Program Guide

17 January 2023 v4.3

ABOUT VERRA
Verra sets the world’s leading standards for climate action and sustainable development. We build
standards for activities as diverse as reducing deforestation, to improving agricultural practices, to
addressing plastic waste, and to achieving gender equality. We manage programs to certify that these
activities achieve measurable high-integrity outcomes. And we work with governments, businesses, and
civil society to advance the use of these standards, including through the development of markets.
Everything we do is in service of increasingly ambitious climate and sustainable development goals –
and an accelerated transition to a sustainable future.

Verra’s certification programs include the Verified Carbon Standard (VCS) Program and its Jurisdictional
and Nested REDD+ (JNR) framework, the Climate, Community & Biodiversity Standards (CCBS)
Program, the Sustainable Development Verified Impact Standard (SD VISta) Program, and the Plastic
Waste Reduction Program.

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CONTENTS
1 INTRODUCTION .......................................................................................... 1
1.1 Version .................................................................................................................................... 1
1.2 Language............................................................................................................................... 2
1.3 Definitions ............................................................................................................................... 2

2 OVERVIEW OF THE VCS PROGRAM .......................................................... 3

2.1 Program Objectives .............................................................................................................. 3
2.2 Program History...................................................................................................................... 3
2.3 Program Scope ..................................................................................................................... 4
2.4 Program Documents ............................................................................................................ 4
2.5 Roles and Responsibilities ..................................................................................................... 7

3 VCS PROGRAM CRITERIA FOR GHG PROJECTS AND PROGRAMS ....... 10

4 VERRA REGISTRY ...................................................................................... 11

4.1 VCS Program Fees............................................................................................................... 13
4.2 VCU Liability And Statute Of Limitations........................................................................... 13

5 VCS PROGRAM ACCREDITATION ........................................................... 14

6 METHODOLOGY DEVELOPMENT AND REVIEW PROCESS ...................... 15

6.1 Development of New or Revised Methodologies .......................................................... 15
6.2 Periodic Review of Approved VCS Methodologies ....................................................... 15
6.3 Compensation for Methodology Developers ................................................................. 15

7 LINKING TO OTHER GHG PROGRAMS .................................................... 17

7.1 Gap Analysis Methodology and Process ......................................................................... 17
7.2 Review of VCS Program-Approved GHG Programs....................................................... 17

8 COMPLAINTS AND APPEALS PROCEDURE .............................................. 19

APPENDIX 1: DOCUMENT HISTORY ................................................................... 20

 1 Introduction

1 INTRODUCTION
The Verified Carbon Standard (VCS) Program provides a global program and standard for GHG emission
reduction and removal projects and programs. It uses as its core the requirements set out in ISO 14064-
2, ISO 14064-3, and ISO 14065. The VCS Program Guide (this document) is the overarching program
document and provides the rules and requirements governing the VCS Program and describes the
constituent parts of the program such as the project and program registration process, the Verra Registry
system, the methodology development and review process, and the accreditation requirements for
validation/verification bodies.

1.1 Version
VCS Program editions are labeled with a version number and program documents are correspondingly
version controlled. VCS Version 4 is the fourth working version of the VCS, having been preceded by VCS
Version 1 (the initial version), VCS 2007, and VCS 2007.1 (which were two releases of the same version,
but with the latter version incorporating the agriculture, forestry, and other land use (AFOLU)
specifications), and VCS Version 3.

VCS Version 4 was released on 19 September 2019 and becomes the applicable version with immediate
effect, except where grace periods were set out for particular requirements.

VCS Version 4 is comprised of all the program documents labeled v4.x, where x is a running number
starting at zero. Individual program documents may be updated from time to time, as developments
require, and their version numbers will be incremented using the v4.x format. Such updated documents
still form part of Version 4 and the VCS Program edition should be referred to as VCS Version 4 regardless
of the version numbers of the individual program documents. Where documents are updated, an
appendix to the document will clearly state the updates made and their effective date. VCS Program
stakeholders will be informed of the updates, and the updates will also be cataloged on the Verra
website. Readers shall ensure that they are using the most current version of this and all other program
documents.

