Overview
How this pathway works
Peatlands are wetland ecosystems where waterlogged, oxygen-depleted conditions cause organic matter to accumulate faster than it decomposes - building thick layers of partially decomposed plant material called peat. This process has operated continuously for 3,000 to 12,000 years in many systems, creating carbon deposits that can reach 10 metres depth or more. Tropical peat swamp forests and boreal raised bogs together store an estimated 550–650 Gt of carbon - more than all terrestrial biomass combined.
Drainage for agriculture, forestry, or infrastructure exposes this ancient carbon to aerobic decomposition. Drained peatlands emit CO₂, CH₄, and N₂O continuously as long as drainage is maintained - making them the single largest land-based source of GHG emissions from land use change globally, responsible for approximately 5% of all anthropogenic CO₂ emissions. Rewetting - blocking drainage ditches, re-establishing water tables, and allowing peat-forming vegetation to recover - immediately reduces and over years eliminates these emissions, and eventually resumes the slow process of new peat accumulation.
Under TNS v1.0 Annex G, peatland and wetland projects earn TNCs for verified avoided emissions from rewetted areas and, where measurable, for new peat carbon accumulation in recovering systems. Five methodology codes cover the principal peatland and wetland types found in project-priority geographies: tropical peat swamp forest, temperate raised bog, blanket bog, fen and fen-meadow, and freshwater floodplain wetland.
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Dual permanence class. Peatland projects carry Class I Biological permanence for new peat accumulation credits (decades-scale reversibility if drainage is re-established) and Class II Ecological permanence for avoided-emission credits tied to the maintained water table above the peat surface. The applicable class is assigned per credit batch based on the accounting activity type - avoided emission or new accumulation. Buffer pool contributions of 15–30% apply, with the specific rate determined by the NPRR at validation, which includes fire risk, drainage infrastructure failure, tenure, and water table stability as explicit risk components.
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Water table is the primary control variable. All credit issuance under Annex G is contingent on maintaining the water table within the project-specific target range - typically between 0 and −20 cm below the peat surface. Projects must install continuous water table dipwell monitoring at a minimum density of one dipwell per 10 ha before any rewetting activities commence. Where the water table falls below the project target for more than 30 consecutive days in a non-drought year, a management intervention response plan must be activated and reported to the TSA within 14 days.
Governing Standard
TNS v1.0 - Annex G
This pathway is governed exclusively by the Teravent Nature-Based Carbon Standard (TNS v1.0). All requirements - additionality, GHG accounting, water table monitoring, non-CO₂ GHG measurement, fire management, safeguards, permanence, and credit issuance - are defined within TNS v1.0 and Annex G. No external standard or methodology framework is referenced.
TCR›
TNS v1.0›
Annex G - Peatland & Wetland Restoration›
PTL-M01 through PTL-M05
M02
Three-test additionality - regulatory surplus, financial additionality, common practice; rewetting must be voluntary and not mandated by drainage law or environmental permit condition
M03
Water table monitoring mandatory (dipwells at ≥1 per 10 ha) · Peat depth survey at validation · SOC profiles per IPCC Wetlands Supplement · CH₄ and N₂O measured and deducted
M04
Class I (new accumulation) + Class II (avoided emission) · Buffer 15–30% · NPRR includes fire, drainage failure, drought, tenure, and land-use-change risk
M05
Fire management plan mandatory for tropical and continental peatland types · FPIC required where indigenous communities hold traditional peat harvesting or farming rights
M06
30-year crediting period + renewals · Baseline: IPCC Tier 2 emission factors for drained peatland by climate zone and land use type; updated every 5 years
M07
TNC serial: TCR–TNS–PTL–[Country]–[ProjectID]–[Vintage]–[Unit] · Avoided-emission and new-accumulation credits separately serialised with permanence class noted
Teravent Nature Credit - Serial Number Format (TNS Annex G)
TCR
–
TNS
–
PTL
–
ID
–
00389
–
2025
–
000001
Methodologies Accepted
Five approved peatland & wetland types
TNS v1.0 Annex G approves five methodology codes, each targeting a distinct peatland or wetland ecosystem type. The methodology code determines the applicable IPCC emission factor tier, water table target range, non-CO₂ GHG requirements, fire management obligations, and peat accumulation measurement approach. A project spanning multiple peatland types must stratify by ecosystem type and apply each applicable code per stratum.
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Avoided emissions vs. new accumulation: Most peatland projects generate the majority of their carbon benefit from avoided CO₂ emissions - halting the ongoing decomposition of drained peat. New peat accumulation is a secondary benefit that only becomes measurable after 5–10 years of successful rewetting and vegetation recovery. Credits for new accumulation require a separate measurement track: annual surface elevation change measured by Surface Elevation Tables (SETs) and periodic SOC profile updates. Only where the measured accumulation rate exceeds the Tier 1 default uncertainty range is new accumulation credited separately from avoided emissions.
