Liability Disclaimer, Intellectual Property Rights and Copyright

In preparation of the Covalent Certification Standard (the “Standard”), every effort has been made to offer current, correct, and clearly expressed information. Nevertheless, inadvertent errors in information may occur and the  Standard is provided “as is,” “as available,” and with “all faults”. Covalent Climate Tech, Inc. and its employees, officers, authorized agents, and contractors make no warranties or representations whatsoever regarding the quality, content, completeness, suitability, adequacy, sequence, accuracy, or timeliness of the Standard. The Standard content may be inappropriate for particular circumstances. Furthermore, state laws may require different or additional provisions to ensure the desired result.

The Standard contains proprietary and confidential information, including trademarks, copyrights, design rights, inventions, products, service marks, and patented inventions or any other rights protected by intellectual property laws and international intellectual property treaties. It is strictly prohibited to sell, reproduce, distribute, transmit, modify, adapt, generate derivative works of, or otherwise use any part of this document without express written permission of Covalent Climate Tech, Inc. unless this use qualifies as “Fair Use” under applicable law. Fair Use includes the reproduction, distribution, display, transmission, performance, and use of the content if done in accordance with 17 U.S.C. §107, 17 U.S.C. §110, or other applicable limitations and exemptions set forth in the U.S. Copyright Act and related laws. Therefore, Covalent Climate Tech, Inc. authorizes individuals to view and make a single copy of portions of its content only for offline, personal, and non-commercial use. All copyright and other proprietary notices contained in this document must be retained only on copies made within the scope of “Fair Use” under 17 U.S.C. § 107. 
 

---

 

1. COVALENT CERTIFICATION STANDARD

1.1. Introduction

1.2. Definitions

1.3. Principles

1.4. Project Cycle

1.4.1. Registration

1.4.2. Public Consultation Period (Stage 1)

1.4.3. Validation (Stage 2)

1.4.4. On-Site Operational Check (Stage 3)

1.4.5. Verification (Stage 4)

1.5. Crediting and Credit Types

1.5.1. Buffer Pool Contributions

1.6. Registry
 

2. PROJECT DETAILS

2.1. Summary of the Project

2.2. Validation Scope

2.3. Project Design

2.3.1. Project Eligibility

2.3.2. Project Location

2.3.3. Project Boundaries

2.3.4. Project Proponents Information

2.3.4.1. Ownership

2.3.4.2. Involved Entities

2.3.5. Planned Project Activity Timeline

2.3.5.1. Project Start Date

2.3.5.2. Project Milestones

2.3.5.3. Crediting Period

2.3.6. Technical Design

2.3.6.1. Technical Feasibility Assessment

2.3.6.2. Technology Readiness Level

2.3.6.2.1. Current Level

2.3.6.2.2. Development Plans for Next Levels

2.3.6.3. Long-Term Plans

2.3.6.4. Design Change

2.3.7. Regulatory Frameworks

2.3.7.1. Compliance with Laws

2.3.7.2. Involvement in Other GHG Programs and Double-Counting

2.3.8. No-Harm Assessment
 

3. QUANTIFICATION OF REMOVALS

3.1. Net-Negativity

3.1.1. Projected Removal Quantification Method

3.1.2. Project Emissions

3.1.3. Storage

3.1.4. Net Carbon Removals

3.2. Uncertainties

3.2.1. Uncertainty Factor
 

4. DATA AND PARAMETERS AVAILABLE AT THE VALIDATION
 

5. METHODOLOGY

5.1. MRV Criteria

5.2. Methodology Concept Note

5.3. Monitoring

5.3.1. Description of the Monitoring Plan

5.3.2. Monitoring Period

5.3.3. Data and Parameters to be Monitored

5.3.4. Calibration of Devices

5.4. Approval Process of Methodologies

5.4.1. Methodology Proposal Submission

5.4.2. Concept Note Preparation

5.4.3. Science Panel Approval
 

6. PERMANENCE, DURABILITY AND REMEDIATION

6.1. Sequestration

6.2. Reversal and Remediation
 

7. CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS (SDGs)
 

8. STAKEHOLDER ENGAGEMENT

8.1. Public Stakeholder Consultation Meeting

8.1.1. List of Invitees

8.1.2. Minutes of the Meeting

8.1.3. Content for Public Stakeholder Consultation Meeting Presentation

8.1.4. Summary of the Comments and Questions Received

8.1.5. Video recording of the Meeting

8.1.6. Continuous Grievance/Input Mechanism

8.2. Public Consultation Period

8.3. Public Stakeholder Consultation Report
 

9. VERIFICATION & CERTIFICATION

9.1. Level of Assurance

9.2. Sampling

9.3. Physical and Remote Site Visits

9.4. Accreditation
 

10. INSURANCE

10.1. Insurance Coverage and Allocation of Liability

10.2. Requirements for Projects that are Seeking to Provide Insurance for Issued Credits
 

REFERENCES

APPENDIX 1: VERSION HISTORY

 

---

 

1. 1. COVALENT CERTIFICATION STANDARD

   1. 1.1. Introduction

The Covalent Certification Standard represents a comprehensive and pragmatic approach tailored for engineered carbon-dioxide removal project owners. The Covalent Certification Standard encompasses every stage of a project, ranging from proof-of-concept to large-scale carbon sequestration. The Project Statement Document (PSD) outlines the required information for developing projects along with details pertaining to technical design, monitoring, remediation, net-negativity quantification, risks, and stakeholder consultation.

Every step of the project certification under Covalent Standard is recorded on a public blockchain.. All the information contained in the PSD including calculations, monitoring/measurement data, and any other project-related data, as well as upload dates, is simultaneously recorded on the blockchain. This includes any revisions that may be made, in the form of unique IDs, transparently displayed on the registry. In this way, the accountability of all stakeholders in the Covalent platform is guaranteed.

The purpose of creating the Covalent Certification Standard is to standardize Monitoring/Measurement, Reporting, Verification and Remediation (MRVR) processes in the carbon removal industry, ensure reliable and permanent carbon removal projects are highlighted appropriately, and scale the industry to expand its impact on a global scale. At the same time, the Covalent Certification Standard aims to enhance the trustworthiness of carbon removal projects by enabling independent validation of those projects under a public standard, laying the foundation for a trust infrastructure that is vital for carbon removal companies in securing financing. 

Covalent ensures its certification framework remains up-to-date by regularly updating and evaluating  the referenced standards. This involves regular reviews to identify updates and thorough evaluations of their impact. Approved updates are promptly incorporated into the Covalent Certification Standard to ensure alignment with industry best practices and maintain Covalent’s trusted status.

Covalent maintains the right to release updates, alterations, explanations, or rectifications to the Covalent Certification Standard as necessary. These changes will be made available on the Covalent website (www.covalent.earth), along with details on the implementation and relevance dates. Project owners and developers are accountable for keeping up to date with any modifications to the Standard and ensuring their projects comply with the changes, even if they do not receive a direct notification. Stakeholders can suggest updates, revisions, alterations, or additions to the Covalent Certification Standard by reaching out to [email protected]. Covalent’s Certification Panel will assess these proposals and approve or reject submissions at their discretion. 

2. 1.2. Definitions

To access definitions for terms used in the Covalent Certification Standard and its accompanying documents, you can download the "Definitions" document from www.covalent.earth. This resource provides clear explanations of specific terminology relevant to our certification process.

3. 1.3. Principles

The core principles of the Covalent Certification Standard are an important step towards establishing a framework that can guide and govern the engineered carbon removal industry. 

The following principles form the basis of the Covalent Certification Standard and guide project developers through the development of specific criteria and protocols to ensure the integrity and effectiveness of engineered carbon removal projects.

Transparency: Ensure that the data involved in the entire process of carbon removal certification, including project development, implementation, monitoring, reporting and crediting, is publicly and easily accessible.

Environmental integrity: Ensure that carbon removal projects are scientifically rigorous and based on scientifically robust methodologies, permanently sequester carbon, and minimize any adverse environmental impacts.

Conservativeness: Ensure that carbon removal projects utilize conservative assumptions, values, and methodologies to avoid overestimating the net removal of carbon dioxide emissions.

Permanence: Ensure that the carbon removed from the atmosphere is permanently sequestered, with a minimum requirement of 1,000 years and an annual leakage rate of no more than 0.1%, to ensure that the removal benefits persist.

Covalent recognizes that while requiring a minimum 1,000 years of permanence, 10,000 or more years of permanence better achieves the principle of intergenerational equity and may serve as a more permanent solution to the climate crisis. Covalent acknowledges that projects capable of achieving a 10,000-year permanence play a larger role in providing a lasting solution to climate change.

Verifiability: Ensure that rigorous and transparent monitoring, reporting, verification and remediation (MRVR) protocols are established to support the accuracy and validity of carbon removal, storage and sequestration claims.

Inclusivity: Ensure that stakeholders are engaged and meaningfully contribute throughout the carbon removal process, from project development to implementation and monitoring. This includes project developers, researchers, policymakers, local communities, and other stakeholders. The Covalent Certification Standard is inclusive of a variety of carbon removal approaches and technologies that meet its established standards and criteria. By promoting inclusivity and collaboration, the Covalent Certification Standard ensures that all relevant perspectives are considered and that carbon removal projects are successful and effective in mitigating climate change.

Innovation: Encourage innovation in the development of new carbon removal technologies and approaches. 

4. 1.4. Project Cycle

   1. 1.4.1. Registration

Project owners create an account on the Covalent Platform by providing commercial information. After establishing a Project Owner account on the Covalent Platform, it is crucial for the Project Owner to input all additional information required by Covalent on the Platform to facilitate the completion of Know-Your-Business (KYB) checks. Once Covalent receives all necessary commercial information for KYB completion, Covalent initiates the KYB checks, aiming to conclude this process within a maximum of 14 days. Projects created under a Project Owner account that has not completed KYB checks cannot advance beyond the "Draft" status.

After the completion of the KYB checks, the project owners can submit a new project application through the Covalent Platform. During the application process, the Project Eligibility Assessment Document (PEAD) must be submitted, containing brief information related to the project's design, methodology, and monitoring plan. The Covalent Certification Panel will review the PEAD and determine the project's eligibility for certification based on the adequacy of the submitted responses and the maturity level of the project plans. If the panel finds the project eligible for the project submission, the project is moved to the “Listed” status. 

2. 1.4.2. Public Consultation Period (Stage 1)

Upon achieving the "Listed" status, projects must embark on stakeholder engagement activities. A crucial component of this phase is a mandatory 30-day public consultation period for projects seeking certification and crediting. To initiate this period, project owners are required to have conducted a "Public Stakeholder Consultation (PSC) Meeting", submitted a "Methodology Concept Note (MCN)" together with the first version of the Project Statement Document (PSD) through the platform. After the project transitions to the "Listed" status, the project owner must initiate the public consultation period within 180 days. Otherwise, the project will be delisted from the Registry.

Projects will utilize Covalent's Public Feedback Tool to enable and review  public comments. This period automatically concludes after 30 days, beyond which no new feedback can be submitted, although projects remain visible on the platform. Following the closure of the Public Consultation Period, project owners must compile the comments received, respond to the question and create a "Public Stakeholder Consultation Report" and complete  necessary improvements to the MCN and PSD based on the received comments and feedback.

Subsequently, project owners submit a finalized Public Stakeholder Consultation Report alongside the revised PSD and MCN to Covalent. 

3. 1.4.3. Validation (Stage 2)

In addition to the aforementioned documents (PSD, MCN, PSC Report), the project owner is also required to submit its responses to both the Risk Assessment Tool and Uncertainty Calculation Tool, along with any supporting evidence. The Covalent Certification Panel is responsible for reviewing the PSD, associated tools and the public stakeholder consultation report. Meanwhile the methodology concept note falls under the scrutiny of the Covalent Science Panel. Both panels reserve the right to seek further clarifications from the project owner as needed. For detailed information on the roles and functions of the "Covalent Certification Panel" and the "Science Panel," please refer to the "Covalent Governance Policy & Procedures" document.   After addressing any requested clarifications, the project progresses to the validation preparation phase and the Covalent Certification Panel delivers a Pre-validation Review. If the information provided is insufficient, the Covalent Certification Panel will provide feedback to the project owner up to three times consecutively, requesting necessary revisions to be made. After all documents are deemed appropriate, the project owner should start the validation process with a Validation/Verification Body (VVB).

