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On August 13, 2025, the Integrity Council for the Voluntary Carbon Market (ICVCM) formally announced the approval of three Biochar methodologies and two Improved Forest Management (IFM) methodologies under its Core Carbon Principles (CCP) label. In addition, an additional IFM methodology has been conditionally approved, pending implementation of remedial actions to strengthen leakage accounting.
This announcement follows momentum from July 2025, when ICVCM approved four other methodologies: two Adipic Acid Production protocols, one Clean Cookstove methodology, and one Afforestation, Reforestation, and Revegetation (ARR) methodology. Collectively, these approvals represent an important step forward for carbon removals, particularly highlighting Biochar as a high-integrity, high-quality credit type gaining traction across markets.
The newly approved methodologies are expected to increase annual CCP-labelled issuances by over 1 million credits by 2026. As more projects are developed under these categories, issuance volumes are anticipated to rise further, helping meet the rapidly growing demand for CCP-labelled credits.
In the first half of 2025, 2.8 million CCP credits were issued, substantially below the 12.5 million issued in all of 2024. By contrast, retirements are accelerating, with 3.5 million credits retired in the first half of 2025, compared with 4.3 million for all of 2024.
IFM Methodology Approvals
IFM projects aim to enhance forestry practices to increase carbon sequestration and reduce emissions. Approaches include extending harvest rotations, selective harvesting, improved tree growth management, and protecting logged or at-risk areas.
Two IFM methodologies were approved over the past week:
- Verra’s VM0045 v1.2, Methodology for Improved Forest Management Using Dynamic Matched Baselines from National Forest Inventories
- ACR’s Improved Forest Management (IFM) on Non-Federal U.S. Forestlands v2.1
As these methodologies are either new or recently updated, no credits have been issued to date. However, two projects are currently undergoing validation under Verra’s VM0045 v1.2, which, if approved, could generate approximately 0.26 million credits annually. While 18 projects are currently listed under ACR’s approved methodology (encompassing approximately half a million acres), no credits have been issued to date. The ICVCM is currently reviewing version 2.0 and is expected to announce its decision by September 2025.
Additionally, CAR’s Mexico Forest Protocol v.3 has been approved conditionally, pending remedial action by CAR to revise leakage accounting and permanence. This aligns with the ICVCM’s growing focus on permanence: in May, one of its working groups published a report on strengthening permanence in CCP-approved credits. The ICVCM has required the methodology to include a minimum 40-year permanence commitment. While more than 8 million credits have already been issued under this framework, the volume of CCP-labelled credits following these adjustments remains uncertain. CAR is now revising its methodology to meet updated requirements on permanence and additionality. Once remedial actions are implemented and approved by the ICVCM’s Integrity Council Board, CAR’s Mexico Forest Protocol v.3 credits will be eligible for the CCP label.
The ICVCM is expected to review eight additional IFM methodologies. Of these (three from ACR, two from CAR, and three from Verra’s VCS), only CAR’s Mexico Forest Protocol v2.0 is currently under active assessment, with a decision expected by September 2025.
Biochar Approvals
Biochar projects generate carbon credits by adding biochar to soil, effectively acting as a long-term carbon sink, storing atmospheric carbon captured by the original biomass for centuries. Demand for biochar is rising rapidly, with discussions underway regarding its potential inclusion in the EU ETS, underscoring its increasing market relevance.
Over the past week, the ICVCM announced the approval of three biochar methodologies:
- Verra’s VM0044 v.12, Methodology for Biochar Utilization in Soil and Non-Soil Applications
- CAR’s U.S. and Canada Biochar v1.0
- Isometric’s Biochar Production and Storage v1.0
At the time of the announcement, no credits had yet been issued across the three new methodologies. However, following the announcement, Isometric announced the issuance of its first CCP-labelled credits (a symbolic issuance of slightly over a couple of credits, supplied by Charm Industrial), marking the first-ever industrial Biochar credits under the CCP label.
Currently, 25 projects are registered under Isometric’s approved biochar methodology, with issuance projected to reach approximately 500,000 credits in 2026. In parallel, three large projects under Verra’s VM0044 are expected to generate roughly 240,000 credits annually. Four projects are currently registered under CAR’s Biochar methodology.
Pricing Trends
The inclusion of Biochar and IFM methodologies under the CCP label is material for market supply and pricing dynamics. These project types historically trade at a premium relative to other CCP credits, and their formal recognition is likely to reinforce this trend. For instance, CCP landfill gas credits from North America recently averaged USD 7.24, compared with USD 5.84 for similar projects in Latin America, both commanding a premium of more than USD 1.5 over non-CCP equivalents. Meanwhile, Puro’s Biochar Price Index reports credits trading around EUR 123, and a 20–25% CCP premium at these levels could have a notable market impact.
These approvals also signal a key milestone for removals. Biochar approval demonstrates that removal projects can achieve high integrity under CCP standards, reinforcing the market’s growing focus on durable removals as a critical component of net zero strategies.