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Northern Lights

Why Digital MRVs?

Carbon markets are currently dominated by manual measurement, reporting, and verification (MRV) methods that have facilitated the generation of voluntary carbon credits. However, these methods are characterized by various shortcomings that impede the development and expansion of carbon markets, including a lack of transparency and trust, concerns over environmental integrity, and more. As such, the reliance on manual MRV methods has hindered the ability of carbon markets to address climate change at the necessary scale and address its criticisms.

There are several pitfalls associated with the current manual methods for measuring, reporting, and verifying greenhouse gas emissions (MRV). These include:


  • Inefficiency and high costs: Manual MRV methods can be time-consuming and resource-intensive, requiring the collection and analysis of data through on-site audits, manual calculations, and other labor-intensive processes. This can increase the overall cost of the MRV process and make it less cost-effective compared to digital methods.

  • Limited frequency of data collection: Manual MRV methods often rely on infrequent data collection, such as annual audits, which can limit the accuracy and timeliness of the data and hinder the ability of project proponents to monetize climate assets or participate in carbon markets.

  • Lack of credibility and trust: Manual MRV methods may be prone to errors or uncertainties, and may also be vulnerable to data manipulation or fraud. This can undermine the credibility and trustworthiness of the MRV results, making it difficult for investors and other stakeholders to have confidence in the data.

  • Lack of standardization and cohesiveness: Different manual MRV methods may be used for different types of climate actions, leading to a lack of standardization and cohesiveness in the MRV system. This can make it difficult to compare and "add up" different types of climate actions, hindering the ability to effectively scale and transform climate action through Nationally Determined Contributions (NDCs).

How can digital MRVs help meet our Climate targets?

Increased efficiency and cost-effectiveness

Digital MRV systems can automate data collection and analysis, reducing the need for labor-intensive manual processes and decreasing the overall cost of the MRV process.

Improved credibility and trust

Digital MRV systems can provide tamper-evident records and prevent data manipulation, increasing the credibility and trustworthiness of MRV results.

Enhanced participation in carbon markets

The use of digital MRV systems can enable more reliable and timely data on emissions reductions or removals, making it easier for project proponents to monetize climate assets or participate in carbon markets.

Enhanced frequency of data collection

Digital MRV systems can enable more frequent data collection, providing a more comprehensive and accurate representation of emissions reductions or removals.

Greater standardization and cohesiveness

Digital MRV systems can facilitate the use of standardized data and methodologies across different types of climate actions, improving the cohesiveness and comparability of the MRV system.

Improved financing of climate action

The use of digital MRV systems can increase the reliability and credibility of carbon credits, making it easier to secure financing for climate action through carbon markets or other financing mechanisms.

Abstract Background

For Project Offset Owners and Developers

Digital MRVs streamline the reporting process, reduce the burden of manual data collection and reporting, and increase the accuracy and transparency of reported emissions reductions.

For Investors

Digital MRVs provide increased transparency and accountability in offset projects, helping to mitigate risk and improve the overall quality of the investment.

For Credit Buyers

Digital MRVs provide greater confidence in the quality and reliability of the credits being purchased, as well as increased transparency into the emissions reductions being generated.

For Credit Buyers

Digital MRVs improve the efficiency and effectiveness of emissions reduction programs, and increase transparency and accountability in the offset market.

The World Agrees

TSVCM - Taskforce on Scaling Voluntary Carbon Markets

To speed up the verification process and supply integrity, the Taskforce recommends a digital project cycle, including:

  • a shared data protocol that captures necessary project data digitally and protects its integrity during processing and transfer.

  • an integrated process that allows verification entities to continuously monitor and validate integrity as projects are developed, rather than at the end of the process.

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