Public consultation on transparency methodology to generate confidence in carbon projects is now open for public consultation
The new tool that will provide transparency and confidence to carbon projects is now open for public consultation.
Credibility and transparency
It is a methodology formulated by ALLCOT, with the support of the CERCARBONO, through which project developers will be able to report in a standardized way the governance, financial and sustainable performance of climate change mitigation projects and programs.
This tool responds to the need to give the carbon market the credibility and transparency it needs to continue growing. It will be a best practice that guarantees project stakeholders, with emphasis on communities and investors, the proper management of financial flows, financial and non-financial risks, benefit sharing, project risk management and the quantitative impact of the Sustainable Development Goals (SDGs) established in the planning and monitoring plan of the projects.
A disruptive tool
According to Alexis Leroy, CEO of ALLCOT, “this is a disruptive tool that allows us to generate confidence in the market and demonstrate that carbon credits are a financing tool that has a real impact when done in a transparent manner”.
The announcement was made by Alex Saer, CEO of CERCARBONO, who assured that “this innovation will change the current dynamics of the carbon market and is expected to be incorporated in all the projects that CERCARBONO will implement“.
A resource for quality projects
The tool is currently in the public consultation stage and was designed so that annual reports can be made regardless of the stage of the project, from pre-feasibility to verification and certification.
Among the advantages of its use is that funders will be able to know if resources are being invested in quality projects. In addition, it will make it possible to know how the benefits reach the projects, how they are distributed, and the use that the communities make of these resources.
Overcome the barriers of carbon markets
Saer added that “the application of the tool for reporting financial transparency and sustainable performance of offset projects will allow project owners to have a certificate of financial transparency.”
“The idea behind the report is to overcome the barriers that the carbon market has faced in recent years, demonstrating transparency to different types of stakeholders, but especially to the communities and investors that are involved in these projects,” explains Alexis Leroy.