First voluntary carbon market methodology

The Technical Monitoring Committee (“CTA”) of the Voluntary Carbon Market (“VCM”), appointed under Order 13808/2024, developed the first carbon methodology focused on new afforestation, currently under public consultation until April 25.

Context and background

On January 5, 2024, Decree-Law 4/2024 was published, creating the VCM and establishing its functioning regime. We mentioned the publication of this regime, as well as the publication of the adjustments made on March 5, 2024 through a Rectification Declaration, in our posts Legal regime for voluntary carbon market and Rectifications to voluntary carbon market legislation. In October 2024, several aspects of the VCM were regulated (see Post Regulating voluntary carbon market functioning).

Afforestation methodology under public consultation

The methodology under public consultation establishes the requirements and guidelines for quantifying the net climate benefits of activities that sequester carbon by creating new forests in Portugal. It specifies the rules for project eligibility, the methods for calculating the net effects of an afforestation project on greenhouse gas emissions (“GHG”) and on the removal of CO2 from the atmosphere, the procedures for assessing the risk of carbon sequestration reversal, and the approaches to monitoring and reporting on the respective projects.

The public consultation is an opportunity for stakeholders to contribute suggestions and comments on the proposed methodology.