Note that errata documents may also be issued periodically to correct errors in text, equations, or figures
in VCS Program documents or methodologies. In addition, clarification documents may be issued to
provide additional guidance on the VCS Program rules or methodological requirements. Errata and
clarification documents are posted to the Verra website alongside the relevant program document or
methodology and are effective on their issuance date. Project proponents and validation/verification
bodies must apply and interpret the VCS Program rules and methodological requirements consistent with
any errata and clarifications. Errata and clarifications will be incorporated into the next issued version of
the relevant program document or methodology, at which time the errata and clarifications will be moved
to an archive page on the Verra website.

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 1 Introduction

New versions of the VCS Program will be issued periodically when major edition updates are required.
Development of new versions of the program will include public consultation and will be announced on
the Verra website and to VCS Program stakeholders.

The VCS Program documents for previous versions of the VCS Program are available on the Verra website
and these should be referred to for the rules and requirements under such previous versions of the VCS
Program.

Note that projects, programs, and verified carbon units (VCUs) are not labeled in the Verra Registry with a
specific version of the VCS Program (i.e., projects are not “Version 3 projects” or “Version 4 projects”, and
likewise with VCUs). The VCS Program documentation is merely labeled with a version in order to provide
version control over the program documents.

Where external documents are referenced, such as ISO 14064-2, ISO 14064-3, and ISO 14064, and
such documents are updated, the most recent version of the document shall be used.

1.2 Language
The operating language of the VCS Program is English. The VCS Program documents may be translated
into other languages to facilitate local use. However, the English versions of VCS Program documents,
and the interpretation of same, shall take precedence over any other language translations.

1.3 Definitions
Definitions as set out in the VCS Program document Program Definitions, ISO 14064-2, ISO 14064-3, and
ISO 14065shall apply to all VCS Program documentation. Note that defined terms in the VCS Program
documents, in common with ISO convention, are used without capital first letters.

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 2 Overview of the VCS Program

2 OVERVIEW OF THE VCS PROGRAM

2.1 Program Objectives
The VCS Program establishes the rules and requirements that operationalize the VCS Standard to enable
the validation of GHG projects and programs and the verification of GHG emission reductions and
removals that can be used both in voluntary and compliance markets. The VCS Program aims to:

1) Establish clear rules and procedures to enable the successful development of GHG projects and
programs and the creation of high-quality GHG credits;

2) Create a trusted and fungible GHG credit, the VCU;

3) Stimulate innovation in GHG mitigation technologies and measures as well as procedures for
validation, verification, and registration, all within a context of quality, credibility, and
transparency;

4) Provide a secure registry system for all VCUs that offers assurance against double counting and
provides transparency to the public;

5) Demonstrate workable frameworks and offer lessons that can be incorporated into other GHG
programs and climate change regulation;

6) Provide oversight to ensure that investors, buyers and the market recognizes VCUs as being real,
additional, and permanent; and

7) Link carbon markets worldwide through a coherent and robust framework.

2.2 Program History

The Climate Group, the International Emissions Trading Association, and the World Business Council for
Sustainable Development are the partner organizations that founded the VCS Program. The World
Economic Forum also partnered in the development of the VCS Program for part of the process. VCS
Version 1 was released on 28 March 2006 as both a consultation document and a standard for use by
the market. VCS Version 2 was released in October 2006 as a consultation document and did not replace
VCS Version 1 as the applicable version. After two years of work, two rounds of public consultation, and
the work of the 19-member steering committee1 and seven technical working groups, VCS 2007 was
released on 19 November 2007. VCS 2007.1, which incorporated requirements for agriculture, forestry,
and other land use projects, was released on 18 November 2008. VCS Version 3 was issued on 8 March
2011. VCS Version 4 was released on 19 September 2019.

