Understanding MRV Carbon

Carbon credits, also known as carbon offsets, are one of many ways facilities can try to reduce their emissions. The concept is simple: A company can buy credits that permit it to emit a certain amount of carbon dioxide (or equivalent emissions) into the atmosphere. Generally, a single credit is equal to one ton of emissions.

Carbon offsets are part of the carbon credit system and are beneficial in many ways. They're an incentive for companies to invest in cleaner technology. Organizations with the means to develop or fund carbon reduction projects that remove emissions from the atmosphere can earn credits. They can then sell those credits to facilities that need the ability to produce more emissions.

It incentivizes facilities all around because one company can invest in earning credits, while the higher cost of producing emissions encourages others to rethink their operations.

MRV refers to the process of measuring and verifying emissions reductions to earn carbon credits.

How MRV Works

MRV stands for Measurement, Reporting and Verification. It's a multi-step process that aims to prove that an organization performed activities worthy of earning carbon credits. The carbon credit program is available to any organization or individual. Without the MRV carbon system, there would be plenty of room to "game" the system without actively contributing to carbon reduction efforts.

So, how does MRV work?

First, organizations must perform the reduction activity. That could be investing in larger projects or actively making operations cleaner. For example, foresting companies can develop techniques to reduce emissions from deforestation or degradation.

Whatever the case, the company has to measure how effective its mitigation activities are over a defined period. That involves calculating the amount of greenhouse gases prevented from going into the atmosphere.

Then, companies must report those findings to a third party. That third-party entity is usually a governing body or reduction program. The entity that accepts the report will verify the data, allowing it to move to certification. Only after the MRV process will the company receive its carbon credits. The goal of MRV is to ensure that reduction activities take place and make a positive impact.

Read a similar article about carbon reporting platform here at this page.