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Deciding whether a VCA project is eligible
Updated over 2 weeks ago

Refer to Table 5 in the Certification Standard for a full list of eligible project types. As you consider whether your project may be eligible, here is a helpful guide:

  • Count the price premium (opex or capex) if you choose to spend more than you would normally in a business-as-usual scenario in order to use a preferred input

    • Examples: buying more expensive, preferred material inputs (or finished goods that contain preferred material inputs) with lower carbon emissions across some or all products; choosing higher-cost renewably-produced electricity at controlled facilities; choosing more carbon-efficient equipment in order to reduce emissions vs conventional equipment

  • Count the full cost (opex or capex) or the annual depreciation expense (for projects initiated in the past 5 years) if you fund a project to install new equipment / processes / technology specifically to reduce emissions, or retire equipment and replace it early in order to decarbonize more quickly. For early retirement projects, only count the cost of new equipment; do not count the residual value of existing assets

    • Examples: installing onsite solar at your headquarters; investing in onsite renewables at a supplier facility; installing GHG capture equipment; investing in equipment to switch fuels; converting an older HVAC system to a heat pump before it’s fully depreciated; investing in a regenerative agriculture project at a supplier facility; electrifying a fleet before existing vehicles are fully depreciated

  • DO NOT count the expenditure if you make a purchase or investment required for regular business operations or to comply with laws or regulations

    • Examples: buying conventional inputs to make your products; replacing an HVAC system at end-of-life; building out office or warehouse space; buying new equipment to increase production capacity

To learn more about documentation requirements for price premiums and full investment costs, see this link.

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