5.1 Role of Independent Carbon Standards
Independent carbon standards developed by non-governmental organizations, private entities, or independent institutions are designed to certify and verify carbon offsets from mitigation projects. Quality standards ensure that projects aiming to reduce Greenhouse Gas (GHG) emissions meet specific criteria of environmental integrity, transparency, and verifiability. Key examples of widely recognized independent carbon standards organizations include Verified Carbon Standard (VCS) managed by Verra, Gold Standard (GS), American Carbon Registry (ACR), Climate Action Reserve (CAR) and Architecture for REDD+ Transactions (Art Trees). These standards have traditionally been used to issue certified emissions reduction and removal units mainly for the voluntary carbon market and used by the private sector. With the introduction of Article 6 of the Paris Agreement, these standards also play a role in generating verified mitigation outcomes which, subject to authorization by the Parties and meeting the relevant requirements, can be used in the context of Article 6.2 for meeting the Nationally Determined Contributions (NDCs) or other international mitigation purposes (OIMPs). Examples of this include the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and mandatory carbon pricing instruments in some countries which allow for the use of international offsets. The increasing use of independent carbon standards under Article 6 also encourages alignment and harmonization of crediting standards across voluntary and mandatory or regulated markets.
This chapter provides an analysis of projects registered under five major independent carbon standards namely, VCS, GS, ACR, CAR &ART TREES to assess their current status. As many Parties have expressed interest in using independent carbon standards as an underlying crediting framework to monitor and verify mitigation outcomes for use in its participation in Article 6.2 of the Paris Agreement, the current trends of projects under these independent carbon standards could influence future Article 6 implementation.
This chapter provides an analysis of projects registered under five major independent carbon standards namely, VCS, GS, ACR, CAR &ART TREES to assess their current status. As many Parties have expressed interest in using independent carbon standards as an underlying crediting framework to monitor and verify mitigation outcomes for use in its participation in Article 6.2 of the Paris Agreement, the current trends of projects under these independent carbon standards could influence future Article 6 implementation.
5.2 Project Pipeline Status
5.2.1 Number of Projects registered under the Independent Standard
The landscape of independent carbon standards reveals a clear dominance by Verra’s VCS and the Gold Standard. Verra’s VCS leads with approximately 46% (4,100) of registered projects, followed by the Gold Standard at around 36% (3,000) projects. Other registries, though smaller in market share, have specialized roles. The CAR is known for its rigorous methodologies and focus on North American-based projects, holding approximately 10% (900) of registered projects. Similarly, the ACR, with around 8% (700) of registered projects, serves a market that values high standards of environmental integrity, Finally, the Art Trees Registry, with about 0.2% (20) of registered projects, caters to REDD+ activities. Some of these registered projects could in the future generate post-2020 credits that might be authorized and therefore eligible for Parties meet their climate targets under Article 6.2.
5.2.2 Number of Projects by Region
Asia has 50% of registered projects focused on reducing GHG emissions concentrated under the VCS. Africa follows as the most active region under GS standards where over 50% of the projects are registered under Gold Standard. Together, Asia and Africa are driving momentum in the global carbon market, demonstrating regional leadership in carbon reduction initiatives across the independent standards.
The distribution changes notably with the CAR and the ACR, where the Americas emerge as the leading regions. CAR and ACR are heavily utilized across North, Central, and South America, where established carbon markets and regulatory frameworks create favorable conditions for project registration and investment. This geographical variation highlights the influence of regional policies, standards, and market readiness on carbon project distribution worldwide.
5.2.3 Project Types
There is variation in sectoral focus across regions under different carbon standards, with renewable energy, forestry, and industrial process projects each playing a crucial role in global efforts to mitigate climate change. In the renewable energy projects, VCS and GS share majority. Household and Community projects are also dominant under the VCS and GS. Forestry and land use projects also feature prominently under VCS offering the potential for carbon sequestration. On the other hand, the ACR shows a different trend, with chemical process-related projects emerging as the leading sector. These projects focus on reducing industrial emissions through advanced technologies, such as carbon capture and utilization (CCU) or methane capture from waste processes. Forestry and land use projects still play a key role under ACR but rank second, highlighting a balanced approach between technological innovation and natural climate solutions (NCS).
5.2.4 Project Types by Region
The regional variation in project types shows different sectors and activities with mitigation potential for use of carbon markets based on the regional contexts, with South Asia, and East Asia, dominating in renewable energy. These projects contribute to decarbonizing the energy sector, and supporting the transition to clean energy. Household and community based project, are prominent in Africa, often aiming to improve energy access through clean cooking technologies and solar home systems. In Latin America and the Caribbean, forestry and land-use projects are widely implemented and this is a similar trend for the Pacific region.
5.3 Key insights of Independent Carbon Standards and their role in Article 6 implementation
The independent carbon standards landscape demonstrates a complex and adaptable system that supports carbon offsetting efforts both regionally and globally. The diversity of these standards strengthens the carbon market, enabling it to meet varied environmental needs and contribute to climate action across different sectors and regions while increasing the importance of ensuring high integrity and transparency.
Future developments are likely to see an expansion in the carbon market, especially in emerging markets. This trend is increasingly relevant to Article 6 due to the importance of ensuring avoidance of double counting for credits applied toward international climate objectives such as NDCs and international compliance systems, CORSIA. As voluntary credits become more integrated into formal climate frameworks, voluntary and compliance markets may become more closely aligned. Organizations are likely to seek higher-quality credits, and governments are expected to introduce more stringent rules to ensure these credits have tangible, verifiable results. This shift could create a more unified system, bridging voluntary and compliance markets and strengthening the role of the global carbon market in advancing climate goals.
Future developments are likely to see an expansion in the carbon market, especially in emerging markets. This trend is increasingly relevant to Article 6 due to the importance of ensuring avoidance of double counting for credits applied toward international climate objectives such as NDCs and international compliance systems, CORSIA. As voluntary credits become more integrated into formal climate frameworks, voluntary and compliance markets may become more closely aligned. Organizations are likely to seek higher-quality credits, and governments are expected to introduce more stringent rules to ensure these credits have tangible, verifiable results. This shift could create a more unified system, bridging voluntary and compliance markets and strengthening the role of the global carbon market in advancing climate goals.
