Verra has announced progress in compensating carbon credits linked to 37 rejected rice cultivation projects in China. While 480,000 Verified Carbon Units (VCUs) have been compensated across five projects, 4,080,000 credits remain unresolved.
The rejections, announced in August 2024, stemmed from Verra’s review, which flagged methodological flaws and validation weaknesses.
Among the rejected projects, 25 were found to have over-issued VCUs. Sanctions were imposed on the involved project proponents and validation/verification bodies (VVBs).
Two proponents—Vitol (China) Energy Co Ltd and Timing Carbon Asset Management Co., Ltd.—have successfully compensated for 480,000 VCUs, Verra said in an announcement last week.
Search CO2 (Shanghai) Environmental Science & Technology Co. Ltd, linked to 10 projects and 2,220,000 outstanding credits, faces the suspension of its Verra registry account. Failure to compensate for these credits may result in account closure.
Relevant: Verra Rejects 37 Rice Cultivation Projects In China, Sanctions Auditors And Proponents
Another 1,860,000 credits relate to 10 projects formerly represented by Hefei Luyu Agriculture Technology Co. Ltd. through Shell Energy (China) Limited.
Following the termination of their agreement in September 2024, these projects lack an account holder on the Verra Registry and have been moved to an administrative account.
Hefei, with no active projects, cannot register new ones or open a registry account until compensation is fulfilled.
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This marks Verra’s first instance of such stringent sanctions, underscoring its commitment to maintaining integrity and transparency in the voluntary carbon market.
Chief Program Management Officer Justin Wheler emphasized Verra’s dedication to improving standards and addressing inappropriate marketplace conduct.
“Verra took decisive action at every level at which concerns were identified,” he said.
Additionally, Verra is concluding its review of responses from the four implicated VVBs. Future validation and verification privileges for these bodies may be suspended depending on the review’s findings.