Together with the project documents, the VVB shall take into account the Pre- validation Review provided by the Covalent Certification Panel. When the VVB completes the validation process, VVB-approved project validation documents must be uploaded to the Platform either by the project owner or by the VVB account holder. Subsequently, a Covalent Validation Review is then conducted to confirm whether the fundamental requirements have been met. During this review, if necessary,  comments or requests for further revisions are provided alongside the Validation Review. After the review, if there is no action required by the project owner or VVB, the project is moved to the “Validated” status. The project owner can then issue credits (Projected Removal Units-PRUs) for the first crediting period as calculated in the PSD, by submitting an issuance request through the Covalent Platform. 

4. 1.4.4. On-Site Operational Check (Stage 3)

An "On-Site Operational Check" must be conducted between the validation and verification stages. This phase involves a site visit by a VVB within a maximum of 1 year following the commencement of removal operations to verify that the removal activities have indeed started. The On-Site Operational Check should be carried out after the validation process, and a physical site visit is mandatory. It is not required for the project to have achieved net-negativity or for the crediting period to have commenced in order to conduct the On-Site Operational Check. The VVB will assess if the installed and operational project is in line with the project described in the project statement document and that the monitoring systems/equipment are functional, with monitoring data being logged as planned. Then, the project will transition to the “Operational” status.

5. 1.4.5. Verification (Stage 4)

The project owner should initiate the verification process with one of the Validation/Verification Bodies (VVBs) accredited by Covalent. The project owner is responsible for preparing and submitting the Monitoring Report, calculation files, and supporting evidence for the verification. The verification of the carbon removal activity will be delivered by a VVB independently. Upon completion of verification by the VVB, VVB-approved documents must be uploaded to the Platform by the project owner or by the VVB. After VVB document submission, Covalent will conduct a verification review, providing comments and requests through the Verification Review. If the review is successful, the project status is changed to "Verified”. The project owner can then request the conversion of PRUs (Projected Removal Units) to VRUs (Verified Removal Units)(please see section 1.5).

 

Image 1: Project Certification Cycle Flow Chart

 

1. 1.5. Crediting and Credit Types

One of the core principles of the Covalent Certification Standard is to enable early-stage, engineered carbon removal projects to quickly scale their projects and technologies. Therefore, projects which quantify future carbon removal activities are eligible for crediting a projected stream of credits on an ex-ante basis. However, it should be noted that greenhouse gas (GHG) avoidance activities are not certified within the scope of the Covalent Certification Standard.

After the PSD is approved by the VVB, the project transitions to the “Validated” status on the Covalent Platform. Validated project owners can open a request to issue ex- ante credits up to the amount of carbon dioxide emissions quantified in the PSD that are projected to be removed during the crediting period. Only Projected Removal Units (PRUs) for removal activities that have not yet occurred can be issued after validation. PRUs can be transferred between account owner wallets.

PRUs symbolize carbon dioxide removal activity that has not yet been realized and therefore is not subject to verification. PRUs cannot be retired and used for offsetting purposes. In project planning, an issuance request for PRUs can be submitted for the following five years, including the year in which the project ensures net negativity. After each crediting period ends, a new validation must be conducted before submitting an issuance request for PRUs for the next period. Covalent does not limit the allowed number of crediting period renewals.

Each PRU is assigned with a vintage year by the project owner based on the planned realization date of carbon removal activity. The vintage year of a credit symbolizes the year in which the removal activity is planned to take place. The carbon removal activities planned for each year are quantified on an annual basis and taken into consideration.

In each crediting period, it is mandatory for project owners to conduct verification at least once with an independent VVB accredited by Covalent. This means that the quantification of planned removal activities for the year when net negativity is achieved must undergo verification within the first five years following the start of the crediting period. After each verification, the removal amount verified in the verification report is compared to the amounts quantified in the first validation report. PRUs which have been verified are converted to Verified Removal Units (VRUs) based on the amount approved in the verification report.

Project owners must open a VRU conversion request on the platform to convert PRUs into VRUs. The conversion of PRUs to VRUs happens in the order of issuance (first issued, first verified). VRUs are ex-post units that can be retired and used for offsetting purposes. VRU retirements are carried out by the account owners who possess the ownership of the credits on the Covalent Platform.

If the verified carbon dioxide removal amount is less than the amount that was validated, the difference between the two amounts remains as PRUs attached to the relevant vintage year in the account owner's possession. The corresponding shortage is deducted from consecutive years’ VRUs and continues on until the end of the crediting period. At the end of the crediting period, if the project has not made up the difference (referred to as a shortage) , the measures defined in Section 1.5.1 are implemented. If the verified amount is more than the amount that was validated, the deficient amount of VRUs can be issued as new VRUs.

The issuance of credits is done in batches, each with a unique Batch ID. The numbers on the batch ID represent various identifiers, such as the certification code used by the standard, the project ID, the country code of the project's headquarters, the parent ID of the batch, the vintage to which the credits are assigned, the block start and end numbers, the credit status (PRU or VRU) and the project's last validation/verification date (whichever is most recent) . After a project is verified, corresponding PRU batches will be converted into VRU batches by changing credit type in the same batch ID. These identifiers help ensure traceability and transparency in the issuance, trading, and retirements of credits.

 

Image 2: Credit Batch ID

 

Image 3:  Credit Cycle Flow Chart  

 

1. 1.5.1. Buffer Pool Contributions

Each project is assigned a depository account called “Buffer Pool Account” to which 20% of the issued PRUs with separate vintages are locked. PRUs will be locked in the project owners depository until the projected removals are realized. Locked PRUs in the depository account will not be transferable.

After every successful verification of removal activity by an independent VVB, the verified removal amount will be compared to the projected removal unit amount issued for every vintage year. If the project owner successfully realizes more than 80% of the removal amount projected during the issuance stage, the difference between verified removal amount and the 80% of the projected removal amount will be unlocked from the depository account of the project owner as transferrable verified removal units (VRUs).

"Shortage" refers to a situation where the realized net carbon removal achieved by a project for a given vintage year is less than the estimated amount in the validation report. This may result from various operational challenges, technical difficulties or other reasons faced by the project.

Shortage Scenarios:

If there is less than a 20% difference between the amounts calculated in the verification and the amounts estimated in the validation, the credit amount corresponding to the difference will first be canceled from the locked amounts in the buffer pool, effectively canceling those credits. The remaining amount will be made available for the project owner's use. All these transactions will be carried out considering the respective vintages.

If the difference between the amounts calculated in the verification and the amounts estimated in the validation is more than 20%, all PRUs assigned to the corresponding vintage year in the Buffer Pool Account will be canceled. Any excess amount will be canceled from the credits of the corresponding vintage. If credits are canceled from the buffer pool, it means that those credits will no longer be available for the project owner to use.

If, at the end of the crediting period, the project falls into a debt position, the project owner has to clear the debt off by purchasing VRUs belonging to other projects.

 

Table 1: Verification amounts less than 20% different from validation estimates

 

 

Table 2: Verification amounts more than 20% different from validation estimates

 

 

Table 3: Project is in debt position at the end of the crediting period

 

 

The project owner must submit a "Credit Evaluation Request" after an independent VVB completes verification through the Covalent Platform. Upon receiving the request, Covalent will facilitate the unlocking transaction of the locked credits in the project owner's buffer pool account.

2. 1.6. Registry

Covalent has developed a Registry for certified projects to manage their carbon removal credits. The registry can be accessed via the link (www.covalent.earth).

The Covalent Registry operates entirely on a blockchain-based system and is publicly accessible. The Registry tracks issuance, transfer, and retirement of carbon removal credits. Every new account created on the Covalent platform is assigned a wallet. All transactions performed by account owners through their wallets are publicly available on the registry

When project owners issue credits, the credits are created for the first time in their wallets, with their quantities and batch IDs, depending on the vintage. Project owners can transfer credits to a different account holder and can retire credits held in VRU status. Each project's Registry page includes project descriptions, project start date, project images and videos, project location data, up-to-date project documents, and all other project details. All credit transactions belonging to the project can be accessed on the project's Registry page, including credits' quantities, statuses, issuance date, transfer amounts, credited accounts, unique transaction IDs and batch IDs. If credits are retired, the number of credits retired, the retirement beneficiaries, and the reasons for retirement are also shown on the project page.

All of these transactions are recorded on the Polygon blockchain(1). Covalent has built the required infrastructure and web platform for transactions to be performed on the blockchain, so the account owners can manage their credits using Covalent’s platform without needing any blockchain technology knowledge. If a transaction ID for a credit has been recorded on the registry, the corresponding transaction can be tracked in the blockchain interface. The reason for recording all registry transactions on the blockchain is to enable stakeholders to track all transactions transparently, prevent any form of manipulation or speculation, and build trust among all parties involved.

All projects, issued credits, and transaction IDs recorded in the Registry are immutable and cannot be deleted. There is no process for de-registration. All information remains recorded in the Registry and is also stored on the blockchain. 

 

Image 4: Credit Type Comparison

 

1. 2. PROJECT DETAILS

   1. 2.1. Summary of the Project

The project summaries presented in this document will be located on the project introduction page of the Covalent Registry. It is required that the project summaries be added to the Project Statement Document in the standardized format expected in the Covalent Certification Standard. The purpose of this is to ensure that all projects are presented with the same scope of information, allowing anyone to access the same information when reading the summary of a Covalent Certified project. The project summary should consist of a maximum of 1,000 words and be divided into nine(9) paragraphs.

1. The first paragraph should provide information on the technology type used in the project, a summary of the technology used for removal and storage, and the carbon removal category to which the project belongs.
2. The second paragraph should provide information about the region where the project's headquarters are located, and whether the project is taking place in a single location or if activities in different locations are grouped under a single project.
3. The third paragraph should provide information about the project proponents and their types involved in the project. It should also cover who is responsible for the measurement and monitoring processes in the project, whether an external project developer is involved or not, and whether CO₂ storage activities are carried out in the project area or with a storage operator outside the project site.
4. The fourth paragraph should provide a summary of the project's scalability potential and the estimated carbon removal it can achieve in the long term.
5. In the fifth paragraph, the need for carbon removal credit revenue for the project and the primary purposes for which this revenue will be used should be explained.
6. In the sixth paragraph, it is important to provide key information on how the project conducts future removal quantification and what work plans it uses during these calculations. The paragraph should cover the methodologies and techniques used to measure carbon removal.
7. In the seventh paragraph, information should be provided about the uncertainties that the project faces and how they will be overcome. The uncertainties related to quantification and risk of reversal should be given priority.
8. In the eight paragraph, information should be provided on how the project is currently being financed and how the credit income will be used.
9. In the ninth paragraph, information about the baseline scenario must be provided.

2. 2.2. Validation Scope

To achieve transparency and clarity, project owners are required to define their Validation Scope which corresponds to the extent of plans, projects, activities, collaborations, facilities, technologies and the processes that result in PRU issuance. The Validation Scope should be clearly articulated within the Project Statement Document (PSD) under the relevant section.

3. 2.3. Project Design

   1. 2.3.1 Project Eligibility

 

Image 5: Main Criteria for Project Eligibility

 

Projects that meet the requirement of a minimum of 1,000 years of ensured sequestration durations with annual leakage rates below 0.1% will be classified as eligible under the Covalent Certification Standard.

Covalent recognizes that GHG avoidance projects, which are designed to prevent or reduce emissions, are important for climate change mitigation efforts. However, avoidance projects cannot be certified under the Covalent Certification Standard. The Covalent Certification Standard is only eligible for projects removing CO₂ from the atmosphere with a minimum of 1,000 years of ensured permanence.

