PCS DC 007 Avoidance of Double Counting & CA_v1.0

Document Control

Document identification

• Document code: PCS-DC-007

• Title: Avoidance of Double Counting & Corresponding Adjustments

• Scope: Defines requirements, mechanisms, and responsibilities to prevent double issuance, double claiming, and double use, and to operationalize corresponding adjustments under Article 6 where credits are authorized for international transfer, including registry tagging, verification cross-checks, auditability, corrective action and non-compliance handling.

• Outcome: Ensures each PCS unit is uniquely accounted for and transparently tracked across issuance, transfer, and retirement, and that authorized international uses are supported by corresponding adjustment controls where applicable.

Version history and change log

Table DC-1. Revision history

Version	Date	Status	Summary of changes	Prepared by	Approved by
v1.0	TBD	Draft	Initial release for public consultation	PCS Secretariat	TBD

Superseded versions

No superseded versions for v1.0.

Governance note on versioning and archiving

Only the latest approved version of this Standard shall be used. Superseded versions shall be archived and retained for traceability and audit purposes, consistent with PCS governance rules.

Chapter 1 - Introduction

1.1 Background

1. The Planetary Carbon Standard (PCS) establishes the governance, methodologies, and assurance systems necessary to ensure that all greenhouse gas (GHG) emission reductions and removals are real, measurable, additional, independently verified, and uniquely accounted for.

2. The prevention of double counting - including double issuance, double claiming, and double use- is fundamental to the integrity of carbon markets and national reporting under the Paris Agreement (Article 6).

3. Under Article 6.2, Parties engaging in the international transfer of mitigation outcomes are required to apply corresponding adjustments to their Nationally Determined Contributions (NDCs) to avoid double counting of the same emission reduction.

4. The ICVCM Core Carbon Principles (2023) further codify this requirement through Principle 9, emphasizing that each mitigation outcome must be transparently tracked to prevent any overlap across compliance or voluntary claims.

5. This standard operationalizes those international obligations within the PCS framework, providing the technical and procedural basis for how double counting is prevented across all project activities and credit transactions.

1.2 Purpose

1. The purpose of this standard is to define rules, mechanisms, and responsibilities that ensure each PCS Carbon Credit (PCC) is accounted for only once across all emission inventories, compliance mechanisms, and voluntary claims.

2. Specifically, this standard aims to:

• Ensure that all PCS issuances are compatible with the accounting guidance of the UNFCCC Supervisory Body for Article 6.2;

• Provide a harmonized approach to corresponding adjustments and tracking of internationally transferred mitigation outcomes (ITMOs);

• Establish registry-level procedures to maintain uniqueness and transparency of all serial numbers and transfers; and

• Align PCS governance with international best practice including IPCC 2006 Guidelines (Volume 1, Chapters 2 & 8) on data consistency and ISO 14064-2/-3 on project-level validation and verification.

1.3 Rationale

1. Double counting undermines global emission reduction progress by inflating mitigation results and reducing the credibility of both public and private climate commitments.

2. A robust system of tracking and adjustment is therefore essential to:

• Maintain the environmental integrity of PCS credits;

• Support host country transparency frameworks under the Paris Agreement; and

• Enable the recognition of PCS credits under mechanisms such as CORSIA and other international or domestic compliance systems.

1. The PCS Registry, validation and verification procedures, and host-country engagement processes together form a comprehensive architecture to eliminate duplication across issuance, transfer, and retirement stages.

1.4 Normative References

1. This standard draws upon and is designed to be consistent with the following open and internationally recognized instruments:

• United Nations Framework Convention on Climate Change (UNFCCC): Paris Agreement, Articles 4 and 6, CMA Decisions 2/CMA.3 and 3/CMA.3;

• ICVCM Core Carbon Principles (2023), Criterion 9 – Avoidance of Double Counting;

• IPCC 2006 Guidelines for National GHG Inventories and 2019 Refinement;

• ISO 14064-2:2019 and ISO 14064-3:2019 – GHG projects and validation/verification;

• CORSIA Emissions Unit Eligibility Criteria (ICAO, 2021);

• UNFCCC Technical Expert Review Guidance on Article 6 Reporting (latest version).

Chapter 2 - Objectives

2.1 General Objective

1. The objective of this standard is to safeguard the environmental integrity and credibility of the Planetary Carbon Standard (PCS) by ensuring that every greenhouse-gas mitigation outcome generated and issued within the PCS framework is counted once and only once toward climate-mitigation goals at any level—international, national, or corporate.

2.2 Specific Objectives

1

Integrity of Accounting

Establish procedures to prevent, detect, and correct any form of double counting, including:

• Double issuance – the same mitigation outcome issued more than once in any registry;

• Double claiming – the same mitigation outcome claimed by multiple entities or countries; and

• Double use – the same mitigation outcome applied to multiple purposes (e.g., NDC and voluntary offset).

2

Alignment with International Frameworks

Ensure that PCS accounting is consistent with the requirements of:

• The UNFCCC Article 6.2 guidance on internationally transferred mitigation outcomes (ITMOs);

• The Article 6.4 mechanism rules for avoidance of double counting;

• The ICVCM Core Carbon Principles, particularly Principle 9 (No Double Counting); and

• The IPCC 2006 Guidelines for National GHG Inventories regarding transparency, comparability, and consistency of reported data.

3

Transparency and Traceability

Maintain a publicly accessible record of all PCS projects, issued credits, transfers, and retirements through the PCS Registry, ensuring that every PCS Carbon Credit (PCC) can be tracked from issuance to final use.

4

Corresponding Adjustments under the Paris Agreement

Define the framework by which PCS facilitates host-Party application of corresponding adjustments in line with the accounting guidance adopted under the CMA decisions, allowing authorized credits to be used internationally as ITMOs without risk of duplication in national reporting.

5

Credibility for Market Recognition

Guarantee that PCS credits meet the integrity thresholds for acceptance under international and domestic programs, including but not limited to CORSIA, regional compliance systems, and voluntary market rating initiatives.

6

Harmonization with National and Corporate Inventories

Promote consistent treatment of mitigation outcomes between project-level accounting and:

• Host-country national greenhouse-gas inventories; and

• Corporate or organizational GHG balance sheets prepared under ISO 14064-1 or equivalent frameworks.

7

Corrective and Preventive Action

Establish a defined procedure for investigating potential double-counting events, implementing corrective measures, and communicating publicly any credit revocation or adjustment undertaken by the PCS Secretariat.

2.3 Outcome of Implementation

1. Implementation of this standard shall result in:

• Full transparency of credit generation and use within the PCS Registry;

• Seamless alignment between PCS records and host-country Article 6 reporting;

• Confidence by buyers, host governments, and international mechanisms in the validity of PCS-issued mitigation outcomes; and

• Enhanced comparability and credibility of PCS in relation to other high-integrity carbon-crediting programs.

