Forecast methodologies contain the eligibility rules, quantification methods, documentation requirements, and confirmation requirements that ensure the consistency and rigor of GHG reduction accounting for a specific mitigation project. When the Reserve has not already approved a forecast methodology applicable to a mitigation project a project proponent wants to undertake, the project proponent will need to develop a forecast methodology and submit it to the Reserve for approval. The Reserve will only issue FMUs for forecasted GHG under an approved forecast methodology.
Criteria for Forecast Methodologies
Forecast methodologies must contain the following sections, each of which are described in more detail in the Climate Forward Program Manual:
- Definition of the mitigation project
- Start date
- Demonstration of additionality
- Meeting the Legal Requirement Test
- Description and discussion of the performance standard test(s)
- Description of market expansion focus
- Discussion of environmental and social safeguards (if applicable)
- Demonstration of ex-ante suitability
- Crediting period and rationale
- Bundling and aggregation of projects
- GHG Assessment Boundary
- Leakage accounting
- Description and justification of chosen baseline scenario
- Estimation of GHG reductions, including assumptions to ensure conservativeness
- Ex-Ante Risk Pool Contribution
- Ensuring permanence (if applicable)
- Project implementation and confirmation
- Voluntary ongoing monitoring incentive
- Confirmation activities
For detailed information about methodology guidelines, please refer to the Climate Forward Program Manual.
Submit a Methodology
When the Reserve has not already approved a forecast methodology applicable to a mitigation project, the project proponent will need to propose a forecast methodology for approval. The Reserve will only issue mitigation credits for forecasted GHG reductions estimated and confirmed under an approved forecast methodology. The Reserve reserves the right to reject any submitted methodology that does not meet the standards for high environmental integrity described in the Climate Forward Program Manual. The decision to approve or reject a methodology is solely at the discretion of the Reserve.
Proposed forecast methodologies are reviewed by the Reserve and by third party technical experts (peer reviewers), if necessary, and will also undergo a public comment review process. The process for third party technical expert review will be initiated as soon as the Reserve determines that third party technical expert review is warranted. The Reserve will work with the project proponent to revise the forecast methodology to meet the principles of the program. Once a forecast methodology has been approved by the Reserve, mitigation projects may be submitted and issued mitigation credits using that approved methodology. See below for an overview of the forecast methodology approval process. For a more detailed description of the forecast methodology approval process, please see the Forecast Methodology Approval Manual.
- Methodology Submission Form (Coming Soon)
- Forecast Methodology Approval Manual