To determine eligibility for certification under the Covalent Certification Standard, project owners must complete and submit the Project Eligibility Assessment Document, containing detailed information related to the project's design, methodology, and monitoring plan. The Covalent Science Panel will review the Project Eligibility Assessment Document submitted by the project owner and determine the project's eligibility for certification.

The Covalent Certification Standard focuses on projects that involve the removal or sequestration of carbon, as these projects offer a more reliable and measurable way to reduce carbon in the atmosphere.

The Project Eligibility Assessment Document will provide a standardized process for assessing proposed carbon removal and sequestration methods, ensuring their reliability, permanence, and accountability. Project owners should carefully complete the document, providing detailed information on the project's design to ensure a thorough and comprehensive assessment.

Projects that have already received tax credits or are subject to emissions trading systems and carbon taxes must contact [email protected] before applying for certification. To prevent double-counting, Covalent will request further information and documentation, and a detailed assessment will be conducted.

Ineligible Projects:

Examples of projects that fall under the avoidance basket and cannot be certified under the Covalent Certification Standard include renewable energy projects, forestry and farming emissions avoidance projects (such as REDD+(2)), cookstove projects, fuel efficiency or energy-efficient building projects, and projects capturing and destroying industrial pollutants. While these projects are important for reducing greenhouse gas emissions, they do not involve the removal or sequestration of carbon and are, therefore, not eligible for certification under the Covalent Certification Standard.

Nature-based solutions (NBS) refers to a variety of approaches for addressing climate change that involve the protection, restoration, and management of natural ecosystems such as forests, wetlands, and grasslands. While these approaches can help mitigate greenhouse gas emissions and support carbon sequestration, they are not currently eligible for certification under the Covalent Certification Standard. This is because the standard is focused exclusively on engineered carbon removal projects that can demonstrate verifiable and permanent carbon removal. Examples of engineered carbon removal projects that may be eligible for certification under the Covalent Certification Standard include direct air capture and storage, enhanced mineralization, and ocean-based approaches (ocean alkalinity enhancement, artificial upwelling etc.) to carbon removal.

The following is a list of example project that are ineligible for certification and crediting under the Covalent Certification Standard.

Nature-Based Solutions:

• Reforestation and afforestation projects
• Forest conservation projects
• Soil carbon sequestration projects
• Grassland restoration projects
• Blue carbon projects (e.g. mangrove conservation and restoration) 
• Agroforestry projects
• Peatland restoration projects

 

GHG Avoidance & Reduction Projects:

• Point-source-carbon-capture projects 
• Renewable energy projects
• Energy efficiency projects
• Sustainable transportation projects
• Waste reduction and recycling projects
• Low-carbon building projects

 

Additionally, projects that do not meet the following criteria cannot be certified:

• Projects that do not meet the criteria for permanence, and verifiability set by the Covalent Certification Standard
• Projects that rely on unproven or unreliable carbon removal method(3)
• Projects that do not meet environmental, social, and governance (ESG) requirements set by the Covalent Certification Standard
• Projects that do not comply with the principles of the Covalent Certification Standard
• Projects in very early stages with insufficient information regarding future plans

 

In addition, projects that rely on low-permanence sequestration options for utilizing captured atmospheric carbon are ineligible for certification under the Covalent Certification Standard. For instance, utilizing the captured carbon to produce carbon-negative fuels or carbonated drinks would render a project ineligible unless the project is not delivering sequestration of captured carbon under the scope of the same project at the same time. However, processes by which certain minerals react and form a bond with CO₂, removing it from the atmosphere, resulting in inert carbonate rock are eligible and fall under the category of eligible projects.

 

Image 6: Example Eligible Project Categories

 

Eligible Projects:

The Covalent Certification Standard is specifically designed to evaluate and certify engineered carbon removal projects that have the potential for permanent carbon removal.

Projects that have credited their avoided emissions through another certification scheme can credit their removed emissions through the Covalent Certification Standard.

The following is a list of example negative-emissions technologies that are eligible for certification and crediting under the Covalent Certification Standard.

Please note that this list is only for illustrative purposes, and there may be other negative-emissions technologies that can be approved by the Covalent Certification Standard. This list will be extended in the upcoming versions of the standard.

• Carbon Mineralization: A process that involves the conversion of carbon dioxide into stable minerals through geochemical reactions, effectively removing carbon from the atmosphere and storing it in rock formations
• Direct-Air-Capture with Carbon Storage: A technology that involves capturing carbon dioxide directly from the atmosphere and storing it underground, effectively removing carbon from the atmosphere and producing negative emissions
• Increasing Ocean Alkalinity: A process of adding alkaline substances to the ocean to increase its pH, which can enhance the ocean's natural ability to absorb and store carbon dioxide from the atmosphere

These project examples can be credited within the scope of the Covalent Certification Standard, provided they can demonstrate a minimum of 1,000 years of permanence.

Projects must either fall under a pre-approved category of eligible project types or seek approval from Covalent to determine their eligibility.

Projects must provide the necessary evidence of the project's implementation together with the Project Statement Document. This evidence may include signed documents with external stakeholders such as land agreements, equipment purchase/sale agreements, off-take/pre-purchase agreements, and government permission letters. Projects that have not yet started construction must also be able to demonstrate their efficiency and scalability potential. Research, analysis, and relevant academic sources proving the proof-of- concept of the technology used must be submitted to Covalent for review. If there is an installed prototype, the project owner must provide all data in a format that will provide forecasts for post-construction/production based on the prototype.

Project owners or developers can contact the Covalent team via email ([email protected]) to confirm project eligibility for certification under the Covalent Certification Standard.

1. 2.3.2. Project Location

In order to provide information on the project location in the Project Statement Document, project owners should provide the following:

• Latitudinal and longitudinal coordinates of all the production facilities, warehouse sites, and storage sites together with other relevant sites that might be applicable
• A detailed description of the project site, including its size and boundaries 
• A map showing the location of the project site
• Any relevant permits or agreements related to the project location

If the project is conducting carbon removal activities in multiple regions or sites, the above information should be provided separately for each site.

If there are numerous instances of project activity (e.g., widespread implementation of enhanced rock weathering activities across multiple locations), the project owner should provide at least one geodetic coordinate and additional geographic information related to the location of each instance. This is necessary to allow the validation/verification body to conduct sampling.

2. 2.3.3. Project Boundaries

For tech-based projects, the project owner must establish the project boundaries since there may not be any approved methodologies available for their specific project. The project owner shall describe and justify the GHG sources, sinks, and reservoirs included or excluded in the project boundary, using a combination of their own perspective and approach. All GHG sources, sinks, and reservoirs shall be assessed and quantified separately for each relevant GHG for the project in accordance with the appropriate quantification methodologies.

3. 2.3.4. Project Proponents Information

   1. 2.3.4.1. Ownership

Project Ownership refers to the individual or entity responsible for developing, implementing, and managing the project. In the Covalent Certification Standard, the Project Owner is the primary owner of the project and is responsible for providing all necessary information and documentation related to the project's certification.

In the Project Statement Document, the Project Owner shall provide the following information related to project ownership:

• Name and contact information of the primary owner
• Ownership structure of the project, including any partners or investors involved
• Evidence of legal ownership or right to develop and implement the project, such as permits or licenses
• Description of the project's management structure and personnel responsible for implementing and managing the project
• Any relevant experience or qualifications of the project owner and team in implementing similar projects
• Information on any changes in ownership or management structure that may affect the project's certification status

The Covalent Certification Standard also requires that the Project Proponent ensures that all partners involved in the project agree to the certification requirements and commit to following the Covalent Standard throughout the project's duration.

2. 2.3.4.2. Involved Entities

In a carbon removal project, various entities may be involved, such as the project owner, project operator, monitoring & measurement company, storage operator, technology providers, project developers and suppliers. The Project Statement Document shall clearly define the roles and responsibilities of each entity. The project owner shall ensure that all entities adhere to the Covalent Certification Standard's requirements and principles of transparency, integrity, and credibility throughout the project's duration. Any changes to involved entities must be documented in the Project Statement Document and approved by the project owner.

The monitoring & measurement company is responsible for conducting measurements and monitoring of the project to ensure its compliance with the Covalent Certification Standard. The storage operator, on the other hand, is responsible for managing the storage of carbon removals to ensure their permanence. Technology providers and project developers are responsible for designing and implementing the carbon removal technology or methodology used in the project.

To ensure the highest level of transparency and accuracy, all involved entities must keep accurate and complete records of all project-related activities, including carbon removal volumes and transactions. In addition, any potential conflicts of interest between the involved entities must be identified and disclosed in the Project Statement Document.

4. 2.3.5. Planned Project Activity Timeline

   1. 2.3.5.1. Project Start Date

The project start date of a carbon removal project under the Covalent Certification Standard is defined as the earliest date on which the project developer has committed to expenditures related to the implementation of the project. Examples of the project start date include the date on which contracts have been signed for equipment or construction/operation services required for the project. Minor pre-project expenses, such as feasibility studies or preliminary surveys, shall not be considered in the determination of the start date as they do not necessarily indicate the commencement of the implementation of the project.

During the completion of the Project Statement Document, the project owner must provide a detailed explanation for the selection of the project start date. This should include the specific events or expenditures that led to the determination of the start date. The explanation should be thorough and clearly articulate why the selected start date accurately reflects the project's implementation timeline. This level of detail is necessary to ensure transparency and credibility in the project's validation and verification process.

2. 2.3.5.2. Project Milestones

Project milestones are the critical events or stages in the implementation of a carbon removal project that mark its progress towards completion. The milestones, related dates and related evidence shall be tabulated and presented in the Project Statement Document. These milestones may vary depending on the type and scale of the project, but typically include the following phases:

Project Development Phase: Involves the initial planning, design, and engineering of the carbon removal project, which includes feasibility studies, site selection, and environmental impact assessments. The project owner should identify key milestones for this phase, such as completing the feasibility study, securing project financing, and obtaining necessary permits.

Equipment and Material Procurement Phase: The project owner procures the necessary equipment and materials for the project, which may include direct air capture machines, enhanced rock weathering materials, or other carbon removal technologies. The key milestones for this phase may include the purchase of equipment, delivery of materials, and commissioning of equipment.

Construction and Installation Phase: The physical construction and installation of the project, which includes civil works, equipment installation, and commissioning. Key milestones for this phase may include completing the construction of infrastructure, installation of equipment, and conducting performance testing.

Operations and Maintenance Phase: The ongoing operation and maintenance of the carbon removal project. Key milestones for this phase may include the commissioning date and facility maintenance dates.

The Project Statement Document should clearly identify these milestones and their associated timelines, as well as any contingencies or risks that may affect their achievement.

After the Operations and Maintenance Phase, the project may enter a phase focused on enhancing its efficiency and effectiveness. This may involve optimizing the project's operations, upgrading equipment, or implementing new carbon removal technologies. Key milestones for this phase may include the completion of efficiency upgrades, successful integration of new technologies, and increased carbon removal rates.

Once the project has been optimized for maximum efficiency and effectiveness, the focus may shift to scaling up the project to reach larger carbon removal targets. This may involve expanding the project to new locations or increasing the capacity of existing infrastructure. Key milestones for this phase may include the successful expansion of the project, meeting increased carbon removal targets, and obtaining additional carbon removal credits.

3. 2.3.5.3 Crediting Period

The crediting period of a carbon removal project under the Covalent Certification Standard shall be five years. Covalent does not limit the allowed number of Crediting Period renewals.

Projected carbon removal credits can be issued every five-year period following the completion of the validation.The start of the first crediting period shall be the year in which net-negativity is achieved. The project owner shall ensure that the carbon removal project continues to operate effectively and sustainably throughout each crediting period to ensure continued issuance of carbon removal credits. Prior to the end of every five-year period, the project owner shall submit an updated Project Statement Document to the VVB for independent validation of carbon removal and storage, as well as any changes to the project design, operating procedures, or other relevant factors. Upon successful completion of the validation, new ex-ante carbon removal credits can be issued for the respective five-year period.

