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Project Standard V3.1 - 2020 Global Carbon Council Project Standard 2 of 34 Global Carbon Council Project Standard 3 of 34 Contents 1 INTRODUCTION 6 2 PURPOSE 7 3 PRINCIPLES 8 4 PROJECT TYPES 9 5 GENERAL PROJECT ELIGIBILITY CRITERIA 11 5.1 COMMON ELIGIBILITY CRITERIA FOR ALL PROJECT TYPES 11 5.2 SPECIFIC ELIGIBILITY CRITERIA FOR TYPE A PROJECTS 12 5.3 SPECIFIC ELIGIBILITY CRITERIA FOR TYPE B PROJECTS 12 6 GENERIC AND SPECIFIC REQUIREMENTS 13 6.1 GENERIC REQUIREMENTS RELATED TO APPLICABLE RULES 13 6.2 GENERIC REQUIREMENTS RELATED TO DESIGNING PROJECT ACTIVITIES 13 6.3 GENERIC REQUIREMENTS RELATED TO IMPLEMENTING AND MONITORING PROJECT ACTIVITIES 15 6.4 SPECIFIC REQUIREMENTS RELATED TO DESIGN OF PROJECT ACTIVITY 15 6.4.1 PROJECT DESCRIPTION 15 6.4.2 PROJECT OWNERSHIP 15 6.4.3 PROJECT START DATE 15 6.4.4 PROJECT CREDITING PERIOD 15 6.4.5 PROJECT SCALE 16 6.4.6 PROJECT LOCATION 16 6.4.7 PROJECT BOUNDARY 16 6.4.8 PROJECT ADDITIONALITY 16 6.4.9 BASELINE SCENARIOS FOR GCC PROJECTS 18 6.4.10 PROJECT EMISSION REDUCTIONS 18 6.4.11 PROJECT MONITORING 18 6.4.12 PROJECT RECORDS AND INFORMATION 18 6.5 SPECIFIC REQUIREMENTS FOR PROJECT IMPLEMENTATION AND MONITORING 18 6.5.1 DESCRIPTION OF IMPLEMENTED REGISTERED PROJECT ACTIVITY 19 6.5.2 DESCRIPTION OF MONITORING SYSTEM 19 6.5.3 CALCULATING EMISSION REDUCTIONS OR NET ANTHROPOGENIC REMOVALS 21 APPENDIX 1 MAPPING GCC PROJECT REQUIREMENTS 22 APPENDIX 2 EXAMPLE ILLUSTRATION OF PROJECT TYPES A apply GCC Rules,2 including the Project Standard and applicable methodologies; and enable the Project Owners to demonstrate this achievement by obtaining the GCC carbon credits certification label Approved Carbon Credits or ACCs. b do not cause any net harm to the environment and society, by applying the GCC Environmental and Social Safeguards Standard, and enable Project Owners to demonstrate this achievement by obtaining additional GCC certification labels i the Environmental No-net-harm Label E; and ii the Social No-net-harm Label S. c contribute to achieving the United Nations Sustainable Development Goals SDGs, by applying the GCC Project Sustainability Standard, and enable Project Owners – depending on the number of SDGs that the project contributes to – to demonstrate this achievement by obtaining additional GCC certification labels i the Bronze SDG label Level 1 by achieving 2 out of 17 SDGs ii the Silver SDG label Level 2 by achieving 3 out of 17 SDGs 1 The GCC Program is operated on behalf of GCC Steering Committee by GCC Operations Team. Any submission to ‘GCC’ or ‘GCC Program’ shall be considered to be submitted to ‘GCC Operations Team’, which can be contacted at operationsglobalcarboncouncil.com . GCC documents are available on website www.globalcarboncouncil.com/resource-centre.html 2 “GCC Rules” means the rules and requirements set out by the GCC Program related to GHG emission reductions, SDG contributions, Do-no-net-harm on Environment and Society requirements, and certification based on GCC Program documents including ISO 14064-2, ISO 14064-3, the GCC Program Framework, the GCC Program Manual, applicable methodologies and Tools, and the other documents mentioned in GCC Program Framework and available on the GCC public website https//www.globalcarboncouncil.com/gcc-framework.html . Global Carbon Council Project Standard 7 of 34 iii the Gold SDG label Level 3 by achieving 4 out of 17 SDGs iv the Platinum SDG label Level 4 by achieving 5 out of 17 SDGs or v the Diamond SDG label Level 5 by achieving more than 5 out of 17 SDGs 3. The process stipulated in a Paragraph 2 a above is mandatory and the GCC Project Activity shall at a minimum reduce GHG emissions – this is called the minimum performance track; and b Paragraph 2 a and c above are voluntary – these are called the rated performance track. 4. For all Project Activities, the Project Owners shall identify the project Type Types A1, A2, B1 or B2, as per section 4 below, and complete the Project Submission Form PSF, clearly identifying the requirements including the certification labels and/or market eligibility e.g., CORSIA they target. The choice made by the Project Owners in the PSF including on the cover page shall become a package of requirements against which the GHG Verifier, the GCC Operations Team and the Steering Committee shall assess and evaluate the project throughout the project cycle. The GCC Operations Team can be contacted at operationsglobalcarboncouncil.com 5. Project Owners shall indicate their choice ex-ante in the PSF and reflect it in the Monitoring Report, which shall be verified by approved GCC Verifiers at both the Project Verification and the Emission Reduction Verification stages of the project cycle. 6. This standard has been developed based on the requirements of section 3 of the Program Manual,3 which is the overarching program document that provides links to various GCC documents containing the rules and requirements governing the GCC Program. 