Chapter 3 - Scope and Applicability

3.1 Scope

1. This standard applies to all projects, programs of activities, and grouped project activities registered under the Planetary Carbon Standard (PCS) that generate greenhouse-gas emission reductions or removals eligible for issuance as PCS Carbon Credits (PCCs).

2. It establishes the requirements for:

• The prevention of double counting, double issuance, double claiming, and double use of mitigation outcomes;

• The application and documentation of corresponding adjustments by host Parties, where credits are authorized for international transfer under Article 6 of the Paris Agreement;

• The operational procedures and registry controls necessary to ensure the uniqueness and traceability of every issued credit; and

• The responsibilities of project proponents, Validation & Verification Bodies (VVBs), the PCS Secretariat, and host Parties in maintaining integrity throughout the project cycle.

1. This standard forms part of the regulatory core of PCS and shall be applied in conjunction with:

• The PCS Program Framework;

• The PCS Validation & Verification Standard (PCS-VVS);

• The PCS Registry and Digital Infrastructure Standard; and

• Any applicable guidance issued by the PCS Regulatory Committee or Secretariat.

3.2 Applicability

1. Geographical ApplicabilityThis standard applies to all host countries and jurisdictions where PCS-registered projects operate, including those that:

• Have submitted or updated Nationally Determined Contributions (NDCs) under the UNFCCC;

• Intend to authorize PCS-issued mitigation outcomes for use toward their NDCs or for international transfer; or

• Have entered cooperative approaches under Article 6.2 or intend to participate under Article 6.4 mechanisms.

1. Activity Types CoveredThe standard applies to all eligible mitigation activities under PCS, including but not limited to:

• Renewable energy generation and efficiency improvements;

• Nature-based solutions (NbS), land-use, and carbon-removal projects;

• Industrial process improvements, waste management, and capture & storage technologies; and

• Cross-sectoral or programmatic approaches using aggregated baselines.

1. Actors and Entities Bound by This StandardCompliance is mandatory for:

• Project Proponents (PPs) – entities seeking registration and issuance under PCS;

• Validation & Verification Bodies (VVBs) – accredited third-party assurance providers;

• The PCS Secretariat – responsible for program administration, registry management, and issuance controls;

• The PCS Regulatory Committee (RC) – responsible for oversight and enforcement; and

• Host Parties or their Designated National Authorities (DNAs) – when authorizing the transfer of mitigation outcomes under Article 6.

1. Temporal Applicability

• This standard applies to all projects submitting new registration or issuance requests after its effective date.

• Existing projects may be required to update their documentation to conform with this standard prior to renewal of crediting periods or new issuances.

3.3 Exclusions

1. This standard does not apply to activities that:

• Generate results solely for domestic compliance within national GHG accounting systems and not intended for issuance of PCCs; or

• Are certified under other standards or registries without mutual recognition arrangements established with PCS.

1. Voluntary carbon accounting exercises performed by corporations or entities outside the PCS issuance and registry framework are not governed by this standard, though alignment is encouraged for transparency.

3.4 Relationship to Other Standards

1. This standard shall be read in parallel with:

• UNFCCC Guidance on Cooperative Approaches (Decision 2/CMA.3);

• ICVCM Core Carbon Principles (2023);

• ISO 14064-2:2019 (GHG projects) and ISO 14064-3:2019 (Validation and Verification); and

• CORSIA Emissions Unit Eligibility Criteria (ICAO, 2021) for mutual recognition purposes.

1. In case of conflict or ambiguity, the interpretation consistent with UNFCCC Article 6 guidance and IPCC reporting principles shall prevail.

Chapter 4 - Definitions

For the purposes of this standard, the following terms and definitions shall apply. Where definitions are not explicitly provided here, the most recent terminology adopted by the United Nations Framework Convention on Climate Change (UNFCCC), the Intergovernmental Panel on Climate Change (IPCC), the International Organization for Standardization (ISO 14064 series), and the Integrity Council for the Voluntary Carbon Market (ICVCM) shall prevail.

4.1 Accounting and Reporting Terms

Term	Definition
Accounting Period	The discrete period, expressed in years, during which emission reductions or removals are monitored and verified for issuance under PCS.
Article 6 Mechanisms	Cooperative approaches established under Articles 6.2 and 6.4 of the Paris Agreement, enabling the transfer of mitigation outcomes between Parties.
Baseline	The quantified level of GHG emissions or removals that would occur in the absence of the project activity, determined according to approved PCS methodologies.
Corresponding Adjustment (CA)	A quantitative adjustment applied by a host Party to its NDC inventory to account for mitigation outcomes that have been authorized for use toward another Party’s NDC or other international purpose, consistent with UNFCCC Decision 2/CMA.3.
Crediting Period	The fixed duration during which verified emission reductions or removals from a registered project are eligible for issuance of PCS Carbon Credits.
Emission Factor	A coefficient that quantifies emissions or removals per unit of activity, in accordance with IPCC Guidelines (2006, 2019 Refinement).
Inventory Consistency	The property by which data and assumptions used in project-level accounting are coherent with national inventory methodologies following IPCC principles of transparency, consistency, comparability, completeness, and accuracy.

4.2 Mitigation-Outcome and Credit-Related Terms

Term	Definition
Mitigation Outcome (MO)	The quantified result of a human intervention that reduces or removes GHG emissions relative to a baseline scenario. In the context of Article 6, mitigation outcomes may be transferred internationally as ITMOs.
Internationally Transferred Mitigation Outcome (ITMO)	A mitigation outcome that has been authorized by the host Party for international transfer and is subject to a corresponding adjustment under Article 6.2.
PCS Carbon Credit (PCC)	A unique unit issued under the PCS Registry representing one metric tonne of CO₂ equivalent (t CO₂e) of verified emission reduction or removal that meets all PCS requirements.
Double Issuance	The act of issuing more than one credit or unit for the same quantified mitigation outcome, whether within PCS or across external registries.
Double Claiming	The situation in which the same mitigation outcome or credit is claimed toward more than one mitigation target (e.g., two NDCs or an NDC and a corporate offset claim).
Double Use	The use of the same mitigation outcome for multiple purposes (e.g., compliance and voluntary offsetting) without transparent differentiation or adjustment.
Retirement	The permanent removal of a credit from circulation within the PCS Registry, denoting its final use or cancellation.
Serial Number	A unique alphanumeric identifier assigned to each PCS Carbon Credit (PCC) that encodes project ID, country code, monitoring period, and issuance type (e.g., voluntary or ITMO).

4.3 Institutional and Governance Terms

Term	Definition
Host Party	The country in which the project generating emission reductions or removals is implemented and which holds authority to authorize international transfers under Article 6.
Designated National Authority (DNA)	The national entity appointed by a Host Party to approve or authorize projects and ITMO transfers under Article 6.
Project Proponent (PP)	The legal entity responsible for designing, implementing, and maintaining a PCS-registered project, including submission of monitoring and verification documentation.
Validation & Verification Body (VVB)	An independent, accredited organization qualified under PCS procedures to perform validation and verification of project documentation in accordance with ISO 14064-3.
PCS Secretariat	The operational unit responsible for administration of the PCS Registry, review of submissions, issuance of credits, and enforcement of PCS standards.
PCS Regulatory Committee (RC)	The independent body overseeing technical governance, policy updates, and resolution of disputes under the PCS program.
PCS Registry	The official electronic system that records project data, issuance, transfer, retirement, and corresponding-adjustment information for all PCS Carbon Credits.
Steering Committee (SC)	The strategic governance body providing oversight, policy direction, and final adjudication of appeals within the PCS framework.

