The forest carbon sector is brimming with jargon, technical terms and processes. We unpack what some of those mean and why they are critical to developing a successful and sustainable project that is good for people and nature.

Here, we look at the three of the common terms in carbon projects: additionality, permanence and monitoring, reporting and verification (MRV).

What is additionality?

Emissions reductions or emissions removed from the atmosphere because of the carbon project — and which would not have occurred without the project — is known as additionality.

Additionality proves the project impact is real because emissions reductions are additional to what would have happened if the project did not exist. This might look like a conservation carbon project in forest that was otherwise to be logged for timber export or cleared for large-scale agriculture.

To show additionality, it is necessary to prove the real and imminent threat to a forest from deforestation or degradation. Or, in restoration carbon projects, the forest must be already degraded. A project must also prove the threat is economically viable and very likely to have occurred in the forest area.

What is permanence?

Forest carbon projects using the Nakau Methodology must demonstrate how emission reductions will continue for at least 50 years. Project designs include strategies and activities to ensure this permanence and address any risks, such as illegal logging.

If the carbon dioxide stored because of a project is released as emissions, the carbon credits for that project lose their value. This is known as lack of permanence or reversals.

Risks that can lead to a lack of project permanence:

• Illegal logging
• Forest fire, cyclone damage, landslides
• Land disputes
• Continued deforestation or degradation from logging, village expansion, roads, agriculture

Nakau uses legal processes to help exclude threats and strengthen permanence, like the Solomon Islands Protected Areas Act which excludes logging companies from accessing land and timber.

Our approach also asks customary landowners to take the lead on forest protection and restoration and agree to the requirements of a forest carbon project as the project owners. They remain the carbon and land rights-holders, and receive the bulk of the carbon income. A robust free, prior and informed (FPIC) process is the core of any successful community-owned project.

Without additionality or permanence, a forest carbon project will not be certified by a carbon standard and credits will not be issued.

What is monitoring, reporting and verification (MRV)?

Monitoring, reporting and verification (MRV) is the series of steps taken throughout the life of a forest carbon project to prove the ecosystem is protected and the emissions reductions are real (additional) and lasting (permanent).

• Monitoring (also known as measurement) is the process of measuring the amount of greenhouse gas emissions reductions that have occurred because of the project. At the very start of the project is when a baseline forest inventory or biomass survey calculates the amount of carbon stored in the forest area. This is repeated every 10 years.
  
  
• The protected forest area is also monitored regularly to ensure the forest remains protected and to determine if there are any changes to the forest and carbon stocks — such as from storms, landslides or illegal logging. Forest monitoring happens every year and is conducted by forest rangers.
  
  
• A forest change assessment which looks for changes in the forest is also conducted every 3–5 years using satellite geospatial mapping data and on-the-ground monitoring.
  
  
• Reporting is when the findings from both forms of monitoring are shared with the carbon standard. For example, Plan Vivo Climate are provided with an annual report based on on-the-ground monitoring by rangers, and results of a geospatial forest change assessment.
  
  
• Verification is when a third party will cross-check and accept the monitoring to be true and accurate. Under Plan Vivo, the monitoring reports are reviewed by the Secretariat, Technical Review Panel (TRP), and Validation and Verification Body (an independent expert auditor). This happens every 3-5 years before credits are issued.

Wrapping our heads around these terms takes practice. And it's important to understand them when designing forest carbon projects so community-owned forest protection work remains real, lasting and impactful.