Lesson 3: Introduction to Key concepts and Accounting Processes

Transcription

1 Lesson 3: Introduction to Key concepts and Accounting Processes Primer Before Starting This Lesson Students must read the following two (2) documents before starting this lesson: Project Description District Heating GHG Emission Reduction Project Innovative Management of Swine and Swine Manure in the Summerland Swine Syndicate These two documents represent the project descriptions and some additional information you will need to fully understand the examples used in this course and to complete the exercises associated with this course. Students should also read the following three (3) documents [voice over] before starting this lesson: GHG Project Accounting Examples [pop-up box] Cement Sector GHG Project Compressor Station Efficiency Improvement GHG Project CDM Methodology ACM0015 Consolidated baseline and monitoring methodology for project activities using alternative raw materials that do not contain carbonates for clinker manufacturing in cement kilns [pop-up box] [voice over]-student should only read the project introduction and description. [pop-up box]- Case studies are provided in the GHG protocol for project accounting (starting on page 84) Available at the following link: Reading these documents will allow the students to familiarize themselves with the project that will be used throughout the following lessons. The projects will be used as examples and for exercises. Voice over: Students should not to attempt to understand every concept in the reading material suggested at this point in the course. Students should read the material only to get familiar with the use of the different terminology and concepts in each of the three approaches: Clean Development Mechanism, WRI GHG protocol and ISO standards.

2 Page 23 Objectives Upon completion of this lesson you will: Have an overview of the terminology, GHG quantification concepts, principles, and scope of the ISO GHG Standard for Projects, the WBCSD/WRI GHG Protocol for Projects and the Voluntary Carbon Standard Develop an understanding of how to approach and provide justifications related to some of the main requirements of these standards, protocols and programs Understand how the Voluntary Carbon Standard utilizes the ISO standards, WRI/WBCSD GHG Protocol for Projects, as well as the Clean Development Mechanism (CDM) and other methodologies already in existence Page 24 Terminology In this section, typical terminology and concepts used in GHG project accounting will be discussed. The focus will be on the ISO standard, the WRI/WBCSD GHG Protocol for Project Accounting, Clean Development Mechanism (CDM) and the Voluntary Carbon Standard (VCS). Page 25: Greenhouse Gases The three most important greenhouse gases are: carbon dioxide (CO2) methane (CH4) nitrous oxide (N20) There are also three other industrial gases that contribute to global warming: hydrofluorocarbons (HFCs) (mostly for refrigeration) perfluorocarbons (PFCs), (mostly in production of semi-conductors ) sulphur hexafluoride (SF6), (mostly in aluminium production and the electronics industry) Another major group of harmful industrial gases, chlorofluorocarbons (CFCs), are also greenhouse gases but are being phased out under a different international protocol, and so are not included in GHG accounting. Page 26: Terminology Global Warming Potential Global Warming Potentials (GWP) are used to compare the greenhouse gases.

3 Each gas is given a GWP measure relative to that of carbon dioxide. Each of the GHGs mentioned previously have a different Global Warming Potential (GWP) as outlined in the following table [pop up with GWP table on next slide] Table 1 Common greenhouse gases, their human sources, and 100 year global warming potential (GWP). Table adapted from EPA, (100 yr) Greenhouse Gas Human S ources GWP Carbon Dio xide Fossil-fuel com bustion, Land-use conversion, Cement Production 1 Methane Fossil fuel production and combustion, Agri culture, Waste decompositi on 21 Nitrous Oxid e Fertilizer, Industrial processes, Fossil fuel combustion 310 Hydrofluorocarb ons Refrigerants ,700 P erfl uorocarbons Al umi num smelting, Semiconductor manufacturing 6,500 9,200 S ulfur Hexafluori de Dielectric fl uid used in electrical equi pm ent 23,900 Page 27 Project boundary One term commonly used in GHG project accounting is Project boundaries.[pop up box]. The following terminology related to the concept of the project boundary is used in each standard or protocol: ISO : Sources, Sinks and Reservoirs GHG Protocol: Primary effects, secondary effects and GHG assessment boundary CDM: Project boundary VCS: the terminology used is similar to ISO :2006 standard Underlined--Pop up box: The term project boundaries is synonymous with the concept project scope and should include all relevant sources of GHGs attributable or the project (or the baseline). The ISO standard: does not use the term project and baseline scenario boundaries requires the users to identify all Sources, Sinks and Reservoir (SSRs) relevant to the project (and baseline scenario)[pop up box] Requires a stream-lined life-cycle approach [pop up box] to identify all relevant SSRs for the project and the baseline including upstream and downstream SSRs [pop-up box] 1st pop up box: The ISO requires that all SSRs relevant to the project and baseline be identified. This does not mean that GHG emissions from every single SSR need to be quantified, because the standard also contains requirements around selecting

