Who Decides What Counts as a Loss?

In Verra’s Version 5 consultation on the Verified Carbon Standard (VCS), Eco Sustainability contributed feedback on what might sound like a dry technical detail: how to define a “loss event.”

But here’s why it matters. Imagine a forest project that gets hit by a storm. Trees fall, carbon stocks dip, and technically it crosses the 5% threshold. Do we call this a permanent “loss” even though the forest grows back over the next few years? If yes, the project gets flagged, the credits look weaker, and trust erodes. That’s not protecting integrity - that’s punishing reality.

The proposed definition leaves too much room for interpretation. Terms like “cumulative” and “previously verified” need sharper edges. Does “previously verified” include credits that were already retired? Or only those still in circulation? And how do we treat short-term reversals that nature itself corrects? We’ve recommended a permanence threshold - for example, only calling it a loss if the dip isn’t reversed within five years. That avoids noise without watering down accountability.

Another change on the table is letting any stakeholder report a suspected loss. In principle, we support this. Communities, NGOs, and watchdog groups often spot issues first, and they should have a channel to raise the alarm. But without safeguards, you could also end up with malicious claims. Verra needs to require evidence - satellite images, photos, documented incidents - and triage reports before they escalate.

The balance here is crucial. Stronger safeguards are good, but only if definitions are clear and reporting is fair. Get this wrong, and we either over-report every storm and fire, or undercut the credibility of carbon markets altogether. Get it right, and we protect both integrity and the trust of project developers on the ground.

About Eco Sustainability

As a trusted advisor on sustainability and climate policy, Eco Sustainability is not only aligned with global standards - we help shape them by contributing to technical consultations and international standard-setting processes.