How should SMEs plan costs for MRV activities?

MRV (Measurement - Reporting - Verification) activities are a mandatory and costly stage in the carbon credit project development chain, especially for Small and Medium-sized Enterprises (SMEs) in Vietnam. This is a prerequisite for carbon credits to be recognized and brought to market. Total MRV costs for a 5-year SME project can range from USD 15,000 to USD 40,000, covering items such as baseline establishment, Project Design Document (PDD), periodic data monitoring, and independent verification. The main expenditure items are as follows: baseline establishment (USD 3,000-10,000), PDD design (USD 5,000-10,000), periodic monitoring (USD 2,000-5,000/year), and verification costs (USD 5,000-15,000/time).60

To optimize costs, SMEs in Vietnam should consider smart budgeting strategies. Firstly, they can apply the grouped/bundled projects model, where multiple enterprises in the same sector or geographical area share MRV costs.

Furthermore, SMEs can leverage existing financial and technical support programs, such as the UNDP Climate Promise II (2024) which supports up to 50% of MRV costs, the Green Climate Fund (GCF) which provides free technical assistance for renewable energy and waste management projects, or the ADB's technical assistance program dedicated to the agriculture and heavy industry sectors.61 62 63 64

Regarding budgeting methodology, SMEs should plan MRV costs over a 5-year cycle, with 70–80% of the costs concentrated in the first year (design and documentation), and the remainder allocated for periodic operation. The MRV budget should be integrated into the enterprise's medium-term financial plan, especially within sustainable development schemes or green financing programs.

Finally, enterprises should utilize free or low-cost MRV software tools such as GHG Protocol Tools, SIMAP, or CarbonScope - some of which have been localized or offer Vietnamese instructions, helping SMEs easily monitor emissions themselves without relying entirely on consulting firms.

References

60. Verra. (2004). Verra releases updated fee schedule. Verra. https://verra.org/verra-releases-updated-fee-schedule/#
61. Asian Development Bank. (2024). ADB’s work in Viet Nam. ADB. https://www.adb.org/where-we-work/viet-nam/overview
62. Green Climate Fund. (2018). Scaling up energy efficiency for industrial enterprises via a guarantee instrument in Viet Nam. Cities Climate Finance Leadership Alliance. Green Climate Funds. https://citiesclimatefinance.org/financial-instruments/cases/scaling-up_energy_efficiency_for_industrial_enterprises_via_a_guarantee_instrument_in_vietnam
63. United Nations Development Programme. (2021). MRV in practice: Monitoring, reporting and verification for climate action. Climate Promise. https://climatepromise.undp.org/research-and-reports/mrv-practice
64. UNDP Vietnam. (2025). Financing Vietnam’s response to climate change: Smart investment for a sustainable future. UNDP. https://www.undp.org/sites/g/files/zskgke326/files/migration/vn/694e8c874b8eff252aa6e1ed22145bce42e1234360e061ee3aae724fa2869234.pdf