Validation and Verification: VCS

Transcription

1 Validation and Verification: VCS Mr N.VASASMITH GHG Assessor Scope 13.1 Meeting room 3, Zone B, Queen Sirikit National Convention Center 2012 January 24 Prepare by Ms S.THONGSONG 1

2 Introduction VCS is a comprehensive quality-assurance system for carbon credits issued in voluntary markets. If the project verified and met all VCS requirement, the Verified Carbon Units (VCUs) will be issued for trading. Key Roles and Responsibilities in the VCS quality assurance system include: (G2.5) Project Proponents Methodology Element Developers Validation/Verification Bodies VCS Registry VCU Buyers Sellers and Brokers VCS Association (VCSA) 2

3 VCS Version (G1.1) In later 2005, Initiated by the Climate Group, the International Emissions Trading Association, World Economic Forum 28 March 2006: Version 1 of the VCS was released as both a consultation document and a pilot standard for use in the market. In October 2006: VCS version 2 was released as a consultation document and did not replace Version 1 as the market standard. 19 November 2007: VCS 2007 was released. 18 November 2008: VCS was released. 08 March 2011: VCS version 3 was released for the guideline and standard. 15 July 2011: Updated VCS standard version 3.1 was released. 3

4 Normative Reference for VCS Program (G2.4) The following are normative (referenced) documents for the VCS Program: ISO :2006, Greenhouse gases - Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements, ISO, ISO :2006, Greenhouse gases - Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions, ISO ISO 14065:2007, Greenhouse gases - Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition, BSI, The GHG Protocol for Project Accounting (Chapter 7, guidance related to additionality and common practice), WRI,

5 Key Characteristics to Compliance the Verified Carbon Standard: Validation & Verification 5

6 Validation & Verification: CDM vs VCS Standard Requirements for Validation Validation Approval Process Requirement for Verification Verification Approval Process Third-party Requirements CDM Project Design Document (PDD) containing: Description of the project activity; Information on baseline methodology; Crediting period; Monitoring methodology and plan; Estimation of GHG emissions by sources; Environmental impacts; Stakeholders comments; Host nation approval. Validation documents need to be approved by the CDM Executive Board. After approval, the project is officially registered Monitoring report (by project developer) including estimate of CERs generated. Verification report (by DOE) and certification report (by DOE) confirming the emissions reductions. Project developers monitor project according to monitoring plans as given in the PDD. Monitoring reports are submitted to third-party auditor (DOE). DOE writes verification reports which are then submitted for approval to the CDM Executive Board. Validation and verification have to be done by third-party auditors (Designated Operational Entities, DOEs). To avoid conflict of interest, validation and verification cannot be done by the same DOE for Large scale project. 6

7 Validation & Verification: CDM vs VCS Standard Requirements for Validation Validation Approval Process Requirement for Verification Verification Approval Process Third-party Requirements VCS The VCS Project Description (VCS PD), monitoring plan, environmental impacts, comments by stakeholders etc. are validated according to ISO requirements and VCS Programme requirements. Validation documents are approved by the auditors. Validations are mandatory, and can be completed up front or at the time of the first verification Monitoring report (by project developer) including estimate of VCUs generated. ISO requirements using the VCS Verification Report template confirming the emissions reductions. Project developers monitor project according to VCS PD. Monitoring reports are verified by thirdparty auditor. Auditor writes verification reports and also approves them and the emissions reductions. These are automatically approved by the VCS once authenticity and completeness of documents have been confirmed. Registered CDM DOEs Certified auditors under ISO Auditors registered under JI Other auditors need to be certified by the VCS board. 7

8 Project Registration Process (RI3) A single validation/verification body may undertake both validation and verification on a specific project, provided it has the required accreditation for the relevant sectoral scope(s) for both validation and verification The validation/verification body shall assess the project for compliance with the VCS rules and produce a validation report and validation representation. The validation representation, which is the deed issued by the validation/verification body containing a unilateral representation that it has validated the project's compliance with the applicable VCS rules, shall be prepared using the VCS Validation Deed of Representation Template and the validation/verification body shall ensure that it is properly executed as a deed in accordance with applicable local laws and the organization s own constitutional documents (eg, signature by directors and requirement of company seals). 8

9 Project Registration Process (RI3) The validation/verification body shall assess the GHG emission reductions or removals for compliance with the VCS rules and produce a verification report and verification representation. The verification representation, which is the deed issued by the validation/verification body containing a unilateral representation that it has verified the relevant GHG emission reductions or removals in accordance with the applicable VCS rules, shall be prepared using the VCS Verification Deed of Representation Template and the validation/verification body shall ensure that it is properly executed as a deed in accordance with applicable local laws and the organization s own constitutional documents (eg, signature by directors and requirement of company seals). 9