7. The Program Definitions document provides definitions of the terms4 used in this document and shall be referred to when applying the Program Standard this document. 8. The requirements stipulated in the Program Manual and the Verification Standard shall also apply to Project Owners and to GCC Verifiers, to ensure conformance when applying the Program Standard. 2 Purpose 9. The purpose of the Project Standard is to a Ensure that documentation prepared by Project Owners and submitted to the GCC Program throughout the project cycle is of high quality; and b Describe the specific requirements applicable to Project Owners who intend to develop GCC Projects to reduce GHG emissions and to submit requests for registration and 3 GCC documents available on website www.globalcarboncouncil.com/resource-centre.html 4 While using any GCC document, the terms/definitions/acronyms and the names of the regulatory documents referred have their first letter capitalized e.g., the Project Standard. Global Carbon Council Project Standard 8 of 34 issuance of carbon credits Approved Carbon Credits or ACCs under the GCC Program as well as applications for additional certification labels SDG and E/S.5 3 Principles 10. In addition, to the principles defined by ISO 14064-2, the following principles guide the design and implementation of GCC Project Activities and the monitoring of GHG emission reductions or net anthropogenic GHG removals, with the aim of ensuring the environmental integrity of GCC project activities. a Additional The Project Owners shall demonstrate that anthropogenic GHG emissions are less than those that would have occurred in the absence of the Project Activity. b Avoidance of Double Counting The Project Owners shall ensure that the GHG emission reductions generated by the GCC project activity are not applied more than once toward any emission-reduction target or in more than one emissions inventory. c Independently Audited All GHG emission reductions resulting from GCC projects shall be verified by an independent auditor – unless exemptions are provided by the GCC Rules e.g., for project type B2 – with the expertise necessary to understand the context of both the country and the sector in which the project is implemented, with an aim to provide a reasonable level of assurance to the GCC Program that they are credible. All of the requirements established in the applicable version of ISO 14064-3 shall be complied with. d Compliance with legal requirements The Owners of GHG emission-reduction projects shall demonstrate that they comply with all applicable host-country legal requirements6, with compliance focused at project level scope. e Legally binding GHG emission-reduction projects that are implemented as the result of an enforced legal mandate government regulation, law cannot be submitted to the GCC as emission-reduction projects. f Quantifiable emission reductions All GHG emission reductions shall be quantifiable using recognized measurement tools including adjustments for uncertainty and leakage against a credible emissions baseline. g Permanent Emission Reductions Where GHG emission reductions are generated by projects that carry a risk of reversibility, adequate safeguards shall be in place to ensure that the risk of reversal is minimized and that, should any reversal occur, the equivalent amount of emission reductions shall be replaced or compensated by the Project Owner 5 The other voluntary requirements related to additional certification labels on contribution to SDGs SDG, do-no-net- harm to Environment E and Society S, Host Country Attestations on Double Counting for CORSIA are contained in separate GCC documents available on the GCC website and shall be referred to. 6 The legal requirements include demonstration of the Project Owner to be the registered legal entity in the host country e.g., factory or plant or project licences; approval from the environmental authority e.g., consents to establish, consent to operate, etc; approval from the health and safety authority e.g., boiler safety certificate, safety approvals, etc.; electricity approvals, etc.. Global Carbon Council Project Standard 9 of 34 or/and the GCC Verifier as per the terms and conditions and the liability provisions stipulated in the GCC Verifier agreement. h Real The Project Owners, in order to ensure real emission reductions, shall prove that their GHG emission-reduction projects have been designed, implemented, and monitored according to the registered project documentation approved by the GCC Program and as required by the Program Process. i Transparency The Project Owners shall disclose sufficient and appropriate Project Activity-related information in a truthful manner to allow the intended users7 to make decisions with reasonable confidence. In order to make decisions on project registration and approval, and methodology approval with reasonable confidence, the