Tropical peat swamp forests are the most carbon-dense peatland type globally - forming under humid equatorial conditions for up to 10,000 years, reaching depths of 10–15 metres, and storing 1,500–5,000 tCO₂e/ha in their organic soils. Drainage for oil palm, pulpwood plantations, and rice cultivation has converted vast areas in Indonesia, Malaysia, and Papua New Guinea, turning the world's greatest tropical carbon stores into major emission sources. Rewetting these systems is accomplished primarily by blocking drainage canals with peat or wood dams - raising the water table to within 20 cm of the surface and restoring the anaerobic conditions that halt peat decomposition. Fire management is mandatory for all PTL-M01 projects because drained tropical peat is susceptible to catastrophic underground peat fires during dry seasons, which can release the entire remaining carbon stock in a single event.
Peat Depth
Surveyed to full depth - often 5–15 m
Water Table Target
0 to −20 cm below surface
Buffer Pool
20–30% (fire and drought elevated)
Fire Management
Mandatory - canal wetting patrols required
CH₄ Accounting
Required - re-wetting may initially elevate CH₄
Emission Factors
IPCC Wetlands Supplement Tier 2 - tropical forest on peat
Key Monitoring Indicators
- Water table depth at permanent dipwells - continuous logging (hourly) at minimum 1 dipwell per 10 ha; monthly download and reporting
- Canal dam status and integrity - aerial or drone survey of all blocking structures, minimum twice per year including before dry season
- Peat surface CO₂ flux - static chamber measurements at permanent plots across hydrological gradient (wet, intermediate, drier zones); minimum quarterly
- CH₄ flux - static chamber measurements at same plots as CO₂; quarterly; particularly important in first 3 years post-rewetting when CH₄ may be temporarily elevated
- Vegetation recovery - composition and cover at permanent vegetation plots; annually in early years; peat-forming species establishment tracked
- Fire detection - MODIS/VIIRS satellite fire alert monitoring throughout dry season; canal wetting patrol records
- Peat subsidence - SET measurements at permanent stations; annually; confirms stabilisation of peat surface after rewetting
- Canopy cover (for forested sites) - annual satellite NDVI or SAR canopy monitoring
Temperate raised bogs are ombrotrophic peatlands - fed entirely by rainfall and therefore nutrient-poor, acid, and dominated by Sphagnum mosses. They form dome-shaped peat deposits above the surrounding water table. Extensive drainage for commercial peat extraction, forestry, and agricultural improvement across Ireland, the United Kingdom, Germany, Scandinavia, and Russia has reduced European raised bog extent to less than 10% of its pre-industrial area. Restoration involves blocking all drainage ditches and channels to raise the water table back to within centimetres of the peat surface, followed by Sphagnum reintroduction where natural colonisation is insufficient. Once Sphagnum is re-established and the water table is stable, new peat accumulation resumes at rates of 1–2 mm per year - the same rate that built these systems over millennia.
Peat Type
Ombrotrophic (rain-fed) - acid, low nutrient
Water Table Target
0 to −10 cm below surface (Sphagnum optimum)
Buffer Pool
15–20% (lower - lower fire risk)
Sphagnum Reintroduction
Required where natural colonisation absent
Accumulation Crediting
After 10 yr water table stability confirmed
Emission Factors
IPCC Wetlands Supplement Tier 2 - temperate peatland
Key Monitoring Indicators
- Water table depth at permanent dipwells - continuous logging at ≥1 dipwell per 10 ha; key metric for Sphagnum viability and credit eligibility
- Sphagnum cover (%) at permanent vegetation plots - annual survey confirming peat-forming vegetation establishment and spread
- Peat surface CO₂ flux - automated flux chambers or manual static chambers at permanent plots; minimum monthly
- CH₄ flux - manual static chambers; minimum quarterly; typically low in ombrotrophic systems but must be confirmed
- Peat surface elevation change - SET measurements or repeated GPS levelling at permanent benchmarks; annually after year 5
- Ditch dam integrity - annual inspection of all blocking structures; photographs and GPS logged
- Invasive species (particularly Molinia grass and Betula trees) - annual survey; management intervention where cover exceeds 20%
Blanket bogs form under cool, hyperoceanic climates with high rainfall distributed year-round, covering upland slopes and valleys under a continuous mantle of peat. The UK and Ireland together hold approximately 75% of the world's blanket bog extent. Degradation from historic drainage gripping, overgrazing, afforestation, and burning has destabilised vast areas - exposing bare peat to erosion, creating deep erosion hags, and transforming former carbon sinks into emission sources. Restoration works include grip blocking to raise water tables in drained areas, revegetation of bare peat erosion scars using nurse grasses and Sphagnum, and destocking of livestock to allow vegetation recovery. Gully revegetation and erosion scar stabilisation are distinguishing technical activities of PTL-M03 not present in other methodology codes.
