Module 5: Planning Your Carbon Project
This section, along with the Project Idea Note (PIN) Builder, will help you decide if your community has the capacity to develop a carbon project on your own, and inform you of the process if you choose to work with an external contractor for your project. Designing and implementing a carbon project can be done in partnership with a project developer or independently.
Working with a project developer can lend time and technical capacity but can be costly. It is important to choose a project developer that is trusted and has proven results.
Ecotrust Canada and BCAFN, in partnership with Evercity.io, have created the Project Idea Note (PIN) Builder to assist in project planning and determining the feasibility of a carbon project.
This module can be used in conjunction with the PIN Builder. Should you wish to work with an external contractor or consultant to develop the project, showing the information collected using the PIN Builder can help them efficiently understand your project.
Ecotrust Canada is also available to support you in project development and provide assistance to advance the project.
Timeline for a carbon project
Carbon project and carbon credits
Key criteria of a carbon project
5.2 Conduct a Feasibility Study with the PIN Builder
The next step is to develop a project plan around the opportunity your community has identified.
The PIN Builder is a living document and can be shared to quickly cover the fundamentals of the project. The PIN Builder identifies the essential details needed to generate a PIN that can aid in determining the feasibility of a project and demonstrate community readiness to implement the carbon project. With the PIN, an external consultant or contractor can quickly understand the information needed to advance the project. The PIN can be shared with relevant stakeholders and validation bodies, if required.
Along with other details, the PIN Builder includes:
You can jump to different sections or return to those ones anytime.
Project Summary – A project title, the purpose and objectives of the project, the location, lifetime, and the Protocol that is being used.
Contacts – the proponent, project partners, and experience in GHG Offsets and carbon markets.
Ownership – who is entitled to the offsets generated (PIN section 5.3 ‘Clear Ownership/Counted Once’)
Co-benefits – what are the social, ecological and economic benefits of the project? (Section ‘Co-benefits’)
Assessment of additionality (Section 5.5 ‘Additionality’)
Baseline Scenario & Project Scenario
The baseline scenario, also known as the business-as-usual case, is defined in the project plan. The baseline scenario is a description of the projected GHG emissions that would occur without the implementation of the carbon project. (corresponding to 3.4 in the PIN Builder)
The project scenario shows the projected volume of GHG emissions reductions that will be achieved by the project.
Additionality
Additionality is a very important step to clearly describe in your project plan. Additionality will need to demonstrate an assessment of the barriers to project implementation, including:
Financial barriers - financing from offset overcomes the financial barriers to start the project
Social and cultural barriers
Technological barriers
Regulatory and legal barriers
By demonstrating that the proposed project activity faces barriers to completion, which can be overcome by its development as a GHG offset project, it shows that the activity goes beyond what would have occurred in the absence of the project and is additional.
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Offset protocols are designed so that the quantification methodology, including the relevant sources, sinks, and reservoirs, accurately and effectively estimates the emissions reductions created by the carbon project.
At least in some of the voluntary frameworks, an offset protocol exists under a standard. For example, the Verified Carbon Standard (VCS) is the single standard, with many protocols (e.g. Improved Forest Management, Agricultural Land Management, etc.) under it. A project has to conform to BOTH the standard and the protocol. This is important to know because sometimes the protocol will reference the standard and a proponent needs to understand that they have to look at multiple guidance documents.
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An offset program is the regulatory or voluntary framework under which a carbon project is developed, managed and monitored. It provides the process to measure emissions reductions, turning the project outcomes into an environmental asset that can be bought, sold and traded. It provides the methodology or protocol to determine the carbon credits generated from a particular project.
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For more about the distinction of offset protocols and standards, refer here.
Protocol Used
Offset projects must follow official protocols. The protocol you choose will depend on:
the type of land your project is on (e.g., forest, wetland, agricultural land, etc.)
the type of project activities (also known as intervention types). Each project activity will have its own protocol, for example, afforestation/reforestation, Conservation/Improved Forest Management, or Avoided Conversion.
whether the project area is on private or ‘crown’ land
which carbon registry that you’d like to register your project with
The PIN Builder lists and links key available programs ands standards including B.C.’s offset system, the Verified Carbon Standard (VERRA/VCS), Clean Development Mechanism (CDM), Gold Standard (GS), Global Carbon Council (GCC), American Carbon Registry (ACR), and others.
GHG Reduction Estimations
A carbon project requires estimating the GHG reductions that will generate carbon credits. A consultant with expertise in quantifying carbon can conduct one. This step includes identifying GHG sources (dead trees, standing and fallen), sinks (living trees, shrubs and herbaceous plants) and reservoirs (decomposing matter) of carbon. This reduction is the difference between emissions under the project vs the baseline scenarios, along with certain discounts for leakage and buffer pool allocation.
The results of the calculated emissions are required under the “GHG emissions” sections of the PIN Builder.
Risk Mitigation
Ongoing mitigation of risks is essential for a successful project. Risks can affect project permanence or long-term additionality and make the carbon credits invalid. The Project Plan includes an assessment of risks and the plan to mitigate them, including changes to GHG sinks, sources, and reservoirs from logging, fire, drought, or flood impacts may affect the project area. These impacts can lead to carbon emissions called reversals, and should be included in a contingency plan. Fires and droughts may be more challenging to predict in the future.