1The members of the steering committee were Jan-Willem Bode, Derik Broekhoff, Mike Burnett, Robert Dornau, Steve
Drummond, Mitchell Feierstein, Yoshito Izumi, Mark Kenber, Adam Kirkman, Andrei Marcu, Erin Meezan, Ken Newcombe, Mark
Proegler, Robert Routliffe, Richard Samans, Marc Stuart, Einar Telnes, Bill Townsend and Diane Wittenberg.
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 2 Overview of the VCS Program

2.3 Program Scope

The VCS Program provides the standard and framework for independent validation of projects and
programs, and verification of GHG emission reductions and removals, based on ISO 14064-2 and ISO
14064-3. The scope of the VCS Program covers all those activities related to the generation of GHG
emission reductions and removals, including jurisdictional programs and nested REDD+ projects. The
scope does not include carbon footprint assessments or carbon neutrality claims.

Participation is voluntary and based on objective criteria. The VCS Program is not discriminatory to project
proponents, jurisdictional proponents, methodology developers, validation/verification bodies, or VCU
buyers, sellers, or brokers.

2.4 Program Documents

The rules and requirements for the VCS Program are set out in the program documents. Projects,
programs, and methodologies shall meet all the applicable rules and requirements set out in these
documents.

The structure of the program documents is summarized in Diagram 1. The VCS Program Guide is the
overarching program document, providing the rules and requirements governing the VCS Program and
further describing the constituent parts of the program such as the project and program registration
process, the Verra Registry system, the methodology development and review process, and the
accreditation requirements for validation/verification bodies. Complementing the VCS Program Guide are
requirements documents, procedural documents, and templates and forms. Verra may issue new
documents, as developments in the VCS Program require, and the complete and current list of the
program documents is available on the Verra website.

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 2 Overview of the VCS Program

Diagram 1: Program Documents

In addition to the VCS Program Guide, the program documents currently include the following:

1) Requirements Documents

a) VCS Standard. Provides the requirements for developing projects and for the validation and
verification process.

b) Methodology Requirements. Provides the requirements for developing new, revised, and
consolidated methodologies, tools, and modules.

c) JNR Requirements. Provides further requirements for developing jurisdictional REDD+

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 2 Overview of the VCS Program

programs and nested REDD+ projects.

d) Program Definitions. Provides the definitions for terms used in the VCS Program documents.

e) Program Fee Schedule. Provides the fees related to the various parts of the VCS Program.
f) Geologic Carbon Storage Requirements. Provides the requirements for developing geologic
carbon storage projects.
2) Procedural Documents

a) Registration and Issuance Process. Provides the procedures and rules for registering projects
and issuing VCUs.

b) JNR Registration and Issuance Process. Provides the procedures and rules for registering
jurisdictional baselines and jurisdictional REDD+ programs, as well as projects nested in
jurisdictional programs and standalone projects operating under Scenario 1.

c) JNR Validation and Verification Process. Provides the process and requirements for the
validation and verification of jurisdictional baselines and jurisdictional REDD+ programs.

d) Methodology Development and Review Process. Provides the procedures and rules for the
development and review of new or revised VCS methodologies, tools, and modules.
e) AFOLU Non-Permanence Risk Tool. Provides the procedure for conducting non-permanence
risk analysis and buffer determination for AFOLU projects.

f) GCS Non-Permanence Risk Tool. Provides the procedures for assessing the non-permanence
risk and buffer determination required for Geologic Carbon Storage (GCS) projects.

3) Templates and Forms

a) VCS Program Templates. Templates for project descriptions, validation reports, monitoring
reports, verification reports, and methodologies.

b) Representations Templates. Templates for deeds of representation made by project

proponents and validation/verification bodies.

c) Forms. Forms such as for submitting methodologies under the methodology development
and review process.

The following are normative (referenced) documents for the VCS Program:

1) ISO 14064-2, Greenhouse gases – Part 2: Specification with guidance at the project level for
quantification, monitoring, and reporting of greenhouse gas emission reductions or removal
enhancements.

2) ISO 14064-3, Greenhouse gases – Part 3: Specification with guidance for the verification and
validation of greenhouse gas statements.

3) ISO 14065, Greenhouse gases – Requirements for greenhouse gas validation and verification
bodies for use in accreditation or other forms of recognition.