4 a subset of SSRs for quantification or estimation. This will be discussed later in the course. 2nd Box: An approach to GHG quantification based on the practice of life cycle analysis in which emissions from SSRs related to the project by material or energy flows (whether onsite or offsite; or before, during or after the project) are included in the project boundary, but which is generally less inclusive than a full life cycle analysis. 3rd Box: Upstream SSRs are those whose material or energy outputs become inputs to project SSRs (e.g., A coal fired power plant is an upstream SSR for a project that consumes the electricity generated at that plant). Downstream SSRs are those whose inputs are the material or energy outputs of the project (e.g., The local waste water treatment plant emitting methane is a downstream SSR for a project that releases water to the municipal sanitary sewer system). Sources, Sinks and Reservoirs SSRs Source: Anything (action, technology, unit, process, etc.) that physically releases a GHG into the atmosphere [pop up box] Sink: Anything (action, technology, unit, process, etc.) that physically removes a GHG from the atmosphere [pop-up box] [popup box] Examples of sources include: engines combusting fossil fuel, coal powered electricity plant, vehicles, etc. [pop up box] Examples of sinks include: trees (leaves that capture CO2), soil, etc... Source, Sink and Reservoir SSRs (2) Reservoir:[pop up box] Anything (can be part of the biosphere, geosphere or hydrosphere) that has the physical ability to store GHG GHGs are first: Removed from the atmosphere by a sink, or Transferred from a GHG source A reservoir s carbon stock is the total mass of carbon it contains at any given point in time GHGs can be transferred from one reservoir to another Capturing GHG from a source before it enters the atmosphere and storing it in a reservoir represents a GHG transfer. [pop up box] Examples of reservoirs: Ocean, forest etc... Controlled, Related and Affected SSRs Controlled SSRs:

5 Refers to an SSR that is under direct operational control/influence of the project proponent [pop up box] Control/influence may be through financial, policy, management or other instruments Controlled SSRs are generally onsite [pop up box] Examples of controlled SSRs: 1. A boiler located on the project site, owned and operated by the project developer. 2. A turbine producing electricity (consuming natural gas) located on the project site when the project developer controls its operation. 3. A vehicle consuming diesel or biodiesel owned and operated by the project developer (e.g., for a fuel switching project from biodiesel to diesel) Controlled, Related and Affected (2) Related: [pop up box] Refers to an SSR that relates to the project through material or energy flows (i.e., energy or material flows in to, out of, or within the project) Related GHG SSRs: Are generally upstream or downstream from the project Can be either onsite or offsite May occur before or after project operation, such as in design, construction and decommissioning of a project [pop up box] Examples of related SSRs: 1. Electricity generation, these sources are not on site and not controlled by the project developer. The SSR is related because the energy produced by the source is needed to operate the project. 2. Heat or steam purchased from a supplier that is nearby but whose operation are not controlled by the project developer. Electricity purchased from the grid may be produced from a variety of sources, including hydro power plants, coal fired power plant, natural gas power plants, wind power plants, etc. The related source can be identified as the electricity grid providing power for the specific region where the project is located. The GHG emissions associated with this source are often determined by a weighted average of all the sources of power contributing electricity for the grid. For example, in one specific region of the U.S. electricity from the grid may be produced at 65 % from natural gas combustion, 20% coal powered plants, 13% hydro power and the remaining 2% from renewable energy like wind or solar. Controlled, Related and Affected (3) Affected:

6 Refers to an SSR that is influenced by the project, but not linked to the project through material or energy flows SSRs can be influenced by changes in market demand or supply for products or services associated with the project, or through physical displacement. e.g., the GHG project involves a new use for an existing product in limited supply, causing the former users of that product to have to switch to a more GHG-intensive alternative. [pop-up] Affected SSRs: Are almost always offsite Emission reductions or removal enhancements due to affected SSRs are often referred to as leakage. [Pop up box] Example: The use of corn for ethanol production. The cost and demand of feedstock (corn) may increase when ethanol is produced from corn. Example: When a project avoids deforestation, the demand for wood may still be there. In cases like this, wood must be provided from another source creating a market shift. Areas where wood was not harvested before may start harvesting to fill demand. In some of these projects, there are no real emission reductions but rather a change in the location of GHG emissions. Example of relevant SSRs Identification Generic illustration of ISO terminology for attribution of used in identifying Sources, Sinks and Reservoirs (SSRs) relevant to the Project or the Baseline Related SSR (Upstream) Controlled SSR (On Site) Related SSR (Downstream) Relate SSR (Upstream) Controlled SSR (On Site) Related SSR (Downstream) Affected SSR (Market)

