organizations than ever before: universities, government, not for profit organizations and the private sector. When collaboration between these different institutions works well, it is incredibly effective at advancing CDR science.

Existing government programs and structures that support this type of institutional collaboration should be continued. To continue to be effective, the results of research and data must be proactively shared amongst all ecosystem participants—as much as possible—so that the field collectively continues to improve. 

This means:

  1. Aggregating data

    Building systems that synthesize data from multiple sources in a way that creates clarity about uncertainty levels in different pathways.
  2. Extensive, shared baselining

    To support the whole ecosystem in driving towards greater scientific understanding.
  3. Auditability

    That gives buyers confidence, especially in open systems pathways.
  4. Expanding open source models

    MRV for many pathways is highly model based. Investment in data gathering that can be shared will drive improved outcomes for all in the form of more validated models and clearer guidance and norms on when their use is justified. This means ensuring that data feeds into public, not private, models as much as is feasible.

Effective collaboration in the form of data sharing will enable greater clarity of operational expectations for suppliers, build social license to operate (if data is shared properly with the public) and advance MRV by creating greater clarity on key decisions such as when reliance can be placed more heavily on modeling outcomes versus direct measurements.

“National labs get the money (federal funding), but they have to have a company/partner to work with.”
—  a North American CDR scientist and policymaker
“There’s a real risk here that companies make their models totally proprietary and suppliers start to diverge in the results they are producing.”
—  a climate VC

“Data transparency is key to advancing the field. What is key is that there is a platform to share data that’s useful for people. A data dump is meaningless unless it’s accessible”.

—  a scientist at a North American CDR supplier
Principle 7

MRV must account for pathway specific challenges

All CDR MRV aims to ensure that a credit equals a tonne of carbon removed from the atmosphere. In each pathway this requires finding the right balance between feasibility and scientific rigor. This is especially true in open systems where direct measurement must be balanced with the use of well-established models.

All CDR pathways have specific challenges and unique MRV principles that define high quality in their pathway. Important aspects that registries must consider in a protocol for each pathway include:

Biomass Carbon Removal & Storage (BiCRS)

  • Rigorous accounting of waste biomass feedstock to avoid direct or indirect market leakage
  • Robust rules for conservatively baselining storage counterfactuals (i.e., the quantification of carbon dioxide storage that would have taken place without the project)

Direct Air Capture (DAC)

  • Carbon storage must be aligned with regulations for geological storage
  • Handling of all embodied emissions, either through allocation at the start of a project or distribution over a project’s operational lifespan
  • Accurate accounting for energy emissions, especially grid-based emissions

Enhanced Weathering (EW)

  • Prescriptive, empirical in-field measurements to account for field heterogeneity, time accounting and downstream riverine losses

Ocean Alkalinity Enhancement (OAE)

  • Direct measurements of initial outflows related to a project
  • Well established risk mitigation framework (for reversal risks) and environmental monitoring parameters

Biogenic Carbon Capture and Sequestration (BCCS)

  • Detailed, robust requirements for sustainably sourcing biomass to avoid deforestation or land use changes that would create further emissions

Biochar

  • An approach to decay rate that accounts for the chemical makeup of the biochar and environmental factors
  • A conservative approach to crediting, with only the durable portion of the organic carbon content in the biochar being eligible for the generation of credits
  • Project-specific measurements and assessments of durability, sustainable biomass sourcing criteria and environmental safeguarding information

Electrolytic Seawater Mineralization (ESM)

  • Direct measurement of the inputs and outputs of the ESM system
  • Direct measurements throughout the ESM system to validate each step of the process
  • Reconciliation calculations to establish confidence in these measurements 

Subsurface Biomass

  • Characterizing the minimum detection limit of testing to conservatively estimate carbon storage
  • Rigorous requirements for ensuring storage sites are protected and undisturbed
  • Sustainably sourcing biomass
Principle 8

Public support requires understanding co-benefits

Scientifically rigorous, transparent MRV is critical to countering a broad public perception that carbon credits are used for greenwashing.

As MRV becomes more rigorous and transparent, public perception should change but the industry must proactively tackle this challenge. One clear way to do that is by the creation of evaluation frameworks for co-benefits.

Today most co-benefits are not accounted for in crediting a project or evaluating a purchase of carbon removal, but they can be critical to ensuring a project’s social license to operate and ultimately scale. As such, they need to be uniformly considered to ensure communities understand and benefit from the carbon removal happening in their backyards. Suppliers need guidelines from governments or industry for how to engage with communities and a defined role for co-benefits in crediting.

Guidelines for accounting for community benefits will go a long way to addressing concerns, helping the public understand the advantages of CDR and how it can be deployed safely and effectively for the benefit of all. 

“As we scale up, these technologies & approaches are not in everyone’s back yards, but they will be. So we need to think about community benefits plans.

It’s important to go early, understand what a community cares about, and be inclusive of their interests. We need to encourage technology providers to consider all community interests & needs. (We have to) think of co-benefits and measure them.”

—  a scientist
Principle 9

Registries must innovate to ensure MRV keeps pace

MRV is critical to ensuring CDR has positive climate impact. It also introduces cost and complexity for suppliers and buyers.

If the way MRV is conducted does not improve over time, it will act as a drag on the market and prevent scaling of the CDR industry. That is why registries must develop technological solutions that can speed up the MRV process, and ultimately make credit issuance a process that takes weeks, not years.

There are three key things that must happen to speed up MRV and enable it to scale with the wider CDR industry. 

First, registries must improve their technology to make MRV more digital. Today verification is slow and manual. In traditional registry processes, projects only get verified and issue credits once a year—and sometimes even less. Up to five years is not uncommon for nature based solutions (NBS). If MRV cycles remain this slow in CDR, the industry will never reach gigatonne scale. Far too much revenue would be locked away from suppliers for long time spans—preventing reinvestment into, and improvement of, their operations.

Second, supply chain and sensor data must be standardized so data ingestion, validation and analysis can be automated. This would improve accuracy, accessibility, and ultimately the speed and quality of verification. Additionally, making protocols more prescriptive and digitally accessible will help verification and validation bodies (VVBs) move faster, more easily and with fewer mistakes. 

Finally, the entire CDR ecosystem needs to focus on capacity building. MRV—and the whole industry—requires more climate scientists, engineers, and VVBs, at all stages of career progression. Registries can include more specificity in protocols to lower the necessary level of expertise for VVBs, but ultimately there must be incentives and training opportunities. As suppliers scale up, the need for VVBs is only going to increase.

Conclusion

There is not yet a universally agreed definition of what constitutes perfect MRV. But these nine principles are a blueprint for CDR buyers, suppliers, scientists and policymakers to take forward. 

Principle 1
Standardization is needed in CDR
Principle 2
Governments should define minimum quality for CDR
Principle 3
Guidelines are needed for use cases
Principle 4
MRV protocols must be both scientifically rigorous and flexible
Principle 5
Registry selection is crucial: suppliers need more information to decide
Principle 6
MRV requires effective collaboration and transparent results
Principle 7
MRV must account for pathway specific challenges
Principle 8
Public support requires understanding co-benefits
Principle 9
Registries must innovate to ensure MRV keeps pace

When these are prioritized and progressed, rigorous MRV will be a cornerstone of the CDR industry, allowing carbon removal to quickly and responsibly reach the gigatonne scale the world needs.

Learn more about working with registries