GHG Voluntary Emission Reduction Project - Forestry Category Methodology

(I) Background

The process of tree growth absorbs carbon dioxide and converts it into biomass stored in forests. This process, which reduces greenhouse gases, is called carbon sequestration. Carbon sequestration must follow rigorous methodologies, review procedures, and verification mechanisms to be converted into tradable carbon credits.

 (II) Implementation Guidelines

To strengthen the incentives for businesses (such as corporations,  enterprises, and organizations) and all levels of government to voluntarily  reduce emissions, the Ministry of the Environment (MOENV) established and  issued the "Greenhouse Gas Voluntary Reduction Project Management Regulations"  in 2023 (hereafter referred to as the "Management Regulations"). These  regulations serve as the legal basis for promoting voluntary reduction  projects. According to the Management Regulations, voluntary reduction  projects must meet the MRV (Measurable, Reportable, and Verifiable) principles  and must also meet requirements such as additionality, conservativeness,  permanence, and the avoidance of environmental harm or double-counting.
Applicants must use reduction methods approved by the MOENV to draft a voluntary reduction project plan, which must then be certified by a verification body approved by the MOENV. After passing the certification, applicants submit their application along with related documents to the Climate Change Administration of the MOENV for registration. Once the project plan is reviewed and approved, the project is registered as a voluntary reduction project. The project is then executed according to the registered plan, with monitoring conducted to track performance. After the actual monitoring results are assessed and verified by the verification body, the applicant may submit the required documents to the Climate Change Administration of the MOENV to apply for a reduction allocation (i.e., carbon credits).

(III) Forestry Category Methodologies

To encourage participation in forest carbon sequestration and achieve net-zero carbon emissions, the department has collaborated with the Forestry Research Institute to develop four voluntary reduction methodologies: "Afforestation and Reforestation Project Activities", "Carbon Sink Project for Improved Forest Management", "The Project of Increasing Carbon Sink from the Low Stocking Forest", and "Carbon Sink Project for Bamboo Forest Management" proposed by a business. Currently, four local forestry category methodologies have been approved and announced by the MOENV.