4.4 Technical and Reference Terms

Term	Definition
CORSIA Eligibility	The conformity of PCS Carbon Credits with the ICAO CORSIA Emissions Unit Eligibility Criteria (2021) for use by aircraft operators under the CORSIA scheme.
ICVCM Core Carbon Principles (CCPs)	A set of 10 principles defined by the Integrity Council for the Voluntary Carbon Market establishing thresholds for high-integrity carbon credits, including Principle 9 (No Double Counting).
IPCC Guidelines	The 2006 IPCC Guidelines for National Greenhouse Gas Inventories and the 2019 Refinement, providing methodological guidance for consistent quantification of GHG emissions and removals.
ISO 14064 Standards	The ISO 14064 series defining requirements for GHG accounting and verification at project (Part 2) and validation/verification (Part 3) levels.
Paris Agreement	The international treaty adopted under the UNFCCC in 2015 establishing a global framework for limiting temperature increase to well below 2 °C and promoting cooperative approaches to mitigation.

Chapter 5 - Principles

5.1 Overview

1. The Planetary Carbon Standard (PCS) applies the following guiding principles to ensure that all emission reductions and removals issued as PCS Carbon Credits (PCCs) are unique, transparent, traceable, consistent, and environmentally credible.These principles are derived from the UNFCCC Paris Agreement (Articles 4 & 6), the ICVCM Core Carbon Principles (2023), the IPCC Good Practice Guidance, and the ISO 14064 series.

5.2 Principle 1 - Uniqueness

1. Each mitigation outcome generated under PCS represents a single, clearly defined and quantifiable emission reduction or removal expressed in metric tonnes of CO₂ equivalent (t CO₂e).

2. Every unit is assigned a unique serial number within the PCS Registry that identifies project, country, monitoring period, and issuance type.

3. No mitigation outcome shall be issued, transferred, or used more than once for any mitigation claim, NDC, or compliance purpose.

4. Projects must disclose any participation in other carbon programs to ensure that the same mitigation outcome is not registered or issued under multiple systems.

5.3 Principle 2 - Transparency

1. All key information—including project descriptions, methodologies, monitoring reports, verification outcomes, and issuance records—shall be made publicly accessible through the PCS Registry or Portal, except where confidentiality is legally justified.

2. The PCS Secretariat shall maintain a public, searchable database of all active, retired, and cancelled credits.

3. Registry entries shall clearly identify whether a credit has been authorized for international transfer (ITMO) or designated for voluntary use only.

4. Annual public disclosure reports shall summarize:

• Total credits issued, transferred, retired, or cancelled;

• Host-Party authorizations and corresponding adjustments;

• Actions taken to address any detected inconsistencies.

5.4 Principle 3 - Traceability

1. The PCS Registry must enable full life-cycle tracking of every PCC from issuance to final retirement.

2. All transfers, sub-account movements, and retirements shall be time-stamped and auditable.

3. Each transaction record shall link directly to supporting documentation (validation, verification, or authorization evidence).

4. Cross-registry reconciliation mechanisms shall be developed to prevent double use, where projects interface with external systems.

5.5 Principle 4 - Consistency

1. All PCS accounting, monitoring, and reporting practices shall align with IPCC 2006 Guidelines and subsequent refinements, maintaining consistency between project-level and national inventories.

2. Methodological consistency shall be preserved throughout the crediting period, including use of baseline parameters, emission factors, and calculation tools.

3. Any methodological updates must be transparently documented, reviewed by the PCS Regulatory Committee, and publicly disclosed prior to application.

4. Host Parties applying corresponding adjustments must ensure that PCS project data are reflected consistently in national reporting under the Enhanced Transparency Framework (ETF).

5.6 Principle 5 - Environmental Integrity

1. All PCS activities shall deliver real, additional, and permanent emission reductions or removals.

2. No credit shall be issued for outcomes already accounted for within national or organizational inventories without proper adjustment.

3. Independent verification by accredited VVBs shall confirm:

• Conformance with approved methodologies;

• Accuracy of quantified results; and

• Absence of duplication or misrepresentation.

1. The PCS Secretariat shall conduct periodic integrity audits and may suspend or revoke credits found inconsistent with these principles.

5.7 Principle 6 - Accountability and Corrective Action

1. Any entity found responsible for issuing, transferring, or claiming duplicated mitigation outcomes must promptly cooperate in corrective measures.

2. Corrective actions may include credit cancellation, revision of registry records, or formal notification to relevant host Parties and market participants.

3. All corrective measures shall be documented and disclosed through the PCS Registry to maintain trust and transparency.

5.8 Principle 7 - Alignment with International Standards

1. PCS shall continuously review its governance and registry operations to remain consistent with evolving UNFCCC decisions, IPCC methodological updates, ICAO CORSIA criteria, and ICVCM integrity guidance.

2. Where global accounting rules are updated, PCS will implement transitional provisions to maintain compatibility and data continuity.

Chapter 6 - Regulatory Requirements

6.1 Purpose

1. This chapter defines the regulatory and operational requirements applicable to all actors participating in the Planetary Carbon Standard (PCS) project cycle to ensure the prevention of double counting and the integrity of corresponding adjustments in accordance with the Paris Agreement, ICVCM Core Carbon Principles, IPCC guidance, and ISO 14064-3.

6.2 Requirements for Project Proponents (PPs)

1

Declaration of Intended Use

At registration, each Project Proponent shall specify whether the mitigation outcomes are intended for:

• Voluntary carbon market claims, or

• International transfer under Article 6.2 of the Paris Agreement.

The declared use must remain consistent throughout the crediting period unless formally amended via a Post-Registration Change (PRC) approved by the PCS Secretariat.

2

Host-Party Authorization

Where the mitigation outcomes are intended for transfer or use toward an NDC, the PP shall obtain a Letter of Authorization (LoA) from the host Party confirming:

• Government consent for project participation; and

• Agreement to apply a corresponding adjustment as per UNFCCC Article 6 guidance.

The LoA shall include details of the accounting approach (multi-year averaging or emission-balance method).

3

Data Integrity and Documentation

• PPs shall maintain transparent monitoring records consistent with approved PCS methodologies.

• Activity data and emission factors must align with IPCC inventory guidance and be independently verifiable.

• Duplicate submission of the same data to multiple crediting programs is prohibited unless formally disclosed.

4

Disclosure and Compatibility

• PPs must disclose participation in any other carbon-crediting or results-based finance mechanisms.