Peat Type
Ombrotrophic blanket - slope and valley forming
Key Activity
Grip blocking + erosion scar revegetation
Water Table Target
0 to −15 cm (blanket bog optimum)
Buffer Pool
15–22% (by NPRR)
Grazing Management
Livestock reduction plan mandatory
Erosion Monitoring
Annual erosion scar mapping required
Key Monitoring Indicators
- Water table depth at permanent dipwells - continuous logging at ≥1 per 10 ha; key indicator for restoration effectiveness in blocked areas
- Erosion scar status - annual aerial or drone photogrammetry mapping of bare peat; erosion scar area and revegetation progress tracked
- Sphagnum and cotton grass cover at permanent plots - annual vegetation survey confirming recovery of key peat-forming species
- Livestock grazing pressure - stocking records confirmed by land manager annually; VVB site inspection at each verification
- Peat CO₂ flux at permanent plots across hydrological gradient - quarterly automated or manual chamber measurements
- Gully and grip dam status - annual inspection with photographic record of all blocking structures
- Dissolved organic carbon in drainage water - quarterly sampling at catchment outlet; DOC export is a significant additional carbon loss pathway in eroding peatlands
Fens are minerotrophic (groundwater-fed) peatlands, typically richer in nutrients and supporting more diverse plant communities than ombrotrophic bogs. Central European fens, the English Fens, and Baltic fen systems were massively drained for intensive arable agriculture - their drained peats forming highly productive but rapidly subsiding and emitting agricultural soils. Rewetting is achieved by raising water tables through sluice management, ditch blocking, and in some cases active pumping from adjacent water bodies. PTL-M04 is the only Annex G methodology that formally accommodates paludiculture - the practice of growing wet-adapted crops (Sphagnum, cattail, reed, Carex sedges) on rewetted peat soils. Paludiculture maintains a carbon-rich water table while generating an agricultural income stream, and is the primary economic model enabling fen rewetting at scale.
Peat Type
Minerotrophic fen - nutrient-richer, diverse
Water Table Target
0 to −30 cm (fen and paludiculture optimum)
Paludiculture
Permitted - Sphagnum, cattail, reed, Carex
Buffer Pool
15–22% (by NPRR)
N₂O Accounting
Required - nitrogen-enriched fen soils
Emission Factors
IPCC Wetlands Supplement Tier 2 - temperate fen
Key Monitoring Indicators
- Water table depth at permanent dipwells - continuous logging at ≥1 per 10 ha; critical for GHG benefit calculation using IPCC Tier 2 water table–emission factor relationship
- CO₂ flux at permanent plots across water table gradient - minimum monthly automated or quarterly manual chamber measurements
- N₂O flux - mandatory for fen systems receiving nitrogen-enriched groundwater; minimum quarterly chamber measurements; N₂O is frequently the largest GHG deduction in fen rewetting projects
- CH₄ flux - quarterly static chambers; elevated in shallow-water zones; must be quantified and deducted
- Vegetation composition at permanent plots - annually; tracks shift from dryland to wet-adapted plant communities
- Paludiculture crop yield where applicable - annual records; confirms land use transition and economic viability of rewetting
- Peat surface elevation - SET measurements annually after year 3; confirms subsidence arrest following rewetting
- Drainage water quality (nitrate, dissolved OC) - quarterly sampling at catchment outlets; confirms water table and nutrient status
Freshwater floodplain wetlands occupy the seasonally inundated margins of rivers and lakes - including oxbow lakes, backswamps, riparian marshes, and freshwater meadow systems with significant organic soil accumulation. Unlike bogs and fens, floodplain wetlands are hydrologically connected to river dynamics and receive seasonal flood pulses. Drainage has disconnected vast areas from their natural flood regimes - through embankments, channelisation, and pump drainage. Restoration reconnects these areas to the river by removing embankments, restoring floodplain channels, and withdrawing drainage infrastructure. PTL-M05 is distinct from ECO-M01 (Ecosystem Restoration, TNS Annex D) in that it specifically targets organic soil carbon in floodplain systems where peat or high-carbon mineral soils are present and where avoided emission is the primary benefit.
