Case Study: CARBON procurement

Procuring independently sourced, CCP-Approved carbon credits for ICVCM

Abatable helped ICVCM – the VCM’s foremost integrity body – compensate its operational greenhouse gas emissions through an entire carbon credit procurement process.

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The Integrity Council for the Voluntary Carbon Market (ICVCM) is an independent, non-profit governance body for the voluntary carbon market. Its vision is for a mature, efficient market that will mobilise finance at scale into impactful climate projects that reduce and remove emissions and support positive sustainable development outcomes.

ICVCM’s 10 Core Carbon Principles (CCPs) establish the first independent global threshold for carbon credit integrity, drawing on the best available science and expertise. The CCPs introduce greater consistency and transparency to the voluntary carbon market, enabling it to scale and fulfil its potential as a powerful climate solution.

This case study illustrates a framework for how organisations can engage with carbon markets to use CCP-Approved carbon credits.

Goal

ICVCM*, per its policies, compensates its greenhouse gas emissions through CCP-Approved carbon credit purchases. It approached Abatable as a third party, in accordance with ICVCM policies, to help independently procure a small portfolio of CCP-Approved credits to compensate for the ICVCM operational footprint for the period from October 2021 to March 2025. The credits needed to meet the following criteria:

  • A CCP-Approved carbon credit portfolio, ready to transact today;

  • A portfolio selected by Abatable as an independent, third-party, conflict-of-interest-free sourcing partner that could ensure a fair and diversified selection process in which ICVCM is not involved, selecting CCP-Approved carbon credits by leveraging its market intelligence and risk screening tools;

  • Representation across multiple CCP-Eligible Programmes, geographies, suppliers/project developers and CCP-Approved methodologies; and

  • Full traceability around project criteria and portfolio selection and full transparency on the process followed and selection criteria used at each stage of portfolio selection and construction.

* ICVCM Limited and subsidiary not-for profit companies. Note that the small volume of greenhouse gas emissions to be compensated was below the threshold for ICVCM policies relating to procurement processes.

Solution

Abatable deployed its carbon procurement solutions and intelligence tools to support ICVCM on its first-ever ‘blind’ CCP-Approved carbon credit procurement.

The process followed three main steps: sourcing, evaluation, portfolio construction and purchase and retirement of CCP-Approved carbon credits on behalf of the ICVCM.

Sourcing CCP-Approved carbon credits

Leveraging its proprietary database of over 13,000 carbon projects, 4,000 carbon project developers and suppliers, and its market intelligence tools, Abatable identified all the projects from which CCP-Approved carbon credits are available in market today, based on verified-as-available inventory. From these projects, those that had available spot inventory and which would be available to transact small volumes were shortlisted.

Number of suppliers contacted to respond to the Abatable procurement tender issued for its ICVCM work41
Number of offers received from 18 projects 31
Number of projects reviewed again at this stage of the process, for example on the project developer’s track record18

Portfolio construction and transaction support

Abatable then constructed a diversified portfolio of CCP-Approved carbon credits, achieving diversification across suppliers, geographies and, to the extent possible, methodologies that had been CCP-Approved at the time of the transactions.

The final portfolio proposal was presented to the ICVCM Executive Secretariat without details of the selected projects or the related project developers to ensure full independence in project selection. 

Abatable then further supported ICVCM with contracting, execution and retirement of the CCP-Approved carbon credits in the portfolio.

Partnering with Abatable

Throughout the process, Abatable:

  • Defined a tailored sourcing strategy in line with ICVCM’s organisational requirements.

  • Supported screening using in-house screening tools. 

  • Determined portfolio construction and optimisation processes for the volumes required to ensure sufficient diversification, leveraging a fully independent and well-documented process for project selection.

  • Performed contracting, CCP-Approved carbon credit retirement, and documentation for public disclosure.

This enabled ICVCM to ‘blind’ procure CCP-Approved carbon credits with confidence.

Impact

The final portfolio comprises five projects from which CCP-Approved carbon credits were available for spot transactions, split across four CCP-Eligible Programme registries. It is mainly composed of landfill gas projects, with a minority covering halocarbons (ozone-depleting substances). This reflects the availability of CCP-Approved carbon credits in the market, as noted above, at the time of the transactions.

Landfill gas (LFG) projects capture methane emissions – one of the most potent greenhouse gases – emitted from decomposing waste. They then use these to generate renewable electricity. Beyond their climate benefit, LFG projects benefit neighbouring communities by controlling for and reducing local air and water pollution and providing a reliable and cleaner power generation source. These projects contribute to a cleaner energy mix and more sustainable waste management systems in the localities where they are based.

Ozone-depleting substances (ODS) destruction projects help eliminate chlorinated gases used as refrigerants and aerosol spray propellants. These gases have high global warming potentials – often thousands of times greater than CO2 – contribute to the destruction of the ozone layer, and can create health hazards from regular exposure in uncontrolled situations. By safely eliminating these chemicals, these projects prevent enhanced global warming, further damage to the ozone layer, and help reduce health risks in workplaces.

Results

  • 500 CCP-Approved carbon credits successfully retired.

  • A five-project portfolio spanning multiple project types and CCP-Eligible Programme registries.

  • A fully traceable, robust process from sourcing to retirement.

  • A reinforcement of ICVCM’s position as a neutral, leading voice on high integrity in the carbon market.

  • The creation of a replicable model for future CCP-Approved carbon credit procurement.

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