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25 Hybrid Carbon Pathway · THS Annex E
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Managed Grazing with
Carbon Monitoring
THS v1.0 - Annex E

Managed Grazing with Carbon Monitoring pairs adaptive rotational grazing management - moving livestock through paddocks on a planned schedule to mimic natural herd movement patterns - with a digital monitoring, reporting, and verification stack: GPS livestock tracking collars, remote sensing pasture biomass estimation, and periodic soil carbon sampling. Well-managed grazing intensity and rest periods allow grassland root systems and soil biology to rebuild organic carbon stocks that continuous, unmanaged grazing typically depletes.

🌱 Nature: Pasture & grassland ecosystems ⚙️ Tech: Digital MRV & grazing management
Hybrid Pathway THS v1.0 Annex E ⏳ Class I · Biological ● Active
Submit Managed Grazing Project View THS v1.0 Annex E →
10–100 yr
Storage timescale (Class I)
GPS + Satellite
Digital MRV stack
$20–$70
Current cost per tonne
3
Approved methodologies
MGR-M01 through MGR-M03
Teravent Methodology Codes · THS Annex E
View THS Annex E →

How this pathway works

Grassland and pasture soils hold enormous carbon stocks in root systems and soil organic matter, built up over millennia of grazing by wild herds moving in tight groups and resting land for extended recovery periods before returning. Continuous, unmanaged livestock grazing - animals left on the same pasture indefinitely - tends to overgraze preferred plants, compact soil, and deplete root biomass and soil carbon over time. Managed grazing deliberately restores the rest-and-recovery cycle through planned rotational movement between paddocks, allowing grass root systems to rebuild between grazing events.

Under the Teravent Hybrid Carbon Standard (THS v1.0) Annex E, this pathway is classified as hybrid because verified carbon outcomes depend equally on the biological pasture and soil system and a digital monitoring technology layer - GPS-tracked livestock movement data, satellite or drone-based pasture biomass estimation, and periodic direct soil sampling - that together substitute for the far more labour-intensive manual monitoring historically required for grazing-based carbon projects. Teravent Hybrid Credits (THC) are issued for verified net tonnes of soil organic carbon accumulation, net of full lifecycle project emissions including methane from livestock digestion.

Three methodology variants are approved under Annex E, spanning core rotational grazing management, digitally optimised stocking density, and grassland restoration on degraded land.

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Class I - Biological permanence. All credits issued under THS Annex E carry Class I permanence, reflecting the 10–100-year storage horizon typical of soil organic carbon subject to ongoing biological decomposition cycles. Buffer pool contributions of 20–40% of gross verified credits apply, among the higher rates in the Teravent system, reflecting the inherent reversibility of soil carbon under management change, drought, or land-use conversion.

THS v1.0 - Annex E

This pathway is governed exclusively by the Teravent Hybrid Carbon Standard (THS v1.0). No external registry, standard, or methodology is referenced or incorporated.

Teravent Hybrid Credit - Serial Number Format (THS Annex E · Class I)
TCR THS MGR AU 00081 2025 I 000001
Registry TCR
Standard THS v1.0
Pathway Code MGR
Credit Type THC - Teravent Hybrid Credit
Durability Class I · Biological

Three approved methodology variants

THS v1.0 Annex E approves three discrete methodology types, differentiated by the specific grazing management approach and level of digital monitoring integration.

MGR-M01
Adaptive Multi-Paddock Rotational Grazing
Livestock rotated through subdivided paddocks on a planned schedule to allow grass root recovery between grazing events

Pastures are subdivided into multiple paddocks using temporary or permanent fencing, with livestock moved on a planned rotation calibrated to forage growth rate and desired rest period. This is the foundational managed grazing methodology, applicable to most temperate and tropical grassland systems, and typically the entry point for producers transitioning from continuous grazing.

Durability
Class I · Biological
Buffer Pool
20–35% (by NPRR)
Rotation Documentation
Paddock schedule & stocking density logged
Soil Sampling
Baseline + periodic SOC sampling, standard depth increments
Remote Sensing
Satellite pasture biomass/NDVI tracking
Crediting Period
Multi-year, minimum baseline period required
Key Monitoring Indicators
  • Paddock rotation schedule and stocking density logged per grazing event
  • Soil organic carbon sampled at baseline and each verification, standard depth increments (0–30 cm minimum)
  • Satellite-derived NDVI or pasture biomass index tracked to corroborate grazing management effectiveness
  • Livestock methane emissions estimated per head using standard enteric fermentation factors, deducted from net credit
  • Soil compaction and bare ground cover assessed as management quality indicators
MGR-M02
Digital Livestock Tracking & Optimised Stocking
GPS livestock collars and automated pasture monitoring drive real-time stocking density optimisation

GPS-enabled livestock collars track individual animal location and movement patterns in real time, paired with automated pasture biomass sensing (satellite, drone, or ground-based sensors) to dynamically adjust stocking density and paddock rotation timing. This methodology represents the most technology-intensive managed grazing approach, delivering the tightest match between forage availability and grazing pressure.