• Any potential overlap of mitigation outcomes must be demonstrated as clearly separated and non-duplicative.

5

Corrective Measures

Upon notification by the PCS Secretariat of a potential double-counting event, the PP shall cooperate in investigating and resolving the case, including withdrawal or cancellation of any affected credits.

6.3 Requirements for Validation & Verification Bodies (VVBs)

1. Independence and Accreditation

• VVBs shall be accredited in accordance with ISO 14065 and approved under the PCS VVB Procedure.

• They must act with impartiality and disclose any conflict of interest.

1. Validation Obligations

During validation, the VVB shall confirm that:

1. The project design document identifies the intended use (voluntary or Article 6 transfer);

2. Required authorizations are obtained; and

3. No evidence exists of multiple registrations of the same activity or baseline.

4. Verification Obligations

During each verification cycle, the VVB shall:

1. Confirm that monitoring data are consistent and not duplicated;

2. Verify that issued or pending credits match verified emission reductions or removals;

3. Check that serial numbers, registry entries, and authorizations are unique and current; and

4. Report any inconsistency or risk of double issuance to the PCS Secretariat.

5. Reporting and Transparency

The VVB shall include a dedicated Section 9 – Double-Counting Assessment in each verification report summarizing checks undertaken and results found.

6.4 Requirements for the PCS Secretariat

1. Operational Oversight

• The PCS Secretariat shall establish and maintain internal control systems to prevent double issuance, double use, or misclassification of credits.

• Each project shall be assigned a unique Project Reference Number (PRN) upon registration.

1. Registry Management

The Secretariat shall manage the PCS Registry to ensure that:

1. Every issued credit has a unique serial number;

2. Transfers, retirements, and cancellations are time-stamped and auditable;

3. Credits authorized for international transfer are tagged “ITMO”; and

4. Credits not authorized remain within the “Voluntary Use” category.

5. Cross-Registry Coordination

Where mutual recognition agreements exist with other registries or systems, the Secretariat shall implement electronic cross-checks to prevent double counting across registries.

1. Audit and Compliance

• Conduct annual internal audits of the Registry and verification records to ensure data integrity.

• Publish a PCS Registry Integrity Report summarizing audit results and any corrective actions.

1. Corrective and Preventive Actions

In case of confirmed duplication, the Secretariat shall:

1. Suspend affected credits;

2. Notify relevant host Parties and VVBs;

3. Apply cancellation within the Registry; and

4. Publicly disclose the action and justification.

6.5 Requirements for Host Parties

1. Authorization and Corresponding Adjustments

• Host Parties shall issue Letters of Authorization confirming participation and the intention to apply corresponding adjustments consistent with the UNFCCC Article 6.2 guidance.

• They shall communicate applied adjustments through their Biennial Transparency Reports (BTRs) under the Enhanced Transparency Framework (ETF).

1. Consistency with National Inventories

Host Parties shall ensure that PCS projects and related emission reductions are reflected consistently in national GHG inventory submissions to avoid double claiming within the same territory.

1. Notification to PCS

Host Parties shall notify the PCS Secretariat of any changes to authorization status or Article 6 accounting policies that may affect PCS projects.

1. Collaboration in Investigations

In case of a potential double-claiming event, the host Party shall cooperate with PCS in resolving discrepancies and confirming the official status of corresponding adjustments.

6.6 Requirements for the PCS Regulatory Committee (RC)

1. Policy Oversight

The RC shall periodically review and update this standard to reflect evolving UNFCCC and ICVCM guidance.

1. Dispute Resolution

The RC shall adjudicate complex or cross-jurisdictional disputes related to double counting or adjustment inconsistencies.

1. Approval Authority

Approve suspension or reinstatement of credits following Secretariat investigations.

6.7 Requirements for Market Participants

1. Due Diligence

Buyers, intermediaries, and other market participants shall verify the credit status (ITMO or voluntary) via the public PCS Registry prior to acquisition.

1. Prohibited Conduct

No participant may knowingly transact or represent credits that have been retired, cancelled, or otherwise used.

1. Disclosure Obligation

Entities making public claims shall accurately reference PCS credit serial numbers and disclose whether corresponding adjustments were applied.

Chapter 7 - Corresponding Adjustment Mechanism

7.1 Purpose and Context

1. This chapter defines how the Planetary Carbon Standard (PCS) ensures that mitigation outcomes transferred internationally or authorized for NDC use are accompanied by verified corresponding adjustments (CAs) recorded on a secure blockchain-based registry.

2. The PCS architecture enables tamper-proof recordkeeping, public traceability, and real-time verification of credit issuance, transfer, and retirement events.

3. This ensures full alignment with:

• UNFCCC Article 6.2 cooperative-approach guidance;

• CMA Decisions 2/CMA.3 and 3/CMA.3;

• ICVCM Core Carbon Principle 9 on avoidance of double counting; and

• IPCC Good Practice Guidance on consistency and transparency.

7.2 Principles Governing Corresponding Adjustments

1. Consistency: PCS Registry records and Host Party NDC data shall reconcile quantitatively for each authorized mitigation outcome.

2. Traceability: Each corresponding adjustment is immutably recorded on the blockchain ledger, with timestamp, transaction hash, and verification signature.

3. Transparency: Every CA entry is publicly viewable through the PCS Registry Explorer, with anonymized identifiers to protect sensitive information.

4. Finality: Once a CA record is verified and written to the blockchain, it becomes immutable and permanent.

5. Interoperability: Integrated blockchain APIs enable secure data exchange with Host Party systems, UNFCCC Article 6 databases, and partner registries.

7.3 Applicable Adjustment Approaches

Approach	Description	PCS Implementation
Multi-Year Averaging (MYA)	CAs are applied as an average value across the NDC period.	PCS creates one blockchain “CA batch transaction” covering all relevant years, referenced to project and NDC period.
Emission-Balance Approach (EBA)	CAs are applied annually based on verified transfer quantities.	PCS records separate on-chain entries per issuance year, each linked to verification data and Host Party acknowledgment.

7.4 Authorization and Documentation

1. Project Proponents (PPs) must submit a digitally signed Letter of Authorization (LoA) from the Host Party’s Designated National Authority (DNA).

2. The LoA must include:

3. Project name, ID, and total authorized volume;

4. Intended use (ITMO or other international purpose);

5. Selected CA accounting approach (MYA or EBA); and

6. Official Host Party authorization reference number.

7. PCS digitally verifies the LoA signature using cryptographic hash validation to prevent falsification.

7.5 Integrated Blockchain Registry Tagging

1. Authorized credits are issued as digital tokens (PCCs) on the blockchain, each carrying embedded metadata fields including:

2. Project ID and Host Country Code

• Monitoring Period

• Serial Number

• CA Status (Authorized/Non-Authorized)

• Adjustment Approach (MYA/EBA)

• Host Party Reference ID

• Transaction Timestamp and Hash

1. Each tokenized PCC is traceable end-to-end across its entire lifecycle: issuance → transfer → retirement.

2. CA transactions are stored as blockchain-verified events, ensuring no alteration or deletion can occur without network consensus.

