The Integrity Council for the Voluntary Carbon Market (ICVCM) has officially endorsed five carbon credit methodologies: three for biochar and two for Improved Forest Management (IFM) as meeting its Core Carbon Principles (CCPs). One additional IFM methodology received conditional approval, pending adjustments.
This decision marks a significant milestone for Verra and other carbon market stakeholders, signaling stronger quality assurance for nature-based climate solutions.
ICVCM: Setting a High Bar for Carbon Credit Quality
The ICVCM is an independent, non-profit body dedicated to ensuring voluntary carbon markets deliver credible climate action. Its CCP label acts as a global benchmark for high-quality carbon credits.
To earn this label, a methodology must meet strict criteria outlined in the ICVCM’s Assessment Framework, which defines what “high quality” means in practice. The CCP label provides buyers with a simple, trustworthy way to identify credits with real climate impact.
Biochar Methodologies Approved
The ICVCM has given its CCP stamp to the following three biochar methods:
- CAR – U.S. and Canada Biochar (Version 1.0)
- Isometric Biochar Production and Storage (Version 1.0)
- Verra VM0044 Biochar Utilization in Soil and Non-Soil Applications (Version 1.2)
What is biochar?
Biochar is a carbon-rich material created by heating biomass—such as crop residues or wood—under low-oxygen conditions through a process called pyrolysis. This method locks carbon into a stable form, preventing it from decaying and releasing greenhouse gases.
When added to soil or used in other applications, biochar stores carbon for hundreds or even thousands of years. Beyond its climate benefits, biochar can improve soil health and crop yields.
Rising Market Demand
Biochar has become one of the fastest-growing sectors in the voluntary carbon market. According to MSCI, demand for biochar carbon credits has doubled every year for the past two years.
All three newly approved biochar methods are fresh to the market, with no credits issued yet.
- Under the Isometric methodology, 25 projects are registered, expected to produce 500,000 credits in 2026.
- For Verra’s VM0044, three projects are registered, forecasted to deliver 249,000 credits annually.
Annette Nazareth, Chair of the ICVCM, noted,
“Biochar is a rapidly growing segment of the carbon market and the approvals announced today underscore the credibility of this emerging climate solution. We look forward to seeing more projects developed under these newly approved methodologies, adding to the pool of high integrity credits that will soon be available to buyers.”
IFM Methodologies Approved
Improved Forest Management projects focus on better forestry practices that increase carbon storage and cut emissions. Strategies include:
- Extending harvest rotation periods
- Setting aside conservation zones
- Using reduced-impact logging techniques to limit forest and soil damage
Currently, IFM projects make up around 4% of the voluntary carbon market. The two IFM methods are:
- Verra VM0045 Improved Forest Management Using Dynamic Matched Baselines from National Forest Inventories (Version 1.2)
- ACR – IFM on Non-Federal U.S. Forestlands (Version 2.1), with specific leakage deduction requirements
Verra’s New Approach to Forest Carbon Accounting
Verra’s VM0045 is a new methodology that shifts from traditional, static models to dynamic baselines built on continuously updated national forest inventory data. This provides a more accurate and transparent measure of a project’s carbon impact.
No credits have yet been issued under VM0045, but two projects are in validation, with expectations to issue 258,000 credits annually.
Mandy Rambharos, CEO of Verra, said,
“The ICVCM’s approval of these methodologies is a defining milestone for nature-based solutions and the carbon markets, ensuring carbon credits deliver real, measurable, and lasting climate impact. Whether it’s transforming waste biomass into carbon-storing biochar or helping forests thrive through smarter management, these methodologies are about real-world action for real-world impact. This decision is a powerful endorsement of high-integrity climate solutions that not only reduce emissions but also bring tangible benefits to communities and ecosystems around the world.”
ACR’s IFM Methodology with Leakage Deductions
The ACR IFM on Non-Federal U.S. Forestlands (Version 2.1) includes rules to address leakage—the risk that reduced timber harvesting in one area causes increased harvesting elsewhere.
Projects that lower total wood product output compared to the baseline must apply a 10–20% leakage deduction, based on standard IFM practices. This ensures unintended emissions outside the project area do not offset climate benefits.
Version 2.1 has 18 listed projects covering nearly 500,000 acres, but no credits have been issued yet. The ICVCM is still reviewing Version 2.0, with a decision expected in September.
Conditional Approval: CAR Mexico Forest Protocol
The CAR Mexico Forest Protocol (Version 3) received provisional approval, contingent on two changes:
- Leakage Accounting Update – CAR must revise its leakage values to align with the latest research.
- Permanence Requirement – A minimum 40-year permanence commitment must be in place while tonne-year accounting is assessed in the context of common Mexican forestry practices.
The methodology has already issued 8.1 million credits, but it’s unclear how many will qualify for CCP labeling after these changes.
Why These Approvals Matter
The ICVCM’s endorsements send a strong signal to carbon credit buyers and developers. Projects certified under CCP-approved methodologies are seen as scientifically sound, environmentally robust, and market-ready.
For biochar, the approvals come at a time when demand is skyrocketing, positioning it as a credible long-term carbon removal tool. For IFM, the focus on accurate baselines and leakage control enhances trust in forest-based credits—an area that has sometimes been criticized for overestimating climate benefits.
These decisions also raise the bar for transparency and accountability in the voluntary carbon market, encouraging other methodologies to adopt stricter, evidence-based practices.
With the newly approved methods, developers can move forward with confidence, knowing their projects meet the highest integrity standards. Buyers, in turn, can purchase credits backed by rigorous science and verified climate benefits.