Wetland Type
Riparian, oxbow, backswamp, floodplain
Hydrology Target
Seasonal flood pulse reconnected to river
Soil Minimum
≥30% organic matter or ≥12% SOC for eligibility
Buffer Pool
18–25% (by NPRR)
CH₄ Accounting
Required - fresh water high CH₄ risk
Emission Factors
IPCC Wetlands Supplement Tier 2 - inland wetland
Key Monitoring Indicators
- Flood extent and duration - satellite mapping (Sentinel-1 SAR) of inundated area; annual seasonal mapping confirms floodplain reconnection
- Water table depth at permanent dipwells in the organic soil zone - continuous logging at ≥1 per 20 ha
- CO₂ flux at permanent plots - quarterly automated or manual chamber measurements across moisture gradient
- CH₄ flux - mandatory for all PTL-M05 projects; freshwater systems have the highest CH₄ emissions of any wetland type; minimum quarterly chamber measurements
- Soil organic carbon depth profiles - permanent plots to 1 m minimum; CHNS and bulk density every 5 years at validation and each VVB verification
- Vegetation community transition - annual permanent plot surveys tracking shift to wet-adapted plant communities and away from dryland grass/crop species
- Embankment and channel infrastructure status - annual inspection confirms no reversion to drainage; photographs logged per site
Water Table Standard
The primary control
variable in peatland MRV
TNS v1.0 Annex G is unique among all Teravent pathways in that the primary credit-determining variable - the water table - must be measured continuously, not annually or periodically. The relationship between water table depth and peat CO₂ emission is well-established in the IPCC Wetlands Supplement and forms the basis for Tier 2 GHG quantification. Credits are directly linked to measured water table maintenance within the target range.
Dipwell Density
≥ 1 per 10 ha · Stratified by hydrological unit
Logging Frequency
Continuous (hourly) data loggers · Monthly download minimum
Target Range
0 to −20 cm (tropical) · 0 to −10 cm (raised bog) · 0 to −30 cm (fen)
Drought Threshold
> 30 consecutive days below target triggers management response
GHG Linkage
IPCC Tier 2 - mean annual water table depth → CO₂ emission factor
Credit Reduction
Proportional credit reduction applied for periods outside target range
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Tier 2 water table–emission factor quantification: TTS v1.0 Annex G adopts IPCC Wetlands Supplement Chapter 2 Tier 2 emission factors that relate mean annual water table depth to CO₂ and CH₄ emission rates by climate zone and ecosystem type. The carbon benefit for a rewetted year is the difference between: (1) the emission factor for the baseline water table depth (typically −50 to −100 cm for drained agricultural peat) and (2) the emission factor for the measured project water table depth. Where the project water table is within 20 cm of the surface, CO₂ emissions approach near-zero and may reach net negative (peat accumulation) - the highest-value outcome in the Tier 2 framework.
Non-CO₂ GHG Accounting
CH₄ and N₂O must be
measured and deducted
Rewetting peatlands reduces CO₂ emissions but can temporarily or permanently increase methane (CH₄) emissions - a mandatory trade-off that must be fully accounted. Nitrous oxide (N₂O) is significant in nutrient-enriched systems. The net GHG balance must be positive after all non-CO₂ deductions for credit issuance.
Methane - CH₄
The rewetting trade-off
Rewetting increases CH₄ production from methanogenic archaea in anaerobic sediments - the same conditions that suppress CO₂ emissions also promote CH₄ generation. CH₄ emissions are highest in the first 2–5 years post-rewetting, particularly in tropical peatlands and freshwater floodplains, and tend to stabilise or reduce as vegetation communities mature. All Annex G projects must measure CH₄ flux at permanent plots throughout the crediting period using static chamber gas sampling with GC analysis. CH₄ is converted to CO₂-equivalent using GWP₁₀₀ = 28 and deducted from gross avoided CO₂ benefit. For tropical peat swamp systems (PTL-M01), CH₄ deductions can reach 15–25% of gross CO₂ benefit in early years.
GWP₁₀₀ = 28 · Mandatory all methodologies · Quarterly minimum · Highest in PTL-M01 and PTL-M05
Nitrous Oxide - N₂O
Elevated in nutrient-enriched systems
N₂O is produced at the aerobic-anaerobic interface in nitrogen-rich peat soils through nitrification-denitrification. It is most significant in minerotrophic fen systems receiving agricultural drainage rich in nitrogen (PTL-M04) and in floodplain wetlands adjacent to intensively farmed catchments (PTL-M05). In ombrotrophic bogs (PTL-M02, PTL-M03) where nitrogen is limiting, N₂O is typically de minimis. The de minimis assessment at validation compares porewater total inorganic nitrogen against the 50 µmol/L threshold. Where N₂O is material, quarterly static chamber measurements are required and the deduction can exceed 20% of gross CO₂ benefit in the most nutrient-enriched systems.
