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The Voluntary Carbon Standard Association (VCSA) announced today that the scope of the VCS Program has been extended to include ozone‐ depleting substances (ODS).

Following a public consultation and participatory development process, the VCSA has developed eligibility requirements for ODS methodologies and projects, giving the green light for investment in activities that destroy ODS and thus prevent their emissions to the atmosphere. The eligibility requirements set out specific criteria that methodologies (and therefore projects) must meet in order to be approved under the VCS.

The destruction of ODS such as chlorofluorocarbons (CFCs) is not covered by either the Montreal or Kyoto Protocols. Although many of the ODS controlled by the Montreal Protocol have high global warming potential in addition to their ozone depleting potential, the protocol controls the consumption, production and international trade of ODS, but not emissions of ODS. Thus, releases of ODS residing in banks (such as refrigeration equipment and foams) are not controlled by the Montreal Protocol, and reducing these emissions could make a significant future contribution to addressing climate change.

Jerry Seager, Program Manager of the VCSA says: "We are very pleased to be able to include ODS within the scope of the VCS Program, which is a further example of the important and innovative role the carbon markets can play in driving activity on the ground to address GHG emissions."

Steve Gorman, Project Manager of the Environment Department, GEF and Montreal Protocol says: "The new VCS platform for ozone‐depleting substances is an important step in realizing the vital synergies between climate and ozone protection. The extension of the VCS scope coincides well with the January 1, 2010 deadline under the Montreal Protocol requiring total CFC phase‐out by “Article 5” (i.e. developing) countries, which as a group have potentially the largest banks of ozone‐depleting substances available for destruction worldwide. We are pleased with the outcome of the consultative process under VCS which will permit developing country proponents to gain better access to this promising market."

Paul Ashford, Co‐chair of the UN Foams Technical Options Committee says: "The banks of ODS contained in products and equipment are among the most significant sources of greenhouse gases remaining unaddressed by any legally‐binding global treaty. Initiatives of the type undertaken by VCS bring recognition to this opportunity and will encourage the development of appropriate methodologies to help address the issue."

Clemens Plöchl, Managing Director of Energy Changes says: "Currently there is no incentive to recover, collect and destroy ODS and extending the VCS to cover ODS destruction projects provides an important financial stimulus to help innovative technologies in this area become economically viable. Energy Changes is very pleased to see the VCS again take the lead and provide the green light for us to pursue work on several refrigerator recycling projects worldwide."

The VCS scope extension provides a clear path for ODS methodology and project approval. The eligibility requirements set out specific criteria for methodologies and projects in order to avoid perverse incentives, ensure accurate GHG accounting and drive best practice in ODS recovery and destruction.

In order to develop ODS requirements, the VCSA issued a public consultation in July 2009. Responses were received from industry, government agencies, consulting firms, project developers, standards organizations and other international organizations. The VCSA worked with these respondents and other subject area experts to create the final eligibility requirements, which were then approved by the VCS Board.