3. Blockchain records form part of the official audit trail for Article 6 verification and ICVCM integrity assurance.

7.6 Verification and Cross-Checking

1. Validation & Verification Bodies (VVBs) shall confirm that:

2. The Host Party authorization is genuine and consistent with the claimed issuance;

3. The blockchain metadata correspond to verified emission results; and

4. The CA entries recorded on-chain match Host Party documentation.

5. The PCS Secretariat conducts automated smart-contract reconciliation to prevent double issuance or conflicting CA entries.

6. All CA data are periodically synchronized with Host Party systems and the UNFCCC Article 6 Technical Expert Review platform, where interoperability exists.

7.7 Recording and Reporting

1. Every authorized issuance triggers a Corresponding Adjustment Entry (CAE), which becomes a distinct blockchain transaction visible in the PCS Registry interface.

2. The CAE includes:

• Project ID and Serial Block

• Volume Adjusted

• Adjustment Period

• Host Party

• Digital Signatures of PCS Secretariat and Host DNA

1. The PCS Registry publishes an annual CA summary including aggregated Host-Party volumes, approach used (MYA/EBA), and verification reference numbers.

7.8 Audit and Quality Assurance

1. All CA records are periodically reviewed through:

2. Automated blockchain integrity checks to detect duplication or irregular sequencing;

3. Independent third-party registry audits verifying that on-chain and off-chain documentation match; and

4. UNFCCC expert review compatibility tests using open API synchronization.

5. The blockchain ledger itself serves as the source of truth for any dispute concerning issuance, authorization, or CA status.

6. Any identified inconsistency triggers a smart-contract alert to the PCS Secretariat and locks affected transactions pending investigation.

7.9 Integration with International Systems

1. PCS adopts interoperability protocols compatible with the World Bank Climate Warehouse, UNFCCC Article 6 Database, and CORSIA Registry.

2. Blockchain-based APIs enable secure, read-only data sharing with authorized international institutions to verify adjustments and ensure cross-system integrity.

3. PCS maintains open documentation of its blockchain codebase to enable peer review and alignment with ICVCM technical guidance.

7.10 Summary

1. Through blockchain-enabled recording of corresponding adjustments, PCS ensures:

• Immutable and transparent tracking of mitigation outcomes;

• Instant verification of Host Party authorizations;

• Seamless linkage to international Article 6 accounting systems; and

• Unprecedented integrity assurance in avoidance of double counting.

Chapter 8 - Prevention of Double Claiming

8.1 Purpose

1. This chapter sets out the procedures and technological controls through which the Planetary Carbon Standard (PCS) prevents more than one entity—national government, corporation, or private buyer—from claiming the same greenhouse-gas (GHG) mitigation outcome.

2. The provisions apply to both Article 6 (ITMO) transactions and voluntary-market uses, ensuring that every PCS Carbon Credit (PCC) can be linked to one—and only one—recognized claim.

8.2 Definition of Double Claiming

1. A double claim occurs when the same verified emission reduction or removal is used by:

• Two or more Parties toward their respective NDCs;

• A Party and a non-state actor (e.g., corporation) for overlapping targets; or

• Multiple organizations for voluntary carbon-neutrality, net-zero, or ESG-reporting purposes.

1. Such duplication compromises environmental integrity and violates UNFCCC Article 6.2 guidance and ICVCM Principle 9.

8.3 Preventive Framework

(a) Policy and Procedural Measures

1. Disclosure at Registration: Every project must state the intended use of mitigation outcomes—Voluntary Use or ITMO Transfer.

2. Host-Party Consistency: Projects authorized for Article 6 use are cross-checked against the Host Party’s NDC registry to ensure the same reductions are not counted domestically.

3. Exclusive Claim Declaration: Buyers or end-users must declare, through smart-contract acceptance, that the PCCs purchased will not be re-sold or re-claimed for any other mitigation purpose.

4. Public Transparency: All issuance, transfer, and retirement events remain visible through the PCS Registry Explorer with verifiable blockchain hashes.

(b) Blockchain-Level Controls

1. Unique Token Ownership: Each PCC exists as a non-fungible token (NFT) on the PCS blockchain—impossible to duplicate or transfer without digital signature validation.

2. Smart-Contract Restrictions: Ownership transfer functions are disabled automatically once a credit is retired or designated “Claimed.”

3. Claim-Lock Mechanism: When a user records a claim (e.g., offset of corporate emissions), the corresponding token is permanently locked, preventing subsequent movement.

4. Audit Trail: All claim locks are timestamped and linked to the claimant’s verified identity (KYC profile) under PCS data-protection rules.

8.4 Process Controls throughout the Credit Lifecycle

Stage	Responsible Entity	Preventive Action
Registration	PCS Secretariat & PP	Verify disclosure of intended credit use; record claim-type flag (Voluntary/ITMO).
Validation & Verification	VVB	Confirm no dual program registration; cross-check baseline data against other registries.
Issuance	PCS Registry Smart Contract	Generate unique token ID; assign single claim category.
Transfer	Blockchain Network	Validate digital signatures; block transfer of retired or locked tokens.
Retirement	End User / Buyer	Trigger smart-contract “Claim Lock”; move credit to immutable archive ledger.

8.5 Corporate and Voluntary Claim Guidelines

1. Transparency of Claims: Organizations using PCS credits must publicly disclose credit serial numbers, project names, and retirement dates in sustainability or ESG reports.

2. Prohibited Practices: Double representation of the same credit across multiple subsidiaries, products, or reporting frameworks is not permitted.

3. Use of Labels: PCS provides verified claim labels such as “Retired – Voluntary Use” or “Transferred – Article 6 ITMO”, which appear automatically in the blockchain metadata.

4. Third-Party Disclosure: Any aggregator or exchange listing PCS credits must reflect their claim status in real time via the PCS API.

8.6 Cross-Registry Verification

1. PCS maintains interoperability protocols with recognized systems (e.g., World Bank Climate Warehouse, CORSIA Registry).

2. A hash-matching algorithm checks external serial numbers before any issuance or import to avoid duplicates.

3. Transactions failing hash verification are automatically quarantined pending manual review.

8.7 Monitoring and Reporting

1. The PCS Secretariat conducts quarterly scans of on-chain data and off-chain reports to detect anomalies such as duplicate serials or multiple claimants.

2. Results are summarized in the annual PCS Integrity Report, identifying any corrective actions taken.

3. Host Parties receive access to their respective project dashboards for verification against national inventory submissions.

8.8 Corrective and Sanction Measures

1. Confirmed double-claiming cases trigger immediate suspension of affected tokens.

2. PCS Secretariat initiates a Claim Nullification Procedure, cancelling the credit and notifying all parties.

3. The case is published in the public Registry under a “Corrective Action” tag.

4. Repeated violations may lead to blacklisting of responsible entities or revocation of VVB accreditation.

8.9 Continuous Improvement

1. PCS will periodically upgrade its smart-contract logic and interoperability APIs to reflect evolving UNFCCC Article 6 guidance and ICVCM technical criteria.