7 Controlled, Related and Affected (Summary) Controlled: Refers to an SSR that is under direct operational control/influence of the project proponent Related: Refers to an SSR that relates to the project through material or energy flows (i.e., energy or material flows in to, out of, or within the project) Affected: Refers to an SSR that is influenced by the project, but not linked to the project through material or energy flows Voice over: Understanding the concepts of controlled, relate and affected are essential to GHG project quantification. Please take the time to re-read their definitions before moving on. GHG Protocol s terminology GHG Effects Definition: GHG effects are changes in GHG emissions, removals, or storage caused by a project activity There are two types of GHG effects: Primary Effects Intended changes caused by a project activity in GHG emissions, removals, or storage associated with a GHG source or sink Secondary effects unintended changes caused by a project activity in GHG emissions, removals, or storage associated with a GHG source or sink GHG Effects (2) Secondary effects include: One-time effects: Changes in GHG emissions associated with the construction, installation, and establishment or the decommissioning and termination of the project activity. Upstream and downstream effects: Recurring changes in GHG emissions associated with inputs to the project activity (upstream) or products from the project activity (downstream), relative to baseline emissions. [see pop-up box illustration on next slide]

8 GHG Assessment Boundary Encompasses all primary effects and significant secondary effects associated with the GHG project. Where the GHG project involves more than one project activity, the primary and significant secondary effects from all project activities are included in the GHG assessment boundary. Insignificant secondary effects are not include in the GHG assessment boundary. Example of GHG Assessment Boundary

9 Source: WBCSD/WRI GHG Protocol for Projects (2005) GHG Assessment Boundary The most difficult aspect of this approach is to justify the excluded insignificant secondary effects. A rationale must be developed by the users to demonstrate that the excluded secondary effect is insignificant. [pop-up box] Example of an insignificant secondary effect: Taken from the suggested reading - GHG Protocol for Project Accounting (page 84 ): Cement Sector GHG Project Using the Project-Specific Baseline Procedure The GHG project presented in the GHG Protocol for projects involves the reduction of GHG emissions associated with a cement manufacturing plant, owned by Company X. This project is intended to reduce GHG emissions: (1) by reducing process GHG emissions associated with cement clinker production, and (2) by reducing GHG emissions associated with energy production and consumption. In order to implement this project, company X must transport additives (i.e., fly ash, trass) to its facility (this transportation does not occur in the baseline scenario). This

10 activity is considered a secondary effect because it increases GHG combustion emissions from the transportation of additives to the plant site. The rationale or justification provided to exclude this secondary effect from the GHG assessment boundary is the following: the increase in GHG emissions is expected to be small compared to the primary effects (less than one percent). Because this secondary effect will be counterbalanced by GHG reductions from the reduced transport and preparation of the raw materials, it is considered insignificant and will not be included in the GHG assessment boundary. (The complete case study can be reviewed by referring to the WRI/WBCSD GHG protocol for project page 84.) UNFCCC CDM Program terminology Uses the terms project boundary and leakage for emissions outside the project boundary. Definition of Project boundary The project boundary shall encompass all anthropogenic emissions by sources of greenhouse gases (GHG) under the control of the project participants that are significant and reasonably attributable to the CDM project activity. Definition of Leakage [popup] Leakage is defined as the net change of anthropogenic emissions by sources of greenhouse gases (GHG) which occurs outside the project boundary, and which is measurable and attributable to the CDM project activity. [Pop up for leakage] Leakage refers to the change of emissions from one source to another source. Three forms of leakage for projects include: 1. Activity shifting: the physical displacement of GHG generating activities that would have occurred in the baseline to other locations. (For example, the project saves trees from a specific location but to meet the market demand tress are cut elsewhere.) 2. Market leakage: GHG emissions resulting from changes in supply or demand in commercial markets as a result of the project s activities. (For example, corn is used to produce ethanol in large quantities affecting the supply of corn. More farmers cut down forest to grow corn to meet the new demand on the market.) 3. Temporal leakage (non-permanence): with sequestration projects, GHG may be re-released to atmosphere over time. (For example, CO2 emissions are stored underground, but slowly leak back to the atmosphere over time)

11 Example of Project Boundary under CDM This project boundary is taken from AM of the CDM approved methodologies. The dotted green line refers to the project boundary. Page 28 Baseline Scenario ISO s Definition of Baseline Scenario hypothetical reference case that best represents the conditions most likely to occur in the absence of a proposed GHG project NOTE: The baseline scenario concurs with the GHG project timeline, which is the period of time starting with project initiation and ending with project termination. The project period is not necessarily the same as the crediting period.

