Owing to their forward-looking nature, FMUs are not to be used like conventional offset credits. In particular, FMUs should not be used by entities to claim they are compensating for their emissions, especially on an ex post basis.

The intent of Climate Forward is to provide a means by which entities can support the scaling up of climate solutions and enable actions that will foster longer term impacts well into the future. FMUs issued to a project represent a forward-looking, or ex ante, estimate of the future impacts of activities implemented by that project today. Accordingly, 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).

Yes, if there is a corresponding Reserve carbon credit protocol. We are developing a project transition mechanism for projects to transition from Climate Forward into the Reserve’s carbon crediting program. Only those projects meeting the eligibility requirements of the carbon credit protocol that is the companion to the forecast methodology under which the project is registered under Climate Forward will be able to transition. Stay tuned for forthcoming guidance for project and credit transition.

Existing projects that have been listed with other carbon crediting programs may be transferred to Climate Forward if they meet the Reserve’s Climate Forward program and relevant forecast methodology requirements and if they meet the project start date requirements detailed in Section 3.1.2 of the Climate Forward Program Manual. Any project that has been registered and/or issued carbon credits with another program may not transfer into Climate Forward. Transfer projects must submit a Registry Project Transfer Form, available for download at http://www.climateactionreserve.org/how/program/documents/. The Registry Project Transfer Form requires additional information and documentation to determine the status of the project and any carbon credits issued for it under other programs. However, before any transfer, the rationale for not pursuing traditional carbon credits should be discussed with the project proponent to identify any issues that may call the transfer into question.

Capped entities can participate in Climate Forward to undertake voluntary offsite mitigation activities. However, FMUs cannot be used for compliance obligations and the retirement of FMUs will not affect any compliance obligations under the cap-and-trade program. If capped entities are interested in participating in Climate Forward, we advise companies to reach out to us directly.

FMUs for a project’s entire crediting period are issued to a project following a successful, one-time confirmation of project installation by a Reserve-approved Confirmation Body. While the timing of confirmation will vary by methodology, the program is designed to leverage the upfront crediting framework to unlock financing for Climate Forward projects as early as possible. As such, the timing of confirmation activities will occur at the nexus of 1) ensuring the project has ample time to demonstrate it is operating as expected, and 2) enabling projects to unlock financing as early as possible. Typically, a project will undergo confirmation after at least a year of operation or the completion of project activity implementation.

Crediting periods will vary depending on project type and will be specified at the methodology level. At the program level, the standard for assessing appropriate crediting periods depends on the validity of baseline assumptions, relevant components of the additionality screen, the expected useful life (EUL) of the project activity, and whether it is the installation of new technology or improvements in resource management.

Projects can be located anywhere globally as long as the Reserve has accurate values for greenhouse gas reduction estimation. The specific forecast methodology and/or accompanying methodology parameters documents will specify the country/region where these values are applicable. Project proponents may propose values for incorporation into the methodology parameters if the location of a potential project is not currently represented. Refer to Section 3.1.11 of the Climate Forward Program Manual for additional information.

Yes. Although sequestered carbon is not monitored and compensated for in the same manner as under the Reserve’s carbon crediting program, a 100-year permanence standard is nevertheless applied to Climate Forward projects. For further information, please refer to the FAQ: What is the MRV/permanence requirement for projects?

While all Climate Forward projects are required to conduct initial monitoring and reporting that undergoes confirmation to ensure the project has been implemented and credits quantified in accordance with the relevant forecast methodology, no ongoing monitoring, reporting, and verification (MRV) is required of projects. However, project proponents may choose to voluntarily continue monitoring a project to demonstrate a project’s ongoing effectiveness. Also, certain project types may have the option to conduct ex-post verification in the future to have additional FMUs issued, while projects registered under other forecast methodologies may have the option of transferring to the Reserve’s voluntary carbon crediting program and committing to the MRV obligations specified by the relevant carbon credit protocol.

Permanence obligations that projects must meet are specified in any forecast methodology for which there is no inherent permanence to the GHG benefits attributable to a project (e.g., projects sequestering carbon in vegetation). Since there is no obligatory ongoing MRV for Climate Forward projects, permanence is addressed via careful forecast methodology design to account for the risk of the impermanence of FMUs associated with any project registered under Climate Foward. This includes mechanisms that act as a proxy for direct ongoing MRV (e.g., requirement for conservation easement on project area), adjustments for how credits are quantified to directly account for the potential impermanence of a project’s FMUs (e.g., tonne-year accounting), and reduced credit issuance to very conservatively account for the risk of project failure.