v1.0 - 2016

© 2016 Gulf Carbon Trust - All rights reserved

PROGRAMPROCESSES

GULF CARBON TRUSTالمجلس الـخليجي للبصمة الكربونية

COPYRIGHT © 2016

All rights reserved to Gulf Carbon Trust (G.C.T). No part of this document may be reproduced in any form by any means.

GULF CARBON TRUST (G.C.T)Program Processes v1.0 - 2016

PROGRAM PROCESSES

GULF CARBON TRUST

Realising Qatar Vision 2030

PROGRAM PROCESSES

TABLE OF CONTENT

1 PROJECT PROCESS ...................................................................................................................................... 5

1.1 SUBMISSION AND REVIEW ..................................................................................................................................... 5

1.2 CALL FOR PUBLIC INPUTS ...................................................................................................................................... 5

1.3 PRE-APPROVAL OF SUBMISSION AND CONTRACTING .............................................................................. 5

1.4 VERIFICATION ................................................................................................................................................................ 6

1.5 APPROVAL OF VERIFICATION .................................................................................................................................. 7

1.6 RELEASE OF PAYMENT .............................................................................................................................................. 7

Figure 2: Overview GCT Project Process ..................................................................................................8

2 BASELINE AND MONITORING METHODOLOGY DEVELOPMENT PROCESS ............................................. 9

2.1 SCREENING MITIGATION OPPORTUNITIES .......................................................................................................... 9

2.2 DEVELOPMENT OF METHODOLOGY ....................................................................................................................... 9

2.3 STEERING COMMITTEE FEEDBACK AND APPROVAL ...................................................................................... 7

Figure 2: Overview GCT Methodology Development Process .........................................................10

2.4 METHODOLOGY REVISION ....................................................................................................................................... 10

3 DOCUMENT HISTORY ................................................................................................................................. 12

GULF CARBON TRUST Page 1

PROGRAM PROCESSES

ACRONYMS

CAR Climate Action Reserve

CDM Clean Development Mechanism

GHG Greenhouse Gas

GORD Gulf Organisation for Research and Development

GS Gold Standard

GWP Global Warming Potential

IETA International Emissions Trading Association

IPCC Intergovernmental Panel on Climate Change

ISO International Organization for Standardization

GCT Gulf Carbon Trust

UNFCCC United Nations Framework Convention on Climate Change

VB Verification Body

VCS Verified Carbon Standard

WBCSD World Business Council on Sustainable Development

WWF World Wildlife Fund

Page 2GULF CARBON TRUST

PROGRAM PROCESSES

1 PROJECT PROCESS

1.1 SUBMISSION AND REVIEW

Project owners shall complete and upload the appropriate Project Submission Form for the project.

The submission is assessed by GCT to check project´s eligibility under GCT program and emission reduction calculations. A project is considered “submitted” when all of the appropriate forms have been completed and submitted through the GCT website.

Projects must be submitted before the start date of the project which is defined as the date when the project starts to reduce or avoid GHG emissions.

While assessing the submission for its eligibility and completeness, the GCT may request the project owner for additional information, or revision of the submission.

Upon receiving submission, the completeness check and eligibility check are again performed and only completed submissions are uploaded on GCT website, except those documents which are requested to be kept confidential1 by project owners.

GORD will start the identification of suitable project supporters and designing of appropriate financial modalities including upfront and result-based financing. For this, the financial details of project and project owners and expected project performance are necessary.

1.2 CALL FOR PUBLIC INPUTS

While uploading the complete documentation, the inputs are invited from the stakeholders from the applicable region. The inputs can be about any technical, social, environmental, economical, and regulatory or policy aspect related to the submitted project activity. The time period for inviting the inputs is 15 days.

1.3 PRE-APPROVAL OF SUBMISSION AND CONTRACTING

Taking into account the public inputs and based on further assessment of projects, GCT will further communicate with project owners to invite more information, if applicable. The changes to existing document shall be submitted in highlighted form with a new version number. The submitted information will be made available on the GCT website. In case the project documentation meets all requirements of the GCT Program, GCT will give pre-approval to the project. For this, the project must qualify all the tests and meet eligibility criteria as per Project Standard and applicable methodology.

1 For the sake of transparency, only selected category of documents can be accepted by GCT as confidential. These may include, detailed schematics and specifications of technology, accurate location of project, and financials.

GULF CARBON TRUST Page 3

PROGRAM PROCESSES

The pre-approval willonly be granted after all the queries of GCT have been satisfactorily answered by the project owner.

GORD shall procure necessary upfront financial support for the project, and sign the contract with the project supporter using ”Project Support Contract – Project Supporter Form”.

