Carbon Market Regulations Tracker

GHANA'S FRAMEWORK ON INTERNATIONAL CARBON MARKETS AND NON-MARKET APPROACHES

JURISDICTION TYPE

National

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SHORT NAME

Ghana's Article 6 cooperative approach framework

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment, Science, Technology and Innovation (MESTI)

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TYPE OF REGULATION

National Policy Document

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

-

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ENTRY INTO FORCE DATE

15.12.2022

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STAKEHOLDERS

• Project Developers
• Carbon Credit Buyers

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REGULATION SUMMARY

🡒 Ghana's Article 6 cooperative approach framework was published in December 2022 and acts as a policy blueprint on Ghana's approach to engaging in market and non-market mechanisms under Article 6 of the Paris Agreement. The framework is devised to attain Ghana's nationally determined contribution (NDC) goal of reducing its conditional absolute emissions reductions of 24 million tonnes of CO2eq. The framework covers guidelines on Ghana's Article 6.2 cooperative approach strategy and guidance on the voluntary carbon market, as well as its operational guidelines under Article 6.4, with the intention of providing an approach to the future Article 6.8 currently under discussion by the United Nations Framework Convention on Climate Change (UNFCCC).
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Principles and Obligations under Article 6.2 in this Framework

Environmental Integrity, Transparency and the Promotion of Sustainable Development

The framework is guided by the principles of environmental integrity, transparency and the promotion of sustainable development. Part of Ghana's approach to ensuring environmental integrity and transparency includes not authorising ITMOs for transfer under the unconditional NDCs, and authorising ITMOs for mitigation activities in the conditional NDC and outside of its NDC, insofar as the removals are attributed to the latest GHG inventory and agreed to by participating Parties. The approach also involves a verification report before issuance of Internationally Transferred Mitigation Outcomes (ITMOs), and a conservative approach in assessing reference levels and attention towards minimising the risk of non-permanence of mitigation. Mitigation activities must be consistent with sustainable development objectives of the country, and also make use of a Sustainable Development Tool to identify and monitor such impacts.
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Authorisation

Ghana will grant authorisation of mitigation outcomes (MOs) for the achievement of an NDC in the buyer country (NDC-type MOs) ; for use on CORSIA (CORSIA-type MOs); and for other voluntary mitigation purposes (VER-type MOs) . Other mitigation purposes include for other mitigation purposes. Ghana has created a whitelist containing pre-authorised technologies considered as additional to its NDC. A red list categorises mitigation activities that would not be considered as additional to the NDC, and therefore not considered for Article 6 participation.
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Governance and Institutional Framework

The framework establishes the following entities to govern Ghana’s participation in Article 6 mechanisms:

• Carbon Market Committee: Also referred to as the Governing Committee, for developing and approving rules for Article 6.2 transactions.
• Carbon Market Inter-Ministerial Committee: A high-level committee for supervising and playing an oversight role in Ghana's Article 6 engagements.
• Carbon Market Office: A Secretariat that provides policy support, implements the rules and requirements, including authorisation, corresponding adjustments, reporting for transactions, support in mitigation activity sourcing and development, and registry services.
• Carbon Market Technical Committee: Also referred to as the Technical Advisory Committee, for providing technical advice.
• Carbon Registry: An online system that hosts GHG mitigation activities, and provides records of all ITMO activities and ITMOs issued.

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Mitigation Activity Development Process

The framework details each step in the mitigation activity development process that involves the national authority, the acquiring participating Party, the mitigation activity participant, independent auditors and VCM project developers if relevant. The framework has published each step of the development consisting of a pre-activity development stage, an implementation & issuance stage, and two transaction stages.
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Validation and Registration, Monitoring and Reporting

Projects must be verified by an eligible independent entity, and specific requirements are laid out in order to validate the issuance of a letter of authorisation. Registration is processed through the country's Carbon Market Office. Monitoring and reporting must be conducted via the Carbon Market Office's monitoring template.
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Fees

• A one-time fee will apply to mitigation activity participant applicants or entity applicants from USD 300 - 1,000.
• A one-time fee will apply for mitigation activity identification (MID), ranging from USD 200 - 500, dependent on the scale of the activity, funding, and activity type.
• All entities - service providers, carbon credit brokers, validation/verification entities - pay a fee to receive a Unique Identification Number fixed at USD 400. Any new activity the entity gets involved in shall attract an additional USD 300 fee.
• A corresponding adjustment fee of USD 3-5/unit of ITMOs will be used to raise ambition beyond the NDC and cover administrative costs of creating and reporting transferable mitigation outcomes.
• A listing fee is to be paid at the time of registration (ex-ante) or at the point of issuance (ex-post) of 0.01 / unit of ITMOs if under the voluntary carbon market, or of 0.2 / unit of ITMOs for mitigation activities seeking to generate ITMOs for authorisation and transfer.
• Administrative fees for Article 6.4 approval are set at USD 1,000.