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 2 Overview of the VCS Program

4) The GHG Protocol for Project Accounting (Chapter 7, guidance related to additionality and
common practice), WRI, 2005.

The four standards above are part of the requirements of the VCS Program, and their requirements shall
be met either by the project proponent (ISO 14064-2) or the validation/verification body (ISO 14064-3
and ISO 14065). Where there is any conflict between VCS Program documentation and the above
normative references, the VCS Program documentation shall take precedence.

The program documents are also complemented by guidance documents. These guidance documents do
not set out VCS Program rules and requirements, but they provide additional information to assist with
the interpretation of the rules and requirements. It is strongly encouraged that such guidance is followed.

2.5 Roles and Responsibilities

2.5.1 Project and Jurisdictional Proponents

Project and jurisdictional proponents are the entities with overall control and responsibility for projects or
programs. A project may have one project or jurisdictional proponent, or there may be multiple project or
jurisdictional proponents who collectively have overall control and responsibility for a project or program.
Project and jurisdictional proponents establish and operate projects and programs in accordance with the
VCS Program rules. They are responsible for providing the project or program description, monitoring
report, and supporting documentation (including evidence of project ownership or program ownership) to
facilitate validation and verification.

Project and jurisdictional proponents sign unilateral representations with respect to their projects or
programs and VCUs, and these are made available on the Verra Registry. Project proponents assume
limited liability for the replacement of excess VCUs, as set out in Section 4.2.

Note – To aid the readability of the VCS Program documentation, the documents use project and
jurisdictional proponent in the singular. For projects and programs with multiple project or jurisdictional
proponents, “project proponents” or “jurisdictional proponents” should be substituted in place of “project
proponent” or “jurisdictional proponent”, as appropriate.

2.5.2 Methodology Developers

Methodology developers are entities that develop new or revised methodologies, modules, and tools that
are subject to the methodology development and review process.

2.5.3 Validation/Verification Bodies

Validation/verification bodies are accredited to:

1) Validate projects and verify GHG emission reductions and removals.

2) Assess methodologies under the methodology development and review process.

Validation/verification bodies are only eligible to carry out work for the sectoral scopes for validation and
7
 2 Overview of the VCS Program

verification for which they hold accreditation and must sign the required agreement with Verra before they
can perform validation or verification in connection with the VCS Program. The list of
validation/verification bodies is available on the Verra website.

2.5.4 Verra Registry

The Verra Registry is responsible for ensuring that all required project and program documents have been
submitted to Verra; issuing and maintaining accounts of VCUs for accountholders; ensuring the seamless
flow of VCUs throughout the entire Verra Registry system; tracking and reporting the deposit/withdrawal
of buffer credits to/from the centrally managed AFOLU pooled buffer account and jurisdictional pooled
buffer account; and maintaining custody and records of VCU legal ownership.

2.5.5 VCU Buyers, Sellers, and Brokers

Buyers, sellers, and brokers are companies, organizations, or individuals who transact VCUs or facilitate
the transaction of VCUs.

2.5.6 Verra

The VCS Program is managed by Verra, which is an independent, non-profit organization incorporated
under the laws of the District of Columbia in the United States. Verra is responsible for managing,
overseeing, and developing the program. It maintains an impartial position in the market and does not
develop projects, programs, or methodologies, nor does it provide validation, verification, or consulting
services.

One of Verra’s roles is in respect of overseeing and ensuring the integrity of projects, programs, and VCUs
in the Verra Registry system. Verra conducts reviews of project and program registration and VCU
issuance requests. Verra is also responsible for overseeing the validation/verification bodies operating
under the VCS Program. Where Verra identifies shortcomings in a validation/verification body’s
performance, it may provide feedback and require the validation/verification body to address non-
conformities.

Verra reserves the right not to list projects, register projects and programs, or issue VCUs where it deems
that they do not conform with the VCS Program rules or may otherwise impact the integrity of the VCS
Program or the functioning of the broader carbon market. Verra reserves the right to delist projects,
programs, and VCUs where it deems that they have not been registered or issued in accordance with the
VCS Program rules. At listing, Verra may deny the request and reject the project where the listing request
is frivolous, vexatious, or an abuse of process. Verra makes the reasons for such decisions publicly
available on the project page on the registry.