Durability
Class I · Biological
Buffer Pool
20–30% (by NPRR)
GPS Coverage
Collar deployment on representative herd sample
Automated Alerts
Stocking density threshold triggers documented
Soil Sampling
Baseline + periodic SOC sampling
Data Retention
Full GPS/sensor logs retained for VVB audit
Key Monitoring Indicators
  • GPS livestock movement and dwell-time data logged continuously across a representative sample of the herd
  • Automated pasture biomass sensing (satellite, drone, or ground sensor) feeding stocking density decisions
  • Soil organic carbon sampled at baseline and each verification
  • Livestock methane emissions estimated per head, deducted from net credit
  • System uptime and data completeness logged, since gaps in digital monitoring affect MRV confidence
MGR-M03
Grassland Restoration with Continuous Monitoring
Managed grazing applied to degraded grassland to restore vegetative cover and soil carbon, with continuous digital monitoring

Degraded grassland - from historical overgrazing, erosion, or vegetation loss - often shows the largest potential soil carbon gains once managed grazing is introduced, since baseline carbon stocks are depleted relative to a healthy reference state. This methodology combines managed grazing with active restoration inputs (native seeding, erosion control) and requires continuous digital monitoring given the more dynamic vegetation and soil conditions typical of a recovering system.

Durability
Class I · Biological
Buffer Pool
25–40% (by NPRR - degraded baseline uncertainty)
Restoration Inputs
Native seeding/erosion control documented where used
Reference Condition
Regional healthy grassland benchmark required
Soil Sampling
More frequent sampling given recovery dynamics
Remote Sensing
Continuous NDVI/vegetation cover tracking
Key Monitoring Indicators
  • Vegetative cover and bare ground percentage tracked via continuous satellite monitoring
  • Soil organic carbon sampled at increased frequency relative to established grassland, given faster recovery dynamics
  • Restoration input documentation (native seed mix, erosion control structures) where applied
  • Comparison against a regional reference healthy grassland benchmark to contextualise recovery trajectory
  • Livestock methane emissions estimated per head, deducted from net credit

Which emission sources must be counted

THS v1.0 Module 3 requires a dual-component accounting boundary spanning the biological pasture/soil system and the digital monitoring technology layer, with a full lifecycle GHG emissions inventory deducted from gross soil carbon accumulation.

Required
Soil Organic Carbon Accumulation (Gross)
Primary benefit quantity, measured through standard-depth soil sampling at baseline and each verification, corroborated by remote sensing indices.
Required
Livestock Enteric Methane
Methane emissions from livestock digestion, estimated per head using standard enteric fermentation emissions factors, converted to CO₂-equivalent and deducted from gross soil carbon gains.
Required
Digital Monitoring Equipment Energy
Energy consumed by GPS collars, sensor networks, and associated data infrastructure, generally minor relative to other pools but included for completeness.
Required where material
Fencing & Infrastructure Installation
Embodied emissions from paddock fencing and water infrastructure installation, amortised over the crediting period where material.
Excluded
Baseline Livestock Operations
Emissions from livestock operations that would occur regardless of the managed grazing project (feed supplementation, veterinary care) are excluded from this pathway's boundary.

Measurement, reporting
& verification

Teravent's Science Advisory Board assesses each pathway against four MRV dimensions. Digital MRV integration gives this pathway relatively high confidence for a soil-carbon-based system, though inherent variability in grassland soil carbon still places overall permanence confidence below engineered mineral pathways.

Grazing Management DocumentationVery High
Soil Carbon QuantificationMedium–High
Permanence ConfidenceMedium
Additionality ClarityHigh
🔬 Measurement Requirements - THS Module 3

Grazing management is documented through GPS livestock tracking (MGR-M02) or logged paddock rotation schedules (MGR-M01, MGR-M03), providing very high confidence in the practice change itself. Soil organic carbon is quantified through standard-depth soil sampling (typically 0–30 cm) at baseline and each verification, at a sampling density calibrated to field heterogeneity, cross-validated against satellite-derived vegetation indices tracking pasture biomass and cover as a corroborating indicator between direct soil sampling events. All soil analyses must be conducted by an accredited laboratory using a consistent methodology across the crediting period to ensure comparability.

Demonstrating additionality

THS v1.0 Module 2 requires a three-layer baseline: a biological baseline (the ranch's historical grazing practice), a technology baseline (common practice for digital grazing monitoring), and a combined system net baseline.

1
Common Practice Test
Deliberate adaptive multi-paddock rotational grazing at the intensity and monitoring rigor required for carbon crediting remains a minority practice in most grazing regions, distinct from basic seasonal rotation already practiced by some producers. Projects must document baseline grazing practice and demonstrate the credited practice change exceeds regional common practice.
2
Regulatory Surplus Test
The grazing management activity must not be mandated by any legally binding land management or grazing regulation. Where a jurisdiction mandates minimum rest periods for range health, projects must demonstrate the credited management exceeds that regulatory minimum.
3
Financial Additionality Test
Carbon revenue must be necessary for project viability. Developers must submit a discounted cash flow analysis, net of any government conservation programme payments (disclosed under Module 8) and net of any productivity gains from improved pasture management, demonstrating that fencing, digital monitoring, and verification costs exceed available revenue absent carbon credit income.
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Government incentive disclosure: Where a project receives direct government conservation payments or per-tonne carbon removal tax credits, this must be disclosed to the TSA at registration under Module 8. Double-claiming the same carbon benefit under both a government incentive programme and Teravent credits is prohibited.

