World’s leading carbon crediting programme launches stricter consent, revenue‑sharing rules
Verra’s updated Verified Carbon Standard adds stricter consent, transparency and revenue‑sharing rules for land‑based carbon projects, giving affected communities more power over contracts and project benefits worldwide.
The world’s leading carbon crediting program, Verra, has introduced its most comprehensive social and environmental safeguards, placing communities at the centre of climate action.
The Verified Carbon Standard (VCS) Program includes new safeguards to improve consent processes, transparency, and revenue sharing for communities affected by carbon projects.
The new rules address common challenges in carbon projects and give communities greater power in the carbon credit business, specifically allowing all land-based projects to obtain informed consent from affected communities.
With the new move, developers and communities have to agree on a legally binding contract, a move that allows communities to set the terms under which a project can proceed.
Project developers must share financial information with communities, including the total revenue received from carbon credit sales. At the same time, they must share a portion of revenue with local communities for any projects on community land.
Reacting to the new changes, Namati, an organisation that empowers communities in carbon projects, said the new standard incorporates principles from the Grassroots Justice Network and frontline communities globally.
Namati said Verra’s updated standard increases transparency, strengthens communities' right to free, prior, informed consent, and requires revenue sharing with communities.
“Today’s changes are a step towards carbon justice,” said Namati CEO Vivek Maru.
The decision follows a move by Verra to review its global carbon standards, due to challenges faced by communities, including benefit-sharing agreements and land ownership disputes.
“VCS Version 5 reflects everything Verra has learned over the last two decades and is a conscious decision to prioritise credible climate benefits and community safeguards because we have seen what happens when projects fall short in this area," Verra CEO Mandy Rambharos noted.
"Long-term climate impact depends on projects that are durable, credible, and grounded in strong community relationships. In sum, VCS Version 5 ensures that climate benefits are not only measurable but also credible, equitable, and community-centred.”
The new standard is available for immediate use, and new projects will be required to apply it from January 1, 2027.
“Existing projects will transition over time, with specific requirements taking effect at defined milestones based on when projects submit materials to Verra,” a statement from Verra said.
In Kenya, multiple engagements with affected communities have been spearheaded by Namati–Kenya over the years.
“Without access to information, fair benefit sharing and genuine participation from local communities, justice is lost,” said Elijah Lempaira from Impact Kenya.
Namati said the new agreement protects 79,000 hectares of mangrove forests (four times the size of Washington, D.C., USA) as communities will take the lead in stewarding the mangroves, and will receive at least 40 per cent of gross revenue.
“Going forward, we would like to see further improvements in carbon standards, including a minimum proportion of gross revenue for local communities and a requirement that buyers of carbon credits responsibly curb their own emissions,” the organisation urged.
Approximately two years ago, an investigative report by The Guardian revealed that more than 90 per cent of Verra-certified rainforest credits were “phantom credits” and do not represent genuine carbon reductions as part of efforts by the organisation to ensure the ‘transparency’ and ‘rigour’ of its standards programs.
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