12 GHG Protocol s Definition of Baseline Scenario The baseline scenario is a reference case for the project activity. It is a hypothetical description of what would have most likely occurred in the absence of any considerations about climate change mitigation. The baseline scenario is used to estimate baseline emissions. [pop up box-next slide for figure from GHG protocol explaining this concept]. Source: WBCSD/WRI GHG Protocol for Projects (2005) The GHG Projects Protocol outlines three generic possibilities for the baseline scenario: implementation of the same technologies or practices used in the project activity; implementation of a baseline candidate [pop-up text]; or the continuation of current activities, technologies, or practices that, where relevant, provide the same type, quality, and quantity of product or service as the project activity. Baseline Candidates Baseline candidates are alternative technologies or practices, within a specified geographic area and temporal range, that could provide the same product or service as a project activity. The identification of baseline candidates is required to estimate the baseline emissions for the project activity. For example: If the GHG project the installation of solar panels to provide electricity to an office building, some potential baseline candidates could be: 1. Installation of solar panels (same technology as the project activity)

13 2. Use of electricity from the grid (continuation of current activities ) 3. Installation of a wind turbine to provide the electricity 4. Installation of a combines heat and power unit 5. Installation of diesel (fossil fuel) generators CDM Definition of Baseline scenario The baseline for a CDM project activity is the scenario that reasonably represents the anthropogenic emissions by sources of greenhouse gases (GHG) that would occur in the absence of the proposed project activity. Baselines must cover emissions from all gases, sectors and source categories listed in Annex A (of the Kyoto Protocol) within the project boundary. [Voice-over] The concept of baseline scenario will be covered in more details lesson #5 [pop-up] all gases include the six gases covered by the Kyoto Protocol as explained earlier in this lesson, sectors and source categories from Annex A are: Energy Fuel combustion Energy industries Manufacturing industries and construction Transport Other sectors Other Fugitive emissions from fuels Solid fuels Oil and natural gas Other Industrial processes Mineral products Chemical industry Metal production Other production Production of halocarbons and sulphur hexafluoride Consumption of halocarbons and sulphur hexafluoride Other Solvent and other product use Agriculture Enteric fermentation Manure management Rice cultivation Agricultural soils Prescribed burning of savannas Field burning of agricultural residues Other

14 Waste Solid waste disposal on land Wastewater handling Waste incineration Other Page 29: Equivalence of products and services Criterion to assess whether the services and/or products of the baseline are the same as the project Products/services must be the same in both type and level (amount). Ensures a fair and valid comparison of the project and the baseline. The service(s) and/or product(s) must be expressible by a quantitative measure, known as the functional unit. This is done to ensure a fair and valid comparison of the project and the baseline scenario s GHG emissions. [pop-up box] [Pop-up box] Functional Equivalence Example: Lighting Retrofit Project When replacing old bulbs with energy efficient ones, the baseline needs to show functional equivalence to the project The project: Type of Service: the provision of task-appropriate lighting to a given space (1000 m2 of floor space) Level of Service: the level of lighting at floor level (500 lumens) The baseline: Type of Service: the provision of appropriate lighting for the same task to the same 1000 m2 space Level of Service: the baseline provides the same 500 lumens of lighting at floor level The project and baseline are functionally equivalent Page 30: Additionality Additionality Simple Definition: GHG emission reductions or removals due to project activities that are different from (and in addition to) what would have happened in the absence of the project. While the basic concept of additionality may be easy to understand, there is no common agreement about how to prove that a project activity and its baseline scenario are different.