Verra also reserves the right to take action against validation/verification bodies in accordance with the
provisions set out in the agreements signed with Verra. The rights and obligations for
validation/verification bodies are set out in such agreements.

Verra is also responsible for managing the methodology development and review process, and it reserves
the right to not accept methodologies into the process, put on hold or reject methodologies in the
8
 2 Overview of the VCS Program

development and review process, or review, revise or set as inactive previously approved methodologies
where it deems that they do not conform with the VCS Program rules, would sanction politically or
ethically contentious project activities, or may otherwise impact the integrity of the VCS Program or the
functioning of the broader carbon market.

Verra may convene steering committees, advisory committees, or working groups to support its work in
specific areas. These groups draw in expertise from outside the organization to develop and support
specific elements of the VCS Program. A full list of steering committees and working groups is available
on the Verra website.

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 3 VCS Program Criteria for GHG Projects and Programs

3 VCS PROGRAM CRITERIA FOR GHG

PROJECTS AND PROGRAMS
All projects and programs shall meet the requirements set out in the VCS Version 4 program documents.

GHG emission reductions and removals verified under the VCS Program and issued as VCUs shall meet
the following principles:

Real
All GHG emission reductions and removals and the projects or programs that generate them must be
proven to have genuinely taken place.

Measurable
All GHG emission reductions and removals must be quantifiable using recognized measurement tools
(including adjustments for uncertainty and leakage) against a credible emissions baseline.

Permanent
Where GHG emission reductions or removals are generated by projects or programs that carry a risk of
reversibility, adequate safeguards must be in place to ensure that the risk of reversal is minimized and
that, should any reversal occur, a mechanism is in place that guarantees the reductions or removals will
be replaced or compensated.

Additional
GHG emission reductions and removals must be additional to what would have happened under a
business-as-usual scenario if the project had not been carried out.

Independently Audited
All GHG emission reductions and removals must be verified to a reasonable level of assurance by an
accredited validation/verification body with the expertise necessary in both the country and sector in
which the project is taking place.

Unique
Each VCU must be unique and must only be associated with a single GHG emission reduction or removal
activity. There must be no double counting, or double claiming of the environmental benefit, in respect of
the GHG emission reductions or removals.

Transparent
There must be sufficient and appropriate public disclosure of GHG-related information to allow intended
users to make decisions with reasonable confidence.

Conservative
Conservative assumptions, values, and procedures must be used to ensure that the GHG emission
reductions or removals are not over-estimated.
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 4 Verra Registry

4 VERRA REGISTRY
The Verra Registry provides the public interface to all project, program, and VCU information. VCU serial
numbers are generated by the registry, which ensures the uniqueness of projects, programs, and VCUs. In
addition, the Verra Registry provides full transparency on project and program documentation, together
with information on the project and jurisdictional proponents, VCU issuance and retirement, the AFOLU
pooled buffer account, and the jurisdictional pooled buffer account.

The AFOLU pooled buffer account holds non-tradable buffer credits to cover the non-permanence risk
associated with AFOLU projects. It is a single account that holds the buffer credits for all projects. The
account is subject to a periodic reconciliation, as set out in the VCS Program document VCS Standard.
Likewise, the jurisdictional pooled buffer account holds the non-tradable buffer credits to cover the non-
permanence risk associated with jurisdictional REDD+ programs and nested projects.

The Verra Registry provides accountholder services and is the entry point into the registry system for
project and jurisdictional proponents, and VCU buyers and sellers. Such market participants open an
account with the Verra Registry and project and program registration and VCU issuance is initiated with
the Verra Registry.

The Verra Registry is responsible for: ensuring that projects and programs are registered and VCUs are
issued in accordance with the VCS Program rules; providing services for holding, transferring, and retiring
VCUs; managing AFOLU and jurisdictional buffer credits; and providing custodial services for VCUs and
maintaining records of VCU legal ownership.