Cash flow issues may prevent long-term maintenance, monitoring, and/or management of the project. The fluctuating price of offsets due to supply and demand should be considered in risk mitigation.
Monitoring
A project monitoring plan needs to include: roles and responsibilities of community members and project partners, a description of how monitoring and data will be managed, and an explanation of what technologies will be used to monitor the sinks, sources, and reservoirs, such as provincial government forest data or the plant monitoring system. Often, project monitoring is done by staff or contracted foresters. There is an opportunity for project monitoring to be led fully, or supported by, by Guardian Programs.
Validation
Some offset systems, such as BC’s, require Project Plan to be validated by an accredited third-party validation body. The validator will review the Project Plan for the correctness of GHG quantification, its eligibility and whether the project can be expected to successfully generate GHG offset credits. Upon successful assurance, the validation body submits the validated statement alongside the validated project plan to the BC Carbon Registry [1].
Where this step is not required, project proponents may seek an independent professional review of their Project Plan before moving forward.
Watch our video explainer - “Land Guardians”
5.3 Project Implementation
Implement Actions as outlined in PIN
Consider your responses so far in the PIN, and your assessment on the project’s viability thus far. The PIN’s completeness and detail information collected from the planning process is usually a good indicator of the project’s feasibility. You can also bring the PIN to an external project developer to discuss next steps. Or you can begin to undertake the project as described in the PIN, and in line with the offset program and protocol requirements.
5.4 GHG Quantification, Reporting & Verification
GHG Quantification
Once project activities have been implemented, you will need to quantify the actual GHG reductions that result from the project activities. Quantification uses the sources, sinks, and reservoirs identified in the PIN, and calculates the GHG emissions reductions previously estimated.
Quantification of the resulting GHG emissions reductions may be lower than initial estimates due to conversion to the common measurement of carbon credits in tonnes of CO₂e, uncertainty factors, or the offset program retaining a buffer pool. Uncertainty must also be assessed in these calculations. Any uncertain emissions reductions should be excluded from the total carbon credits to be issued.
This step will confirm the amount of carbon credits that the project is eligible to register and sell.
Quantification tools and calculations will be outlined in the protocol you are using, and will often require technical support.
Reporting
You or your project developer must put your carbon quantifications into a report and submit this report to the offset program (respective B.C. or federal offset program, or the voluntary program you are using, for example VERRA) to be issued offset credits periodically.
These reports to the offset program demonstrate the quantification of carbon emissions reductions or removals, and monitor the project activity to ensure that the project is conducted according to the project plan. Reporting allows for transparency and accountability of carbon in an offset system. Project reports for projects developed under the B.C. offset program are available to the public through the B.C. Carbon Registry website.
Third-Party Verification
To generate carbon credits, carbon projects must be verified by an accredited third-party. Verification confirms that a carbon project has been executed according to its protocol and Project Plan and confirms the number of tonnes of carbon reductions or removals to be issued as offsets. Verification is an important step to ensure the quality and integrity of the carbon project. Upon successful verification, the third-party verifier will submit its verification statement and the verified project report to a registry (such as the B.C. Carbon Registry) [2].
The Standards Council of Canada and the American National Standards Institute are good starting points in finding an accredited verification body. If you are working with a project developer, they can connect the project with an accredited verification body. The standard body will also have a list of accredited verifiers for their standard/protocol.
5.5 Register Your Project, Credit Issuance & Sale
Registration of Project in the Offset Program
With validation and verification from third-party assurance, the project can now be registered under an offset system registry to apply for the issuance of carbon credits. The registry will review the project document for completeness and accept the project when all requirements are met. All project-related documents, verification and validation will be published on the registry, as well as the subsequent project reports and verification.
Issuance
The carbon credits are created by the carbon offset program authority and issued to the proponent. Credits are only issued based on verified reports. Issuance of offset units will show up in your account with whatever offset registry you use.
Sale of Offsets
Selling of credits usually requires selecting and relationship building with prospective buyers. Though sale can be considered near the end of a carbon project development process, it can be valuable to negotiate sales agreements earlier on in the development process to gain clarity around the price and volumes to be sold over a long period of time. Examples of sellers are Ostrom Climate and Climate Impact Partners.
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Offset registries enable broader sharing of information on carbon projects, and help record the creation, purchase and sale of carbon credits. Registries help keep carbon projects are transparent and accountable, and publicly record ownership and sales of credits to create a credible commodity. Potential offset credit buyers can see that carbon credits they are interested in are issued to the project and have not already been sold or used by another buyer. Registries are a major tool to prevent double-counting of GHG emissions reductions and to maintain the integrity of carbon markets.
An example of an independent carbon offset registry is the Verra Registry, which accounts for all of the generation and retirement of credits issued under the Verified Carbon Standard.
Continue reading
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![Bird eye view of a forest and river]()
About the Forest Carbon Community Toolkit
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Glossary
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Module 1: Climate Change & Natural Climate Solutions
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![A winter forest]()
Module 2: Carbon Markets and Carbon Offsets
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![People, Drums and Fire]()
Module 3: Implementing and Upholding Indigenous Carbon Rights, Ownership & Entitlement
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![Caribou pack running in snow]()
Module 4: Opportunities, Barriers & Case Studies
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![Two person in forest]()
Module 5: Planning Your Carbon Project
