The American Carbon RegistryTM Methodology Category / Methodology Title The American Carbon Registry™ Methodology Category (Specify ARR, IFM, or REDD/Avoided Conversion) Methodology Title 1 The American Carbon RegistryTM Methodology Category / Methodology Title A. METHODOLOGY DESCRIPTION 2 The American Carbon RegistryTM Methodology Category / Methodology Title A1. SCOPE Briefly summarize the purpose and scope of the methodology. Which baselines are included and which are excluded, and which forms of leakage are included and which are excluded? A2. APPLICABILITY CONDITIONS Provide a full numbered list of testable requirements for use of the methodology. The list shall include: Conditions that are required and that if absent would negate the ability of projects to use the methodology Conditions that if in existence immediately exclude projects from use of the proposed methodology Examples might include physical or biological conditions, potential causes of leakage and sources of baseline or with-project emissions or sequestration. 3 The American Carbon RegistryTM Methodology Category / Methodology Title A3. POOLS AND SOURCES Indicate and justify carbon pools included and excluded. If needed, specify if there are differences in the baseline and with-project case. Carbon pools Included / Optional / Excluded Justification / Explanation of choice Above-ground biomass carbon Below-ground biomass carbon Dead wood Harvested wood products Litter / Forest Floor Soil organic carbon Indicate and justify greenhouse gas emission sources included and excluded. If needed, specify if there are differences in the baseline and with-project case. Gas Source Included / excluded Justification / Explanation of choice CO2 CH4 N2O 4 The American Carbon RegistryTM Methodology Category / Methodology Title Indicate and justify leakage sources included and excluded. If needed, specify if there are differences in the baseline and with-project case. Included / Optional / Excluded Leakage Source Activity-Shifting Justification / Explanation of choice Timber Harvesting Fuelwood Crops Livestock Other Market Effects Timber Fuelwood Other 5 The American Carbon RegistryTM Methodology Category / Methodology Title A4. METHODOLOGY SUMMARY Provide a concise summary, in steps, of the proposed methodology. 6 The American Carbon RegistryTM Methodology Category / Methodology Title B. ELIGIBILITY, BOUNDARIES, ADDITIONALITY AND PERMANENCE 7 The American Carbon RegistryTM Methodology Category / Methodology Title B1. PROOF OF PROJECT ELIGIBILITY Demonstrate, with reference to the American Carbon Registry Standard, relevant ACR sector standard, and Applicability Conditions, that the project activity is eligible and all lands within the project boundary meet the eligibility requirements. Please consult www.americancarbonregistry.org for currently governing version of ACR Standard and relevant sector standard (e.g. Forest Carbon Project Standard). B2. PROJECT GEOGRAPHIC BOUNDARY Provide a detailed description of the geographic boundary of project activities. Note that the project activity may contain more than one discrete area of land, that each area must have a unique geographical identification, and that each area must meet the land eligibility requirements of the relevant ACR sector standard. Include what types of information must be made available, such as maps and GIS shapefiles, to delineate the project boundary. B3. PROJECT TEMPORAL BOUNDARY Describe the temporal boundary of planned project activities. Include requirements for project start date, crediting periods, baseline renewal and project life, consistent with relevant ACR sector standard. B4. ADDITIONALITY All methodologies must require projects to demonstrate how the project meets ACR’s three-pronged additionality test: beyond regulatory requirements, beyond common practice, and facing at least one of three implementation barriers (financial, technological, or institutional). Alternately, methodologies may require projects to demonstrate that the activity is beyond regulatory requirements and exceeds an approved performance standard. B5. METHOD OF ASSURANCE OF PERMANENCE Describe what method of permanence assurance can be used by the methodology: 1. INSURANCE. The methodology must provide a detailed description of the insurance product proposed. 2. BUFFER. Where this option is selected, the methodology must apply the ACR Tool for AFOLU Non-Permanence Risk Analysis and Buffer Determination. Prior to the release of the ACR Tool, the VCS Tool for AFOLU Non-Permanence Risk Analysis and Buffer Determination must be used. 8 The American Carbon RegistryTM Methodology Category / Methodology Title C. BASELINE 9 The American Carbon RegistryTM Methodology Category / Methodology Title C1. IDENTIFICATION OF BASELINE Delineate how the baseline scenario can be determined. This should include requiring why, among potential baseline candidates, this baseline scenario was chosen. It is allowable for different areas within the project boundary to contain different baseline scenarios. C2. BASELINE STRATIFICATION Describe the required steps for the division of the project area in the baseline case into subpopulations or strata with lower variation than the entire area. Areas with different baseline scenarios will most likely be placed in separate strata. C3. BASELINE NET REMOVALS / EMISSIONS FOR FIXED BASELINES Either C3 or C4 must be elected. If C3 is elected, this section must include the steps to calculate CBSL (Sum of the carbon stock changes and greenhouse gas emissions under the baseline