New Tool for Monitoring, Reporting, and Verifying CO2 Removals

Today, the Grantham Research Institute, in collaboration with AlliedOffsets, launched a pioneering tool aimed at improving transparency in the carbon dioxide removal (CDR) market. This TRACEcdr tool serves as an interactive visualization platform, giving policymakers, CDR developers, and purchasers insight into the complex landscape of carbon removal monitoring, reporting, and verification (MRV).

The Growing Need for MRV in CO2 Removal

As the world pushes to meet climate goals set by the Paris Agreement, carbon dioxide removal (CDR) methods are essential to supplement efforts to reduce greenhouse gas emissions. The Intergovernmental Panel on Climate Change (IPCC) highlights the need to scale CDR efforts from the current 2 billion tonnes of CO2 removal annually to between 10 and 100 billion tonnes by 2030. MRV protocols are critical here because they allow all stakeholders—from governments to private investors—to verify the effectiveness of these carbon removal projects.

Josh Burke from the Grantham Research Institute emphasizes this need for transparency in CDR projects: “Without robust MRV standards, trust in the CDR market can erode, stifling both policy development and investment.”

Current Challenges in MRV

Despite the rapid expansion in CDR methods, there is no globally agreed standard for MRV. Multiple initiatives—like the EU Carbon Removals and Carbon Farming/CRCF Regulation—are creating new regulatory frameworks. However, each approach has different criteria and requirements, causing confusion in an already complex market. As Leo Mercer, a policy analyst at the Grantham Research Institute, explains: “A lack of standardization means it's difficult for both investors and governments to make informed decisions, often leading to inefficient oversight and stalled investments.”

The ongoing crisis of confidence in the voluntary carbon market (VCM) further complicates matters. For example, CDR projects that do not meet certain MRV criteria can lead to inflated or inaccurate claims about their impact. This has led to calls for clearer, more standardized MRV protocols to restore trust in carbon markets.

How the TRACEcdr Tool Addresses These Issues

In response to these challenges, the Grantham Research Institute and AlliedOffsets created the TRACEcdr tool. This new tool allows users to visualize the CDR landscape, facilitating a clearer understanding of the different MRV protocols, project volumes, and credit issuance rates across the CDR ecosystem.

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Three Key Components of TRACEcdr

1. Mapping the MRV EcosystemThe tool begins by digitally mapping the MRV landscape for each CDR method, providing a visual representation of the protocols and entities involved.

2. Data on Projects and Credit IssuanceLeveraging AlliedOffsets’ extensive database of over 32,000 global projects, the TRACEcdr tool shows project registrations and credit issuance data across different methods. This allows users to see which CDR projects are most active and where they are located.

3. MRV Quality Scoring (Planned for 2025)By 2025, TRACEcdr will assign scores to different MRV protocols to help users assess the quality and reliability of these standards. This additional layer will provide insights into which protocols are most effective and transparent.

According to Anton Root from AlliedOffsets, this tool was developed with policymakers in mind: “Our aim was to simplify the CDR market and make it easier for stakeholders to understand who’s doing what and how effectively.”

Navigating the TRACEcdr Tool

Users interacting with TRACEcdr can explore four levels of the MRV system:

• Level 1: Organized by specific CDR methods.
  
• Level 2: Displays the entities responsible for CDR standards.
  
• Level 3: Details specific MRV protocols and whether they are used for voluntary or compliance purposes.
  
• Level 4: Shows credit issuance per protocol, allowing users to trace activity down to individual projects.
  

With these levels, users can filter protocols based on their focus (national or international) and intended use (voluntary vs. compliance markets). This interactive visualization provides an efficient way to navigate the often overwhelming CDR landscape.

Key Insights from TRACEcdr

The TRACEcdr tool has already highlighted important trends in CDR:

• Dominance of Land-Based Biological MethodsDespite significant interest in advanced technologies like direct air carbon capture and storage (DACCS), traditional methods such as reforestation and soil carbon sequestration make up the bulk of CDR activity. Notably, 77% of all issued credits come from reforestation, with another 19% from peatland restoration projects.

• Concentration of Protocol UseAlthough many MRV protocols exist, a small selection accounts for most of the issuance. For instance, Verra’s VM0033 protocol is responsible for 99% of credit issuance in peatland and coastal wetland restoration, illustrating a reliance on a handful of standards.

• Growth in Compliance MarketsWhile MRV development is largely occurring within the VCM, compliance markets play a significant role. Currently, around 60% of issued credits are used in compliance programs, notably in California’s Air Resources Board program.

Table: Overview of System Activity by CDR Method and Credit Issuance

CDR Method	Registry	Protocols with Greatest Issuance	Projects	Issued Credits	% of Total
Afforestation & Reforestation	American Carbon Registry	Compliance Offset Protocol U.S. Forest Projects	113	114,065,156	64%
Soil Carbon Sequestration	Verra	VM0032 Grassland Management	11	6,098,086	31%
Peatland Restoration	Verra	VM0033 Wetland Restoration	30	4,802,658	78%
Biochar	Puro.earth	Biochar Methodology v2.4.1	44	295,827	100%
DACCS	Climeworks	CO2 Removal by Direct Air Capture	10	175,836	100%

The Future of TRACEcdr

As TRACEcdr evolves, further updates are planned, including additional visualization features and expanded data for each protocol. A second major release is expected in mid-2025, aiming to incorporate user feedback gathered from this initial beta version. The team encourages users to provide feedback on their experience to Leo Mercer and Josh Burke, who have spearheaded this project.

The TRACEcdr tool is an important step in making the CDR market more accessible and transparent, bridging information gaps that have hampered the sector’s development. With standardized, accessible data, investors and policymakers will be better equipped to support effective and scalable carbon removal methods.

Explore the TRACEcdr tool at https://www.lse.ac.uk/granthaminstitute/tracecdr