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Global Green Carbon

Project Development for Carbon Financed Forestry Projects



A SIMPLIFIED CDM PROJECT FLOW CHART

 

Project Development Process

Project Design Document (PDD)

The project design document, or PDD, is the key documentation in the project cycle, and completing it is a complex undertaking. As illustrated in the CDM process flow chart above, the PDD is submitted to a designated operational entity for validation, and once validated, to the VCS or CDM Executive Board for registration. As opposed to a PIN, a project design document is a necessity – no project can earn CERs or VERs without the development, validation and acceptance of it.

Validation

Once the project design document has been completed and the host country approval (for CDM projects only) has been received, all documents have to be submitted to a UNFCCC-accredited Designated Operational Entity (DOE), for review and approval – a process called validation.

The purpose of validation is to ensure that they are:

  • Unique
  • Additional
  • Verifiable
  • Permanent
  • Real
  • Measurable

The third party validation process ensures the veracity of the methodology by a qualified professiona.

Implementation and monitoring

Once the project has been validated it can be implemented. From the point of implementation on, the project developer needs to start monitoring the project performance, according to the procedures laid out in the validated monitoring plan of the project design document.

Verification

The project developer is responsible for contracting a DOE to carry out the verification process. Verification is the periodic review and ex-post determination of the monitored greenhouse gas emission reductions that have occurred as a result of the project. The designated operational entity verifies the data collected by the developer according to the monitoring plan. The 3rd party verification of VERs and CERs confirms the quantity of offsets, so that they may be registered and sold.

Certification and issuance of credits

  • Certification is the written assurance by a Designated
  • Operational Entity that during the specified time
  • period, a project activity achieved the reductions in
  • greenhouse gas emissions as stated and verified, in
  • compliance with all relevant criteria.

Once the project is certified by the Executive Board (EB) for CDM projects and by the VCS for VER projects the project developer is issued carbon credits for the certified amounts of emission reductions.

Registries (Voluntary Market)

Once the carbon offset credits are issued they may then be registered with a Carbon Registry. The Carbon Registries are essential to provide:

  • Transparency
  • Credibility
  • Serialization and
  • The ability to track transfer of ownership.

These are important to ensure that offsets are only claimed once. Registries require that VERs are third party verified, to ensure quality and rigor.

CDM registration with the Executive Board (EB) occurs prior to project implementation.

Forestry Standards

There are 18 third-party offset standards and certification programs, two of which were launched in 2008. Standards provide verification and validation that offset projects are: real (have happened), additional (beyond business-as-usual activities), measurable, permanent (not temporarily displace emissions), independently verified and unique (not used more than once to offset emission.

Global Green Carbon uses both CCBS standard and the VCS standard and has the capacity for CDM and the CAR standard when applicable.  GGC also employs the FSC standard for commercial operations.

Here are some of the major standards that apply to the forestry carbon and timber markets today:

 

CCB Standard logo

The Climate, Community and Biodiversity Standard (CCBS)

The Climate, Community and Biodiversity Alliance (CCBA) is a partnership between leading companies, environmental organizations, and research institutes seeking to promote integrated, community-based solutions to biodiversity and climate mitigation, around the world. This alliance created the CCB voluntary standards to support programming that supports biodiversity, climate change mitigation, and sustainable development.


The Climate Community and Biodiversity Alliance

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Voluntary Carbon Standard (VCS)

The VCS Program provides a robust, new global standard and program for approval of credible voluntary offsets.


Voluntary Carbon Standard

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Andean Carbon Corporation

Clean Development Mechanism (CDM)

The Clean Development Mechanism (CDM) is the mechanism provided by Article 12 of the Kyoto Protocol.  The CDM provides the following:
•    Assists developing countries in achieving sustainable development
•    Permits Annex 1 countries to finance projects in developing nations and receive CER credits for doing so
•    Pertains primarily to the compliance market, though CERs also trade on the voluntary market


http://cdm.unfccc.int/index.html

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Andean Carbon Corporation

Climate Action Reserve (CAR)

The Climate Action Reserve is a national offsets program working to ensure integrity, transparency and financial value in the U.S. carbon market.


Climate Action Reserve

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Andean Carbon Corporation

Forest Stewardship Council (FSC)

The FSC is a nongovernmental, non-profit organization that promotes the responsible management of the world’s forests. FSC provides:
•    Internationally recognized standard setting
•    Corporate trademark assurance
•    Accreditation services to organizations and communities interested in responsible forestry

www.fsc.org

 

 

 
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