GCT will sign a contract with the project owner. The contract is signed using ”Project Support Contract GCT – Project Owner Form”. The contract shall be non-negotiable and non-disclosed, fixing the upfront and result-based payment amount and schedule of payment to be made to the project owner after implementation of the GHG emission reduction project.

1.4 VERIFICATION

A verification body is appointed by GCT on behalf of project supporter, and with an agreement that the project supporter will cover the fees of verification body.

PROJECT VERIFICATION

Within 6 months after start of project operation, the verification body shall review the project data and monitoring systems, perform a site visit as needed, raises non-conformities and invite the corrective actions (if applicable) from project owners. Upon successful closure of non-conformities, the verification body verifies that the project has fully complied with the information provided in the project submission document. The verification body then submits a Project Verification Report using Project Verification Report Form and a positive Project Verification Statement using Project Verification Statement Form to GCT.

The verification bodies: (i) will NOT assess the eligibility of projects, named as “validation” (as a “validation” type of assessment is carried out by GCT during project “pre-approval” stage as mentioned above), and (ii) will NOT conduct any annual verification of emission reductions (a similar kind of non-periodic assessments is carried out by verification bodies during emission reduction verification visits (either predefined, or spot checks, as mentioned below).

EMMISSION REDUCTION VERIFICATION

As per mutually agreed between GCT, Project Owner, and Project Supporter for specific project type/s, either the monitoring period shall be defined for which a verification is to be carried out, or provision of spot checks (surprise visit without intimation to Project Owner) is be made. During emission reduction verification visit, the verification body shall review the monitoring systems and monitored data for the monitoring period, perform a site visit to cross-verify, raise non-conformities and invites the corrective actions from project owners (if applicable). Upon successful closure of non-conformities, the verification body shall verify the credibility of emission reductions and their compliance with submitted documents. The verification body shall then submit a Emission Reduction Verification Report using Emission Reduction Verification Report Form and a positive Emission Reduction Verification Statement using Emission Reduction Verification Statement Form to GCT.

Page 4GULF CARBON TRUST

PROGRAM PROCESSES

1.5 APPROVAL OF VERIFICATION

GCT shall review the verification report and the verification statement, and shall either approve the verification or request a re-submittal of one or more of its components. This shall be done by GCT after receiving verification report and verification statement from verification body.

1.6 RELEASE OF PAYMENT

Upon the final approval of the verification report, GCT shall release the payment as per the contract.

Figure - 1 below summarizes the project process:

GULF CARBON TRUST Page 5

PROGRAM PROCESSES

Figure 1: Project submission and approval process flow chart.

GCT to assess the project as per the applicable standard. Adopt dierent modes of communication (personal

interview and written communications) to identify and record non-conformities.

After rounds of completeness check and satisfactory completion of submission, GCT to make the documents

publically available.

Project owner to submit project to GCT in the prescribed format, following baseline and monitoring methodology ,along with all the

relevant documents (Calculation sheets, feasibility study, financials etc.)

Upon its assessment for eligibility, GCT to

seek carbon finance advice from advisory board, major buyers

in the region.

GCT to communicate to project owner on possible carbon

finance (amount and modalities,

result-based (Upfront plus regular interval

finance))

GORD to facilitate an agreement

between GORD, project owner

and buyer.

GORD to collect money from

buyers at once for

disbursement at regular intervals.

GORD to conduct spot checks to check implementation

of monitoring plan and

performance of project.

GORD to periodically

disburse finance to project owner

as agreed, subject to third party

report on spot check/regular

visit.

GORD to periodically

disburse finance to project owner

as agreed, subject to third party

report on spot check/regular

visit.

If physical implementation and monitoring requirements

confirmed, disburse upfront part of finance.

Register the project and upload the

decision of GCT website.

FLOWCHART FOR PROJECTS SUBMISSION AND APPROVAL (Approx. processing time/project- 3 to 6 months)

Project owner to discuss project idea with GCT and GCT to

make preliminary assessment for project quality,

emission reductions, environmental integrity and

eligibility.

If third Party does not conform implementation or monitoring

compliance, raise the non-conformity.

Ask the project owner to

resubmit with necessary

amendments.

GCT to appoint third Party to verify

the physical implementation of

project and monitoring

requirements as per the project documentation.

If non-conformities are not resolved satisfactorily in two rounds of

communication, reject the project.

Close non-conformities upon satisfactory resolution of all

the issues raised.

If document does not meet requirements of the standard/s, raise non-conformities, seek clarifications/

new submission.

If document meet all the requirements of

applicable standard/s.