During each crediting period, at least one verification must be conducted. After the verification, the verified amount is compared to the project's ex-ante estimate determined during validation. The corresponding Projected Removal Units (PRUs) for the verified amount are then converted to Verified Removal Units (VRUs).

 

Image 7: Crediting Period Illustration

 

1. 2.3.6. Technical Design

   1. 2.3.6.1. Technical Feasibility Assessment

Technical feasibility studies aim to establish whether technology can effectively capture and store carbon in a cost-effective and sustainable manner. Project owners shall provide the feasibility reports that are submitted to the regulatory permitting bodies.

2. 2.3.6.2. Technology Readiness Level

   1. 2.3.6.2.1. Current Level

Technological readiness level (TRL)(4) is a method used to assess the maturity level of a technology. The TRL scale ranges from one to nine where one represents the lowest level of maturity. At TRL one, the technology is still in the conceptual phase whereas at TRL nine, the technology has been proven to work in its final form and has been implemented in its intended environment.

Technological readiness levels may vary significantly depending on the technology being used. For example, if the project utilizes direct air capture machines, the TRL may be six to seven, as there have been successful pilot projects and demonstrations of this technology. However, if the project involves a novel carbon removal technology that is still in the research and development phase, the TRL may be closer to two or three. 

It is important for the project owner to clearly identify the current TRL of the technology being used in the project, as this information is crucial for potential investors, partners, and stakeholders.

Note that the TRL of a given project is dynamic and project owners can continuously update the TRL level displayed on the project's registry page by providing justifications through the TRL Update menu item. When providing justification, project owners must elaborate on their claims by utilizing analysis reports, sample results taken from prototypes, document samples, and photographs.

TRL updates are somewhat subjective  and in the hands of the project owner, as they are not subject to validation. The table below illustrates the various TRL stages with examples for clarity.

Table 4: TRL Descriptions

 

2. 2.3.6.2.2. Development Plans for Next Levels

Project owners shall outline their plans to achieve higher technology readiness levels for their carbon removal projects. These development plans should be comprehensive, clearly outline the steps that will be taken to improve the technology or process, and include timelines for implementing each step.

To justify their development plans, project owners should provide an analysis of the benefits of the proposed improvements, the expected reduction in carbon removal costs, and the increased efficiency of the technology or process. They should also describe the necessary resources and support needed to achieve the proposed development plans. The below table depicts the structure of a development plan for reference.

 

Table 5: Milestones Indicating Achievement of Targeted TRL Levels

 

3. 2.3.6.3. Long-Term Plans

The project owners should outline their long-term plans for the project. These plans should include how the project will be scaled up to larger sizes or expanded to new locations, as well as any upgrades or modifications to the technology that will be implemented. Additionally, project owners should consider how their project can be integrated with other carbon removal technologies and systems to maximize its impact on removing carbon emissions. The project owners should also outline how the project will be financed and sustained in the long term, including potential revenue streams from the sale of carbon removal credits or other products.

These plans should be regularly reviewed and updated to ensure that the project continues to meet its environmental and financial objectives over the long term.

4. 2.3.6.4. Design Change

If there is a design change during the carbon removal project implementation, it is the project owner's responsibility to ensure that the project remains compliant with the Standard. The project owner should notify Covalent of any significant design changes and demonstrate how the project continues to meet the relevant requirements of the Standard.

Any changes that impact the project should be reported to Covalent via the "Submit Design Change" menu item in the Platform. Each design change request, no matter how minor or major, will be subject to approval by the Covalent Certification Panel.

When submitting the relevant request, the project owner must upload the updated PSD along with the design change request. After the design change request is submitted, the request remains "pending" until the Covalent Certification Panel reviews it. If the request is deemed "minor," the request is approved, and the activity is listed among project activities. The updated PSD is automatically uploaded among the project documents, and in this case, re-validation is not required.

However, if the request is considered "major" by the Covalent Certification Panel, it remains "pending." In this situation, the project owner must work with a VVB and submit the PSD for re-validation. 

Any design change that alters the number of PRUs by more than;

•  %10 for projects, with annual average removal capacity of between 0 to 50.000 tons per year
• %6 for projects, with annual average removal capacity of between 50.001 to 500.000 tons per year
• %3 for projects, with annual average removal capacity of greater than 500.001 tons per year
  is automatically considered “major”. 

Following re-validation, if there are changes in the previously issued PRUs, two different methods are followed depending on whether there is an increase or decrease:

• If there is an increase, the project owner can open an additional PRU issuance request.
• If there is a decrease, previously identified credits are matched with the newly identified credit numbers, accordingly with the vintage quantities. Each unit of credit issued in excess previously is canceled. In this case, the project owner pays a cancellation fee to Covalent in exchange for the canceled credits. The related fee is determined by Covalent in the "Terms & Conditions" contract.

 

Image 8: Design Change Flow

 

Types of Design Changes

Examples of design changes that should be reported include, but are not limited to, changes in the project's boundary, storage method, reservoir, removal capacity, changes in the calculation methodology, changes in monitoring and reporting plans, changes in the project timeline, and changes in the location or type of equipment used in the project.

Some Examples of a Minor Design Change:

Material selection: Opting for alternative materials with similar properties to reduce costs or improve availability, without significantly altering the overall project design or performance.

Component layout: Adjusting the positioning or arrangement of components in a system to improve space utilization, maintenance access, or thermal management.

Manufacturing process: Implementing minor improvements to manufacturing processes to increase efficiency, reduce waste, or improve product quality without affecting the overall design.

Control systems: Updating the software or control algorithms for better performance, user experience, or energy efficiency without changing the fundamental design of the project.

Some Examples of a Major Design Change:

Technology switch: Replacing the core technology used in a project with a new or different technology, leading to significant changes in the design, operation, and performance.

Scaling: Increasing or decreasing the size or capacity of a project, which may necessitate redesigning various components, systems, or infrastructure.

Integration: Adding new features or subsystems to a project that significantly affect its functionality, complexity, or performance, requiring a substantial redesign.

Regulatory or standard compliance: Implementing significant design changes to meet new or updated regulatory requirements, safety standards, or industry certifications.

Fundamental redesign: A complete overhaul of the project's design, often driven by new insights, technological advancements, or changing market conditions, resulting in a substantially different product or outcome.

Changes will be evaluated and approved or rejected based on their compliance with the Covalent Certification Standard. Approved and rejected design change requests for projects will be transparently listed on the project's page in the registry.

If design modifications do not affect the carbon removal capacity, these alterations will be documented in the registry following Covalent's approval. During the subsequent validation activity, these changes will be incorporated into the Project Statement Document (PSD). However, if the aforementioned modifications result in alterations to the removal capacity, revalidation will be necessary.

1. 2.3.7. Regulatory Frameworks

   1. 2.3.7.1. Compliance with Laws

Project owners must ensure that their projects comply with all relevant local laws, regulations, and permits related to environmental protection, land use, and any other applicable legal requirements.

In addition to complying with local and international laws and regulations, project owners may also explain that their projects are in line with any relevant international treaties, such as the Paris Agreement(5) or the UN Framework Convention(6) on Climate Change.

It is important to note that any non-compliance discovered during the project's lifecycle may result in the project's account on the Covalent Platform being suspended and the project’s registry page being frozen. Project owners should regularly review and update their legal evaluations to ensure continued compliance with applicable laws and regulations.

2. 2.3.7.2. Involvement in Other GHG Programs and Double-Counting

Double-counting refers to the practice of counting the same carbon removal claim in more than one registry or system. Involvement in other GHG programs refers to the participation of the project owner in other greenhouse gas reduction or removal programs beyond the Covalent Certification Standard. This could include participation in voluntary carbon markets, other carbon offset programs, or government-led compliance initiatives.

Project owners who have obtained certification or credits from other GHG programs should first contact [email protected] to ensure whether their projects can be eligible for crediting under the Covalent Standard.

Project owners should clearly disclose their involvement in any other GHG programs as part of their Project Statement Document submission. This information is important for ensuring transparency and avoiding double- counting of carbon credits.

Participation in other voluntary programs does not automatically disqualify a project from certification under the Covalent Certification Standard. However, project owners must ensure that the project remains compliant with the Covalent Certification Standard and that any carbon credits claimed under the program are not double-counted or used for other purposes.

For projects that intend to obtain Covalent Certification by transitioning from other voluntary programs, it is mandatory to run a validation process. It is not appropriate to claim credits for the same removal activities that have been previously or simultaneously credited under two different certification standards.

Carbon removal activities that result in the issuance of PRUs or VRUs cannot be reissued in another registry or used as GHG allowances in emissions trading systems.

2. 2.3.8. No-Harm Assessment

The No-Harm Principle aims to ensure that carbon removal projects contribute positively to the environment and society while minimizing any potential negative impacts. To be considered compliant with the No-Harm principle, a project must meet the following criteria:

Environmental Integrity 


The project should not cause harm to the environment, including local ecosystems, biodiversity, water resources, air quality, and soil health. Any potential negative impacts should be identified, monitored, and mitigated throughout the project's lifetime.

Social Equity and Community Involvement


The project should respect the rights, cultures, and well-being of local communities and indigenous peoples. It should promote social equity, engage with stakeholders, and ensure that any potential adverse social impacts are identified and addressed.

Health and Safety


The project should prioritize the health and safety of workers, local communities, and any other affected parties. This includes adhering to relevant occupational health and safety regulations and implementing best practices to minimize potential risks.

Indirect Harm 


The project should proactively address potential non-evident harms, such as unforeseen impacts on other carbon storage reservoirs, greenhouse gas emissions, or indirect consequences on the environment and society.

The project owner is responsible for identifying any potential negative environmental and socio-economic impacts and implementing measures to mitigate them. The Covalent Standard also recognizes that other certification standards may be applicable to demonstrate social and environmental benefits beyond the carbon removals achieved by the project.

 

2. 3. QUANTIFICATION OF REMOVALS

   1. 3.1. Net-Negativity

      1. 3.1.1 Projected Removal Quantification Method

Covalent Certification Standard enables accurate assessment of the performance of different projects. Given the diverse range of technologies and approaches employed by carbon removal projects, the calculation of removals will vary based on the specific technology type utilized.

In line with the Covalent Certification Standards’ aim to be inclusive and adaptable to various project types, the Standard does not prescribe a rigid calculation methodology for the calculation of removals. Instead, it provides a flexible framework that accommodates diverse approaches while maintaining a high level of accuracy and reliability.

Under this section, project owners are required to present a model for estimating net CO₂ removed during the validation stage. This model should be tailored to the unique characteristics of the project and its technology, ensuring that it adequately accounts for all relevant factors affecting carbon removal performance.

While the validation stage focuses on the establishment of a robust and accurate model for projecting net CO₂ removal, the verification stage is centered on providing concrete evidence of the achieved removals. At this stage, project owners must demonstrate the achieved amounts of CO₂ storage, substantiating the validity of their initial models.

By distinguishing between the validation and verification stages and allowing for flexibility in the calculation methodology, the Covalent Certification Standard ensures that a wide range of carbon removal projects can participate while maintaining a rigorous and credible assessment process.

2. 3.1.2. Project Emissions

Project emissions should be calculated and reported under two main categories to ensure the accurate assessment of a project's impact on greenhouse gas emissions.

These categories are:

Fossil Fuel Usage and Electricity:

This category includes direct and indirect emissions from the consumption of fossil fuels and purchased or generated electricity during the project's operation. It is crucial to quantify and report these emissions to determine the project's net carbon removal performance.

To calculate emissions from fossil fuel usage, the project owner should measure and report the quantity of each type of fossil fuel consumed (e.g., coal, natural gas, diesel, gasoline) and apply the appropriate emission factors to determine the total project emissions from fossil fuel consumption.

