The update introduces several pivotal changes to the REDD methodology landscape. Notable adjustments include the adoption of jurisdictional-level data for baseline setting, a shift from reference regions for projecting future deforestation, and a transition overseen directly by Verra. The process incorporates remote-sensing technologies and risk assessments, fostering collaboration with host countries' governments to align with the accounting requirements for nationally determined contributions (NDCs). Additionally, the baseline reassessment period has been reduced from ten to six years.

, all current AUD projects are mandated to shift to the new methodology. Immediate 

 applies to VM0009 and VM0039 to facilitate a smooth transition and mitigate issues, considering the relatively low number of issued credits under VM0039. Project proponents can continue to utilize the updated VM0007, currently holding the second-largest share of issued credits in the registry, while transitioning to VM0048. The remaining methodologies, 

, are slated for updates expected in Q1 2024.

The timing of an AUD project's transition to the new REDD methodology hinges on the project's status and the availability of activity data for its jurisdiction. Once jurisdictional activity data becomes accessible, all projects within that region—whether new, listed, or registered—can opt to embrace the updated REDD methodology. The transition becomes obligatory six months after the release of jurisdictional activity data. Verra anticipates that data for all jurisdictions with existing REDD projects will be available by January 1, 2025

Current and future landscape of REDD methodologies implementation

As of 28 November, Verra has a total of 87 registered projects utilizing the superseded methodologies (VM0006, VM0007, VM0009, VM0015, VM0037), with the distribution of issued credits illustrated in Figure 1. It's noteworthy that there are currently no registered projects under the VM0037 methodology.

Figure 1. Total issued credits under the superseded methodologies

VCM Verra REDD 1

Over the past decade, these registered projects have collectively issued 406 million tCO2, constituting 35% of the total credits issued under Verra. These projects are staying put for Core Carbon Principle (CCP) assessments. Notably, the five methodologies mentioned were excluded from Verra's VCS submission against the 

, alongside three methodologies each for tropical peatland, improved forest management, and energy efficiency projects. For additional insights into CCP assessment, refer to our latest analysis available 

Looking ahead, a total of 136 projects currently in the pipeline need to transition to the new consolidated methodologies, as illustrated in Figure 2.

Figure 2. Number of projects in the pipeline under the superseded methodologies

VCM Verra REDD 2

The 43 projects that are “under development” must use the VM0048 to be validated. For the 64 projects under validation, their course of action hinges on their validation status and the availability of jurisdictional activity data. If the project has been listed before the jurisdictional activity data for the respective region becomes available for six months and completes validation within one year, these projects may proceed with the active methodologies (VM0006, VM0007, VM00015). Otherwise, they are required to adopt the new VM0048 for validation.

We anticipate this recent update to not exert an immediate influence on the pricing dynamics for REDD projects, given the time required for the transition process. Furthermore, the delay in CCP-approved credits, announced by the integrity council (from the end of 2023 to early 2024, as reported by Carbon Pulse 

), suggests that the evaluation of the REDD methodology will align with other non-fast track categories, introducing additional considerations to the evolving landscape of the crediting market.

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Our community offers access to webinars, discussions and updates from industry leading experts and analysts. 

After a three-year process, on Monday (27 Nov) Verra unveiled the much anticipated methodology addressing emission reduction from deforestation and forest degradation projects (commonly refer to as REDD): 

 Reducing Emissions from Deforestation and Forest Degradation, accompanied by module for avoiding unplanned deforestation (AUD): 

 Estimation of Emission Reductions from Avoiding Unplanned Deforestation. REDD projects, which constitute 24.8% of globally issued credits, have faced heightened scrutiny in the past year, resulting in a ripple effect across other market segments. This recent update holds profound implications for projects relying on five established methodologies: VM0006, VM0007, VM0009, VM0015, and VM0037.

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Unveiling Verra's REDD Methodology Shift

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