Project and jurisdictional proponents (or other eligible entities, as set out in the VCS Program documents
Registration and Issuance Process and JNR Registration and Issuance Process) request listing and
registration of projects and programs and VCU issuance, with the Verra Registry. Diagram 2 outlines the
project life cycle and registration process, which is similar to the program life cycle and registration
process. Once the project or program has been validated and the GHG emission reductions or removals
verified, the project or jurisdictional proponent submits the relevant documents to the Verra Registry.
Verra conducts a completeness review of the documents and may conduct a further accuracy review to
assess conformance with the VCS Program rules. Where it is determined that the project or program
complies with the VCS Program rules, Verra uploads the documents to the public Verra Registry and
issues VCUs into the project or jurisdictional proponent’s account. Note that validation and verification
may be undertaken simultaneously, with registration and issuance of the VCUs occurring at the same
time, or validation may occur before verification, with registration occurring before any subsequent
issuance of VCUs.

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 4 Verra Registry

Diagram 2: Project Life Cycle and Registration Process

Project proponent submits project

description and any accompanying
documentation to Verra for project pipeline
listing

Verra creates project record on the Verra

registry

Project proponent submits project

description and any accompanying
documentation to validation/verification
body

Validation/verification body assesses

project in accordance with VCS Program
rules and provides validation report and
validation representation

Project proponent submits monitoring report

and any accompanying documentation to
the validation/verification body

Validation/verification body assesses GHG

emission reductions or removals in
accordance with VCS Program rules and
provides verification report and verification
representation

Project proponent submits project

documents (including project proponent
representations) to Verra registry

Verra reviews project registration and VCU

issuance request

Verra registry VCU records on the Verra

project database and deposits VCUs in
project proponent’s accounts

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 4 Verra Registry

The process and detailed rules and requirements for project pipeline listing, program listing, project, and
program registration, and VCU issuance are set out in the VCS Program documents Registration and
Issuance Process and JNR Registration and Issuance Process.

4.1 VCS Program Fees

Verra charges fees to cover administration costs, at the rates set out in the VCS Program document
Program Fee Schedule.

4.2 VCU Liability And Statute Of Limitations

Registered projects and issued VCUs are subject to review by Verra, as set out in the VCS Program
document Registration and Issuance Process. Project proponents are responsible for compensating for
excess VCU issuance where Verra deems, acting reasonably, that there has been a material erroneous
issuance of VCUs in respect of a project, as a result of the fraudulent conduct, negligence, intentional act,
recklessness, misrepresentation, or mistake of the project proponent. A statute of limitations applies,
whereby Verra can only require such compensation in relation to any verification completed after 8 April
2014 and up to the later of:

1) 6 years after the date of issuance of the relevant VCU; or

2) 12 months after the date upon which any second verification report with respect to the relevant
VCU is accepted on the Verra Registry.2

2 The relevant VCU will be issued following acceptance of a verification report for a project. For some types of AFOLU projects in
particular, verification cycles may be longer than 6 years. In this regard, if the second verification report shows a VCU has been
erroneously issued, Verra will have an additional 12 months to deal with that issue. Note also that where a VCU is erroneously
issued from the last verification report of a project, Section 4.2(1) applies.
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 5 VCS Program Accreditation

5 VCS PROGRAM ACCREDITATION

Validation/verification bodies are eligible to provide validation and verification services under the VCS
Program if they have signed the required agreement with Verra and are:

1) Accredited under ISO 14065 for scope VCS by an accreditation body that is a member of the
International Accreditation Forum; or

2) Accredited under a VCS-approved GHG program.3

The validation/verification body shall hold such accreditation or approval for validation or verification (as
applicable) for the sectoral scope(s) applicable to the methodology applied to the project. Where the
methodology falls under more than one sectoral scope, the validation/verification body shall hold
accreditation or approval for validation or verification (as applicable) for all relevant sectoral scopes.

Where the validation/verification body holds accreditation or approval for the verification of the relevant
sectoral scope(s) but does not hold accreditation or approval for validation, it may validate project
description deviations and inclusion of new project activity instances in grouped projects at the time of
verification, under the following circumstances:

1) It holds accreditation or approval for validation in at least one other sectoral scope.