GWP₁₀₀ = 265 · Mandatory PTL-M04, PTL-M05 · De minimis in ombrotrophic systems
Carbon Pool Accounting
What must be measured
Peatland carbon accounting is dominated by soil carbon - the peat itself - which dwarfs all other pools. Unlike most terrestrial pathways, biomass carbon is a minor secondary consideration. The primary accounting variable is the avoided or reduced CO₂ emission from the peat soil body, quantified via the IPCC Tier 2 water table relationship.
Required - Primary
Peat Soil Carbon (Avoided Emissions)
The avoided CO₂ emission from rewetted peat soil - the primary carbon benefit. Quantified using IPCC Wetlands Supplement Tier 2 emission factors applied to the measured mean annual water table depth at each dipwell station. Gross benefit = (baseline emission factor − project emission factor) × area × time period. This is the dominant pool for all five PTL methodologies.
Where measurable - new accumulation
New Peat Accumulation
New carbon added to the peat profile by peat-forming vegetation (Sphagnum, sedges) after successful rewetting. Creditable after 10 years of confirmed water table stability and vegetation recovery - measured by Surface Elevation Table (SET) readings and/or repeated SOC core profiles. Accumulation rates of 1–5 mm/yr are typical for successfully restored raised bogs; tropical peat swamps may accumulate faster in ideal conditions.
Where material - forested peatlands
Biomass Carbon
Aboveground and belowground tree biomass is material in tropical peat swamp forest (PTL-M01) where the forest canopy stores significant carbon. Estimated via allometric equations at permanent plots. In bog, blanket bog, fen, and floodplain wetland systems (PTL-M02 through M05), biomass carbon is generally minor (<5% of total ecosystem carbon) and may be excluded with VVB acceptance.
Required - Deduct
CH₄ and N₂O Emissions
Non-CO₂ GHG emissions from rewetted peat soils - measured by static chamber gas sampling at permanent plots (minimum quarterly) with GC analysis. CH₄ deducted using GWP₁₀₀ = 28; N₂O using GWP₁₀₀ = 265. The combined CH₄ + N₂O deduction must be calculated and confirmed as less than gross CO₂ benefit before credits are issued in any monitoring period.
Where material
Dissolved Organic Carbon (DOC) Export
DOC exported from peatlands in drainage water represents an additional carbon loss pathway that is not captured by gas flux measurements. Material primarily in eroding blanket bogs (PTL-M03) and in highly conductive fen systems (PTL-M04). Where DOC export exceeds 5 tCO₂e/ha/yr based on drainage water measurements, a deduction from gross CO₂ benefit is required. Measured by quarterly water sampling at catchment outlets.
Excluded
Deep Peat Below Measurement Depth
Carbon in peat layers below the 2 m maximum measurement depth is excluded from the baseline carbon stock assessment and from new accumulation crediting. Where peat extends beyond 2 m, the excess carbon represents additional stored carbon that is protected by rewetting - but it is not credited as an additional benefit beyond the avoided-emission framework. This exclusion is conservative and consistent with IPCC Wetlands Supplement guidance.
Fire Risk Management
Peat fire - the
catastrophic reversal risk
Peat fires represent the single most severe reversal risk in the Teravent registry. A single peat fire in a drained tropical peat swamp forest can release thousands of tCO₂e/ha within days - potentially eliminating the entire registered carbon benefit of a project in one event. Fire management planning is mandatory for all PTL-M01 (tropical) projects and for any peatland project where fire history or drought risk is assessed as significant.
Tropical Peat Fire - PTL-M01
Underground Smouldering Fire
Tropical peat fires smoulder underground - burning metres below the peat surface without visible flame. They are extremely difficult to extinguish and can continue for months. Prevention requires maintaining water table at or near the surface throughout the dry season. Canal wetting patrols - maintaining water levels in drainage canals to create firebreaks - are the primary prevention tool. MODIS/VIIRS fire detection alerts must be monitored daily throughout the dry season with a 24-hour response protocol.
Fire Management Plan mandatory · Canal wetting patrols required · 24-hr satellite fire response
Temperate Peat Fire
Surface and Shallow Peat Combustion
Temperate peat fires occur primarily on bare, dry peat surfaces in degraded blanket bogs and raised bogs during drought years. They are typically shallower and less catastrophic than tropical fires, but can release significant carbon from the upper peat layers. Prevention through rapid water table recovery after rewetting is the primary control. A fire management plan is required for all projects where historical fire scars are documented within the project boundary or within 5 km.
Required where fire history documented · Water table recovery is primary prevention
Fire Reversal Accounting
Buffer Pool and Notification Protocol
Confirmed peat fire affecting more than 1% of the project area must be notified to the TSA within 14 days. An independent fire extent and depth estimate must be submitted within 90 days. Buffer pool credits are cancelled proportional to the verified carbon loss. Where fire loss exceeds buffer pool availability, the project proponent is liable for the deficit and must purchase replacement credits within 90 days per TNS Module 4 reversal provisions.