Leakage types & deductions

THS v1.0 Module 3 defines three leakage types applicable across all hybrid pathways. Managed Grazing is primarily subject to production-shifting leakage where reduced local stocking density displaces livestock elsewhere.

Production-Shifting Leakage
Livestock Displacement
Where managed grazing reduces total stocking capacity on the project land relative to baseline, displaced livestock may be moved to other land, potentially causing overgrazing or land conversion elsewhere. A market displacement assessment is required where a material stocking reduction is documented.
Default: 5–10%, assessed at PDD stage
Energy-Source Leakage
Digital Infrastructure Power
Where GPS collar charging stations or sensor networks draw grid electricity, associated emissions must apply the applicable regional grid factor absent verified renewable alternatives.
Deduction: applicable regional grid factor, TLP v1.0
Feed Supplementation Leakage
Increased Off-Pasture Feed Use
Where reduced grazing intensity requires increased supplemental feed sourced off-farm, associated feed production and transport emissions must be assessed and deducted where material.
Assessed where material, per THS Module 3

Buffer pool & NPRR assessment

All Annex E credits carry Class I Biological permanence, the most reversible durability class in the Teravent system, reflecting soil organic carbon's ongoing susceptibility to management change, drought, and disturbance.

MethodologyNPRR RatingBuffer Pool RatePrimary Reversal Risks
MGR-M01 Rotational GrazingMedium20–35%Management discontinuation; drought; return to continuous grazing
MGR-M02 Digital TrackingLow–Medium20–30%Technology failure/discontinuation reducing monitoring confidence; management reversal
MGR-M03 Grassland RestorationMedium–High25–40%Degraded baseline recovery reversibility; drought sensitivity of recovering vegetation
⚠️
Reversal notification: Project proponents must notify the TSA within 30 days of a confirmed reversal event - documented return to continuous grazing, drought-driven soil carbon loss exceeding the modelled range, or land-use conversion. Buffer pool credits are cancelled proportionally to the verified carbon loss, and a minimum 20-year monitoring commitment applies following the crediting period's final verification.

Key registration criteria

Projects must meet all of the following minimum requirements to qualify for registration under THS Annex E.

Documented baseline grazing practice and planned rotation/monitoring schedule submitted at registration
Digital MRV infrastructure installed (GPS collars and/or remote sensing subscription) prior to crediting period commencement
Baseline and periodic soil organic carbon sampling at standard depth increments, conducted by an accredited laboratory
Ten-stage registration process completed, from hybrid eligibility assessment through validation to ongoing verification, per THS Module 6
Seventeen-element Project Design Document submitted, including a three-layer baseline analysis
Three-test additionality demonstrated, distinguishing the credited grazing practice from regional common practice
Non-Permanence Risk Rating (NPRR) assessed by an accredited VVB at validation; buffer pool contribution of 20–40% applied
Livestock enteric methane accounting methodology documented and applied consistently across verifications
Do No Significant Harm review covering soil health, biodiversity, water resources, and animal welfare standards per Module 5
Minimum 20-year post-crediting monitoring commitment documented through a legal instrument acceptable to the TSA

Sustainable Development
Goal alignment

All Teravent registered Managed Grazing projects must complete an SDG impact assessment at registration and at each verification period.

SDG 15 · Life on Land SDG 2 · Zero Hunger SDG 13 · Climate Action
Soil Health+
Ranches with verified soil structure, water infiltration, and biodiversity improvement documented through registered soil testing are eligible for the Soil Health+ label.
Frontier Hybrid
Projects using novel digital livestock tracking and automated stocking optimisation (MGR-M02) with peer-reviewed methodology are eligible for the Frontier Hybrid label.
Biodiversity Corridor+
Grassland restoration projects (MGR-M03) demonstrating measurable native species recovery are eligible for the Biodiversity Corridor co-benefit label.
Smallholder Inclusion+
Projects aggregating smallholder or family ranches with fair benefit-sharing agreements are eligible for the Smallholder Inclusion co-benefit label.

Deployment scope: Global grazing regions - most active in North America, Australia, Sub-Saharan Africa, and South America, wherever ranching operations can support paddock subdivision and digital monitoring infrastructure.

🐄 Managed Grazing with Carbon Monitoring · THS Annex E

Ready to register your
managed grazing project?

Submit a Project Concept Note under THS v1.0 Annex E to begin your registration. Select the MGR-M code matching your management approach, deploy digital MRV infrastructure, and appoint an accredited VVB to validate your PDD and three-layer baseline analysis.