2) It has completed validation of at least five projects under the VCS Program or an approved GHG
program, and such projects have been registered under the relevant program.

3) The validation activity does not entail the validation of a project description deviation that
impacts the applicability of the methodology, additionality, or the appropriateness of the
baseline scenario (see the VCS Standard for further information on such deviations).

Validation/verification bodies are also eligible to conduct assessments (validation) of methodologies

under the methodology development and review process. The validation/verification body shall hold
accreditation for validation for the sectoral scope(s) applicable to the methodology. Where the
methodology falls under more than one sectoral scope, the validation/verification body shall hold
accreditation for validation for all relevant sectoral scopes.

To apply to become an approved validation/verification body with the VCS Program, organizations must
complete a Verra Validation/Verification Body Application Form and submit the signed application, along
with any supporting evidence (as required by the application) to [email protected].

A list of validation/verification bodies approved to undertake validation and verification services under
the VCS Program is available on the Verra website.

3Note that acceptance of accreditation under a VCS-approved GHG program is being phased out; see Verra website for further
details.
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 6 Methodology Development and Review Process

6 METHODOLOGY DEVELOPMENT AND

REVIEW PROCESS
The VCS Program document Methodology Development and Review Process outlines how methodologies,
modules, and tools (collectively referred to as “methodologies”) are developed and reviewed under the
VCS Program.

6.1 Development of New or Revised Methodologies

The steps for the development of new methodologies and major revisions include a methodology idea
note, a concept note, a draft methodology and draft project description, a public comment period,
updates to address comments, an assessment by a verification/validation body, and a final review and
decision by Verra. Verra may also require a technical working group or external expert assessment. Minor
revisions have a simplified process. A methodology may be rejected or put on hold at any stage if it does
not meet VCS Program rules and priorities.

6.2 Periodic Review of Approved VCS Methodologies

Verra periodically reviews methodologies approved under the VCS Program to ensure they continue to
reflect best practices, scientific consensus, and evolving market conditions and technical developments
in a sector. Verra conducts a review of each methodology every five years starting after the last update or
review of the methodology, or when otherwise triggered. This includes ensuring that VCS methodologies
are consistent with the latest VCS Program rules. As a result of a review, a methodology may require
revisions to align with VCS Program rules and priorities. In place of a review, Verra may make a
methodology inactive where no projects using the methodology have been registered within five years of
the last update or review. Inactive methodologies can be reactivated by completing a review and any
associated revisions. Inactive methodologies are not valid to be applied by new projects.

6.3 Compensation for Methodology Developers

Methodology developers are eligible to receive compensation until 31 December 2025 for methodologies
that are approved under the VCS Program or that have moved from the concept note stage to the
methodology drafting stage prior to 31 December 2022.

Compensation will be paid according to the number of VCUs issued using the methodology, at the rate
and in accordance with the payment terms set out in the VCS Program Fee Schedule. Compensation is
payable with respect to VCUs issued between 15 June 2010 and 31 December 2025. Compensation is
payable for up to 60 million VCUs issued after 1 January 2023 or until 31 December 2025, whichever
comes first. Methodology developers may elect not to receive compensation by notifying Verra at any
time.
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 6 Methodology Development and Review Process

Where Verra approves the consolidation or revision of methodologies, the compensation due to the
developer of the consolidated or revised methodology and the underlying methodologies respectively will
be determined on a case-by-case basis by Verra.

Where an eligible methodology is withdrawn or put on hold, compensation remains payable until 31
December 2025 in respect of continuing issuance of VCUs to registered projects that have applied the
methodology.

Only methodologies developed under the VCS Program are eligible for the compensation mechanism.
Developers of methodology revisions, modules, and tools are not compensated under the mechanism.

Note – Project proponents pay the same VCU issuance levy regardless of the methodology applied to the
project. Verra pays any compensation to the methodology developer out of the VCU issuance levy payments
made to Verra.

