Forest Degradation: Why Verra's New Module Matters for Carbon Markets

Deforestation gets most of the attention, but it is not the biggest threat to tropical forests. Forest degradation—where trees are damaged or thinned rather than cleared entirely—accounts for an even greater share of forest carbon loss across the tropics. Now, Verra is stepping in to address it.

Top-down satellite imagery showing forest health and areas at risk of degradation. AI generated picture.

The Washington DC-based standard, which leads the verified carbon market in carbon credit issuance, has put out a call for interest to build a 'REDD Module for Degradation'. The new module will extend Verra's existing REDD+ (Reducing Emissions from Deforestation and Forest Degradation) methodology, VM0048, which launched in late 2024.

The module is designed to cover forests threatened by illegal logging, unplanned timber extraction, fuel-wood collection, charcoal production, and human-caused fires. By establishing baselines for at-risk areas, it will allow project developers to measure emission reductions and issue carbon credits tied specifically to degradation prevention.

VM0048 has yet to produce any carbon credits—risk mapping and data collection take time—but developer interest in the methodology is reported to be high.

Better satellite technology is making this kind of work increasingly feasible. Improved access to forest biomass data means that tracking partial forest damage, once difficult to measure reliably, is now far more practical. Equitable Earth, a France-based standard, has already released a REDD+ methodology covering both full deforestation and degradation, pointing to a broader market shift towards more comprehensive forest protection frameworks.