Methodologies for Quantification of Natural Capital Credits

NFS Approved Methodologies

Methodology Development

The NFS requires projects to quantify carbon and other ecosystem benefits using approved methods.  The following guidance is provided to assist the development of methods that can gain approval by the Technical Advisory Panel.

Methodologies should cover the following steps:

• Mapping of vegetation to be conserved and restored within the project area and identification of potential leakage zones.
• Estimation of carbon stocks within the project area and leakage zones at the start of the project.
• Stratification of the project area and leakage zones according to the risk of deforestation into the NFS risk categories, using an approved risk methodology.
• Calculation of emissions expected under the baseline scenario.
• Monitoring of carbon stocks over the course of the project in the project and leakage area.
• Calculation of net annual carbon benefits.

Transparency of Evidence and Assumptions

Methodologies should be based on transparent and relevant evidence and assumptions, and should take account of best available evidence.

Methods for Monitoring of Changes in Carbon Stocks

Monitoring methods should be consistent with good practices set out in GOFC-GOLD.

Leakage Areas

A -5% leakage adjustment shall be applied to take account of any residual leakage impacts. The NFS does not require projects to estimate the potential impacts of project activities on national or international markets.

Carbon Quantification Units

Methodologies should quantify Natural Capital Credits (NCC’s) that can be issued to a project or project area.  Projects may, but are not required to, quantify non-CO₂ greenhouse gas benefits, such as avoided emissions of methane (CH₄) or nitrous oxide (N₂O).