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MRV: Decoding the Climate Change Puzzle

Updated: Aug 29, 2023

In the urgent battle against global warming, the Measurement, Reporting, and Verification (MRV) process plays a pivotal role in tracking and assessing greenhouse gas (GHG) emissions reduction efforts across industries.

As climate tech innovators dedicated to getting us to a net-zero future by providing industries, governments and financial markets with advanced emissions intelligence solutions for accurately monitoring GHG emissions on a global scale, Momentick understands the significance of MRV in driving global environmental regulation, establishing emissions benchmarks for industries, and facilitating emerging carbon credit markets.


Measurement, Reporting, and Verification (MRV) refers to the multi-step process of measuring the amount of greenhouse gas emissions reduced by a specific mitigation activity, reporting these findings to an accredited third party, and verifying the accuracy of the reported data. This process — when done right — ensures transparency, accountability, and credibility in emissions reduction efforts, making it a crucial piece of our global fight against climate change.


Understanding MRV: A Cornerstone of Climate Action


Measurement, Reporting, and Verification (MRV) is becoming the foundation of effective climate action and it’s at the heart of our work here at Momentick. Based on real emissions data, accurate reporting, and rigorous verification to provide a comprehensive overview of GHG emissions from a specific operation or activity, MRV proves that an activity has avoided or removed harmful GHG emissions. Moreover, by determining a “baseline” for an activity against which emissions performance is measured and by employing reliable measurement technologies, MRV enables policymakers, businesses, and financial markets to pursue decisions and green policies based on credible data.


The primary objectives of MRV include quantifying emissions, tracking progress towards reduction targets, accurately identifying emission sources, and evaluating the effectiveness of mitigation measures over time. Without a robust MRV process, it’s impossible to accurately gauge the success of climate change mitigation strategies and enact evidence-based policies across industries from oil and gas to waste management and agriculture.


MRV and Global Climate Change Efforts


The central importance of MRV in global climate change efforts is difficult to underestimate. International agreements such as the Paris Agreement rely on accurate MRV systems to monitor and assess countries' progress towards their emissions reduction commitments. Article 12 of the Convention obliges countries to accurately report relevant emissions data. Through MRV, national governments can transparently report their GHG emissions and demonstrate their efforts to combat climate change.

In other words… without it, accurately measuring and confirming emissions reduction performance simply isn’t possible.


MRV also enables the comparison of emissions reduction efforts on a global scale. By establishing common measurement and reporting frameworks, governments and industries can benchmark their progress and learn from each other's performance. This means that the MRV process promotes trust, collaboration, and accountability among countries and their industries, fostering a collective commitment to tackling the global climate crisis based on internationally-recognized benchmarks.


MRV and Environmental Regulation


National policies and regulations are essential for curbing GHG emissions and promoting sustainable policies and decision-making across industries. MRV is necessary for governments to enforce environmental regulations effectively. Through a process of measurement, reporting, and verification of emissions, regulators can ensure that industries comply with emission reduction targets and adopt sustainable practices. It also means that those practices can be evaluated over time to gauge effectiveness.


Standardizing measurement methodologies and reporting frameworks through MRV allows for consistent and comparable data across diverse industries and sectors. This facilitates the accurate evaluation and identification of GHG leaks (such as methane), hotspots or super emitters, and empowers targeted policy interventions. With MRV systems in place, regulators can enforce environmental regulations more effectively, driving significant emissions reductions and our path to net-zero.


Emissions Benchmarks and Industry Standards


As we’ve already mentioned, MRV plays a pivotal role in establishing emissions benchmarks and industry standards. By collecting and processing data for an activity to calculate the emission reductions achieved against an industry baseline during a monitoring period, not only can specific companies assess their own performance or compare their emissions against sector-specific targets but industry-wide reduction targets can be determined.


Put simply, these emissions benchmarks serve as a baseline for industries to compare their emissions against sector-specific targets. This fosters competition, innovation, and a race to adopt essential sustainable practices and invest in cleaner technologies.


MRV and Carbon Markets

Emerging carbon credit markets play a crucial role in developing regulatory mechanisms, incentivizing emission reduction projects and driving investments in sustainable initiatives. For example, Article 6.2 of the Paris Agreement lays out a voluntary, cooperative approach that will enable countries to use internationally transferred mitigation outcomes (ITMOs) – a carbon-trading system based on a CO2 equivalent where countries can purchase or trade carbon credits from other countries — to count toward their climate actions or “nationally determined contributions” (NDCs).


A rigorous MRV process is essential for verifying the credibility and integrity of these projects.


By instilling confidence and trust in the carbon credit market, MRV allows for the trading and pricing of carbon credits. Investors and organizations can support emission reduction projects with the assurance that their contributions are effectively reducing GHG emissions. This further promotes the adoption of sustainable practices and supports the transition to a low-carbon economy.


Momentick & The Way Forward

MRV is at the core of who we are and what we do. Our technology autonomously identifies GHG emissions sources in satellite imagery, quantifies those emissions, tracks progress towards reduction targets, and evaluates the effectiveness of mitigation measures over time on a global scale.

At this critical moment for our fight against global warming, MRV is the way forward. As the world races to achieve ambitious emissions reduction goals, MRV provides the necessary tools and processes to monitor, report, and verify GHG emissions accurately.


And here at Momentick, we’re pushing the envelope with accurate, near-real time emissions intelligence that makes this process fast, cost-effective and easy for industries, policymakers and regulatory bodies. By leveraging advanced algorithms and satellite imagery, we represent the transformative power of MRV in unlocking emissions intelligence. Through our solutions, we can pave the way towards a greener, more resilient planet where no emission goes undetected.


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