Monsoon Carbon has launched a Grouped Project for methane capture from industrial wastewater on Verra’s Verified Carbon Standard (VCS). The Grouped Project is open for other biogas plants that meet the defined eligibility criteria to join during regular verifications.
It offers Project Owners a faster, simpler, and more cost-effective way to register smaller projects for carbon credits, making it easier to access the growing carbon market.
This page is updated as details on the implementation of the Grouped Project become available.
1. The Grouped Project Description
Importance of Methane Reduction
Methane emissions are a particularly important greenhouse gas (GHG), as methane is 28 times more potent than carbon dioxide. Reducing emissions from methane has become a global priority: the Global Methane Pledge initiative was launched at COP26, aiming to abate anthropogenic methane emissions by at least 30% by 2030.
Reducing emissions from methane is also a priority in Malaysia, where methane accounts for about 15% of total emissions of greenhouse gases.
The agricultural sector is an important source of these emissions. The standard practice of refining agricultural crops like oil palms, sugar cane and cassava results in the production of a large amount of wastewater. This wastewater contains many nutrients and organic matter.
The industry standard in Malaysia is to store and treat this type of wastewater in open air ponds until the organic matter has been neutralised. However, as the organic matter breaks down, a significant amount of methane is released into the atmosphere.
Initiative and Impact of the Grouped Project
There is a better but more costly solution to this problem. By covering the ponds with a membrane and installing a biogas plant, the methane can be captured and processed into biogas. The biogas can then be used to generate renewable energy, destroying the methane in the process.
While the capture and destruction of methane is recognised as one of the fastest ways to address near-term climate change and will be a prerequisite for reaching the 1.5 °C target, individual biogas plants would normally be too small and inefficient to function as carbon credit projects. Individual biogas plants are practically ‘locked out’ from climate financing, due to their small size and high complexity.
In contrast, the Grouped Project standardises the approach and significantly improves the efficiency of issuing carbon credits for biogas plants. Participating sites (“Project Activity Instances”) are rewarded with the issuance of carbon credits, based on verified data that shows the capture and destruction of methane.
When approached in this way, carbon credits become an effective incentive for companies to go over and above their legal requirements, and accelerate climate action on this important source of emissions.
2. Milestones of the Grouped Project
The Development of the Grouped Project Itself
The Grouped Project was developed in partnership with Cenergi over a multi-year period. The first Project Activity Instance (PAI1) was the Langkap Biogas Plant, commissioned in February 2023. The second PAI (PAI2), Nasaruddin Biogas Plant, which will be commissioned in Q4 2024, has also been added.
Grouped Project Development under the Carbon Standard
All emissions reductions achieved by the Grouped Project are verifiable and permanent.
Further updates on the development of the Grouped Project will be provided in due course.
Supply Chain (Scope 3) Emissions:
"Carbon credits may be issued through Verified Carbon Standard Project ID 4279 for the greenhouse gas emission reductions or removals associated with products by the below Group of various Palm Oil Mills in Malaysia whose emissions footprint is changed by the project activities:
1. Gabungan Perusahaan Minyak Langkap Palm Oil Mill
2. Felcra Nasaruddin Palm Oil Mill
3. Genting Ayer Item Palm Oil Mill
4. Bukit Lawiang Palm Oil Mill
5. LSCB Palm Oil Mill Lepar"
3. The Contributions of the Grouped Project
Benefits of the Grouped Project
The Grouped Project contributes to UN Sustainable Development Goal 13 “Climate Action”, by the reduction of emissions. As the Grouped Project matures, we expect it to reduce emissions by several hundred thousand tonnes of carbon dioxide equivalent every year for the life of the Grouped Project.
The Grouped Project also makes contributions to SDG 7 “Affordable and Clean Energy”, SDG 8 “Decent Work and Economic Growth” and SDG 4 “Quality Education”.
Safeguards of the Grouped Project
Stakeholders Engagement
Biogas plants are classified as low risk pieces of infrastructure in Malaysia. Each Project Activity Instance meets all relevant legal requirements. Project Owners implement training courses, have prepared emergency and response measures for their sites, and document incidents.
PAIs are typically located in areas of few stakeholders and Malaysia has also deemed biogas plants to be of low potential impact on the Environment and Society.
Labour Rights
Worker rights follow International Labour Organization (ILO) Conventions Ratified by Malaysia and local Malaysian employment law, including the following:
- Employment Act 1955
- Employee’s Social Security Act 1969
- Industrial Relations Act 1967
- Minimum Wages Order 2022
- Occupational Safety and Health Act 1994
- Workmen’s Compensation Act 1952
- Child and Young Persons (Employment) Act 1966
4. Monitoring and Verification
Monitoring Results & Communication
The Grouped Project publishes ongoing monitoring results and implementation updates to ensure transparent communication with all stakeholders throughout each monitoring period. Monitoring information includes the project’s operational status, methane capture and utilization, renewable energy generation, and social contributions such as staff training and job creation.
The approved Monitoring Reports for the Grouped Project are publicly disclosed on the Verra Registry (https://registry.verra.org/
The Verification Process
A “verification” is conducted each time the Grouped Project wants to issue carbon credits. An independent verifier is appointed to review data submitted by the Grouped Project to ensure that the issuance of carbon credits aligns with the actual emission reductions achieved.
This verification requires the submission of a monitoring report, complete with data collected in accordance with the monitoring plan that was approved during validation. The monitoring report also includes responses to additional key questions posed by Verra’s VCS.
Basic Monitoring Requirements
In order to claim for Verified Carbon Unit (VCUs) or Carbon Credits, a series of monitoring must be carried out according to the VCS monitoring requirements. Monsoon defined a detailed Monitoring Plan for the Grouped Project is designed to suit the PAI needs and adhere to the requirements of the applicable methodology and tools.
It is important to adhere strictly to the monitoring plan to avoid losing VCUs due to lack of documentation.
5. Feedback
Feedback for the Grouped Project
Feedback on the Grouped Project is welcomed via email to Monsoon Carbon. For any further questions about the Grouped Project, please feel free to contact Monsoon Carbon at [email protected] or by using the form below.
Feedback for Individual Project Activity Instances
Each Project Activity Instance also maintains a process for the submission and resolution of site-specific issues from stakeholders. Please contact each site directly should an issue arise. This information is reported back to Monsoon Carbon and included in our routine monitoring reports to VCS.
Site specific contacts are provided below:
| Project Activity Instance | Operator | Details |
| Langkap Biogas Plant | Cenergi Langkap Sdn. Bhd. | Feedback can be submitted by: Please note the feedback is applicable to Langkap Biogas Plant. |
| Nasaruddin Biogas Plant | Cenergi Lestari Sdn. Bhd. | Feedback can be submitted by: Please note the feedback is applicable to Nasaruddin Biogas Plant. |
| Lawiang Biogas Plant | Cenergi Langkap Sdn. Bhd. | Feedback can be submitted by: Please note the feedback is applicable to Lawiang Biogas Plant. |
| Ayer Item Biogas Plant | Cenergi Langkap Sdn. Bhd. | Feedback can be submitted by: Please note the feedback is applicable to Ayer Item Biogas Plant. |
| LCSB Lepar Biogas Plant | Alliance Concord Biogas Sdn. Bhd. | Feedback can be submitted by: Please note the feedback is applicable to LCSB Lepar Biogas Plant. |
WhatsApp
Zalo
