Fixing Verra: A Critical Analysis of Verra’s Carbon Program with Proposals for Policy and Technical Reforms

Voluntary carbon markets could play a key role in fighting climate change by funding projects that reduce or remove carbon emissions in cases where cutting emissions directly isn't possible. These markets have grown rapidly, reaching over $2 billion by 2021, with projects aimed at reducing deforestation and degradation (REDD+) making up the largest portion, valued at $863 million. The largest player in this space, Verra, has issued over 1 gigatonne of carbon offsets.

However, these markets have faced heavy criticism from researchers, journalists, and industry insiders. Many studies have shown that carbon projects, especially those based on nature, are often over-credited. Additionally, investigations have revealed instances where carbon programs have led to human rights violations or deprived communities of resources, offering little in return for carbon rights. These widespread issues stem from policies and standards that often misalign incentives and allow for manipulation of the rules.

Registries like Verra are responsible for generating and managing carbon credits and overseeing ongoing project activities. Although there are several registries worldwide, Verra controls over 70% of the carbon market, with a near-monopoly in certain areas like REDD+ projects in developing countries. The policies and methods Verra uses to create and validate carbon credits have led to high rates of over-crediting and human rights concerns.

This document aims to identify common problems in Verra's carbon program and propose solutions at both the policy and technical levels.

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