For emissions related to purchased electricity, the project owner should measure and report the total electricity consumption during the project's operation and apply the appropriate grid emission factor to determine the greenhouse gas emissions associated with electricity usage.

Fugitive Emissions (Capture Leakage):

This category includes emissions that result from unintended leakage of captured carbon during the project's operation. Fugitive emissions can occur during carbon capture, transportation and storage processes. It is essential to quantify and report these emissions to accurately assess the project's net carbon removal performance. To calculate fugitive emissions, the project owner should identify potential sources of leakage (e.g. equipment leaks, venting, or flaring) and apply appropriate methods to estimate the quantity of carbon leaked.

 

Table 6: Summary of Project Emissions

 

CO₂, CH₄, and N₂O gasses have to be accounted for fossil fuel and electricity usage.

3. 3.1.3. Storage

For the storage component of a carbon removal project, it is essential to provide clear and comprehensive information about the chosen storage reservoir type, monitoring methods and risk of carbon loss from storage. This is crucial because carbon storage carries a risk of reversal, which means that stored CO₂ may be released back into the atmosphere. To address this concern, ongoing monitoring is necessary to ensure that the stored CO₂ remains sequestered and that a change in the storage content can be detected.

Project owners must outline the specific storage media (whether it is geological storage, mineralization, or other forms of long-term carbon sequestration) and storage type (including options such as deep saline formations, depleted oil and gas reservoirs, or basalt formations) along with any available info related to the storage operations.

Storage Performance

In addition, the monitoring methods employed to track the permanence and stability of stored carbon must be detailed. This includes information on the frequency of monitoring, the techniques used to measure and verify the amount of stored carbon, and any remediation plans in place to address potential releases of CO₂ from storage sites. Data related to stored carbon has to be presented with objective evidence.

4. 3.1.4. Net Carbon Removals

The Covalent Certification Standard requires that the amount of CO₂ removed from the atmosphere and stored must exceed the amount of CO₂ emitted during the capture and storage process. The crediting period of projects begins with the year in which net negativity is projected, making it essential for the calculations to be consistent, verifiable, and accurate with a precision of two decimal places.

Net Carbon Removals are calculated as the difference between the amount of CO₂ stored in a specified period and the emissions generated by the project activity until the CO₂ is removed and during the operational stage of the project. The following formula can be used to calculate annual removals:

Net Carbon Removals = CO₂ stored in specified period - emissions generated during the operational stage of project

The emissions generated by project activities until CO₂ is removed (i.e., construction-related emissions) are not included, as these early-stage emissions represent a minor proportion when considering the operational lifetime of projects. Given the challenges in collecting data from the upstream supply chain and the desire to simplify calculations, this scope is not accounted for.

The Covalent Certification Standard requires that the quantification of Net Carbon Removals must be based on precise and reliable data, with the uncertainty calculated.

To adhere to the principle of conservative estimates in Carbon Dioxide Removal (CDR) quantification, the amount of removals must be calculated in a conservative manner, while project emissions are estimated at their maximum plausible level to ensure robust calculations. This means that all relevant assumptions employed in the quantification process must align with the conservative estimates principle. Specifically, for removals, this involves using lower-bound estimates that minimize the risk of overestimation, thereby ensuring that only the most reliable and justifiable removal quantities are claimed. Conversely, for project emissions, upper-bound estimates should be utilized to capture the maximum potential emissions, ensuring that any underestimation is avoided. This dual approach guarantees that the net environmental benefit of the CDR project is not overstated, maintaining the integrity and credibility of the quantified climate benefits.

2. 3.2. Uncertainties

   1. 3.2.1 Uncertainty Factor

In the context of the Covalent Standard, it is crucial to exercise cautious assumptions due to the early stage of project crediting. To mitigate the potential overestimation caused by uncertainties during the quantification of net-negativity in the validation stage, the Covalent Certification Standard employs an Uncertainty Factor Calculation Tool, inspired by the GHG Protocol Uncertainty Tool(7). The tool can be reached at www.covalent.earth.
 

3. 4. DATA AND PARAMETERS AVAILABLE AT THE VALIDATION

As there is no fixed methodology indicated for each project type, the VVB will approve the data and parameters that need to be fixed considering the quantification of net removals. The minimum data that has to be included at validation might change as per the technology and supply chain. For the calculation of removals, there might be fixed values like equipment efficiency, uncertainty values of measuring equipment etc. For the calculation of project emissions, emission factors and GWP (Global Warming Potential)(8)’s are expected to be fixed within the crediting period. These data shall be presented in the PSD as outlined below using a single parameter as an example. 

 

Table 7: Table for Fixed Parameters

 

4. 5. METHODOLOGY

   1. 5.1 MRV Criteria

The Monitoring, Reporting, and Verification (MRV) Criteria aim to evaluate whether the methodologies chosen for specific technology categories meet the essential scientific requirements. 

When crafting a Methodology Concept Note and preparing the Project Statement Document, project owners and developers must pay attention to whether MRV Criteria are being satisfied. The MRV Criteria document can be obtained at www.covalent.earth. 

2. 5.2. Methodology Concept Note

The purpose of the Methodology Concept Note is to enable the methodology used to undergo a public consultation and peer review process early in the crediting journey, enabling the Covalent Certification Panel and Science Panel to preliminarily approve the project's methodology. This template is accessible at www.covalent.earth. The Methodology Concept Note must be submitted prior to the project's public consultation period together with the PSD. Final approval of the document's final version is granted by the Covalent Certification Panel and Science Panel.

If the methodology to be used by the project is listed in Covalent's approved methodologies list, there is no need for the project owner to prepare a methodology concept note.

3. 5.3. Monitoring

During the monitoring period, data should be collected and analyzed on a regular basis by the project owner to ensure that the project is meeting its carbon removal and storage targets.

For each monitoring period, monitoring reports should be submitted and presented to the VVB using the Monitoring Report Template created by Covalent. Each monitoring report must be verified by the VVB. Project owners can submit monitoring reports at their desired frequency, at a maximum of 5 years (duration of crediting period). Monitoring reports can be uploaded to the Covalent platform directly and the contracted VVB can access the documents. On-site third party auditing by the VVB will be required. After verification is complete, the VVB can approve the verification statement directly via the Platform. All submission and verification processes will be recorded on the blockchain and will be publicly accessible at Covalent Registry. The Monitoring Report Template can be found at www.covalent.earth.

1. 5.3.1 Description of the Monitoring Plan

The monitoring plan should specify the frequency and type of data that will be collected, and the methods that will be used to analyze and report on the data. Monitoring plans require specificity and alignment with industry best practices.

2. 5.3.2 Monitoring Period

Project owners are responsible for determining a monitoring period that provides evidence of the net carbon removals calculated in a detailed and timely manner. Project owners can submit monitoring reports at their desired frequency, at a maximum of five years (duration of crediting period).

The monitoring period should be defined based on the expected timeframe for the project, taking into account factors such as the expected rate of carbon removal and storage and any other relevant factors.

The monitoring period should be long enough to provide a reliable and accurate assessment of the project's carbon removal and storage performance, but not so long that it becomes impractical or inefficient. The duration of the monitoring period should be determined based on the specific project and its unique circumstances.

It is important to note that the monitoring period is not a static timeframe, but rather an ongoing process that may need to be adjusted over time as new information becomes available and as the project progresses. Therefore, the monitoring plan should include provisions for updating and revising the monitoring period as needed to ensure that the project is meeting its goals and objectives.

3. 5.3.3 Data and Parameters to be Monitored

The monitoring plan should detail the frequency and methods of data collection, the specific parameters that will be measured, instrumentation to be used, and how the data will be reported and verified.

The plan should specify the equipment and devices that will be used to monitor and track sequestered carbon and the related project emissions.

Additionally, the plan should outline how the data collected from the monitoring equipment will be analyzed and used to calculate the amount of carbon removed and stored. This includes the use of appropriate equations and methodologies for calculating the net-negative emissions of the project as well as past studies and experimentation that justifies the choice for monitoring method.

The monitoring plan should also identify any potential risks or uncertainties associated with the monitoring process and provide mitigation strategies to address them. It should be reviewed and updated regularly throughout the project lifecycle to ensure the continued accuracy and effectiveness of the monitoring process.

Risks related to the project shall also be monitored. Project owners must provide a comprehensive risk management plan that identifies potential risks associated with the project, and outlines appropriate measures to minimize and manage these risks. This plan should take risks into account and categorize them based on their natural, technological, or socio-economic nature, and provide strategies for overcoming them. Risks like “operational risks, environmental risks, social risks, legal risks, stakeholder complaints, risks related to monitoring, underdelivery risk, risk of reversal, and risks related to remediation” must be included at a minimum. The Risk Assessment Tool should be fulfilled by the project owner and submitted with the project statement document. The Risk Assessment Tool can be reached at www.covalent.earth.

Table 8: Template for Monitored Data/Parameters

 

 

4. 5.3.4 Calibration of Devices

The frequency of calibration varies depending on the type of device and the level of accuracy required. Where applicable, related laws and requirements about calibration frequency, methods, and authorities must be taken into account in the country/region where removal/storage is taking place. When there is no legal requirement, it is generally recommended to follow manufacturer recommendations. In the lack of qualified authorities responsible for calibration, internal validation by cross measurements might be applied by the project owner and verified by a VVB.

In carbon removal projects, devices used for monitoring and measuring carbon removal activities include gas analyzers, flow meters, pressure gauges, and temperature sensors. These devices must be calibrated to ensure that the measurements taken are accurate and reliable. Inaccurate measurements can result in incorrect quantification of carbon removal and storage, which can have significant implications for project outcomes and credibility.

Project owners shall provide information regarding all devices and equipment that come into contact with carbon from the point of capture to the point of storage. Details on which devices and equipment need to be calibrated throughout the entire process should be included in this section. Additionally, any necessary information on the inclusion or exclusion of specific devices and equipment under this heading should be provided.

It is important to ensure that calibration is performed by qualified personnel using appropriate procedures and equipment. Calibration records must be kept up to date and readily available for verification by project stakeholders and auditors. When calculating uncertainty, the uncertainty values of these instruments should be taken into account to ensure the most accurate representation of the project's performance.

4. 5.4. Approval Process of Methodologies

The Covalent Methodology Approval Process outlines the framework, criteria, and steps that methodologies must adhere to for approval within the Covalent Certification Standard, enabling registered climate projects to receive credits for their future removal outcomes pending validation and verification.

1. 5.4.1 Methodology Proposal Submission

Development and Submission: Methodology developers and project owners are responsible for crafting and submitting new methodology proposals in case they are not using a previously approved methodology. Methodologies that have been approved on a different  scheme can only be used after Covalent Science Panel approval. The panel might approve the use of such a methodology or request additional criteria. These proposals encompass the requirements for specific climate projects to align with ISO 14064-2(9), Covalent program requirements, and other normative standards.

Methodology Description: Developers must utilize the Covalent Methodology Concept Note template when crafting their proposals. This template ensures the structural integrity, consistency, and readability of the methodology description. Any deviations from the template instructions must be justified.

Submission Process: Methodology proposals, along with all supporting documentation, are to be submitted electronically to Covalent via email at [email protected]. The email's subject should clearly state the methodology's name and indicate that the documents represent a new methodology proposal.

2. 5.4.2 Concept Note Preparation

If the methodology to be used by the project is listed in Covalent's approved methodologies list, there is no need for the project owner to prepare a methodology concept note.

Concept Note: Utilizing the provided concept note template, methodology developers should create a comprehensive description of their proposed climate solution and its role in mitigating climate change. Methodologies that have been approved on a different scheme need to submit a concept note explaining how the existing methodology is applicable to their project. The concept note must encompass the following elements:

• A concise methodology description.
• References to similar methodologies and distinctions from them.
• A summary of activities associated with implementation.
• Applicability details.
• Assessment method for additionality.
• GHG emission mitigation quantification approach.
• Monitoring measures.
• Identification of planned projects applying the methodology.
• Development team identification and their competence.