Notification: 14 days · Assessment: 90 days · Buffer absorbs verified loss
Community Fire Prevention
Land Use and Human Ignition Control
In tropical peatlands, the majority of fires are human-ignited - for land clearing, agricultural burning escaping onto peat, or deliberate torching. Community-level fire prevention - through land use agreements, livelihoods support reducing dependence on burning for land clearing, and community fire brigade training - is a required safeguard for all PTL-M01 projects where human ignition is assessed as a material risk.
Human ignition risk assessment mandatory · Community fire brigade plan required where material
MRV Confidence
Measurement, reporting
& verification
Peatland MRV has an unusual profile - the primary quantification method (IPCC Tier 2 water table–emission factor approach) is technically straightforward and gives high confidence on the avoided CO₂ side, while non-CO₂ GHG flux measurement introduces significant uncertainty, particularly for CH₄ in tropical systems. Fire risk is the dominant permanence uncertainty.
Water Table Monitoring AccuracyVery High
CO₂ Avoided Emission QuantificationHigh
CH₄ Flux Field MeasurementMedium
Permanence Confidence - RewettedMedium–High
Additionality ClarityHigh
New Peat Accumulation MeasurementMedium
🔬 Water Table Monitoring Standard - TNS Module 3 · Peatland
Dipwells must be installed to a minimum depth of 1 m below the lowest expected peat water table - typically 1.5–2 m for drained agricultural peatlands. Each dipwell must use a calibrated pressure transducer data logger with temperature compensation, logging at minimum 1-hour intervals. Loggers must be downloaded at minimum monthly and data uploaded to the TCR monitoring portal within 15 days of download. Annual calibration checks against a manual dip measurement must be recorded. Dipwell spatial placement must cover all identifiable hydrological units within the project boundary - including areas adjacent to remaining drainage infrastructure, areas near major canals, and areas most distant from dam structures. All monitoring data must be archived for the project lifetime plus 10 years and available for VVB audit without notice.
Additionality
Demonstrating additionality
TNS v1.0 Module 2 requires all peatland projects to satisfy three additionality tests. Peatland rewetting additionality is typically strong - the costs of drainage canal blocking, dam construction, water management, and long-term monitoring are significant, and voluntary rewetting without carbon finance is uncommon in most peatland geographies.
1
Regulatory Surplus Test
Peatland rewetting must not be mandated by any national environmental law, drainage regulation, nature protection order, or Habitats Directive obligation. In the European Union, Annex I peatland habitat designations under the Habitats Directive create restoration obligations for some sites - where the restoration is legally mandated, it does not qualify under Annex G unless the carbon project demonstrably exceeds what the legal obligation requires in scope, intensity, and duration. Government agri-environment scheme payments for peatland rewetting (common in UK, Germany, Netherlands) must be disclosed - where such payments cover the full cost of rewetting, financial additionality may be difficult to demonstrate. The regulatory surplus analysis must explicitly address any existing government payments or obligations.
2
Financial Additionality Test
Carbon revenue must be a necessary condition for the rewetting programme to proceed at the scale and ambition described in the PDD. Rewetting typically imposes a significant income loss on the landowner - drained peat soils in cultivation generate substantial agricultural revenue that is partially or wholly lost when water tables are raised to levels incompatible with conventional agriculture. A financial analysis must demonstrate that this foregone agricultural income, combined with the capital costs of dam construction and ongoing monitoring, is not offset by non-carbon revenues (paludiculture income, ecosystem service payments, conservation grants) without carbon finance. For community-owned peatlands, the financial analysis must reflect the community-level economics rather than individual farm economics.
3
Common Practice Test
Voluntary rewetting of drained agricultural peatland - without carbon finance, government mandate, or significant agri-environment subsidy - must not be common practice in the project geography. A survey of comparable drained peatland holdings in the same district or administrative region must confirm that fewer than 20% are voluntarily rewetting without external financial incentive. In most peatland geographies - Indonesia, Ireland, UK uplands, Baltic States - voluntary rewetting without payment is far below the 20% threshold, making this test easily satisfied. Where government agri-environment schemes have driven significant voluntary rewetting adoption, the common practice threshold must be assessed specifically for scheme-eligible vs. non-eligible land types.
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EU agri-environment scheme interaction: Projects in Germany, Netherlands, UK, Sweden, and Finland where LIFE programme, national agri-environment scheme, or Conservation Grade payments are received for the same rewetting activity must disclose these in full and demonstrate clearly that carbon revenue is additive - not a replacement for government payments already committed. Double-claiming government and carbon payments for the same physical activity is prohibited under TNS v1.0 Module 8 and EU carbon market rules.