10 Project Registration Process (RI3) The project may be validated and registered sequentially under the VCS Program and another GHG program, and issue GHG credits for non-overlapping periods under the respective program. The following applies: 1) The project shall comply with all the applicable VCS rules, including project start date and project crediting period requirements. 2) Project validation shall be completed within one of the following time periods: a) Non-AFOLU Projects i) The other GHG program validation (or verification, where the approved GHG program does not have a validation step) or VCS validation shall be completed within two years of the project start date. 10

11 ii) Additional time is granted for non-afolu projects to complete validation where they are applying a new VCS methodology. Specifically, projects using a new VCS methodology and completing validation within one year of the approval of the methodology by the VCSA may complete validation within three years of the project start date. Note that new VCS methodology in this context refers to both newly issued VCS methodologies and newly issued VCS revisions to approved GHG program methodologies. The grace period does not apply in relation to any subsequent versions of such new methodologies and new methodology revisions that may be issued. iii) For projects registered under approved GHG programs, the approved GHG program validation (or verification) or VCS validation shall be completed or contracted before 19 November In relation to contracts entered into before 19 November 2008, the approved GHG program validation (or verification) or VCS validation, as the case may be, shall be completed before 19 November 2009 (ie, at least one or other of the validations shall be completed before 19 November 2009). Proof of contracting of the approved GHG program validation (or verification) or VCS validation as the case may be, prior to 19 November 2008 shall be provided in accordance with Section

12 3) Where the project is claiming GHG credits sequentially under the VCS Program and the CDM and where the project description and validation report follow CDM templates and procedures, the project proponent shall complete the cover page and sections 1.2, 1.3, 1.5, 1.6, 1.7, 1.9, 1.10, , , , and 1.13 of the VCS Project Description Template and a validation/verification body shall undertake a validation of same to validate the project s compliance with the VCS rules. Such further validation, which shall be accompanied by a validation representation, may be submitted to the VCS registry administrator in a separate validation report or within the verification report. The additional project description shall also be submitted to the VCS registry administrator. 12

13 Project Start Date (D) The date on which the project began generating GHG emission reductions or removals; Projects shall complete validation within two years of the project start date. If the project commenced before registered under the CDM project, the VCS can be claimed for 2 years counted from the date registered for CDM 13

14 Project Crediting Period (D) The project crediting period shall be a maximum of ten years which may be renewed at most twice. (3 x 10 years) Cannot be double counted for other GHG Program. 14

15 Project Registration Request (RI) 15

16 Project Rejected by Other GHG Program (S3.12.5) Proponents of projects that have been rejected under other GHG Programs can apply for VCUs but must state why the project was rejected and provide the rejection documents. Such information shall not be deemed as commercially sensitive information. The project shall be validated against the VCS rules. For projects where the other GHG program has rejected the project after VCS validation, this means a complete revalidation of the project against the VCS rules. 16

17 METHODOLOGY DEVIATIONS (S3.5) Deviations from the methodology applied to the project are permitted where they represent a deviation from the criteria and procedures relating to monitoring or measurement (but not quantification) of GHG emission reductions or removals set out in the methodology. Deviations relating to any other part of the methodology shall not be permitted. Methodology deviations shall not negatively impact the conservativeness of the quantification of GHG emissions reductions or removals. Methodology deviations shall be permitted at validation or verification and their consequences shall be reported in the validation or verification report, as applicable, and all subsequent verification reports. Methodology deviations are not considered to be precedent setting. 17

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19 MONITORING PLAN DEVIATIONS (S3.6) Deviations from the monitoring plan (ie, the procedures for monitoring and measurement) set out in the project description are permitted provided the project remains in compliance with the applied methodology. Monitoring plan deviations shall be described and justified in the monitoring report. Monitoring plan deviations shall be validated at the time of verification and their consequences shall be reported in all subsequent verification reports. 19

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21 Conclusion VCS is rigorous carbon standard but less bureaucratic than CDM Methodology approval process is much faster than with UNFCCC (and acknowledged by UNFCCC) through double approval process At time of registry, VCS Validation document required - no CDM Validation document accepted; same verifier can do validation and verification together Reference website for VCS: (D) Program Definitions Version 03.1 (G) VCS Program Guide Version 03.1 (s) VCS Standard Version 03.1 (RI) Registration and Issuance Process Version 03.1 Making Sense of the Voluntary Carbon Market: A Comparison of Carbon Offset Standards, WWF 21

22 Thank you TÜV NORD CERT GmbH A member of TÜV Nord Group Langemarckstraße 20 D Essen Tel +49 (201) Fax +49 (201) cdm@tuev-nord.de TÜV NORD (Thailand) Ltd. 1858/ th Floor, Nation Tower Bangna-Trad Rd., Bangna, Bangkok Thailand Tel. +66 (0) ext: Cell. +66 (0) Fax. +66 (0) nattapon@tuv-nord.com 22