Information on funding sources for methodology development and project implementation.

Submission: Concept notes are to be submitted electronically through the Covalent Platform.

Evaluation: Covalent assesses the concept note to determine if it contains sufficient information and if the claimed satisfaction of MRV Criteria is justified. Following the evaluation, Covalent may:

• Confirm that the concept note meets the criteria, allowing the methodology developer to proceed to the Public Consultation Period.
• Request minor improvements to address specific criteria that have not been met.
• Request major improvements to be made before resubmission.

3. 5.4.3 Science Panel Approval

Tasked with scrutinizing the scientific underpinnings and methodologies of projects, the panel confirms project owners’ adherence to established scientific principles and their potential for achieving stated carbon dioxide removal goals. 

In instances where the Science Panel encounters complexities or uncertainties that challenge its capacity to fully assess the scientific robustness of a project or methodology, it reserves the right to seek external expertise. This is achieved through commissioning independent peer reviews from recognized experts in relevant fields. This approach allows the Science Panel to make informed decisions based on comprehensive and authoritative scientific evaluations, ensuring that only projects and methodologies that meet the highest scientific standards are approved.

Documentation Preparation: Covalent compiles all pertinent documentation regarding the proposed methodology, including feedback from stakeholder consultation, using the Covalent Methodology Concept Note.

Science Panel Review: The Covalent Science Panel conducts a thorough review of the methodology proposal and the accompanying documentation. If issues are identified that can be addressed with clarifications or modifications, the methodology developer is notified.

Approval Decision: During the next scheduled Covalent Science Panel meeting, the proposed methodology is placed on the agenda for consideration. The Science Panel has the following options:

• Approve the proposed methodology.
• Reject the proposed methodology.
• If approved, the methodology is published on the Covalent website within 30 days and the list of Covalent-approved methodologies is updated accordingly.

 

Image 9: Methodology Approval Process

1. 6. PERMANENCE, DURABILITY AND REMEDIATION

   1. 6.1 Sequestration

Sequestration activities refer to the long-term storage of captured carbon in a stable and secure manner. Project owners must provide detailed information on sequestration activities, including the storage location, method of storage, and the length of time the carbon will be stored. The information must also include any potential risks or uncertainties associated with the storage method and how they will be mitigated.

The project owner must provide a comprehensive description of the sequestration methodology employed in the carbon dioxide removal (CDR) project, outlining the technology used, its operating principles, and the underlying scientific basis. This should include details on the specific process or technique used for capturing, storing, or mineralizing CO₂, along with the necessary steps taken to ensure the permanence and integrity of the sequestered carbon.

The Covalent Certification Standard requires that the carbon removed from the atmosphere is permanently sequestered, with a minimum permanence requirement of 1,000 years and an annual leakage rate under 0.1% to ensure that the removal benefits persist over time.

Project owners need to provide evidence that the carbon removed from the atmosphere will remain permanently sequestered for a specified period. Project owners must note that the understanding of what is considered permanent may be subject to change as government guidelines or regulations evolve over time.

To demonstrate permanence, project owners must also provide detailed information on the expected permanence of the stored carbon, including scientific evidence and modeling results that support the expected permanence period.

The following is a non-exhaustive list of example documents that can be provided:

• CO₂ storage modeling reports
• Geological site characterization and monitoring reports
• Reservoir monitoring reports
• Site inspection reports
• Annual or periodic performance reports
• Third-party audits
• Scientific studies relied on as basis for storage choices

Leakage Control Frequency: Regular leakage checks should be frequently conducted at the initial stages of storage and then when a stable rate is reached they can be conducted at least once a month for all technologies. More frequent checks may be required depending on the specific technology and its associated risks. Leakage measurement and monitoring methods will vary on the storage media and reservoir type.

Some Methods for Monitoring Sequestered Carbon 

To effectively monitor the amount sequestered and prevent future reversals, project owners must collect, analyze, and report relevant data and parameters. This information will vary depending on the specific carbon removal technology. Where available, national and local regulations like the EPA Class VI wells regulation(10), the EU CCS Directive(11), the UK Oil & Gas(12), or the Australia Clean Energy Regulator(13) need to be followed. In the case where solid regulations do not apply in the country/region where the sequestration is done, worldwide best practices are applicable. Methods being proposed need to be scientific-based, relevant articles/books/research shall be cited. 

A hypothesis-driven approach (see Hovorka, S.D., 2017(14). Assessment of Low Probability Material Impacts. Energy Procedia 114, 5311–5315. https://doi.org/10.1016/ j.egypro.2017.03.1648) is acceptable to determine the reversal amount based on monitored parameters like temperature, oxygen content, pressure etc.

2. 6.2. Reversal and Remediation

Project owners are required to develop a remediation plan that outlines the steps to be taken in the event of a reversal of the project's carbon storage. This plan should include specific measures to address the potential loss of carbon removals, such as implementing additional sequestration activities, improving monitoring and measurement methods.

In addition, if there is any responsibility that arises or may arise for the storage operator or another project proponent, relevant information should also be included in this section. The remediation plan should address any potential liabilities and outline how they will be managed in the event of carbon leakage or other risks of reversal. The plan should also outline any legal or regulatory requirements that may apply in such situations, and detail how the project owner plans to comply with them.

Some possible remediation methods are accepted for specific activities:

By applying additional carbon removal activities:

Direct-air-capture and Storage: Compensate for the leaked CO₂ by capturing and storing an equivalent amount of CO₂ using direct-air-capture systems.

Enhanced Weathering: Compensate for the leaked carbon by increasing the application of mineral amendments to enhance the weathering process and sequester an equivalent amount of carbon.

Ocean Alkalinity Enhancement: Compensate for the leaked carbon by increasing the application of alkalinity-enhancing agents to sequester an equivalent amount of carbon through ocean chemistry processes.

Ocean Biomass Sinking: Compensate for the leaked carbon by implementing additional ocean biomass sinking activities, such as sinking additional biomass or increasing the application of sinking agents, to sequester an equivalent amount of carbon.

Remediation through projects credits:

Remediation can be completed by deducting reversals from a project's future PRUs or by canceling credits from its Buffer Pool.

Purchasing additional engineering-based carbon removal credits from other verified projects:

Some carbon removal methods may have limited or no options for remediation in case of leakage. In such cases, project owners should consider alternative strategies to compensate for any leaked carbon, such as purchasing additional carbon credits from other verified projects.

Maximum Timeframe for Remediation: In the event of a detected leakage, the project owner must take immediate action to remediate the issue. The remediation process should be completed within 90 days of the leakage detection. If additional time is needed, the project owner must notify Covalent and provide a reasonable justification for the extension.

Information to be Provided to Covalent after Remediation: Once the leakage has been remediated, the project owner must submit a Remediation Report to Covalent. The Remediation Report Template can be found at www.covalent.earth.

This report should include the following information:

1. Date leakage was detected 
2. Cause of the leakage
3. Remediation actions taken
4. Measures implemented to prevent future leakages
5. Any adjustments made to the project's carbon removal estimates or storage capacity

All remediation notifications must be submitted through the "Remediation Notification" tab on the Platform, providing all necessary details and uploading the fulfilled remediation report. All remediation activities undertaken by the project owner or storage operator will be publicly displayed on the project's registry page as an activity summary. This ensures that all stakeholders have access to up-to-date information on the project's performance and remediation efforts.

 

2. 7. CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS (SDGs)

Project owners can demonstrate how their project activities contributes to the United Nations Sustainable Development Goals (SDGs)(15) and are in accordance with the host country's SDG objectives, when relevant and feasible.

Covalent sees no need to report carbon removals as an SDG as the core mission of a carbon dioxide removal (CDR) project is to generate significant environmental benefit by actively removing carbon from the atmosphere. In case the project contributes to other SDGs as a by-impact of its operations or voluntarily, those contributions can be reported in this section. It's important to recognize that the expectation for reporting Sustainable Development Goal (SDG) contributions is not meant to be an obligatory requirement for these projects, given their primary focus on climate mitigation. However, the inclusion of this section in the standard provides an opportunity for project developers to communicate any plans to utilize revenues generated from carbon credits towards regional or national development initiatives. This approach allows stakeholders to be informed about how the project not only contributes to combating climate change but also supports broader socio-economic development goals, aligning the project's outcomes with the wider objectives of sustainable development.

Project owners must provide evidence of how their project activities, including any additional implemented actions, contribute to sustainable development as defined by the SDGs. They should track and illustrate the project's alignment with SDGs by the end of the initial monitoring period and continue to do so in subsequent monitoring periods. 

Please refer to the table below for the reporting of the project's measurable impacts on specific objectives and benchmarks of the Sustainable Development Goals (SDGs) during the reporting period for sustainable development contributions. Review the official list of SDG Targets and Indicators found at (https://unstats.un.org/sdgs/indicators/indicators-list/) to identify the SDG Targets and Indicators associated with the project's contributions. Each contribution should be outlined in distinct rows.

The alignment of contributions with the SDGs should adhere to the following principles:

• Alignment with SDG Targets and Indicators: Efforts should be made to directly align contributions with specific SDG targets and indicators, utilizing the definitions and concepts outlined in the SDG metadata repository (https://unstats.un.org/sdgs/metadata/).
• Use of Project-Specific Indicators: When a project's SDG Contribution does not match any official SDG indicator, refrain from assigning an official indicator number. 
• Baseline of the Indicator: This involves detailing the initial conditions before project implementation, which serves as a reference point for assessing progress and impact. The baseline should be clearly defined, using reliable references. 
• Project Contribution to the Indicator: For each relevant indicator, the project's impact relative to the baseline condition must be clearly articulated, with a focus on evidence-based justifications. 
• Conciseness in Reporting: Information and plans added to the reporting boxes should be concise, limited to no more than two sentences per box. 

Define the project's baseline, detailing the initial conditions or state prior to the project's implementation in the “Baseline” column, to serve as a reference point. Explain the project contributions starting from the project's commencement or the previous reporting period for SDG contributions in the “Current Contributions" column in the table below, and indicate the cumulative contributions made over the project's lifetime in the “Planned Contributions" column.

 

Table 9: Table for Reporting SDG Contributions

 

3. 8. STAKEHOLDER ENGAGEMENT

The Covalent Certification Standard emphasizes the importance of stakeholder consultation and engagement, recognizing its crucial role in shaping a project's design, outcomes, and overall success.

The objective of the stakeholder consultation process is to effectively identify, engage, and communicate with stakeholders to maintain transparency and keep stakeholders updated on the project's progress while addressing potential effects during different phases.

All projects seeking certification under the Covalent Certification Standard must engage in a Public Stakeholder Consultation Meeting and a 30-day Public Consultation Period before validation. This process includes submitting a detailed report using the "Public Stakeholder Consultation Report Template" which can be reached from www.covalent.earth, and encompasses the list of invitees, meeting agenda, minutes summary, and all feedback and questions from both the consultation and public consultation period, allowing for active stakeholder participation, input, and feedback throughout the project's life. The engagement process mandates online consultations, respecting personal data consent, informing participants about recording, and uploading the recorded meeting for transparent communication.

 

1. 8.1 Public Stakeholder Consultation Meeting

   1. 8.1.1 List of Invitees

Under this section, we will outline the criteria for determining stakeholders, the methods for inviting stakeholders to the consultation meeting, and the information that needs to be shared with stakeholders before the meeting.

Determining Stakeholders:

Stakeholders should be identified based on their relevance to the project, including those who are directly or indirectly affected by it, have an interest in it, or possess relevant expertise. This may include local communities, individuals with land-tenure rights, marginalized groups, policymakers, government officials, NGOs, and other relevant organizations. At least 30 people should participate in the meeting, excluding project proponent employees as active participants. If it is not ensured that the required number of relevant stakeholders join the meeting, the meeting will not be considered to be valid.

