SINGAPORE, November 7, 2024 – The International Carbon Reduction and Offset Alliance (ICROA), a leading standard-setting body in the carbon markets, has urged carbon crediting programs seeking its endorsement to connect to the Climate Action Data Trust (CAD Trust) platform. This recommendation aims to elevate transparency and market integrity globally, positioning CAD Trust as a vital tool for tracking and validating carbon credits.
The new endorsement criteria now specify that “ICROA strongly encourages all carbon crediting programmes, independent and government alike, to connect to the Climate Action Data Trust and other comparable market infrastructure that ensures public access to harmonised registry information, enhancing market transparency and integrity globally.”
ICROA’s Code of Best Practice serves as the industry benchmark, setting the standards for operators in the carbon market. Through the ICROA Carbon Crediting Endorsement Procedure, the organisation endorses high-quality carbon crediting programs based on a rigorous third-party audit. This audit examines essential criteria, including independence, governance, validation and verification protocols, adherence to carbon credit principles, and environmental and social impacts.
The CAD Trust, a decentralised platform, aggregates and harmonises data across major carbon registries, helping crediting programs maintain accurate tracking and public accountability. By integrating with CAD Trust, ICROA-endorsed programs can streamline reporting processes, reduce the risk of double counting, and ultimately reinforce confidence in the voluntary carbon market (VCM).
ICROA Programme Director Antoine Diemert commented, “As the voluntary carbon market evolves, it is important that we adapt our programmes too. By recommending that ICROA-endorsed crediting programmes connect to the CAD Trust platform, we can improve transparency and foster trust amongst stakeholders in the market. The link can help streamline reporting, mitigate the risk of double counting, and pave the way for a more robust and effective voluntary carbon market.”
Currently, ICROA has endorsed 16 independent and governmental crediting programs, with three additional programs conditionally endorsed and seven others under review.
Federico Di Credico, Interim CEO of CAD Trust, added, “ICROA is a key pillar in the carbon market integrity space, assuring best practices in program governance and conduct. We share a recognition of the need for greater transparency as best practice to build trust in our space and appreciate the endorsement from ICROA.”
Earlier this year, CAD Trust announced intentions to broaden data partnerships, enhance transparency initiatives, and develop solutions to prevent double counting, as well as support the implementation of Article 6 of the Paris Agreement. These efforts are expected to further solidify CAD Trust’s role as a key infrastructure in advancing transparency and credibility within carbon markets.