15 Each of the standards being studied in this course approach the concept of additionality slightly differently. ISO Standard ISO deals with the concept of additionality by requiring that the GHG project has resulted in GHG emissions reductions or removal enhancements in addition to what would have happened in the absence of that project. It does not use the term additionality, prescribe specific baseline procedures, or specify any additionality criteria. WRI/WBCSD s GHG Protocol for Projects General presumption is that a project activity differs from its baseline scenario because if a project activity (or the technologies or practices it employs) may have been implemented anyway, then the project activity and its baseline scenario are effectively identical. While such a project activity may appear to reduce GHG emissions relative to historical emission levels, compared to its baseline scenario the project activity does not reduce GHG emissions. Distinguishing a project activity from its baseline scenario is often referred to as determining additionality. The GHG Protocol outlines different procedures to determine additionality based on the baseline approach selected; project specific or performance standard [Popup text or voiceover] VOICE OVER:More information and details will be provided about these procedures in subsequent lessons of this course. CDM s approach to additionality CDM Executive Board developed a tool for the demonstration and assessment of additionality. Steps required in this tool include: [pop-up box or voiceover] Identification of alternatives to the project activity; Investment analysis to determine that the proposed project activity is not the most economically or financially attractive; Analysis of project implementation barriers; and Common practice analysis. [Pop Up Box] The CDM additionality tests will be explained in more details in later lessons of this course. The Voluntary Carbon Standard s approach to additionality Proponents must use a VCS Program approved methodology, most of which are CDM Methodologies. [pop-up 1]

16 In addition, the project proponent shall demonstrate that the project is additional using one of the following tests: [pop-up or voiceover 2] Test 1 - The project test Test 2 Performance test Test 3 Technology test [Pop-up Box 1] Again, CDM requires the use of their Additionality Tool as part of their methodologies. [Pop Up Box 2] These various VCS additionality tests will be explained in more details in later lessons of this course. Page 31: GHG Quantification Principals This section will highlight and explain how to satisfy the various GHG accounting principles referenced in the: ISO Standard GHG protocol for Project Accounting Voluntary Carbon Standard The principles are the same for all three documents. They are: Transparency Project proponents must disclose enough GHG-related information (in terms of amount and appropriateness) to allow intended users to make decisions with reasonable confidence. Relevance Project proponents must select GHG sources, sinks, and reservoirs (SSRs), data and methodologies that are appropriate to the needs of the intended user. Accuracy Project proponents must attempt to reduce inherent error and uncertainties wherever and as much as is practical. Consistency: Project proponents must allow for meaningful comparisons in GHGrelated information. Completeness: Project proponents must include all material ( relevant ) GHG emissions and removals. Project proponents must include all relevant information to support the criteria and procedures used. Conservativeness: Project proponents must ensure that GHG emission reductions or removal enhancements are not over-estimated by using conservative assumptions, values and procedures.

17 Satisfying GHG Quantification Principles Transparency Include references to the data, information, calculation and methodologies selected or modified State and document all assumptions Explain or justify all changes and deviations from previous methodologies, choices of procedures and criteria, methodologies, parameters, data sources, emission factors, etc. Include units, formulas and references in documentation Clearly identify the different steps in the data trail Voice over: In order to satisfy the principle of transparency, proponents should:... Relevance Select SSRs that are appropriate to the needs of the intended users and the GHG project. Select the appropriate criteria and procedures for the GHG project from good practice guidance. Provide the appropriate amount and type of evidence to support the assertion. Accuracy Use data from reliable and accurate sources. Select the most appropriate and up to date methodologies, procedures and criteria. Apply the methodologies, procedures and criteria in an appropriate way and document sufficiently the application. Completeness Include all relevant GHG sources, sinks and reservoirs for the baseline scenario and the project as owned, related and affected. Document the procedures and the application of the procedures. Identify all potential baseline scenarios. Provide sufficient information to demonstrate the estimation of SSRs not monitored. Provide sufficient information and rationale for assumption used throughout the document. Consistency Use uniform methodologies, procedures and criteria between the project and the baseline scenario selected. Demonstrate the equivalence of service or activity level between the baseline scenario selected and the project. Consider the same assumptions for the baseline scenario and the project. Ensure that when expert judgment is applied, it is done equally between the project and the baseline scenario.