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BILATERAL AGREEMENTS

• Singapore: Implementation Agreement.
• South Korea: Bilateral Agreement negotiations.
• Sweden: Memorandum of Understanding on Article 6.
• Switzerland: Implementation Agreement & Roadmap.

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OTHER NOTES

The framework's Article 6.2 approach is legally supported by the Environmental Protection Agency (EPA) Act 490, 1994, which mandates the implementation of specific Article 6.2 functions that enable the authorisation and transfer of ITMOs to acquiring participating Parties.

Ghana's Article 6.2 activity and project pipeline consists of 8 projects, seven of which are earmarked for Switzerland and/or Klik Foundation as receiving parties, and one earmarked for the voluntary carbon market.

September 2024, Ghana and Singapore launched a call for projects under their bilateral Article 6 agreement.

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OFFICIAL DOCUMENT

Ghana Carbon Market Framework

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OTHER DOCUMENTS

Bilateral Climate Agreements

Singapore signs Implementation Agreement with Ghana to collaborate on Carbon Credits under Article 6 of the Paris Agreement

Ghana’s Report on the Implementation of Article 6 of the Paris Agreement

Singapore, Ghana issue first call for Article 6 projects

H.E. PRIME MINISTER DECREE 4464/2022 AMENDING SOME PROVISIONS OF THE EXECUTIVE REGULATIONS OF THE CAPITAL MARKET LAW.

JURISDICTION TYPE

National

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SHORT NAME

Prime Minister's Decree No: 4664/2022

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Economy and Trade

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

25.12.2022

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ENTRY INTO FORCE DATE

25.12.2022

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STAKEHOLDERS

• Project Developers
• Independent Crediting Standards
• Validation and Verification Bodies

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REGULATION SUMMARY

🡒 Decree No. 4664/2022 modifies the executive regulations of the Capital Market Law (Law No. 95 of 1992), which regulates the capital markets in Egypt. Decree No. 4664/2022 creates a domestic voluntary market for trading carbon credits on the Egyptian Stock Exchange. It considers carbon credits as tradable financial instruments, defined as "certificates of greenhouse gases emissions reduction". Entities implementing projects that generate carbon credits must notify the Financial Regulatory Authority (FRA) and the Ministry of Environment.

Institutional Arrangements

Financial Regulatory Authority (FRA): FRA will maintain a database of all projects generating carbon credits. Entities implementing projects that generate carbon credits must notify the FRA.

Supervisory and Monitoring Committee on Carbon Credits: This committee will be formed to oversee the carbon credit market, including drafting regulations for issuance and trading.

Egyptian Exchange: The exchange will issue trading rules and procedures for carbon credits, which become effective only after approval by the FRA.

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BILATERAL AGREEMENTS

• No bilateral agreement in place

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OFFICIAL DOCUMENT

H.E. Prime Minister Decree 4464/2022 Amending some provisions of the Executive Regulations of the Capital Market Law.

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OTHER DOCUMENTS

Voluntary Carbon Market Regulations and Resolutions published by the Financial Regulatory Authority

FRA BOD DECREE NO. 57/202: THE COMMITTEE FOR SUPERVISION AND MONITORING OF CARBON CREDITS AND ITS COMPETENCES.

JURISDICTION TYPE

National

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SHORT NAME

Decree No. 57/2023,

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Financial Regulatory Authority (FRA)

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

22.3.2023

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ENTRY INTO FORCE DATE

22.3.2023

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STAKEHOLDERS

• Project Developers
• Independent Crediting Standards
• Validation and Verification Bodies

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REGULATION SUMMARY

🡒 Within the context of Decree No. 4664/2022 that creates a voluntary market for trading carbon credits, Decree No. 57/2023 establishes the "Committee for Supervision of Carbon Emission Reduction Units (Carbon Credits)" within the Egyptian Financial Regulatory Authority (FRA). The committee comprises members from the FRA, the Ministry of Environment, the Egyptian Exchange, and relevant experts.