2. Feedback from Host Parties, buyers, and verification bodies informs system enhancements for greater resilience against overlapping claims.

8.10 Outcome

1. Through the combined use of regulatory oversight and blockchain enforcement, PCS eliminates the possibility of overlapping ownership or misleading environmental claims, ensuring that:

• Each PCS Carbon Credit corresponds to a single authorized user;

• Every claim is traceable, irreversible, and publicly verifiable; and

• PCS-issued mitigation outcomes retain full alignment with Article 6 integrity requirements.

Chapter 9 - Monitoring, Reporting & Verification (MRV)

9.1 Purpose

1. This chapter establishes the requirements for the Monitoring, Reporting, and Verification (MRV) of emission reductions or removals generated under the Planetary Carbon Standard (PCS).

2. The MRV framework ensures that every PCS Carbon Credit (PCC) corresponds to real, accurately measured, and independently verified climate outcomes, consistent with:

• UNFCCC Article 6.2 and Enhanced Transparency Framework (ETF) guidance,

• IPCC 2006 Guidelines for National GHG Inventories (and 2019 Refinement),

• ISO 14064-2:2019 and ISO 14064-3:2019, and

• ICVCM Core Carbon Principles (2023) on quantification and verification integrity.

9.2 Scope

1. MRV applies to all projects registered under PCS that generate GHG mitigation outcomes eligible for issuance.

2. It covers:

• Data collection and monitoring,

• Preparation and submission of Monitoring Reports,

• Third-party verification by accredited VVBs, and

• Digital recordkeeping and audit within the PCS blockchain registry.

9.3 Monitoring Requirements

1

Monitoring Plan

Every project shall maintain an approved Monitoring Plan consistent with its methodology. The plan must identify parameters to be measured, frequency of data collection, equipment used, and quality-assurance procedures.

2

Data Integrity

Data must be measurable, reportable, and verifiable (MRV-ready) in accordance with IPCC Vol. 1, Chap. 6 and ISO 14064-2 §7. All measurements are timestamped and uploaded to the PCS Portal, where hashes are automatically stored on-chain to ensure immutability.

3

Use of Technology

Automated data acquisition (sensors, satellite feeds, IoT devices) is encouraged to minimize manual error. Each data submission creates a “Monitoring Record Block” containing the parameter value, time, and source signature.

4

Quality Assurance/Control (QA/QC)

Project Proponents shall implement QA/QC procedures for data validation and calibration consistent with IPCC Good Practice Guidance. All QA/QC activities must be documented and auditable through PCS smart-contract logs.

9.4 Reporting Requirements

1. Monitoring Report (MR)

   • The Project Proponent shall submit a Monitoring Report for each monitoring period using the official PCS template (PMR).

   • The MR must contain quantified emission reductions or removals, supporting data tables, and QA/QC records.

2. Digital Submission and Timestamping

   • All MRs are submitted through the PCS Portal and automatically timestamped on the blockchain ledger.

   • Each MR is assigned a unique hash reference used in the subsequent verification cycle.

3. Public Transparency

   • Upon acceptance by the PCS Secretariat, a non-confidential version of the MR is published in the PCS Registry.

   • Sensitive data may be redacted according to PCS confidentiality rules.

9.5 Verification Requirements

1. Independence

   • Verification shall be performed by PCS-approved Validation & Verification Bodies (VVBs) accredited to ISO 14065.

   • VVBs must demonstrate competence in the relevant sector and methodology.

2. Verification Process

   • VVBs review the MR and supporting evidence to confirm that:

     • Data collection follows the approved Monitoring Plan;

     • Calculations are accurate and consistent with IPCC equations; and

     • No duplication of reported outcomes exists.

   • Verification activities include document review, on-site inspection (where applicable), and blockchain data trace validation.

3. Blockchain Cross-Check

   • VVBs verify that monitoring record hashes on the ledger match the data submitted in the MR.

   • Any mismatch must be resolved before the Verification Report (VR) is issued.

4. Verification Report (VR)

   • The VR must include a dedicated section on double-counting risk assessment and blockchain integrity verification.

   • The VR is digitally signed by the VVB and uploaded to the PCS Portal; its hash is recorded on-chain as proof of authenticity.

9.6 PCS Secretariat Responsibilities

1. Review submitted MRs and VRs for completeness and consistency.

2. Approve issuance requests only when verification has confirmed data integrity and blockchain correspondence.

3. Maintain the PCS MRV Database, a blockchain-anchored repository of all monitoring and verification records.

4. Conduct periodic data integrity audits and publish results in the PCS Annual Integrity Report.

9.7 Host Party Engagement

1. PCS shall provide Host Parties with access to relevant MRV records through read-only blockchain dashboards.

2. Host Parties may use these records for cross-referencing with national GHG inventories and Biennial Transparency Reports (BTRs).

3. Collaboration agreements may be signed for data interoperability and mutual recognition.

9.8 Digital Integrity & Cybersecurity

1. All MRV data stored on the PCS blockchain are protected by multi-signature encryption and distributed ledger redundancy.

2. PCS conducts annual cybersecurity audits following ISO/IEC 27001 standards.

3. Any detected tampering or anomaly triggers an automatic alert and transaction freeze pending investigation.

9.9 Quality Assurance and Continuous Improvement

1. PCS periodically reviews its MRV framework to align with updates from UNFCCC, IPCC, and ISO.

2. Lessons from audits and user feedback are integrated into subsequent protocol updates through the PCS Regulatory Committee.

9.10 Outcome

1. Implementation of this MRV framework ensures that all PCS-issued credits are:

• Quantified using recognized international methods;

• Verified through independent and blockchain-validated assurance; and

• Fully traceable and auditable throughout their entire lifecycle.

Chapter 10 - Registry & Serialisation Protocol

10.1 Purpose

1. The Planetary Carbon Standard (PCS) Registry is the official blockchain-based infrastructure that records the creation, transfer, authorization, and retirement of all PCS Carbon Credits (PCCs).

2. The Registry ensures:

• Uniqueness of every issued credit;

• Immutable and auditable transaction history;

• Transparent linkage between project data, monitoring, verification, and corresponding adjustment records; and

• Compatibility with UNFCCC, ICVCM, and CORSIA integrity requirements.

10.2 Registry Architecture

1. The PCS Registry operates on a permissioned blockchain ledger, maintained by multiple independent validator nodes under the oversight of the PCS Secretariat.

2. Each ledger entry represents a verified transaction — e.g., issuance, transfer, retirement, or corresponding adjustment — and contains cryptographic proofs (hashes) that link to project documentation.

3. The blockchain system ensures immutability, transparency, and non-repudiation, forming the technical foundation for PCS’s double-counting prevention framework.

4. A smart-contract layer automates issuance, transfer, and claim locking processes, eliminating human error and enhancing auditability.