Inviting Stakeholders:

Stakeholders should be invited in a transparent, inclusive, and gender-sensitive manner providing equal opportunities for participation. Invitations should be sent through appropriate channels, considering the local context and stakeholder preferences, at least 15 days before the consultation meeting. The invitation should include the meeting agenda, date, time, and location, as well as contact information for further inquiries.

When preparing the Public Stakeholder Consultation Report, a list of all invited individuals and organizations should be included, containing the invitees' names (redacted), email addresses (redacted), city and country of residence, gender, and occupation information. The method of invitation for each stakeholder should also be specified in the list. Records of invitation methods, such as email, text messages, fax, letters, and electronic application messages, should be kept readily available to be provided to the Covalent upon request.

Informing Stakeholders:

Before the consultation meeting, the project owner shall provide the stakeholders with relevant information about the project, enabling them to make informed contributions. This information should be shared in a manner that is accessible and understandable to stakeholders, considering factors such as language and format. At a minimum, this information should include:

• A non-technical summary of the project, including its design, objectives, scale, duration, and potential impacts on various stakeholder groups
• A summary of the economic, social, and environmental impacts of the project, as well as any known positive and negative effects. Presented data shall be in line with relevant regulations
• Other relevant information to help stakeholders understand the project design, implementation, and operation
• Contact details of the project developer's representative for further information
• Information about the ongoing grievance/input mechanism and how stakeholders who are unable to attend the meeting can provide feedback

The information should be provided to stakeholders at least two weeks in advance of the planned meeting. In some cases, more time may be needed, depending on the nature of the project and the local context.

 

Table 10: Table for Stakeholder Invitation Details

 

2. 8.1.2 Minutes of the Meeting

A comprehensive record of the Public Stakeholder Consultation meeting, known as the minutes of the meeting, should be prepared to ensure transparency, accountability, and ongoing engagement with stakeholders. The minutes should include the following information:

1. Date, time, and location of the meeting, as well as the names and affiliations of attendees, including project team members, stakeholders, and any observers.
2. A brief overview of the meeting's purpose and objectives, outlining the topics discussed and the key issues addressed during the consultation.
3. A chronological summary of the meeting, detailing the presentations, discussions, and debates that took place. This summary should include the names of presenters or speakers, the main points made, and any agreements or decisions reached.
4. A record of all questions, consultations, and concerns raised by stakeholders, along with the project team's responses and any action items or follow-up tasks that were identified.
5. Any supplementary information or materials presented during the meeting, such as slides, handouts, or reference documents.
6. A summary of the meeting's outcomes, including any key decisions, agreements, or action items that were established as a result of stakeholder input.
7. The next steps for the project, including plans for ongoing stakeholder engagement, monitoring, and reporting.
8. An explanation of the ongoing grievance/input mechanism, detailing the process and channels through which stakeholders can continue to provide feedback, raise concerns, or submit grievances during the project's implementation. This section should outline the steps for submitting grievances or inputs, the expected response time from the project team, and the methods for resolving disputes or addressing concerns.
9. Contact information for the project team, as well as any additional resources or channels for stakeholders to provide ongoing feedback or raise concerns.

Once completed, the minutes of the meeting should be made available to all attendees, the Covalent Certification Panel, and any other interested parties. The minutes should also be included in the Public Stakeholder Consultation Report, demonstrating the project's commitment to stakeholder engagement, transparency, and accountability throughout the project's lifecycle.

 

Table 11: Table for List of Invitees

 

3. 8.1.3 Content for Public Stakeholder Consultation Meeting Presentation

Content for the Public Stakeholder Consultation Meeting presentation should cover key aspects of the project, its objectives, impacts, and engagement process. Below is a suggested outline for the presentation:

Project Overview:

• Project Name and Location
• Project Objectives and Goals
• Project Proponents and Partners

 

Stakeholder Engagement:

• Importance of Stakeholder Consultation
• List of Invitees and Inclusion Criteria
• Methods Used for Inviting Stakeholders
• Information Shared with Stakeholders Before the Meeting

 

Project Design and Impacts:

• Project Design Overview
• Monitoring, Measurement, Reporting Methods
• Expected Economic, Social, and Environmental Impacts
• Mitigation Measures for Negative Impacts

 

4. 8.1.4 Summary of the Comments and Questions Received

To demonstrate a thorough and transparent engagement process, it is crucial to document and address all comments and questions received from stakeholders during the Public Stakeholder Consultation meeting. The following steps should be taken to compile and present this information:

• Assign a designated note-taker to accurately record all questions, comments, and concerns raised by stakeholders during the meeting. Ensure that these records include the name or identification of the stakeholder, their affiliation or interest, and the topic or issue being addressed.
• Summarize the main themes and topics discussed during the meeting, highlighting any recurring concerns or suggestions that emerged from the stakeholders' input.
• Provide clear and comprehensive responses to each question or comment, addressing how the project team plans to incorporate the feedback into the project design, implementation, or monitoring process. If any concerns cannot be resolved or suggestions cannot be implemented, provide a detailed explanation of the reasons behind these decisions.
• Compile the summary of comments, questions, and responses into a well- structured document that can be easily reviewed and understood by stakeholders, the Covalent Certification Panel, and other interested parties.
• Include this summary document in the Public Stakeholder Consultation Report to demonstrate the project's commitment to stakeholder engagement and transparency. This document serves as a valuable reference for ongoing project development, evaluation, and monitoring.

By effectively summarizing and addressing the comments and questions received from stakeholders, the project team demonstrates a genuine commitment to incorporating diverse perspectives and fostering a collaborative approach to project development and implementation.

 

Table 12: Table for Received Feedbacks

 

Table 13: Table for Received Questions

 

 

5. 8.1.5 Video recording of the Meeting

To ensure transparency and maintain a comprehensive record of the Public Stakeholder Consultation, it is mandatory to record the meeting. The following guidelines must be followed for video recording and sharing the meeting:

1. Inform all participants at the beginning of the meeting that the session will be recorded. Obtain their consent and ensure that no personal data protection laws are violated during the recording process.
2. Use a reliable recording device or software to capture high-quality audio and video of the meeting, ensuring that all participants and their contributions are clearly audible and visible.
3. Edit the video recording, if necessary, to remove any irrelevant or sensitive information while maintaining the integrity of the consultation process.
4. Upload the edited video recording to a secure and accessible online video broadcasting platform, such as YouTube or Vimeo(16), ensuring that privacy settings are appropriately configured to protect participants' identities and comply with data protection regulations. The video recording of the meeting should be uploaded to the relevant platforms in a private format, meaning that only individuals with access to the recording link can view the video.
5. Include the link to the video recording in the Public Stakeholder Consultation Report, along with any other relevant documentation pertaining to the Public Stakeholder Consultation meeting.

By recording and sharing the Public Stakeholder Consultation meeting, the Covalent Certification Standard promotes transparency, allows stakeholders who were unable to attend the opportunity to review the discussions, and provides a valuable reference for future project evaluations and audits.

6. 8.1.6 Continuous Grievance/Input Mechanism

The Covalent Certification Standard requires the establishment of a Continuous Grievance/Input Mechanism to ensure that stakeholders have an ongoing channel to voice their concerns, provide feedback, and submit grievances during the entire duration of the project. This mechanism promotes transparency, accountability, and responsiveness to stakeholders' needs and concerns. Key elements of the Continuous Grievance/Input Mechanism include:

• Clear and accessible communication channels: The mechanism should offer multiple communication channels (e.g., email, phone, online form, or physical dropbox) to accommodate different stakeholder preferences and accessibility needs“
• Confidentiality and anonymity: Stakeholders should have the option to submit their grievances or inputs anonymously to ensure their privacy and safety. The mechanism should protect the confidentiality of the information shared and the identity of the person submitting it“
• Acknowledgment and response: Upon receiving a grievance or input, the project developer should acknowledge receipt within a reasonable timeframe (e.g., within 5-10 working days) and provide an estimated timeline for resolving the issue or addressing the concern“
• Investigation and resolution: The project developer should investigate the grievance or input, engage relevant parties as needed, and work towards a fair and appropriate resolution. The resolution process should be transparent and well-documented, with regular updates provided to the concerned stakeholder(s)“
• Monitoring and reporting: The project developer should periodically review the effectiveness of the Continuous Grievance/Input Mechanism and make any necessary improvements. A summary of the grievances and inputs received, along with their resolutions, should be included in the project's regular reporting to the Covalent Certification Panel.

Besides the project owners’ channels, to ensure that all stakeholders have a clear and accessible channel for submitting feedback or grievances related to projects, the Programme has established a dedicated mechanism for addressing such concerns. Stakeholders wishing to submit feedback or grievances are encouraged to direct their communications via email to [email protected]. 

2. 8.2 Public Consultation Period

This 30-day mandatory phase requires project owners to have previously held a Public Stakeholder Consultation Meeting and submitted a Methodology Concept Note via Covalent's platform. Additionally, comprehensive documentation on the project's technology, forward plans, and potential environmental impacts should be accessible for public scrutiny, ensuring stakeholders have a well-rounded understanding prior to validation. The Covalent Public Feedback Tool facilitates this process, with the comment period ending automatically after 30 days, though project visibility continues on the platform.

The Covalent Public Feedback Tool is accessible at the following web address: publicconsultation.covalent.earth. This webpage is entirely public and can be accessed by anyone. Projects that have completed their designated periods are not removed from the page, allowing for retrospective access and ensuring transparency and accountability. All necessary detailed information remains available on the page.

Project owners have the flexibility to submit any number and type of documents they desire at the start of the public consultation period. They can collect comments and questions from stakeholders during this process. Stakeholders providing feedback or asking questions can do so either as individuals or on behalf of their organizations. The names of individuals or legal entities are not disclosed to ensure the privacy of personal data and are redacted.

If the methodology to be used by the project is listed in Covalent's list of approved methodologies, there is no need to fill out and open the methodology concept note document for comments during the public consultation period. The project owner can initiate the public consultation period with only the prepared Project Statement Document (PSD).

When listing questions and feedback, project owners should include the received question/feedback, justify why it was considered or excluded, and specify whether any action was taken in response. For excluded comments, simply writing "No further action needed" in the "Action Taken" column is sufficient.

The feedback and questions received during the public consultation period should be included in the Public Stakeholder Consultation Report in the following tabular format:

 

Table 14: Table for Received Feedbacks/Questions During Public consultation Period

 

3. 8.3. Public Stakeholder Consultation Report

After the Public consultation Period has concluded, project owners are required to prepare a "Public Stakeholder Consultation Report”. This report will be reviewed by the Covalent Certification Panel. Prior to the commencement of the validation process, approval from Covalent regarding the adequacy of this report must be obtained. The report template is accessible at www.covalent.earth.

 

4. 9. VERIFICATION & CERTIFICATION

Following the completion of VVBs' reviews, the Validation and Verification reports submitted must be presented to Covalent in the report format created by Covalent. The report template can be found at www.covalent.earth .

VVBs can request corrections, clarifications, or forward action requests after reviewing the Project Statement Document and conducting a site visit.

The approved list of Verification and Validation Bodies (VVBs) can be found at www.covalent.earth.

1. 9.1. Level of Assurance

The assurance level pertains to the confidence that can be placed in the reported emissions data. A higher assurance level signifies increased trust in the accuracy and reliability of the reported net removal data.

In terms of GHG emissions reporting, limited and reasonable assurance levels are the two common levels used in independent third-party evaluations of GHG emissions/removals data. Limited assurance indicates that the independent third-party reviewer has examined the GHG emissions/removals data and found no evidence of significant misstatements. However, the reviewer has not performed a thorough review of all aspects of the GHG emissions/removals data and reporting processes, thus absolute assurance regarding the data's complete accuracy cannot be provided. Generally, limited assurance offers a lower confidence level in the accuracy and reliability of the GHG emissions/removals data compared to reasonable assurance.

