ICROA recommends connection to CAD Trust

Press Release

ICROA recommends connection to CAD Trust as transparency best practice for programs seeking endorsement

• This connection is seen as a transparency best practice to enhance market integrity globally
• The ICROA Endorsement Procedure is designed to identify and endorse high-quality carbon crediting programs through rigorous assessment.
• Linking to the CAD Trust can enhance transparency and credibility, providing a robust platform for tracking carbon credits and ensuring accountability.

SINGAPORE, November 2024 – ICROA, a best practice standard setter for carbon market operators, has recommended that crediting programs seeking ICROA Endorsement connect to the Climate Action Data Trust (CAD Trust), the decentralised metadata platform that links, aggregates and harmonises all major carbon registry data, to help enhance market transparency and integrity globally.

The newly added text in the endorsement criteria reads: “ICROA strongly encourages all carbon crediting programmes, independent and government alike, to connect to the Climate Action Data Trust and other comparable market infrastructure that ensures public access to harmonized registry information and helps enhance market transparency and integrity globally.”

ICROA Code of Best Practice is the integrity bar for all operators – resellers and retailers – in the carbon market. Embedded with the Code are a green list of approved crediting programmes.  The so-called “ICROA’s Carbon Crediting Endorsement Procedure” is designed to identify and endorse high-quality carbon crediting programmes through rigorous assessment.

This initiative strengthens the integrity of carbon credit transactions and supports the provision of effective greenhouse gas (GHG) emissions reduction services. Programmes seeking endorsement are subject to a thorough third-party audit, which evaluates key areas such as independence, governance, registry practices, validation and verification, adherence to carbon crediting principles, as well as environmental and social impacts, stakeholder considerations, and scale.

The Endorsement Procedure is open to any VCM Standard or Registry that demonstrates compliance with these stringent Carbon Crediting Endorsement Criteria, fostering a comprehensive framework for high-quality carbon crediting practices. Furthermore, linking to the CAD Trust can enhance transparency and credibility, providing a robust platform for tracking carbon credits and ensuring accountability, thereby reinforcing market trust and fostering greater investment in sustainable initiatives.

Currently, 16 independent and governmental crediting programs are endorsed, three are conditionally endorsed and seven programmes are under review with ICROA.

Antoine Diemert, ICROA Programme Director, said: “As the voluntary carbon market evolves, it is important that we adapt our programmes too. By recommending ICROA Endorsed crediting programmes connect to the CAD Trust platform, we can improve transparency and foster trust amongst stakeholders in the market. The link can help streamline reporting, help mitigate the risk of double counting, and pave the way for a more robust and effective voluntary carbon market.”

Federico Di Credico, CAD Trust Interim CEO, said: “ICROA is a key pillar in the carbon market integrity space assuring best practices in program governance and conduct. We share a recognition of the need for greater transparency as best practice to build trust in our space and appreciate the endorsement from ICROA.”

Earlier this year, CAD Trust have indicated they will be pursuing key partnerships to increase data coverage and develop the value proposition toward greater integrity in the space, including solutions for double counting avoidance, helping operationalise Article 6, and advancing data harmonisation efforts.

Read more here:  CAD Trust moves towards permanent governance model through new transition phase

Contact:

MEDIA CONTACTS:

Ieva Steponaviciute, Climate Action Data Trust: ieva@climateactiondata.org
Cognito for CAD Trust: CADTrust@cognitomedia.com

NOTES TO EDITORS

About CAD Trust:

Climate Action Data Trust (CAD Trust) is a decentralised metadata platform that links, aggregates and harmonises all major carbon registry data to enhance transparent accounting in line with Article 6 of the Paris Agreement. The CAD Trust open-source metadata system uses blockchain technology to create a decentralised record of carbon market activity with the aim to avoid double counting, increase trust in carbon credit data and build confidence in carbon markets. The Singapore-based initiative was founded by the World Bank, The International Emissions Trading Association (IETA) and the Government of Singapore in 2022.

About ICROA:

For more than a decade, ICROA has been committed to enhancing integrity in the voluntary carbon market through its Code of Best Practice. The ICROA Programme promotes greenhouse gas emissions reduction and offsetting through the use of high-quality carbon credits in support of the Paris Agreement Goals.