Leakage Assessment
Leakage types & deductions
Peatland leakage is primarily agricultural - where rewetting displaces farming from the project area, production may relocate to adjacent land, including other drained peatlands. Market leakage from commodity production displacement is the dominant leakage pathway for projects converting high-productivity agricultural peat soils.
Activity-Shifting Leakage
Agricultural Production Displacement
Where rewetting displaces arable or livestock farming from the project area, the displaced production may shift to adjacent peatland or other carbon-rich land. A production displacement analysis covering the regional agricultural market must assess whether project land use change causes measurable intensification on other drained peat or high-carbon soils within the same catchment or region. Where displacement is confirmed, a leakage deduction of 10–25% applies - higher for high-value arable peat (e.g. Dutch or Irish vegetable growing land) where pressure to expand production elsewhere is strong.
Default: 10–25% · Higher for high-productivity former arable peat
Hydrological Leakage
Adjacent Drainage Effects
Blocking drainage canals within the project boundary may reduce drainage capacity on adjacent land, potentially waterlogging neighbouring farms. Where this occurs and causes neighbouring landowners to install additional drainage to compensate, an ecological leakage penalty applies - the additional drainage emissions on adjacent land must be deducted from project credits. A hydrological boundary assessment at validation must identify all landowners potentially affected by project drainage changes and document consent or compensation arrangements.
Assessed case-by-case · Consent from adjacent landowners required
Market Leakage
Commodity Supply Displacement
Large-scale rewetting of productive agricultural peatland may reduce regional supply of specific commodities - potatoes from Dutch peat soils, reed from Central European fens, timber from forested tropical peat. Where the aggregate production reduction from all project sites in a region exceeds 5% of regional supply for an affected commodity, a market leakage deduction of 5–15% applies. For most peatland projects at scale below 5,000 ha, market leakage is de minimis.
De minimis for most projects · Required where regional commodity impact exceeds 5%
Upstream Input Leakage
Rewetting Infrastructure Emissions
GHG from construction of peat and wood dams, canal blocking materials, pump infrastructure, and water control structures must be quantified. For most rewetting projects using low-tech peat or wood dams, these embodied emissions are de minimis relative to the carbon benefit. For PTL-M05 floodplain projects involving significant embankment removal or culvert installation, a one-time embodied carbon assessment per TLP v1.0 must be included.
De minimis threshold: 2% · Excluded for most nature-based rewetting projects
Permanence & Non-Permanence Risk
Buffer pool & reversal risk
Peatland carbon benefits are contingent on maintained water table - if drainage is re-established, the carbon benefit reverses within months. This makes peatland projects more reversibility-sensitive than most other Teravent nature-based pathways, though the rate of reversal is slower than biological soil carbon pathways. Fire is the single highest-consequence reversal risk, particularly for tropical peat swamp projects.
| Methodology |
NPRR Rating |
Buffer Pool Rate |
Primary Reversal Risks |
| PTL-M01 Tropical Peat Swamp Forest |
High |
22–30% |
Peat fire during dry season; drainage infrastructure re-establishment; land tenure dispute; drought; political pressure to re-cultivate |
| PTL-M02 Temperate Raised Bog |
Low–Medium |
15–20% |
Dam failure after extreme rainfall; drought lowering water table below target; invasive species (birch scrub) drying peat surface |
| PTL-M03 Blanket Bog |
Medium |
16–22% |
Livestock grazing reintroduction; grip re-opening; upland infrastructure development; drought; erosion scar re-activation |
| PTL-M04 Fen and Fen-Meadow |
Medium |
15–22% |
Agricultural conversion pressure; failure of sluice management; nitrogen pollution maintaining N₂O emissions; land sale to intensive farming |
| PTL-M05 Freshwater Floodplain |
Medium–High |
18–25% |
Embankment reconstruction by adjacent landowners; upstream river management altering flood regime; drought reducing flood pulse; CH₄ elevated by shallow warm water |
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Drainage reinstatement notification: Any planned or unplanned drainage installation, canal reopening, or water table drawdown event affecting more than 5% of the project area must be notified to the TSA within 14 days. Unplanned events - dam failure, extreme drought, infrastructure damage - also trigger immediate notification. Credits are not issued for monitoring periods where the measured mean annual water table depth falls outside the approved project target range. Buffer pool credits are held in reserve to absorb any reversal event verified at the next VVB verification.
Eligibility Requirements
Key registration criteria
All of the following must be satisfied for registration under TNS Annex G. Methodology-specific requirements (tropical fire management plans, Sphagnum reintroduction programmes, paludiculture land use agreements) are detailed in the individual PTL-M code specifications within Annex G.