The committee is tasked with:

• Developing regulations for carbon credit issuance, supervision, and monitoring, ensuring transparency in carbon emission reduction projects.
• Establishing criteria for selecting Validation and Verification Bodies (VVBs) for these projects.
• Creating guidelines to ensure the integrity and credibility of issued carbon credits.
• Formulating regulations to prevent conflicts of interest among stakeholders involved in the carbon credit issuance process.
• Identifying approved carbon registries where trading of issued carbon credits is permitted.
• Collaborating with relevant entities to establish the "Egyptian Registry for Carbon Credits".
• Defining and classifying different types of carbon credits.

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BILATERAL AGREEMENTS

• No bilateral agreement in place

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OFFICIAL DOCUMENT

FRA BOD Decree No. 57/202: The Committee for Supervision and Monitoring of Carbon Credits and its Competences.

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OTHER DOCUMENTS

Voluntary Carbon Market Regulations and Resolutions published by the Financial Regulatory Authority

Registration Form For Carbon Emissions Reduction Projects at FRA’s Database

FRA BOD DECREE 163/2023: PROMULGATING THE STANDARDS OF REGISTERING VERIFICATION AND VALIDATION BODIES FOR CARBON EMISSION REDUCTION PROJECTS WITH FRA.

JURISDICTION TYPE

National

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SHORT NAME

Decree 163/2023

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Financial Regulatory Authority (FRA)

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

na

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ENTRY INTO FORCE DATE

9.8.2023

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STAKEHOLDERS

• Validation and Verification Bodies

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REGULATION SUMMARY

🡒 Within the context of Decree No. 4664/2022 that creates a voluntary market for trading carbon credits, Decree 163/2023 focuses on the registration process for Validation and Verification Bodies (VVBs) with the Financial Regulatory Authority (FRA) in Egypt.

Article 1 announces the creation of a registry within the FRA specifically for approving VVBs for carbon emission reduction projects. This registry serves as a centralised database containing detailed information on each approved VVB. Only VVBs listed in this registry are authorised to conduct verification and validation for carbon emission reduction projects intended for trading in Egypt.

Eligibility Criteria for Egyptian VVBs

1. Legal Entity: The applying entity must be a legally registered corporate entity in Egypt.

2. ISO Certifications: The entity must hold certifications demonstrating adherence to international standards for validating and verifying environmental information and greenhouse gas statements. The required certifications include ISO 14065:2020, ISO/IEC 17029:2019, and ISO 14064-3:2019.

3. Professional Competence: The VVB must demonstrate its professional capability to perform the required verification and validation tasks.

4. CEO Interview: The CEO or a designated representative must successfully complete an interview conducted by the FRA. This ensures that the leadership of the VVB understands the requirements and expectations of the FRA.

5. Clean Criminal Record: The management team and personnel involved in verification and validation must not have been convicted of felonies or misdemeanors related to crimes against honor or trust within the past three years, unless their rights have been fully restored. This provision aims to maintain the integrity and trustworthiness of the VVBs.

Eligibility Critieria for International VVBs

• The entity must be recognized by established international climate organizations, such as being a Designated Operational Entity (DOE) under the UNFCCC, recognized under Article 6 of the Paris Agreement, or listed in international voluntary carbon registries like the Gold Standard, VCS, or GCC.
• The VVB must submit documentation showcasing its expertise and experience in verification and validation, including at least three projects registered in recognized international voluntary carbon registries.
• The VVB must include at least one Egyptian expert within its verification and validation team.

Additional Provisions

• Trading guidelines: International entities trading carbon emission reduction certificates within Egypt must notify the FRA of their accredited VVBs.
• Application Procedure: VVBs must submit applications using the FRA's designated form, along with documentation proving compliance with decree criteria. The FRA reviews complete submissions within 30 days.
• Registration Maintenance: VVBs must adhere to registration terms, comply with their commitments, and renew annually.
• Registration fees: For Egyptian VVBs (EGP 10,000 initial, EGP 2,000 renewal); international VVBs (USD 500 initial, USD 100 renewal).

