Verra Opens Public Consultation on Scope 3 Standard

Verra, the largest carbon crediting program in the voluntary carbon market (VCM), has opened a public consultation on its Scope 3 Standard (S3S) Program, a new initiative aimed at certifying corporate Scope 3 interventions. As Scope 3 emissions often represent the largest share of corporate carbon footprints, the development of a standardized framework could have significant implications for VCM activity, corporate climate strategies, and value chain decarbonization efforts.

S3S Program Background

Verra introduced its Scope 3 Initiative in May 2022 to assess how the Verified Carbon Standard (VCS) framework—its market presence, carbon credit methodologies, audit procedures, and registry—could enhance the accurate accounting of GHG interventions in corporate Scope 3 inventories. The initiative aimed to prevent double-counting while establishing flexibility for companies to generate carbon credit or Scope 3 interventions.

The Scope 3 Initiative revealed strong demand for an S3S Program that would enable companies to account for and disclose Scope 3 interventions credibly. As a result, in December 2022, Verra’s board of directors approved the S3S program's development.

How S3S Works

The S3S Program will build upon and adapt the expertise, experience, and infrastructure of the VCS Program. It will incorporate the following components:

• Auditable and robust rules and requirements to ensure the reliability and credibility of Scope 3 intervention results.
• Standardized, science-based, and peer-reviewed quantification methodologies, which are available to the public
• A Scope 3 registry to enhance transparency, encourage co-investment, and ensure integrity and clarity through the issuance of units.
• Third-party verification of Scope 3 intervention data, methods, and outcomes
• Certification of Scope 3 interventions and their greenhouse gas impacts, supported by Verra’s rigorous third-party auditing and verification systems.

Piloting of S3S program

In August 2024 and November 2024, Verra initiated pilot projects to adapt VCS Program methodologies for the S3S Program. These pilots are also evaluating preliminary S3S Program requirements, procedures, and infrastructure. Insights gained from these projects are being used to further refine the program's design.

In the initial batch of projects in August 2024, pilots will be adapting three methodologies that are active in Verra’s VCS Program for use in the S3S Program:

• VM0042 Methodology for Improved Agricultural Land Management, v2.0
• VM0043 Methodology for CO₂ Utilization in Concrete Production, v1.0
• ACM0009: Fuel switching from coal or petroleum fuel to natural gas — Version 5.0 (from the UN Clean Development Mechanism)

The pilot projects span the apparel, agriculture (both arable and livestock), construction, and communications services sectors, with locations in Europe, Asia, and North America.

If the piloting process is successful and the methodologies receive approval, they will be the first to be implemented under the S3S Program upon its launch later this year. The table below provides the discovery pilots and their respective Methodologies that will be adapted:

Current Status of S3S

Verra has initiated its first public consultation on preliminary program documents for the emerging S3S Program. The goal is to gather input on the clarity, completeness, and practicality of key program rules, concepts, and related guidance. The consultation period runs from 6 March to 21 April 2025.

As part of this consultation on the initial version of the program, Verra is seeking feedback on the following draft documents:

• S3S Standard, v0.1: General rules and requirements, similar to those outlined in the VCS Standard.
• S3S Program Definitions, v0.1: Key definitions and terminology specific to the S3S Program.
• S3S Program Guidance for the Adaptation of VCS Methodologies, v0.1: Justification and technical guidance for the adaptation of VCS methodologies for the S3S Program
• S3S Program Integration Guidance, v0.1: Justification and technical guidance for the use of S3S Program outputs in companies’ emissions reporting

Verra is also seeking feedback on key program concepts, including:

• Assurance Framework: A conceptual proposal for ensuring the credibility of Scope 3 interventions and their climate impacts.
• Removals and Non-Permanence Framework: A proposed approach for quantifying and accounting for emission removals and managing non-permanence risks.

• Streamlined Approach for Measured Parameters: A proposal to synchronize timelines for direct carbon stock measurements with corporate emissions reporting.

The development of Verra’s S3S Program could have a significant impact on market dynamics, as its success could influence how companies manage their Scope 3 emissions. Other developments could also feed into how Verra builds out their program since offsetting Scope 3 emissions has received significant attention. For example, the recent controversy with the Science Based Targets initiative (SBTi) may result in a higher level of scrutiny for the S3S Program, which could lead to more strict guidelines.

Looking ahead, Verra is finalizing two additional pilot projects under VM0042 Improved Agricultural Land Management, v2.1, which is expected later in 2025. In the next few years, Scope 3 offsetting practices will continue to see significant evolution as corporate flexibility is balanced with climate mitigation efforts.