FMUs
About FMUs
A Forecasted Mitigation Unit (FMU) is a GHG mitigation credit issued under the Climate Forward program representing estimated future GHG reductions or removals from project activities. One FMU represents one metric ton of carbon dioxide equivalent (CO2e) that is expected to be reduced or sequestered according to conservative calculation methodologies. FMUs provide a means by which entities can support the scaling of climate solutions and enable actions that will foster long term GHG benefits.
Unlike traditional carbon credits, which are issued only after emission reductions and removals have already occurred and been verified, FMUs are based on anticipated rather than completed reductions. To address the inherent risk that projected reductions may not fully materialize, the Climate Forward program incorporates several safeguards. These include conservative GHG accounting methods, project eligibility screening to avoid high-risk activities, resilience measures intended to reduce the likelihood of project underperformance, and the use of a risk pool to help manage uncertainty.
FMU projects also undergo a confirmation process, which functions similarly to verification in traditional offset programs but occurs at a different stage in the project lifecycle. Confirmation takes place after the project has been implemented but before the forecasted reductions occur. During this process, an independent confirmation body evaluates whether the project has been implemented according to the applicable methodology and whether the projected emissions reductions are reasonable and eligible. Once confirmation is successfully completed, FMUs may be issued for the project’s full crediting period.
Use of FMUs
Owing to their forward-looking nature, FMUs are not to be used like conventional carbon credits. In particular, FMUs should not be used by entities to claim they are compensating for their emissions, especially on an ex post basis.
As FMUs issued to a project represent a forward-looking, or ex ante, estimate of the future impacts of activities implemented by that project today, the claims associated with the use of FMUs should be similarly forward-looking. For some entities, this may serve a highly specific purpose, such as compliance with regulations that require demonstrable efforts to mitigate anticipated future emissions outcomes, for example under the California Environmental Quality Act (CEQA). FMUs can help offset the future emissions associated with new development or infrastructure investments by pairing them with mitigation actions that begin reducing emissions now.
FMUs may also be used to meet a voluntary target that is non-quantifiable or doesn’t require quantification.
