TERO.003 - Carbon Stock in Forests Methodology

This methodology establishes the guidelines for the quantification and verification of carbon stock in existing forest areas. Its objective is to issue Verified Carbon Stock Units (VCSUs) — an environmental asset representing the amount of carbon retained in biomass at a specific date.
Important: VCSUs are not carbon credits and are not intended for emission offsetting.

Why choose TERO.003?

Asset Valorization

Enables forest landowners to register and value the ecosystem service of carbon storage, creating a digital environmental asset (VCSU) that can be used for purposes other than offsetting.

One-Time Certification

Focuses on certifying the carbon stock at a specific date — a “snapshot” of the environmental asset. It does not require demonstration of additionality or permanence management in the same way as carbon credits.

Integrity-Focused

The certification process ensures land tenure compliance, the application of socio-environmental safeguards, and the technical robustness of carbon stock quantification.

Is Your Forest Eligible?

This methodology applies to projects seeking carbon stock certification that meet the following essential criteria:

Land Tenure Compliance: The project is located on rural properties with verified land tenure regularity.
Existing Forest: The project area consists of already established forests, which may include Permanent Preservation Areas (PPAs) and Legal Reserves (LRAs).
Respects Safeguards: Fully complies with applicable socio-environmental safeguards related to area maintenance and verification activities.
Does Not Generate Credits: The goal is the issuance of VCSUs, a stock recognition asset, not VCUs for emission offsetting.

Applying the Methodology Step by Step

The certification of a carbon stock (VCSU) follows a simplified process compared to credit generation (VCU), focusing on ownership verification and accurate carbon measurement.

Step 1: Document Validation

This is the initial phase, conducted internally by Tero Carbon to verify area eligibility.

  • Land Tenure Compliance: Verification of area regularity using the Land Tenure Compliance Manual and Tero Carbon Seals for NBS Projects (DC.CER.002).
  • Safeguards: Preliminary risk analysis and application of safeguards, as defined in the Socio-Environmental Safeguards Analysis Tool (FR.CER.002).
  • Quantification Plan: Presentation of the forest inventory methodology that will be applied during field verification.
Step 2: Field Verification of the Stock

After document validation, an independent Validation/Verification Body (VVB), hired by the project developer, conducts an on-site audit of the carbon stock.

  • Stock Quantification: The VVB performs or supervises the forest inventory following the Technical Guidelines for Carbon Quantification in AFOLU Projects (DC.CER.003).
  • Verification Report: The VVB issues a report certifying the amount of carbon stored in the area on the verification date.
  • Simplified Monitoring: Between validation and verification, the area’s integrity must be monitored to ensure there has been no deforestation or significant degradation.
Step 3: VCSU Issuance

Based on the VVB’s favorable verification report, Tero Carbon proceeds with asset issuance.

  • Registry Minting: The verified carbon stock value is recorded on the Tero Carbon platform, and the corresponding VCSU is issued and transferred to the proponent’s account.
  • Re-Certification: If the developer wishes to certify the stock at a future date (e.g., to reflect forest growth), a new full field verification process must be initiated.

Essential Documentation: TERO.003

Here you will find the main methodology document and the templates directly associated with its application.

Main Document

TERO.003 – Carbon Stock in Forests, v2.1 (PT) (EN)
The complete document with all guidelines for carbon stock (VCSU) certification.

Developed by:
Hdom Engenharia e Projetos Ambientais Ltda
(hdom@hdom.com.br)

Key Tools and Manuals
  • DC.CER.002 – Land Tenure Compliance Manual and Tero Carbon Seals for NBS Projects
  • DC.CER.003 – Technical Guidelines for Carbon Quantification in AFOLU Projects
  • FR.CER.002 – Socio-Environmental Safeguards Analysis Tool

Revision History

To ensure full transparency, a public record of all previous versions of this methodology is maintained.

Version 2.0 (Date: 04/02/2025)
  • Summary of Changes: Substantial updates to the structure, including the removal of the possibility of generating carbon credits from stock increases within the project area.
    Download Version 2.0 (PT) (EN)
Version 1.0 (Date: 12/18/2023)
  • Summary of Changes: Initial version approved by the Board and released for public consultation.
    Download Version 1.0 (PT) (EN)

Commitment to Transparency and Civil Society Participation

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