Reasonable assurance signifies that the independent third-party reviewer has conducted a more extensive review of the GHG emissions/removals data and reporting processes, including on-site visits and more comprehensive data verification. The reviewer has found no evidence of material misstatements in the GHG emissions/removals data, and can provide a higher confidence level in the accuracy and reliability of the data. Generally, reasonable assurance offers a higher confidence level in the accuracy and reliability of the GHG emissions/ removals data compared to limited assurance.

Covalent requires VVBs to provide a reasonable level of assurance in project verification, in accordance with the reference to ISO 14064-3(17).

2. 9.2. Sampling

For projects located at multiple sites around the world, a sampling plan must be developed by VVB that considers the geographical location, size, and complexity of each site. A risk assessment should be conducted by VVB to identify the sites with the highest risk of non-conformities, and prioritize them for audit. Additionally, different function sites (e.g., removal operation, storage operation) should be sampled among themselves.

The sampling plan should aim to provide reasonable assurance that audit objectives are met while accounting for the practicalities of conducting audits at multiple locations.

To conduct a risk assessment and identify the sites with the highest risk of non-conformities, VVB should follow these steps:

• Identify potential sources of non-conformities.
• Identify key risks related to validation and verification considering also the risks determined by the project owner.
• Determine the likelihood and impact of each risk.
• Prioritize the risks.
• Identify the sites with the highest risk of non-conformities. Prioritize the sites for audit.

It is important to note that the specific approach to conducting a risk assessment may vary depending on the project and the particular audit requirements. Involving relevant stakeholders in the risk assessment process is essential to ensure that all pertinent risks are identified and assessed appropriately.

3. 9.3. Physical and Remote Site Visits

As the Covalent standard aims for an inclusive approach for early stage projects, where the technological readiness level might be yet low and a physical site might not yet be organized; a remote audit is acceptable at the validation stage. After the project start date and after the net negativity is ensured, the crediting period starts. On-Site Operational Check must be conducted by a VVB within a year after removal operations start. The initial verification (to avoid delisting), must take place within the first five years after the crediting period starts.

Visits must be conducted at different operational sites contributing to net negativity, including the locations where removal occurs and where storage is implemented.

For both physical and remote audit reporting, the VVB should prepare a checklist of questions beforehand. Signed attendance lists and all remote audit evidence must be retained and presented to Covalent.

The VVB may choose to involve external experts or individuals in conducting assessments. If an individual expert or external individual is involved, the VVB must ensure that the expert or individual has no financial stake or other conflicts of interest related to the project.

Remote audits should be meticulously conducted and adhere to the same rigorous standards as physical audits. These audits must be recorded and securely stored for a minimum of 10 years to ensure proper documentation and traceability. Additionally, the remote audit process should include robust verification methods, such as video or photographic evidence, to guarantee the accuracy and reliability of the audit findings. The Covalent Certification Panel may establish specific guidelines or requirements for remote audits to ensure consistency and maintain the integrity of the certification process.

4. 9.4. Accreditation

The validation and verification bodies are required to be accredited for ISO 14065:2020(18) from an Accreditation Body.
 

5. 10. INSURANCE

   1. 10.1. Insurance Coverage and Allocation of Liability

To ensure the long-term stability and effectiveness of carbon removal projects, it is crucial for project owners to secure appropriate insurance coverage and clearly allocate liability in the event of any unforeseen incidents or issues related to the project's operation.

Insurance Coverage: Project owners might obtain and maintain suitable insurance coverage throughout the project's lifetime. This coverage may address potential risks and liabilities associated with the project, including but not limited to the following areas:

• Environmental liability, including damages caused by leakage, spills, or any other similar release of stored CO₂.
• Property damage and business interruption, covering potential losses due to operational disruptions or natural disasters.
• Professional liability, to protect against claims arising from errors, omissions, or negligence in project design, implementation, and management.
• Workers' compensation, providing coverage for employees in case of work-related injuries or illnesses.

Project owners must submit evidence of insurance coverage to the certification body as part of the documentation for the certification process.

Allocation of Liability: Clear allocation of liability is essential to ensure proper management of risks and responsibilities associated with carbon removal projects. Project owners shall:

• Establish and maintain contracts or agreements with all relevant stakeholders, clearly outlining the responsibilities (monitoring, remediation) and liabilities (no environmental harm, legal compliance) of each party involved in the project.
• Implement contingency plans to address potential incidents or emergencies, outlining the roles and responsibilities of all parties involved in the response and remediation process.

Other Forms of Financial Instruments: In addition to insurance coverage and liability allocation, project owners may also use other forms of financial instruments to ensure the long-term stability and effectiveness of their carbon removal projects. Escrow accounts, for example, can be established to hold funds until certain conditions are met or to provide a source of funding for remediation efforts in the event of project failure.

2. 10.2. Requirements for Projects that are Seeking to Provide Insurance for Issued Credits

Covalent maintains a diverse network of insurance providers to accommodate various insurance formats for issued credits. We continually work to ensure that credits issued through Covalent can be insured under different insurance structures.

To facilitate the insurance process, project owners intending to secure insurance for their credits are required to include the following information within their Project Statement Document (PSD). Please note that any confidential information that cannot be included in the PSD must be kept up-to-date and made available to Covalent or the relevant insurance provider separately:

• Details of Revenue Share with Community: Clearly outline the revenue-sharing arrangements in place with the local community, demonstrating how the project benefits and contributes to community development.
• Appropriate Government Approval: Provide evidence of the necessary government approvals for the current stage of the project. This ensures compliance with regulatory requirements.
• Evidence of Land-Tenure Rights: Document the rights and permissions related to land tenure where the project is located, confirming legal land access.
• Experience in Project Development: Showcase the project owner's experience in developing projects within the same country/region, adhering to the same standards and methodologies.
• Ownership Structure: Detail the ownership structure, particularly if the project owner is an intermediary entity within the credit transaction.

These details are essential for the evaluation and assessment of insurance coverage for the issued credits. By ensuring the inclusion of this information in your PSD, you contribute to a smoother and more efficient insurance process for your project's credits.

Please keep in mind that protecting confidential information is crucial, and such data should be maintained and shared separately with Covalent or the relevant insurance provider as required.

 

REFERENCES

1. Polygon / Polygon is a decentralized Ethereum scaling platform that enables developers to build scalable user-friendly dApps. For more information, visit the official Polygon website: https://polygon.technology/.
2. REDD+ / REDD+ stands for Reducing Emissions from Deforestation and Forest Degradation, a United Nations program aimed at fighting climate change by preventing deforestation and forest degradation in developing countries. For more details, refer to the official UN REDD Programme website: https://www.un-redd.org/.
3. unreliable carbon removal method / Unproven or unreliable carbon removal methods refer to technologies or approaches that lack substantial evidence of effectiveness and permanence in carbon sequestration. These may include experimental techniques not yet validated through peer-reviewed research or lacking operational history demonstrating their capacity for long-term carbon storage. The determination of a method's reliability and proof of concept is based on current scientific consensus and available empirical data.
4. Technological Readiness Level / Technological Readiness Level (TRL) is a methodology used to assess the maturity of a technology. The scale ranges from TRL 1, indicating the initial concept and basic principles, to TRL 9, signifying a technology fully matured and proven in its operational environment. This system was originally developed by NASA in the 1970s to systematically support the development of space technology.
5. Paris Agreement / The Paris Agreement, adopted under the United Nations Framework Convention on Climate Change (UNFCCC) in 2015, sets out a global framework to avoid dangerous climate change by limiting global warming to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C. It also aims to strengthen countries' ability to deal with the impacts of climate change and support them in their efforts. For more information, visit the official UNFCCC Paris Agreement page:  https://unfccc.int/process-and-meetings/the-paris-agreement/the-paris-agreement.
6. UN Framework Convention on Climate Change / The United Nations Framework Convention on Climate Change (UNFCCC), established in 1992, is an international environmental treaty with the goal of stabilizing greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. The framework sets non-binding limits on greenhouse gas emissions for individual countries and contains no enforcement mechanisms. Instead, it provides a framework for negotiating specific international treaties (called "protocols") that may set binding limits on greenhouse gases. For more information, visit the official UNFCCC website: https://unfccc.int.
7. GHG Protocol Uncertainty Tool / For detailed guidance on estimating and reporting the uncertainty of greenhouse gas (GHG) emissions, refer to the GHG Protocol's Uncertainty Calculation Tool documentation available at https://ghgprotocol.org/sites/default/files/2023-03/ghg-uncertainty.pdf.
8. GWP (Global Warming Potential) / GWP100 values from the latest IPCC Assessment Report - https://www.iso.org/standard/66454.html.
9. ISO 14064-2 / ISO 14064-2 provides guidance for the quantification, monitoring, and reporting of greenhouse gas emission reductions or removal enhancements. For further information, refer to the International Organization for Standardization's official page: https://www.iso.org/standard/66454.html.
10. EPA Class VI wells regulation / For comprehensive information on the regulatory requirements for Class VI wells, which are specifically designed for the sequestration of carbon dioxide into deep underground formations, please refer to the Environmental Protection Agency (EPA) guidelines on Class VI wells regulation available at https://www.epa.gov/uic/class-vi-wells-used-geologic-sequestration-co2.
11. the EU CCS Directive / For detailed guidelines and regulatory framework on the capture and geological storage of carbon dioxide, refer to the European Union's Directive on carbon capture and storage (CCS Directive), which aims to facilitate the environmentally safe geological storage of CO2 to combat climate change. The full text of the EU CCS Directive can be accessed at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32009L0031.
12. the UK Oil & Gas / For comprehensive regulations and guidelines on carbon storage within the oil and gas sector in the United Kingdom, refer to the UK Oil and Gas Authority's framework. This includes detailed provisions for the licensing and regulatory oversight of carbon storage projects to ensure safe and effective carbon management practices. Further information can be found at https://www.ogauthority.co.uk/regulatory-framework/, specifically within the section dedicated to carbon storage.
13. the Australia Clean Energy Regulator / For detailed guidelines and regulatory requirements on carbon storage in Australia, consult the guidance provided by the Clean Energy Regulator. This agency oversees carbon storage initiatives under the Australian Government's efforts to reduce greenhouse gas emissions and promote clean energy solutions. More information on carbon storage regulations and project requirements can be found at http://www.cleanenergyregulator.gov.au, particularly in the section related to carbon capture and storage activities.
14. Hovorka, S.D., 2017. Assessment of Low Probability Material Impacts. Energy Procedia 114, 5311–5315. https://doi.org/10.1016/ j.egypro.2017.03.1648 / For addressing reversals from storage reservoirs, the methodology outlined by Hovorka, S.D. in the article 'Assessment of Low Probability Material Impacts' is accepted. This approach provides a framework for evaluating the risks and impacts associated with carbon storage reversals. For further details, refer to Hovorka, S.D., 2017, Energy Procedia, Volume 114, Pages 5311–5315. Available online at https://doi.org/10.1016/j.egypro.2017.03.1648.
15. United Nations Sustainable Development Goals (SDGs) / The Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030. Established by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development, the 17 SDGs are interconnected and address the global challenges we face. For more information on how this project aligns with specific SDGs, please refer to the United Nations' official documentation on the Sustainable Development Goals at United Nations SDGs.
16. YouTube or Vimeo / For the secure and accessible sharing of video recordings, we utilize platforms such as YouTube and Vimeo. These platforms allow us to ensure that privacy settings are appropriately configured to protect participant identities and comply with data protection regulations. Recordings are uploaded in a private format, accessible only to individuals with the direct link. For more information on privacy settings and data protection practices, please visit YouTube's Privacy Policy and Vimeo's Privacy Policy..
17. ISO 14064-3 / ISO 14064-3 specifies principles and requirements for verifying and validating greenhouse gas (GHG) assertions.For detailed guidelines, visit the International Organization for Standardization's official documentation: https://www.iso.org/standard/66455.html.
18. ISO 14065:2020 / ISO 14065:2020 outlines the principles and requirements for bodies validating or verifying environmental information. For more details, visit the International Organization for Standardization's official page: https://www.iso.org/standard/74257.html.

 

APPENDIX 1: VERSION HISTORY