18 Apply the principles consistently between the baseline scenario selected and the project. Justify any change in methodologies, procedures and criteria between the baseline scenario selected and the project over time. Conservativeness Conservativeness is applied differently for the baseline scenario and the project: In the project, conservativeness will be applied by a bias towards overestimating the project s GHG emissions. In the baseline scenario, conservativeness will be applied by a bias towards under-estimating the baseline s GHG emissions. When data or information of less-than-ideal accuracy is utilized, select options that will not yield the highest amount of possible emission reductions. Justify or explain how and why assumptions, information, choices, and data are conservative in the project documentation. The implementation of the conservativeness principle is in most cases a matter of balance (e.g., between accuracy and conservativeness or accuracy and relevance) and therefore almost always involves compromise. Page 32: General Scope of Various Standards and Protocols This section will highlight the scope of the following standards, protocols and programs: ISO Standards GHG Protocol for Project Accounting Voluntary Carbon Standard General Scope ISO Specifies GHG program-neutral requirements for: Planning a GHG project Identifying and selecting sources, sinks and reservoirs (SSRs) in the project and baseline scenarios Determining the baseline scenario Determining the SSRs that will be monitored and requirements for developing the monitoring plan Data quality management Quantification, documentation and reports for the GHG project ISO is policy and program neutral :

19 GHG program requirements, criteria and policies are additional to the requirements of ISO If any ISO requirement is in conflict with a GHG program requirement, the GHG program requirement will take precedence. Typical GHG program criteria that would be additional to ISO include: Start date, location CDM projects must occur in Annex II countries. Projects must start generating emission reduction after January Project types, sizes and GHG sources/sinks Some programs do not accept nuclear electricity generation. Some programs exclude upstream and/or downstream SSRs. Baseline types Some programs prescribe acceptable baseline for each project type. Some GHG programs require project specific baselines. Typical GHG program criteria that would be additional to ISO include (continued): Crediting period Chicago Climate Exchange (CCX) offsets are produced during two separate reporting periods. Some programs limit the crediting period to a predetermined period. Sustainable development The Climate, Community and Biodiversity Standard requires reporting on biodiversity and social issues. The Gold Standard requires that the GHG project contributes additional sustainable development benefits as well as GHG emission reductions. Additionality CDM requires financial additionality. Some programs only require that a project be additional to common practice.

20 Voice over: This diagram illustrates the steps required in the ISO standard to quantify GHG emission reductions or removal enhancements from a GHG project. The diagram also illustrates the links between the planning and implementation phases in regards to the steps of the standard. General Scope WBCSD/WRI GHG Project Protocol The GHG Protocol for Project Accounting provides specific principles, concepts, and methods for: Defining the GHG Assessment Boundary Selecting a Baseline Procedure Identifying the Baseline Candidates Estimating Baseline Emissions Project-Specific Procedure

21 Estimating Baseline Emissions Performance Standard Procedure Monitoring and Quantifying GHG Reductions Reporting GHG Reductions Does not guarantee: A particular result with respect to quantified GHG reductions, or Acceptance or recognition by GHG programs that have not explicitly adopted its provisions Strongly encourages proponents to consult with relevant programs or other interested parties regarding the resolution of policy-relevant accounting decisions i.e., program requirements take precedence over Protocol s guidance (same as ISO 14064) Source: WBCSD/WRI GHG Protocol for Projects (2005) Voice over: This diagram illustrates the steps required in the GHG Project Protocol to quantify GHG emission reductions or removal enhancements from a GHG project.

22 General Scope Voluntary Carbon Standard The scope of the VCS is related to that of ISO : VCS Project Documents must include the requirements of the Project Description clause of ISO :2006 (clause 5.2). [box] The application of the ISO principles is fundamental to ensure that GHGrelated information is a true and fair account. The principles are the basis for, and guide the application of, VCS project-level requirements. [Pop Up Box] The ISO project description requirements and principles are covered in detail in Lesson 4. Projects shall use one of the VCS Program approved methodologies. Projects that propose a methodology not previously approved under the VCS Program shall have the methodology approved through the double approval process. [pop up box] The VCS explicitly states that project proponents can not claim GHG credits from one project under more than one GHG Program. [Pop up Box] The VCS requires a double approval process in order for GHG reductions to be certified. This consists of two separate independent third party assessments related to the approval of VCS methodologies and additionality performance standards. Page 33: Summary Terminology related to GHG accounting varies between the different programs, protocols, and standards. GHG quantification principals are the same for the VCS, ISO standard, and the GHG Protocol. Key concepts of GHG quantification are similar in nature and intent but can be applied and demonstrated by using a variety of approaches. The scope of the GHG protocol, ISO standard, and the VCS are similar, but each have their own distinct nuances and requirements. When a project developer participates in a GHG Program (for example, VCS), the requirements of that program take precedence over requirements of other standards (such as the GHG Protocol and ISO standard).