scenario up to time t, in t CO2e) over the crediting period. It should be stated that these steps shall be completed at the start of the project and shall allow for the baseline to be projected over the crediting period. C4. BASELINE NET REMOVALS / EMISSIONS FOR MONITORED BASELINES Either C3 or C4 must be elected. If C4 is elected, this section must include steps to monitor and calculate CBSL (Sum of the carbon stock changes and greenhouse gas emissions under the baseline scenario up to time t, in t CO2e) over the crediting period. These steps shall allow the project to monitor the baseline over the crediting period. C5. MONITORING REQUIREMENTS FOR BASELINE RENEWAL Describe what will be monitored over time in order to revise the baseline to apply for future additional crediting periods. This monitoring may be of components within the project area, in a reference area, or in neighboring proxy areas. 10 The American Carbon RegistryTM Methodology Category / Methodology Title C6. ESTIMATION OF BASELINE UNCERTAINTY Describe the method for calculating baseline UNCBSL (in %). 11 The American Carbon RegistryTM Methodology Category / Methodology Title D. WITH-PROJECT SCENARIO 12 The American Carbon RegistryTM Methodology Category / Methodology Title D1. WITH-PROJECT STRATIFICATION Describe the steps required for the division of the project area in the with-project case into subpopulations or strata with lower variation than the entire area. D2. MONITORING PROJECT IMPLEMENTATION Describe the methods that must be used to monitor the geographic project boundary and any legal changes to land ownership, land tenure, land titles, and other land registry documents. Describe what monitoring of the implementation of the project must take place. This may include the monitoring of project activities. D3. MONITORING OF CARBON STOCKS IN SELECTED POOLS Describe the methods used to quantify carbon stocks in the selected pools through time. D4. MONITORING OF EMISSION SOURCES Describe the methods used to quantify emission sources through time. D5. ESTIMATION OF PROJECT EMISSION REDUCTIONS OR ENHANCED REMOVALS This section must describe the steps required to calculate CP (Sum of the carbon stock changes and greenhouse gas emissions under the project scenario up to time t, in t CO2e). D6. MONITORING OF LEAKAGE Describe the methods used to monitor leakage over time. D7. ESTIMATION OF EMISSIONS DUE TO LEAKAGE Describe the methods to calculate CLK (sum of the carbon stock changes and greenhouse gas emissions due to leakage up to time t, in t CO2e). 13 The American Carbon RegistryTM Methodology Category / Methodology Title D8. ESTIMATION OF WITH-PROJECT UNCERTAINTY Describe the method for calculating ex-post UNCWP (in %). 14 The American Carbon RegistryTM Methodology Category / Methodology Title E. EX-ANTE ESTIMATION 15 The American Carbon RegistryTM Methodology Category / Methodology Title E1. EX-ANTE ESTIMATION METHODS Describe the methods that shall be used to create an ex ante projection of net GHG emission reductions and removals. 16 The American Carbon RegistryTM Methodology Category / Methodology Title F. QA/QC AND UNCERTAINTY 17 The American Carbon RegistryTM Methodology Category / Methodology Title F1. METHODS FOR QUALITY ASSURANCE Describe what the methodology will require for quality assurance. F2. METHODS FOR QUALITY CONTROL Describe what the methodology will require for quality control. F3. CALCULATION OF UNCERTAINTY The following equation is mandatory for all methodologies: UNC UNCBSL UNCW P 2 2 Where: UNC Total project Uncertainty, in % UNCBSL Baseline uncertainty, in % (Section C6) UNCWP With-project uncertainty, in % (Section D8) UNC will be set to zero if the project achieves ACR’s precision requirement of within 10% of the mean with 90% confidence. 18 The American Carbon RegistryTM Methodology Category / Methodology Title G. CALCULATION OF ERTs 19 The American Carbon RegistryTM Methodology Category / Methodology Title G1. CALCULATION OF ERTs The following equations are mandatory for all methodologies: C ACR,t C P C BSL C LK * (1 UNC) Where: CACR,t Total net greenhouse gas emission reductions at time t (t CO2e) CP Sum of the carbon stock changes and greenhouse gas emissions under the project scenario up to time t, in t CO2e (Section D4) CBSL Sum of the carbon stock changes and greenhouse gas emissions under the baseline scenario up to time t, in t CO2e (Section C3/C4) CLK Sum of the carbon stock changes and greenhouse gas emissions due to leakage up to time t, in t CO2e (Section D6) UNC Total Project Uncertainty, in % (Section F3). UNC will be set to zero if the project meets ACR’s precision requirement of within 10% of the mean with 90% confidence. If the project does not meet this precision target, UNC should be the half-width of the confidence interval of calculated net GHG emission reductions. ERTt C ACR ,t2 C ACR ,t1 * 1 BUF Where: ERT,t Number of Emission Reduction Tonnes at time t = t2 - t1 CACR,t2 Cumulative total net GHG emissions reductions up to time t2 CACR,t1 Cumulative total net GHG emissions reductions up to time t1 BUF The non-permanence buffer deduction as calculated by the ACR Tool for AFOLU NonPermanence Risk Analysis and Buffer Determination (BUF will be set to zero if an ACR approved insurance product is used); fraction 20 The American Carbon RegistryTM Methodology Category / Methodology Title The American Carbon Registry™ 2121 Crystal Drive, Suite 500 Arlington, VA 22202 For questions or comments please contact: Chief Technical Officer Nicholas Martin nmartin@winrock.org 21