How Are Emission Reductions Monitored and Verified?
Robust monitoring, reporting, and verification (MRV) is a critical component of the results-based payments approach, as it ensures that Emission Reduction achieve the desired results and enables the distribution of benefits to program stakeholders. Emission Reduction can focus on an entire organization or jurisdiction. ERPAs that are agreed thus facilitate payment for net ERs that are monitored, reported and verified at either the organizational or jurisdictional level.
In most places where Emission Reduction are being implemented, data from the forestry sector is higher quality and easier to obtain compared with data from other sectors, like agriculture and livestock. To incentivize more ambitious emission reductions targets, carbon funds can encourage a comprehensive, multi-sectoral GHG accounting approach. Under this approach, program countries build their capacity to account for emission reductions generated from sectors beyond forestry. As the GHG accounting scope widens, the number of eligible ERs that can be generated increases, so investing in this technical capacity not only augments the amount of available climate and carbon finance but also facilitates the broader transition to low-carbon development.