Page 6GULF CARBON TRUST

PROGRAM PROCESSES

2 BASELINE AND MONITORING METHODOLOGY DEVELOPMENT PROCESS

Project owners can either use methodologies published under the GCT Program or apply baseline and monitoring methodologies (hereinafter referred as “methodologies”) of international carbon credit standards such as CAR, CDM, GS or VCS to their projects. GCT Program methodologies are developed by GCT applying the process described below, in figure - 2.

2.1 SCREENING MITIGATION OPPORTUNITIES

GCT uses an internal screening process to identify suitable project categories and associated methodologies. It takes into account a number of aspects when developing a new methodology or revising existing international methodology to adapt to regional circumstances.

Applicability of Standardized MethodologiesProject categories shall allow the application of standardized concepts and therefore not be technically too complex or specific. For complex project categories, where standardized concepts cannot be adopted, either GCT will revise the methodologies of international carbon standards (CDM, CAR, Gold Standard, VCS) to simplify them and make them fit for regional use, or project owners may directly use these methodologies for submission of project documentation to GCT.

Emission Reduction Potential and Environmental IntegrityIn general GCT proprietary methodologies will focus on standardized default factors to reduce their transaction costs for project development. Although, the methodologies will be scale-neutral, for methodologies covering potentially larger projects, higher level of stringencies shall be applied to safeguard the environmental integrity.

Replicability

The GCT program will prioritize methodologies for project types which are highly important for the sustainable development of the region and can be replicated.

Sustainable Co-benefitsMethodologies developed under the GCT program will not include any project categories which may have a significant negative impact to sustainability. All else equal, project categories which create higher sustainable co-benefits will be prioritized.

Data AvailabilityCredible and current data on default emission factors, penetration rates of technologies/fuels/feedstocks etc. should be available for GCT to be able to develop methodologies.

GULF CARBON TRUST Page 7

PROGRAM PROCESSES

2.2 DEVELOPMENT OF METHODOLOGY

The methodologies shall be developed based on demand from the project owners. One part of the cost for the methodology development will be covered by project owner, while other part by project supporter if it is interested in supporting the project implemented based on the methodology. The methodology development may involve the simplification and adaptation of the existing methodology from other GHG programs (CAR, CDM, GS, VCS) for the regional use.

To initiate the project methodology development process, GCT will put together a diversified working group, consisting of internal and external experts. External experts will join the working groups by invitation. The internal experts shall lead the process by conducting background research, collecting all relevant information and preparing the draft methodologies. Throughout the development process, the external members of the working group shall provide the expert reviews and direct input into methodology.

2.3 STEERING COMMITTEE FEEDBACK AND APPROVAL

After finalization of the methodology within the working group, GCT will forward the “final draft methodology to the members of the Steering Committee, which is made of set of three GCT and external experts, apart from those involved in methodology development. The Steering Committee will discuss the “final draft methodology” electronically and will provide its feedback. If required, physical meetings can be organized by GCT to allow the discussions. GCT will revise the methodology based on feedback of steering committee and publish it on the GCT program website, with appropriate version numbering (e.g. Version 1.0). It is immediately available for use.

2.4 METHODOLOGY REVISION

Policy RevisionsPolicy revisions are those that affect project definitions or eligibility, or that involve significant changes or adjustments to baseline estimations and/or the quantification of emission reductions or removals, and/or significant change in monitoring requirements, and/or change in the contents of positive lists. Depending on the extent of the revision, GCT may convene an expert working group. All policy revisions require feedback from the Steering Committee. When adopted, a policy revision creates a new version of the methodology.

Program RevisionsProgram revisions are editorial or technical in nature and do not require feedback from the Steering Committee. Program revisions create a new subversion of the methodology.

Grace PeriodProject developers have 30 days from the date on which a revised methodology is adopted to submit a project to GCT using the previous version of the protocol.

Page 8GULF CARBON TRUST

Seek independent expert consultation, approve and upload on website.

YESNO

FLOWCHART FOR METHODOLOGY DEVELOPMENT(Approx. processing time/project- 3 to 6 months)

PROJECT OWNER

Pay

men

t of f

ees

to G

CT fo

r de

velo

pmen

t, re

visi

on o

f st

anda

rd, e

xper

t con

sult

atio

n an

d a

ppro

val.

GCT

Develop new

standard.

Any GCT/ international

standards available?

Select the most suitable one, and if required, revise it to adapt to local circumstances.

Project Owner discusses GHG mitigation project idea with GCT team.

GCT team to make preliminary assessment for project quality, emission reductions, environmental integrity

and eligibility.

GCT team to ensure that the project owner seeks project registration with GCT.

Fig 2: Methodology development flow chart.

PROGRAM PROCESSES

3 DOCUMENT HISTORY

Version Date Comment

v1.0 01/11/2016 Initial version released under GCT Program Version 1

Page 10GULF CARBON TRUST

GCT PROGRAM PROCESSES