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Assessing Carbon Project Eligibility: Sequestr's Framework for Evaluating Early Stage Projects

Say goodbye to the hassle of ArcGIS expertise, endless PD expert consultations, navigating complex local laws and regulations, securing stakeholder buy-in, and seeking third-party validation. Sequestr’s eligibility tool simplifies it all.

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Assessing Carbon Project Eligibility: Sequestr's Framework for Evaluating Early Stage Projects

Are you a project developer looking to launch a carbon emissions reductions or removals project? With the carbon market expected to reach $100+ billion by 2030, it's more important than ever to ensure that your project meets the necessary certification requirements. That's where Sequestr's Carbon Project Eligibility Framework comes in.

Sequestr is a technology company addressing the looming carbon inventory supply crunch by working directly with Carbon Projects, Corporations, and Financiers to evaluate, develop, fund and sell high-quality projects using a suite of proprietary risk and pricing models.

Today, we are excited to announce the launch of our latest product: The Carbon Project Eligibility Framework.

Problems we’re solving

We understand that project development is riddled with uncertainties and risks as well as with complexities that are difficult to anticipate and to assess.

In parallel, carbon reduction or removal projects are difficult to design and sometimes hard to get on the ground, both for project developers and for investors interested in buying carbon credits or looking to retire them in order to achieve internal net zero targets.

Existing quality assessment frameworks and methodologies do not sufficiently address the co-dependent relationships that exist between such key parameters as cultural context and co-benefits or permanence and verifiability.

We also believe that only analysis grounded in evidence, that is, in actual data about baseline conditions, technical capacity of partners, or prices of similar projects and study data from other parameters, can truly indicate the value of early-stage options.

For that reason, our approach relies on the collection and usage of primary data at several steps from the first moment of origination to the last moment leading to the issuance of credits. Each step allows us to bring the considered project closer to certification by ensuring that key conditions that can confirm eligibility, high carbon potential, low cost and high certainty are factored in the project design from very early on.

We also believe that project developers should be given a say in this process. As such, we allow them to provide us with their feedback on several questions, including in the way benefits should be built in the project model, as well as with regards to how they believe they should grow with the project, both in terms of technical and management skills.

Sequestr's framework is a tool that can be used to quickly assess the eligibility of an early stage project to determine if it will meet certification requirements with the supported standards and project types. It can also be used to assess the economic value of early stage projects and thus to determine their risk profile before key elements of design are decided/confirmed.

Carbon Project Eligibility Framework

For each certification standard, project type, and methodology, we have extracted the requirements and developed a series of questions which assigns a score based on the responses. After completing all the questions, the “eligibility score” represents the percentage likelihood of the project meeting eligibility requirements for the standard and methodology chosen for the project.

Currently, the product supports Gold Standard (GS) and Verra (VCS) and a number of methodologies from different project types: Afforestation and Reforestation, Wetland/Mangrove Restoration, and Cookstoves.

The framework provides clients with several benefits and use cases, including de-risking projects for buyers, facilitating the certification process for developers, reducing early stage costs, flagging potential red flags earlier in the origination process, and giving a profile report about the project that can be shared to relevant third parties.

Example use case

One example of a project that has used this framework is a cookstove project we're developing in Bhutan. After using the tool, we were confident enough to provide some initial working capital to the on-the-ground implementation team.

After providing input, a custom report is generated which provides additional information about potential actions that can be taken to improve the likelihood of a project being eligible.

The Carbon Project Eligibility Framework is a valuable tool for project developers looking to launch a carbon project. It helps identify blind spots or areas of work that are needed to set up the project for success and to ensure the project developers are maximizing the chance of certification. Sequestr is committed to helping mitigate the carbon supply crunch and we believe that this framework is an important step towards achieving that goal.

Work with us!

We are currently looking for early stage Project Developers to try out the framework. Contact us today to learn more and see how our framework can help de-risk your carbon project.

Get a demo or learn more

Written by
Malcolm Cameron

Malcolm Cameron

This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Sequestr Carbon Inc.