The Integrity Council for the Voluntary Carbon Market (ICVCM) recently granted formal approval to five carbon credit methodologies, marking a significant milestone in ensuring the quality of natural climate solutions. Three of these methodologies are for biochar and two for Improved Forest Management (IFM), all of which meet its Core Carbon Principles (CCP). Another IFM methodology has received conditional approval, subject to future modifications.

ICVCM: High standards for the quality of Carbon Credits

ICVCM is an independent, non-profit body whose mission is to ensure that voluntary carbon markets contribute effectively to climate action. Its CCP label serves as a global benchmark for high-quality carbon credits. To earn this label, methodologies must meet strict criteria set out in the ICVCM Assessment Framework, which defines what “high quality” means in practice. The CCP label provides buyers with a simple and trusted way to identify credits with real climate impact.

Approved Methodologies for Biochar

The ICVCM has granted its CCP approval to the following three biochar methodologies:

• CAR – Biochar from the USA and Canada (Version 1.0)
• Isometric biochar production and storage (Version 1.0)
• Verra VM0044 Biochar Use in Soil and Non-Soil Applications (Version 1.2)

What is Biochar?

Biochar is a carbon-rich material that is created by heating biomass—such as plant residues or wood—in low-oxygen conditions through a process called pyrolysis. This method locks the carbon into a stable form, preventing it from breaking down and releasing greenhouse gases. When added to soil or used in other applications, biochar stores carbon for hundreds or even thousands of years and, in addition to its climate benefits, can improve soil health and crop yields. According to MSCI, demand for carbon credits from biochar has increased over the past two years doubled every year, making it one of the fastest growing sectors in the voluntary carbon market. All three newly approved methodologies are new to the market and no credits have yet been issued. Under the Isometric methodology, 25 projects are registered, expecting to produce 500,000 credits in 2026. For the Verra VM0044 methodology, three projects are registered, with an expected annual supply of 249,000 credits. Annette Nazareth, Chair of the ICVCM, highlighted that the approvals underline the credibility of biochar as an emerging climate solution.

Approved IFM methodologies

Improved Forest Management (IFM) projects focus on improved forestry practices that increase carbon sequestration and reduce emissions. Strategies include extending harvesting seasons, establishing protection zones, and using low-impact harvesting techniques to limit damage to forests and soils. Currently, IFM projects account for approximately 4 % of the voluntary carbon market. The two approved IFM methodologies are:

1. Verra VM0045 Improved forest management using dynamically matched baseline values from national forest inventories (Version 1.2)
2. ACR – IFM on US non-federal forest lands (Version 2.1), with leakage deduction requirements

Verra's new approach to forest carbon accounting

Verra VM0045 is a new methodology that moves from traditional, static models to dynamic baselines based on continuously updated national forest inventory data. This provides a more accurate and transparent measurement of a project’s carbon impact. No credits have been issued under VM0045 yet, but two projects are in validation with the expectation of issuing 258,000 credits per year. Mandy Rambharos, CEO of Verra, said that the approval of these methodologies is a defining milestone for natural solutions and carbon markets, ensuring that carbon credits deliver real, measurable and lasting climate impact.

ACR IFM Methodology with Leakage Deductions

The ACR IFM Methodology for U.S. Non-Federal Forests (Version 2.1) includes rules to address leakage—the risk that reduced timber harvest in one area will result in increased harvest elsewhere. Projects that reduce total wood product production compared to the baseline must apply leakage deduction 10 – 20 %This version has 18 listed projects covering nearly 500,000 acres, but no credits have been released yet.

Conditional approval: CAR Mexico Forest Protocol

The CAR Mexico Forest Protocol (Version 3) has received conditional approval, which is contingent on two changes: CAR must revise its leakage values to align with the latest research, and a minimum 40-year commitment to sustainability8.1 million credits have already been issued under this methodology, but it is unclear how many of them will meet the requirements for CCP designation after these changes.

Why are these approvals important?

ICVCM approvals send a strong signal to carbon credit buyers and developers. Projects certified according to CCP-approved methodologies are considered scientifically sound, environmentally robust and market-readyFor biochar, the approvals come at a time when demand is soaring, making it a credible tool for carbon removal. For IFM, the focus on accurate baselines and leakage control increases confidence in forest-based credits. These decisions also raise the bar for transparency and accountability on the voluntary carbon market. With the newly approved methods, developers can move forward with confidence, knowing that their projects meet the highest standards of integrity, and buyers can purchase credits backed by rigorous science and proven climate benefits. This recognition will become a key market differentiator, highlighting projects that deliver real carbon removal and emissions reduction. JRi

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