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BILATERAL AGREEMENTS

• No bilateral agreement in place

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OFFICIAL DOCUMENT

FRA BOD Decree 163/2023: Promulgating the Standards of Registering Verification and validation Bodies for Carbon Emission Reduction Projects With FRA.

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OTHER DOCUMENTS

Voluntary Carbon Market Regulations and Resolutions published by the Financial Regulatory Authority

VVBs List in Arabic

FRA BOD DECREE 30/2024: ON STANDERS FOR THE ADOPTION OF LOCAL CARBON REGISTERS.

JURISDICTION TYPE

National

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SHORT NAME

Decree 30/2024

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Financial Regulatory Authority (FRA)

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

31.1.2024

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ENTRY INTO FORCE DATE

31.01.2024

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STAKEHOLDERS

• Project Developers
• Indipendent Crediting Standard

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REGULATION SUMMARY

🡒 Decree No. 30/2024 establishes the criteria for the Financial Regulatory Authority (FRA) to recognize local voluntary carbon registries in Egypt. It applies to local voluntary carbon registries seeking recognition by the FRA to operate on the Egyptian Voluntary Carbon Market Exchange (“Africarbonex”). International registries recognized by the International Carbon Reduction and Offset Alliance (ICROA) are automatically recognized.

To be recognized by the FRA, registries must meet requirements in the following six key areas:

General Requirements

• Project Registration: Registries must follow specific procedures for registering carbon emission reduction projects.
• Ownership Tracking: They must enable tracking of carbon credit ownership and transfers, from issuance to retirement, to achieve carbon neutrality.
• Unique Identifiers: Each project and credit must have a unique identification number.
• Information Dissemination: Registries are responsible for disseminating information about carbon emission reduction projects, including project descriptions, reports (follow-up, validation, verification), and legal data.
• Double Registration Prohibition: Registries must have measures in place to prevent double registration of projects, ensuring a project registered in one registry cannot be registered in another.
• Agreements with Developers: A formal agreement between the registry and project developers outlining rights and obligations is required.
• Connectivity with Trading Infrastructure: The registry should connect electronically with FRA-licensed settlement and clearing companies for data exchange, particularly related to carbon credit ownership.

Validation and Verification Requirements

• Approved Verification Bodies: The registry needs a list of approved validation and verification bodies, adhering to the provisions of FRA Decree No. (163) of 2023.
• Sector Eligibility: The registry should specify the sectors eligible for carbon emission reduction project registration.
• Conflict of Interest Prevention: Strict rules and procedures are needed to prevent conflicts of interest between the registry operator, project financers, and the validation and verification bodies.

Governance Requirements

• Maintain an appropriate organizational structure based on business volume.
• Board members must avoid conflicts of interest and seek approval for contracts involving personal interests.
• Establish IT Governance and Technology Risk Management Committees.
• Board members must exercise due diligence in Registry activities.

Information Systems Requirements

• Maintain a separate issuance system for validation, verification, and documentation.
• Operate a registry system to manage ownership transfers of credits, supporting various processes.

Technological Infrastructure Requirements

Hardware and network capacities must align with system requirements, using licensed software and robust security protocols to ensure continuous operation and data exchange, while security mechanisms like firewalls, multi-factor authentication, and data encryption protect the IT environment. Annual penetration tests, incident reporting to FRA, time synchronization, and comprehensive event logging for at least five years are essential for maintaining security and operational integrity.

Infrastructure-Related Requirements

A disaster recovery strategy matching the main system's specifications must be established at both headquarters and an alternate location, including energy, environmental, and safety controls. Physical security measures, reliable backup power, and efficient energy consumption strategies should be implemented to optimize data center performance and minimize carbon footprint

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BILATERAL AGREEMENTS

• No bilateral agreement in place

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OFFICIAL DOCUMENT

FRA BOD Decree 30/2024: On Standers for the Adoption of Local Carbon Registers

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OTHER DOCUMENTS

Voluntary Carbon Market Regulations and Resolutions published by the Financial Regulatory Authority

FRA BOD DECREE 31/2024: RULES AND REGULATIONS OF LISTING & DELISTING CARBON CREDITS

JURISDICTION TYPE

National

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SHORT NAME

Decree 31/2024

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Financial Regulatory Authority (FRA)

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

31.1.2024

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ENTRY INTO FORCE DATE

31.01.2024

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STAKEHOLDERS

• Project Developers

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REGULATION SUMMARY

🡒 Decree No. 31/2024 details the process for listing and delisting carbon credits on Egyptian exchanges.