10.3 Serialisation Structure

1. Every PCS Carbon Credit (PCC) is assigned a Unique Serial Identifier (USI) at issuance.

2. The USI format follows this standardized structure:

PCS-[CountryCode]-[ProjectID]-[MonitoringPeriod]-[VintageYear]-[CAStatus]-[SerialRange]

Example:_ PCS-VN-0123-2023-2024-ITMO-000001-000500_

1. Serial numbers are non-recyclable and sequential within each project issuance block.

2. Metadata linked to each USI includes:

3. Project Reference Number (PRN)

4. Host Party Name

5. Project Type (Technology / Nature-based / Cross-sectoral)

6. Monitoring Period Dates

7. Verification Report Reference (VR ID)

8. CA Status (ITMO / Voluntary)

9. Retirement / Claim Status

10. Smart-Contract Hash and Timestamp

10.4 Issuance Process

1. Upon approval of a Verification Report (VR), the PCS Secretariat triggers an on-chain issuance transaction through a smart contract.

2. The smart contract:

3. Generates USIs;

4. Creates digital PCC tokens;

5. Embeds all project metadata; and

6. Locks the transaction with a unique hash identifier.

7. The issuance record becomes immutable once confirmed by the validator network.

8. Each PCC token is stored in the issuer’s PCS digital account wallet within the Registry.

10.5 Transfer and Ownership

1. Transfer Procedure

   • PCCs may only be transferred between verified accounts registered under PCS Know-Your-Customer (KYC) procedures.

   • Transfers require dual digital signatures — sender and recipient — verified through smart contracts.

2. Ownership Record

   • Each transfer event updates the ownership field on the blockchain without altering historical records.

   • The Registry maintains a full lineage of ownership, accessible through the public PCS Explorer interface.

3. Restriction on ITMOs

   • PCCs authorized as ITMOs can only be transferred to entities approved under the relevant Host Party cooperative approach or Article 6 arrangement.

   • Unauthorized transfers trigger automatic rejection by the smart contract.

10.6 Retirement and Claim Lock

1. Retirement permanently removes a PCC from circulation and marks it as “Claimed” within the Registry.

2. Retirements are executed by the account owner through a blockchain transaction that:

3. Transfers the token to the Retirement Ledger (a non-transferable smart-contract address); and

4. Locks the serial number permanently.

5. Once retired, a PCC cannot be re-issued, re-sold, or reused under any circumstance.

6. The retirement event is visible on the public ledger, showing:

• Serial number range,

• Retirement date,

• Claim category (Voluntary / ITMO), and

• Retiring entity.

10.7 Data Integrity and Security

1. The Registry applies multi-layer encryption and distributed-ledger redundancy to ensure data permanence.

2. Every transaction undergoes cryptographic validation before confirmation.

3. PCS performs quarterly blockchain integrity audits using independent cybersecurity firms in accordance with ISO/IEC 27001 and ISO 22301 (business-continuity) standards.

4. All validator nodes record identical copies of the ledger, preventing single-point manipulation.

10.8 Interoperability

1. PCS Registry APIs follow Open Climate Data Protocol (OCDP) standards for interoperability with:

• UNFCCC Article 6 Database;

• World Bank Climate Warehouse; and

• ICAO CORSIA Registry.

1. Registry APIs provide read-only, cryptographically signed datasets for verification by Host Parties, buyers, and observers.

2. PCS aims to achieve interoperability recognition under the Climate Ledger Initiative (CLI) and other blockchain climate coalitions.

10.9 Transparency and Public Access

1. PCS maintains a Public Registry Explorer where non-confidential project and credit information is viewable, including:

• Project summaries, methodologies, and locations;

• Verification references;

• Issuance, transfer, and retirement transactions; and

• Corresponding-adjustment indicators.

1. Confidential business information (e.g., financial data, proprietary technology) is excluded in compliance with privacy regulations.

2. Public data are digitally signed, ensuring authenticity and preventing tampering.

10.10 Governance and Oversight

1. The PCS Secretariat is responsible for Registry operation, node maintenance, and technical upgrades.

2. The PCS Regulatory Committee (RC) oversees Registry policies, approves protocol updates, and ensures compliance with UNFCCC Article 6 guidance.

3. External independent audits are conducted annually, and summarized findings are published in the PCS Registry Integrity Report.

10.11 Summary

1. Through its blockchain-anchored registry and serialisation system, PCS guarantees that:

• Every PCC is unique and traceable;

• No duplication or tampering can occur;

• All transactions are transparent, secure, and verifiable; and

• PCS remains fully compatible with global accounting systems under the Paris Agreement.

Chapter 11 - Non-Compliance & Corrective Measures

11.1 Purpose

1. This chapter establishes the procedures for identifying, investigating, and correcting cases of potential or confirmed non-compliance with the PCS double-counting and corresponding-adjustment requirements.

2. It ensures that any irregularity detected in credit issuance, transfer, or claim is addressed promptly, transparently, and traceably, preserving the integrity of the PCS system and its alignment with UNFCCC Article 6, ICVCM Core Carbon Principles, and ISO 14064-3 assurance standards.

11.2 Triggers for Investigation

1. A compliance review may be initiated under any of the following circumstances:

Trigger Type	Example / Source
Automated blockchain alert	Smart-contract flag indicating duplicate serial, conflicting claim, or irregular CA record.
Host Party notification	Formal notice from a Designated National Authority (DNA) of a discrepancy in authorized volumes or CA reporting.
Third-party report	Complaint or observation submitted by a VVB, market participant, or observer via the PCS Grievance & Appeal portal.
Internal audit finding	Registry integrity or cybersecurity audit identifying inconsistencies.
UNFCCC / ICVCM feedback	Observation during Article 6 technical expert review or integrity-assessment exercise.

11.3 Investigation Procedure

1. Initiation

   • Upon receipt of a trigger, the PCS Secretariat opens a Compliance Case File (CCF) within five (5) working days.

   • The affected credits are automatically frozen on the blockchain via smart-contract lock pending review.

2. Preliminary Assessment

   • Secretariat performs an internal check of issuance records, CA entries, and ownership history.

   • If duplication is likely, the Secretariat escalates the case to the PCS Regulatory Committee (RC) for formal investigation.

3. Formal Investigation

   • RC appoints an Independent Review Panel (IRP) comprising technical, legal, and registry experts.

   • The IRP may request documentation from the Project Proponent, VVB, and Host Party.

   • All relevant blockchain transaction hashes are extracted for forensic validation.

4. Findings & Determination

   • The IRP submits a determination report within thirty (30) days of appointment.

   • The report categorizes the issue as:

     • Data Error (coding or reporting anomaly);

     • Procedural Non-Compliance (failure to follow PCS rules); or

     • Integrity Breach (intentional or material duplication).

5. Notification

   • The Secretariat communicates the decision and corrective actions to all affected parties and publishes a summary notice in the PCS Registry.