✓
Peatland eligibility confirmed - peat depth minimum 30 cm at the project boundary, verified by soil survey with probe measurements documented at ≥1 point per 2 ha; or certified as peat by a qualified soil scientist accepted by the VVB
✓
Pre-project water table survey completed - minimum 6 months of continuous dipwell data at ≥1 per 20 ha baseline stations before any rewetting activities, establishing the drained baseline water table depth for IPCC Tier 2 emission factor selection
✓
Rewetting design accepted by a qualified hydro-engineer - dam locations, dam type and specification, target water table range, and expected hydrological response documented in the PDD and signed off by an engineer with peatland rewetting experience
✓
Non-CO₂ GHG preliminary assessment at validation - porewater CH₄ and N₂O sampling confirming whether full quarterly flux monitoring or de minimis exclusion applies for each gas at each stratum; confirmed by VVB before first credit issuance
✓
Three-test additionality satisfied - regulatory surplus confirmed (no mandatory rewetting obligation), financial additionality demonstrated including foregone agricultural income, common practice survey of drained peatland holdings in the same district
✓
Fire Management Plan submitted for all PTL-M01 (tropical) projects and for any temperate project with documented fire history - specifying patrol frequency, dam maintenance schedule, community fire prevention activities, and satellite fire alert response protocol
✓
Dipwell installation confirmed before first rewetting activities - minimum 1 per 10 ha for tropical and 1 per 15 ha for temperate sites; continuous hourly loggers; calibrated against manual readings; GPS-registered locations submitted to TCR
✓
FPIC obtained where indigenous communities hold traditional rights to peat harvesting, hunting, fishing, or gathering within the project boundary - consent must be documented in local languages and confirmed by an independent facilitator
✓
Land tenure confirmed for the full crediting period - ownership title, long-term lease, community land agreement, or government conservation concession; adjacent landowner consents for hydrological boundary effects documented
✓
Monitoring plan submitted with PDD specifying dipwell network, gas flux sampling stations and frequency, peat depth map, vegetation monitoring transects, fire detection protocol, surface elevation measurement schedule, and VVB verification frequency (minimum every 5 years)
Co-Benefits & SDGs
Sustainable Development
Goal alignment
Peatland restoration delivers a distinctive co-benefit profile centred on water, biodiversity, and community livelihoods. Intact peatlands are exceptional water regulators - storing rainfall, releasing it slowly, and filtering it clean. They are globally important biodiversity habitats for specialist peatland species found nowhere else. Paludiculture (PTL-M04) creates a unique economic model combining carbon benefit with sustainable wetland agriculture. Eight SDGs are tracked.
SDG 13 · Climate Action
SDG 15 · Life on Land
SDG 6 · Clean Water
SDG 11 · Sustainable Cities
SDG 1 · No Poverty
SDG 3 · Good Health
SDG 8 · Decent Work
SDG 2 · Zero Hunger
Biodiversity+
Peatlands support specialist biodiversity found nowhere else - Sphagnum-specialist invertebrates, breeding waders, rare orchids, carnivorous plants, and large mammals dependent on intact tropical peat swamp forest. Projects achieving verified net positive biodiversity outcomes - through annual independent specialist surveys comparing post-restoration community against baseline - are eligible for Biodiversity+.
Water+
Rewetted peatlands significantly improve downstream water quality - reducing discolouration from peat particulates (a major drinking water treatment cost), filtering agricultural runoff, and buffering peak flood flows. Projects with downstream water quality monitoring data - turbidity, colour, dissolved organic carbon, catchment flood hydrology - are eligible for Water+ where independently verified improvements are demonstrated.
Livelihoods+
PTL-M04 paludiculture projects generating verified farmer income from Sphagnum cultivation, cattail reed harvesting, or sustainable fish production - with annual income records independently verified - are eligible for Livelihoods+. Tropical peat swamp projects that provide verified alternative livelihoods to communities previously dependent on slash-and-burn agriculture are also eligible.
Air Quality
Tropical peat fire prevention through rewetting (PTL-M01) delivers an immense air quality co-benefit - peat fires produce toxic haze events affecting hundreds of millions of people across Southeast Asia. Projects in Indonesia and Malaysia that demonstrably prevent peat fires monitored by satellite fire detection data are eligible for the Air Quality co-benefit notation on credit records.
Priority regions: Indonesia and Malaysia (Sumatra, Kalimantan, Peninsular Malaysia - tropical peat swamp with greatest global carbon stock and active conversion pressure), Ireland and the United Kingdom (raised bog and blanket bog restoration - significant peat extent, mature restoration science, established carbon market interest), Germany and Netherlands (fen and agricultural peat rewetting - paludiculture potential, high profile carbon policy attention), Baltic States (Estonia, Latvia, Lithuania - large drained raised bog areas with growing carbon market engagement), and India (Himalayan and northeast India peatlands; Western Ghats shola-grassland peat systems - emerging peatland carbon potential with limited current project activity).