Registration Process

1) Project Registration with FRA: Before listing, projects must be registered in the FRA's Carbon Reduction Projects Database. This involves submitting an application and relevant documentation, including proof of carbon credit issuance post-Paris Agreement ratification, environmental impact assessments (if applicable), and validation and verification reports.

2) Listing Application to the Exchange: After FRA registration, an application to list carbon credits is submitted to the exchange. This application includes details about the project, the registry, and the carbon credits.

3) Committee Review: The exchange's Steering Committee reviews listing applications and makes decisions within five days.

4) Listing and Trading: Following the committee's approval, carbon credits are listed and traded based on the exchange's rules and regulations.

Disclosure and Delisting

• Disclosure Obligations: Carbon credit owners must inform the exchange about any significant information that might impact trading.
• Optional Delisting: Owners can request to delist carbon credits, for example, for retirement or transfer to a non-tradable account.
• Compulsory Delisting: Circumstances like project removal from the FRA database, violations, or project incompletion can lead to forced delisting. In such cases, the project owner or financer must repurchase the delisted certificates from investors.

Appeals Process: Applicants can appeal against the committee's decisions on listing or delisting. Appeals first go to the Exchange's Board of Directors and, if necessary, can be escalated to the FRA.

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BILATERAL AGREEMENTS

• No bilateral agreement in place

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OFFICIAL DOCUMENT

FRA BOD Decree 31/2024: Rules and Regulations of Listing & Delisting Carbon Credits

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OTHER DOCUMENTS

Voluntary Carbon Market Regulations and Resolutions published by the Financial Regulatory Authority

H.E. PRIME MINISTER DECREE NO: 636/2024 AMENDING PROVISIONS OF THE EGYPTIAN ACCOUNTING STANDARDS AND ACCOUNTING EXPLANATION NO. 2/2024

JURISDICTION TYPE

National

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SHORT NAME

Decree No: 636/2024

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Prime Ministers Office

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

NA

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ENTRY INTO FORCE DATE

1.1.2025

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STAKEHOLDERS

• Carbon Credit Byers

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REGULATION SUMMARY

🡒 Decree No. 636/2024 adds the Egyptian Accounting Explanation No. 2, "Certificates of Carbon Emissions Reduction (Carbon Credits) to the Egyptian Accounting Standards.

The decree specifies how carbon credits are treated in terms of accounting depends on the specific arrangements and commercial purpose of their issuance or purchase. Factors considered for determining the appropriate accounting approach include:

• Understanding the carbon credit issuance cycle.
• - The arrangement's nature and commercial purpose for buying or issuing carbon credits.
• Classifying carbon credits as financial or intangible assets based on the arrangement and purpose.
• Providing clear disclosures about carbon credits and accounting policies.

Different Cases of Accounting Approaches

The explanation outlines different scenarios and their respective accounting treatments, including initial measurement (i.e. the determination of the value of the carbon credit when first recognized in the financial statements), subsequent measurement, and derecognition, for:

• Carbon credits issued for owned carbon reduction projects (treated as intangible assets for internal use and financial instruments for sale).
• Carbon credits issued for non-owned carbon reduction projects (treated as financial instruments).
• Carbon credits purchased for internal use/retirement (treated as intangible assets).
• Carbon credits purchased for trading (treated as financial instruments).

Tax Treatment, Special Cases, and Disclosure

The explanation also addresses tax treatment according to Egyptian Accounting Standard No. 24 "Income Tax", special cases involving changes in acquisition purpose, and disclosure requirements related to accounting policies, valuation methods, and changes in carbon credit balances.

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BILATERAL AGREEMENTS

• No bilateral agreement in place

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OFFICIAL DOCUMENT

H.E. Prime Minister Decree No: 636/2024 Amending provisions of the Egyptian Accounting Standards and Accounting Explanation No. 2/2024

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OTHER DOCUMENTS

Voluntary Carbon Market Regulations and Resolutions published by the Financial Regulatory Authority

THE CLIMATE CHANGE (CARBON MARKETS)  REGULATIONS, 2024

JURISDICTION TYPE

National

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SHORT NAME

-

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Cabinet Secretary for Environment, Climate Change and Forestry