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 7 Linking to Other GHG Programs

7 LINKING TO OTHER GHG PROGRAMS

To recognize work that has gone into developing other credible GHG programs, the VCS Program has a
process for approving GHG programs that meet VCS Program criteria. A GHG program shall demonstrate
alignment with VCS Program principles and requirements through a gap analysis and the Verra Board will
make the final decision on whether to approve the GHG program. Approval of a GHG program under the
VCS Program has three implications:

1) GHG credits under the approved GHG program may be canceled and issued as VCUs (converted
into VCUs).

2) Validation/verification bodies under the approved GHG program are approved for validation and
verification under the VCS Program (for the corresponding sectoral scopes for validation and
verification, respectively, provided they have signed the required agreement with Verra).

3) Most methodologies under the approved GHG program may be used for developing projects
under the VCS Program. See the Verra website for exclusions.

The latest version of the approved GHG program methodology shall be used and relevant grace
periods apply.

The list of approved GHG programs is available on the Verra website, together with any specific conditions
or further clarifications with respect to the scope of approval.

7.1 Gap Analysis Methodology and Process

The approval of other GHG programs is based on the principle of full compatibility with the VCS Program.
A gap analysis process is applied on a case-by-case basis to determine the other GHG program’s
conformance with VCS Program principles and requirements and to assess whether the GHG emission
reductions or removals issued under the GHG Program are fully compatible with VCUs issued under the
VCS Program.

Any party may initiate a gap analysis of another GHG program with the VCS Program. All relevant
documentation in relation to the GHG program shall be provided to Verra, with appropriate authorization
secured.

The onus is on the GHG program to demonstrate that it meets the VCS Program criteria. The costs of the
assessment are borne by the GHG program or whoever initiates the gap analysis.

Based on the gap analysis report, the Verra Board will decide whether to approve the full GHG program or
elements of the program.

7.2 Review of VCS Program-Approved GHG Programs

Approved GHG programs are reviewed periodically by Verra. Any changes made by an approved GHG

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 7 Linking to Other GHG Programs

program which may affect its compatibility with the VCS Program shall be communicated immediately to
Verra. In the event that it is considered that the changes lead to non-conformity with the VCS Program,
the Verra Board may decide to suspend or terminate its recognition of the approved GHG program. Any
projects approved under the GHG program prior to such Verra Board decision will not be affected by the
suspension or termination.

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 8 Complaints and Appeals Procedure

8 COMPLAINTS AND APPEALS

PROCEDURE
Project proponents, validation/verification bodies, methodology developers, and other stakeholders
(including interested stakeholders) may submit inquiries to Verra at any time. In addition, the VCS
Program provides a complaints and appeals procedure as set out in the Verra Complaints and Appeals
Policy available on the Verra website.

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 Appendix 1: Document History

APPENDIX 1: DOCUMENT HISTORY

Version Date Comment

v4.0 19 Sep 2019 Initial version released under VCS Version 4.

v4.1 20 Jan 2022 Clarified that a GHG program shall demonstrate alignment, rather than compliance,
with the VCS Program principles and requirements in order to become an approved
GHG program.

v4.2 22 Jun 2022 Incorporated clarification to indicate that proponents must use the latest version of
an approved GHG program methodology element for developing projects under the
VCS Program and that the lengths of grace periods under the approved GHG
program for transition to new methodology element versions apply to projects using
such methodology elements in the VCS Program (Section 7).

v4.3 21 Dec 2022 Main updates (all effective on the issue date, unless otherwise stated):

1) General updates to reflect updated Program Document names released in

December 2022 VCS Program Update.

2) Updated document in accordance with the new Methodology Development and

Review Process v4.2, including updates to the Methodology Compensation
Rebate.

3) Updated references from ISO 14064-3:2006 to ISO 14064-3:2019.

References to the publication dates of other ISO standard documents were
removed to facilitate transitions to the most recent versions of these ISO
standards.

4) Language added to Section 2.5.6 to clarify Verra’s process to reject project

pipeline listing requests deemed to be frivolous, vexatious, or an abuse of
process.

v4.3 17 Jan 2023 Minor formatting errors were corrected.

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Standards for a Sustainable Future