Assessing Current Project Status under Independent Carbon Standards and their Potential Role in Article 6 Implementation
5.1 Role of Independent Carbon Standards
Independent carbon standards developed by non-governmental organizations, private entities, or independent institutions are designed to certify and verify carbon offsets from mitigation projects. Quality standards ensure that projects aiming to reduce Greenhouse Gas (GHG) emissions meet specific criteria of environmental integrity, transparency, and verifiability. Key examples of widely recognized independent carbon standards organizations include Verified Carbon Standard (VCS) managed by Verra, Gold Standard (GS), American Carbon Registry (ACR), Climate Action Reserve (CAR) , the Global Carbon Council and Architecture for REDD+ Transactions (Art Trees). These standards have traditionally been used to issue certified emissions reduction and removal units mainly for the voluntary carbon market and used by the private sector. With the introduction of Article 6 of the Paris Agreement, these standards also play a role in generating verified mitigation outcomes which, subject to authorization by the Parties and meeting the relevant requirements, can be used in the context of Article 6.2 for meeting the Nationally Determined Contributions (NDCs) or other international mitigation purposes (OIMPs). Examples of this include the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and mandatory carbon pricing instruments in some countries which allow for the use of international offsets. The increasing use of independent carbon standards under Article 6 also encourages alignment and harmonization of crediting standards across voluntary and mandatory or regulated markets.
This chapter provides an analysis of projects registered under six major independent carbon standards namely, VCS, GS, ACR, CAR, GCC &ART TREES to assess their current status. As many Parties have expressed interest in using independent carbon standards as an underlying crediting framework to monitor and verify mitigation outcomes for use in its participation in Article 6.2 of the Paris Agreement, the current trends of projects under these independent carbon standards could influence future Article 6 implementation.
5.2 Project Pipeline Status
5.2.1 Number of Projects registered under the Independent Standard
An analysis of projects registered under various voluntary carbon market standards shows that the Gold Standard accounts for the largest share, representing 46% with approximately 2,850 projects. This is followed by Verra’s VCS with 28% (around 1,700 projects), and the Climate Action Reserve (CAR) with 14% (841 projects). The American Carbon Registry (ACR) holds 10% (640 projects), while the Global Carbon Council (GCC) represents 2.5% (152 projects). ART TREES has the smallest share, with just 0.03% (2 projects). Some of these registered projects could in the future generate post-2020 credits that might be authorized and therefore eligible for Parties meet their climate targets under Article 6.2.
5.2.2 Number of Projects by Region
South and South-East Asia account for over 50% of registered greenhouse gas (GHG) reduction projects, with the majority concentrated under the Gold Standard. Africa closely follows as a leading region, where more than half of the projects are also registered under the same standard. Together, Asia and Africa are driving momentum in the global carbon market, showcasing strong regional leadership in climate mitigation through independent standards.
5.2.3 Project Types
There is variation in sectoral focus across regions under different carbon standards, with renewable energy, forestry, and industrial process projects each playing a crucial role in global efforts to mitigate climate change. In the renewable energy projects, VCS and GS share majority. Household and Community projects are dominant under GS. On the other hand, the ACR shows a different trend, with chemical process-related projects emerging as the leading sector. These projects focus on reducing industrial emissions through advanced technologies, such as carbon capture and utilization (CCU) or methane capture from waste processes.
5.3 Key insights of Independent Carbon Standards and their role in Article 6 implementation
The independent carbon standards landscape demonstrates a complex and adaptable system that supports carbon offsetting efforts both regionally and globally. The diversity of these standards strengthens the carbon market, enabling it to meet varied environmental needs and contribute to climate action across different sectors and regions while increasing the importance of ensuring high integrity and transparency.
Future developments are likely to see an expansion in the carbon market, especially in emerging markets. This trend is increasingly relevant to Article 6 due to the importance of ensuring avoidance of double counting for credits applied toward international climate objectives such as NDCs and international compliance systems, CORSIA. As voluntary credits become more integrated into formal climate frameworks, voluntary and compliance markets may become more closely aligned. Organizations are likely to seek higher-quality credits, and governments are expected to introduce more stringent rules to ensure these credits have tangible, verifiable results. This shift could create a more unified system, bridging voluntary and compliance markets and strengthening the role of the global carbon market in advancing climate goals.