ABACUS label for Ecosystem Restoration and Reforestation Credits

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Last year, Verra launched a new market label, ABACUS, to distinguish credits from exceptional ARR projects that exceed the baseline requirements set by VM0047 Methodology and the VCS Program.
 
The need for this label arises from reputational challenges in the carbon market and the necessity to encourage developers to adopt
higher transparency, more conservative approaches, and design projects with long-term impact.

Projects seeking the ABACUS label must meet stricter
requirements in several areas, including:

  • Dynamic Additionality – ensuring carbon finance plays a decisive
    role in project feasibility.
  • Transparency of Models and Calculations – such as forest inventories and carbon accounting methodologies.
  • Avoiding Food Production Displacement – preventing
    unintended consequences within project areas.

Key ABACUS Concepts

1. Additionality and Baseline Setting

For a carbon project to be truly additional, it must prove that its emission reductions or removals would not have occurred without carbon financing. ABACUS reinforces this principle by tightening the
requirements for additionality assessment beyond VM0047 rules.
Under VM0047, projects must compare carbon removals in the project area with carefully matched control plots outside the project boundary.
This ensures that credits are only issued for genuine additional removals, exceeding natural carbon sequestration trends.

  • ABACUS introduces stricter guidelines for control plot selection.
    For instance:
    More comprehensive historical data – project proponents are
    encouraged to use as many annual time points as possible from
    the pre-project period to improve accuracy.
  • Investment Barrier Analysis – an additional requirement to
    demonstrate that carbon revenue was a key factor in the project’s
    initiation. 

2. GHG Accounting and Uncertainty

Reliable carbon quantification is essential for market confidence. ABACUS-
labeled projects must use in-situ measurements of carbon pools within the project area, even when leveraging remote sensing technology.

To enhance transparency, project inventory data, allometric models, and
uncertainty estimates must be made publicly available. Additionally, the label requires stringent methods to prevent systematic measurement
bias, ensuring that projects provide accurate and reproducible carbon accounting results.

3. Permanence

One of the biggest challenges in nature-based carbon projects is ensuring long-term carbon storage. Forests are vulnerable to disturbances like wildfires, logging, and land-use changes. ABACUS
addresses this by requiring: 

  • The use of ecologically appropriate reforestation systems, excluding high-risk monoculture plantations.
  • Strategies to maintain carbon stocks beyond the crediting period,
    such as financial sustainability plans or legal protections.
  • Annual disturbance monitoring with public reporting of any carbon loss events.
To further enhance long-term confidence, ABACUS is exploring future mechanisms, such as a permanence buffer pool or insurance product, to compensate for potential carbon reversals.
 
4. Leakage Management
 
Leakage occurs when emissions reduced in one area are displaced elsewhere, undermining the project’s climate benefits. The ABACUS label incorporates the latest leakage accounting methods and requires
projects to offset any displaced agricultural production.

A proposed revision to the VMD0054 Leakage Estimation Module will incentivize projects to improve local agricultural productivity, reducing land displacement and ensuring that carbon gains are not offset by
unintended deforestation elsewhere.

Eligibility and Requirements
To qualify for the ABACUS label, projects must:
  • Use the latest versions of VM0047 (ARR methodology) and
    VMD0054 (leakage module).
  • Maintain a crediting period no longer than 40 years.
  • Apply ABACUS requirements to the entire verification period (no retroactive labeling).
     

Additionally, verification bodies must follow a rigorous checklist-based assessment to confirm compliance with ABACUS standards.

 

A Step Toward Higher-Quality Carbon Credits

Currently, no projects have been officially labeled under ABACUS yet, as the framework was only recently released. However, market demand is already emerging—for example, the Symbiosis Coalition has committed to investing only in projects aligned with ABACUS principles.

At CCC, we are eager to be part of this next generation of ARR projects that uphold the highest standards of integrity and impact. By fostering greater transparency, we aim to build trust in carbon markets, attracting investors and companies committed to meaningful climate action. Ultimately, this financial instrument is about more than just mobilizing capital—it’s about ensuring that investments genuinely contribute to a sustainable, high-integrity future.

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