January 10, 2025 | CarbonCredits.com |
Verra has updated the compensation process for 4.56 million over-issued Verified Carbon Units (VCUs) linked to 37 rejected rice cultivation projects in China. An August 2024 review found that 25 projects issued more credits than earned, undermining carbon market integrity. To date, 480,000 VCUs from five projects have been compensated by Vitol (China) Energy and Timing Carbon Asset Management, while 4.08 million VCUs remain outstanding. Search CO2 (Shanghai) Environmental Science & Technology and Hefei Luyu Agriculture Technology, responsible for these credits, face registry account suspensions until full compensation is made. Verra is also reviewing validation and verification bodies (VVBs) involved, with potential sanctions or suspensions for non-compliance. This decisive action reinforces Verra’s commitment to transparency, accountability, and strengthening the integrity of voluntary carbon markets.