GCC Program requires that project- and methodology-related data/information be taken from credible sources and made transparently available to public stakeholders for comments. The GCC Program shall not disclose proprietary or confidential information marked as such by Project Owners, without the written consent of the provider of the information, except as required by national/regional law and GCC rules. In this context, information used to determine the additionality of the project activity, the description of the baseline methodology and its application, and information supporting UN SDG contributions, environmental and social impact and do-no-net-harm assessment studies, and issues related to environmental integrity and double counting shall not be considered as proprietary or confidential. 4 Project Types 11. This section defines two broad types of projects Type A and Type B that are eligible under the GCC Program. Both project types are required to have started operations on or after 1 January 2016.8 a Type A These include projects that are not registered under any GHG Program, including the CDM.9 To submit such type of projects to the GCC Program, the Project Owners shall refer to the Program Process and follow the entire project cycle for registration and issuance of ACCs i Type A1 The start date of operations10 for such GCC projects shall be on or after 5 July 202011 and after the date of submission of a complete registration request to the GCC Program. The start date of the Crediting Period of such GCC Project 7 Intended users include Project Owners, GCC Verifiers, the GCC Advisory Board and GCC Steering Committee, the GCC Operations team, the GCC Registry/ IHS Markit, national authorities and local and other stakeholders. 8 CORSIA pilot phase vintage eligibility criteria require that first crediting period of Project must start on or after 1 January 2016. The GCC Program also started on 1 Jan 2016. 9 Some projects may have submitted a new CDM methodology or its revision, or a CDM prior-consideration form, or started CDM global stakeholder consultation or CDM validation processes, but not been registered. 10 As per the GCC rules, the start date of operations of the GCC Project Activity is the earliest date when emission reductions are generated by the Project. 11 The date of approval of this document by the GCC Steering Committee is 5 July 2020. Global Carbon Council Project Standard 10 of 34 Activities shall be on or after 5 July 202012 but not more than one year13 after the start date of the operations of the GCC Project Activity. ii Type A2 These types of projects are prompt-start and had already started their operations as of 5 July 2020.14 Their start date of operations shall be after 1 January 2016 but before 5 July 2022.15 These types of projects shall submit complete registration requests to the GCC Program no later than 5 July 2022.16 The start date of the Crediting Period for such GCC Project Activities shall be on or after 1 Jan 2016 but not more than one year17 after the start date of the operations of the GCC Project Activity. b Type B These projects include all de-registered CDM projects whose Project Owners or Project Participants as per the CDM Glossary of Terms wish to register them with the GCC. The start date of the Crediting Period of such GCC projects shall be after 1 Jan 2016 and the same as that stipulated in the registered CDM Project Design Document as uploaded on the UNFCCC website. Such projects have previously been registered under the CDM, which implies that they have demonstrated compliance with CDM requirements and GCC Rules related to GHG emission reductions including CDM methodology, global stakeholder consultation GSC, local stakeholder consultation LSC, Additionality, and Environmental impacts. For such de-registered CDM projects, ACCs can only be issued by GCC Program after de-registration with the CDM and for the remaining Crediting Period for which CERs have not been issued by the UNFCCC CDM Executive Board, subject to a ceiling of the 10-year crediting period that is allowed under the GCC Program. The project type B is classified into two sub-types B1 and B2 depending on whether or not the Project Owners wish to apply for additional labels SDG, E and S and the market eligibility flag e.g., CORSIA. For submitting such projects to the GCC, the Project Owners shall follow the project cycle, as stipulated in sections 3.1 and 3.2 of the Program Process, for each project type B1 or B2. i Type B1- With Additional labels By default, such projects comply with the GCC Rules related to GHG emission reductions. Therefore, they are not required to conduct/repeat processes already conducted under CDM registration related to demonstration of GHG emission reductions. The Project Owners shall be required to demonstrate compliance with requirements for registration with additional la
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