Natural climate solutions (NCS) are a type of climate mitigation project characterized by the use of natural systems to sequester carbon, and thus reduce and/or remove GHG emissions from the atmosphere. Common examples include forestry (e.g. reforestation, avoided deforestation, and afforestation), agriculture (e.g. regenerative or no-till practices), or ecosystem (e.g. stream restoration) projects where effects on GHG emissions can clearly be measured and documented.
While NCS projects are generally eligible CTB projects, they may be categorized as either Value Chain Abatement (VCA) or Beyond Value Chain (BVC), depending on two factors:
Whether the project affects your scope 1, 2, or 3 emissions
Whether you fund the project directly or via a market-based instrument, such as a carbon credit
In addition, all NCS projects, whether they are VCA or BVC, must meet verification and documentation requirements as defined in the Standard.
The following table summarizes NCS project eligibility based on these factors:
| VCA NCS Project | BVC carbon credit project | BVC non-conforming project | BVC NCS Project (Directly funded) |
Affects your Scope 1, 2, or 3 emissions | Yes | No | No | No |
Funded through market-based instrument | No | Yes | Yes | No |
Documentation requirement | Grade C or better | Grade B or better | ||
Verification on approved Market Registry | Not applicable | Required | Not Required - up to 15% of your BVC allocation may go to this type of project | Not applicable |