11.4 Corrective Actions

1. Depending on the determination category, PCS may apply one or more of the following:

Category	Corrective Action
Data Error	Rectify ledger entry via authorized blockchain correction transaction; issue erratum notice.
Procedural Non-Compliance	Require submission of revised documentation; suspend issuance privileges until compliance achieved.
Integrity Breach	Cancel or revoke affected credits; mark serials as “Nullified – Integrity Breach”; notify Host Party and UNFCCC.

1. All corrective actions are timestamped and permanently recorded on-chain for audit purposes.

11.5 Sanctions

1. Project Proponents

   • Temporary or permanent suspension of project eligibility for issuance;

   • Removal from the PCS Registry if repeated or deliberate breaches occur.

2. Validation & Verification Bodies (VVBs)

   • Formal warning, suspension, or revocation of PCS approval if negligence is demonstrated.

3. Market Participants

   • Blacklisting and transaction blocking for entities knowingly trading or claiming cancelled credits.

4. Public Disclosure

   • All sanctions are published in the PCS Integrity Bulletin and remain viewable in the Registry.

11.6 Appeal Process

1. Parties may appeal an RC decision within thirty (30) days of notification using the PCS Appeal Form.

2. Appeals are reviewed by the PCS Steering Committee (SC), whose decision is final and binding.

3. Appeal outcomes are added to the public case record.

11.7 Restoration & Preventive Measures

1. Following corrective action, the RC may authorize restoration of suspended accounts once all conditions are verified.

2. PCS Secretariat shall implement system updates or additional smart-contract safeguards to prevent recurrence.

3. Lessons learned are incorporated into annual Registry Integrity Reports and training for all PCS actors.

11.8 Coordination with External Systems

1. PCS shall notify relevant Host Parties, UNFCCC Secretariat, ICVCM, or CORSIA authorities of any material breaches affecting internationally transferred mitigation outcomes.

2. Where duplication affects other registries, PCS coordinates cancellation or correction through interoperable APIs and bilateral memoranda.

11.9 Recordkeeping & Transparency

1. Every CCF, determination report, and action record remains permanently accessible in the blockchain archive.

2. The PCS Registry’s Compliance Dashboard provides aggregated statistics on investigations, resolutions, and preventive improvements.

11.10 Outcome

1. The application of this procedure ensures that:

• All suspected duplications are resolved transparently and permanently;

• Credit integrity is maintained through blockchain-verified corrective actions;

• Stakeholder confidence in PCS governance remains high; and

• PCS upholds continuous compliance with UNFCCC, ICVCM, and ISO integrity frameworks.

Chapter 12 - References & Legal Basis

12.1 Purpose

1. This chapter identifies the legal, regulatory, and technical instruments that inform, guide, and support this PCS Standard.

2. All PCS rules are designed to align with these internationally accepted references to ensure global compatibility and credibility.

12.2 Primary Legal Frameworks

Framework / Instrument	Reference & Relevance
Paris Agreement (2015)	Establishes the foundation for cooperative approaches under Article 6 and the need to avoid double counting of mitigation outcomes.
UNFCCC CMA Decisions 2/CMA.3 and 3/CMA.3	Define guidance for Article 6.2 reporting and authorization of internationally transferred mitigation outcomes (ITMOs).
Enhanced Transparency Framework (ETF)	Outlines requirements for Biennial Transparency Reports (BTRs) and consistency between project-level and national GHG accounting.
Kyoto Protocol & Doha Amendment	Historical basis for crediting mechanisms and verification architecture preceding the Paris Agreement.

12.3 Technical and Methodological References

Source	Title / Citation	Key Relevance to PCS
IPCC	2006 IPCC Guidelines for National Greenhouse Gas Inventories (Volumes 1-5) and 2019 Refinement	Core quantification, QA/QC, and consistency principles used for baseline and monitoring calculations.
ISO 14064 Series	ISO 14064-1:2018, ISO 14064-2:2019, ISO 14064-3:2019, and ISO 14065:2020	Provide specifications for GHG accounting, project-level quantification, and validation/verification body competence.
ICVCM Core Carbon Principles (2023)	Principle 9 (No Double Counting), Principle 10 (Transparency)	Benchmark for integrity and transparency of carbon-crediting programs.
ICAO CORSIA	CORSIA Emissions Unit Eligibility Criteria (EU 2021 Edition)	Defines acceptance criteria for offset units eligible for use by aircraft operators; aligns PCS CA procedures for interoperability.
World Bank Climate Warehouse & Open Climate Data Standards	Working Papers and API Specifications (2020–2023)	Basis for interoperability and blockchain registry synchronization across programs.
UNFCCC Article 6 Technical Expert Review Guidance (2022)	Defines review procedures and reporting tables for ITMOs and corresponding adjustments.	Provides the framework for Host-Party and PCS reporting alignment.

12.4 Blockchain and Digital Governance References

Reference	Relevance
ISO/IEC 27001:2022 – Information Security Management Systems	Framework for PCS cybersecurity audits and blockchain infrastructure management.
ISO 22301:2019 – Business Continuity Management	Ensures operational resilience of PCS Registry validator nodes.
Open Climate Data Protocol (OCDP) – Climate Ledger Initiative (2023)	Establishes data-interoperability standards adopted by PCS APIs.
W3C Verifiable Credentials Standard (2022)	Underpins PCS identity and KYC architecture for registry participants.

12.5 Institutional Linkages and Recognition

1. PCS standards are developed to be mutually recognizable with:

• UNFCCC Article 6 reporting frameworks;

• ICVCM Assessment Framework for high-integrity programs;

• ICAO CORSIA offset eligibility pathways; and

• IPCC inventory methodological consistency.

1. PCS shall maintain continuous alignment through periodic updates approved by the PCS Regulatory Committee to reflect any new UNFCCC or ICVCM decisions.

12.6 Legal Status of the Standard

1. This Standard forms a component of the Planetary Carbon Standard (PCS) regulatory corpus and is binding on all participants.

2. In the event of conflict between this document and future UNFCCC Article 6 CMA decisions, the latter shall prevail, and PCS will issue a corresponding amendment.

3. Nothing in this Standard shall supersede the sovereign rights of Host Parties under the Paris Agreement.

12.7 Citations Format and Version Control

1. References cited herein shall be interpreted according to their latest available versions unless otherwise specified.

2. PCS maintains a living reference repository accessible via the PCS Portal, where updates to international instruments and standards are catalogued with version history and effective dates.

12.8 Acknowledgment of Open Standards

1. The PCS program acknowledges and utilizes open, publicly available global frameworks—including those developed by the UNFCCC, IPCC, ISO, ICVCM, ICAO, and the Climate Ledger Initiative—to uphold international consistency, transparency, and interoperability.

12.9 Conclusion

1. This chapter confirms that PCS-Standard-001 derives its authority and technical validity from internationally recognized, publicly accessible sources.

2. By embedding these references within its blockchain-secured operational system, PCS ensures enduring alignment with the evolving global climate-governance architecture.