Verra’s reconciliation rubs unwanted credits out of circulation

By the end of Q3, project proponents will have the option to update the methodology of their projects registered with Verra and requantify credits that have been verified and issued. This procedure allows project proponents to make their verified credits from past monitoring periods eligible for an Integrity Council for Voluntary Carbon Markets (ICVCM) Core Carbon Principles (CCP) label or other market labels, such as those for carbon dioxide removal or emission reduction, introduced by Verra last year. The methodology change and requantification process will increase the number of credits in circulation that are CCP-eligible while reducing the stockpile of "unwanted" credits in the market. Projects undergoing reconciliation will need to cancel all credits associated with the process and reissue a smaller batch based on the revised number, placing a financial burden on project proponents and VCU holders who must decide whether to proceed.