" Measurement, Reporting, and Verification (MRV) refers to the multi-step process to measure the amount of greenhouse gas (GHG) emissions reduced by a specific mitigation activity, such as reducing emissions from deforestation and forest degradation, over a period of time and report these findings to an accredited third party. The third party then verifies the report so that the results can be certified and carbon credits can be issued.
"MRV seeks to prove that an activity has actually avoided or removed harmful GHG emissions so that actions can be converted into credits with monetary value. One credit equals one ton of reduced GHG emissions expressed in tons of CO2 equivalent (tCO2eq). These credits are the results that the World Bank pays for through specific results-based climate finance arrangements, like Emissions Reduction Payment Agreements (ERPAs). They are also the basic units traded in international carbon markets and used to fulfill countries’ Nationally Determined Contributions (NDCs) under the Paris Agreement. MRV is the key to unlocking climate finance and showing progress on climate goals.
“Paying for carbon credits can stimulate climate action and ambition - and through the World Bank’s inclusive ERPA programs, benefit sharing plans ensure the funds get to the local communities who need them most. But MRV requires careful measurement, reporting, and verification to ensure results are real before payments are made. MRV systems are complex and require multiple steps to get from emissions reduced on the ground to payments received in hand.”
– WorldBank Climate Explainer: MRV