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TYPE OF REGULATION

Legal instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

1.9.2023

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ENTRY INTO FORCE DATE

17.5.2024

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STAKEHOLDERS

• Project Developers
• Carbon Credit Buyers

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REGULATION SUMMARY

🡒 The Climate Change (Amendment) Act, 2024, is a direct amendment of the Climate Change Act of 2016 and defines Kenya's participation in both compliance and voluntary carbon markets, as well as the principles that would govern its trading activities. The Act provides a framework for the implementation of carbon market projects. The objective of the regulation is to create incentives and implement initiatives to support emissions reductions and removals activities, and provide guidance on social contributions, understood as monetary benefits accrued from carbon market projects developed on community and public land, which are disbursed to the relevant communities. The Cabinet Secretary may, with the approval of the Cabinet, enter into any agreement to trade in a carbon market established or overseen by an internationally recognised entity that is approved by a recognised credible international body.

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Governance and Institutional Framework

The Act establishes the governance and institutional framework necessary for participation in carbon markets. It assigns a Cabinet Secretary the responsibility of overseeing carbon market policies and other related crediting mechanisms, and is responsible for the following sectors: energy; transport; agriculture; forestry and land use; industrial processes and product use; and waste.

The Cabinet Secretary is responsible for coordinating international processes and negotiating bilateral or multilateral agreements for the international trade of emission reductions and removals. Supporting institutions include a Designated National Authority (DNA), a Climate Change Directorate, a multi-sectoral technical committee and an ad-hoc committee. A National Carbon Registry will also be set up under this regulation in order to keep, maintain, and update registers of carbon market projects.

Their respective responsibilities include the following:

The DNA shall:

(a) provide key information to carbon project proponents;

(b) evaluate carbon project concept notes and issue letters of no objection;

(c) issue approval letters to project proponents;

(d) submit project design documents to the ad hoc committee;

(e) monitor compliance of registered carbon projects;

(f) guide on operationalizing Article 6.2 of the Paris Agreement;

(g) guide on Article 6.4 of the Paris Agreement, including activity approval and authorization;

(h) guide on corresponding adjustments and project eligibility;

(i) maintain a list of recognised carbon standards;

(j) appoint ad hoc committees for reviewing project documents.

The Climate Change Directorate shall:

(a) advise the government on regulating carbon market activities for compliance;

(b) coordinate and mobilise sectoral stakeholders for effective carbon market management;

(c) coordinate public participation and awareness on carbon markets;

(d) facilitate research on carbon markets.

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The Multi-Sectoral Technical Committee:

(a) will be composed of members from ministries, counties, departments, and agencies representing all sectors of the Intergovernmental Panel on Climate Change (IPCC). These members will be nominated by the respective sector Cabinet Secretaries and the Council of Governors;

(b) Nominated members must have expertise in energy, transport, agriculture, forestry and land use, industrial processes and product use, or the waste sector;

The Designated National Authority will also appoint ad hoc committees, with up to five members from the multi-sectoral technical committee, to:

(a) review project design documents and provide recommendations;

(b) offer technical advice on carbon projects.

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A National Carbon Registry shall:

(a) maintain and update the registers as per section 23G(3) of the Act;

(b) ensure the confidentiality of collected information;

(c) submit quarterly reports to the Cabinet Secretary on the information in the register under section 23G(3) of the Act.

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Key Requirements

The framework also notably establishes the requirement to obtain an environmental impact assessment for all carbon credit projects and to enter into community development agreements that establish terms on the distribution of benefits between the project developers and impacted communities. A contribution of aggregate earnings for projects on public and community land is set at 40% of the aggregate earnings of the previous year (less cost of doing business) for all land-based projects, and at 25% for non-land-based projects. Carbon market projects on private land by private entities are not required to disburse annual social contributions.

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Process of Approval and Authorisation

The Act designates the DNA to provide guidance on the rules, modalities, and procedures of Article 6.4 of the Paris Agreement, including approval and authorisation of activities and the project proponents.

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Other Considerations

• Carbon market projects on private land by private entities are not required to disburse annual social contributions.
• At least 25% of aggregate earnings of the previous year for non-land based projects, and at least 15% for land-based projects, shall be paid into a consolidated fund, to be used for sustainable development.
• It is now an offence to conduct unauthorised trade in carbon credits.

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BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM.
• Singapore: MoU on Article 6.
• Switzerland: Statement of intent on bilateral cooperation.

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OTHER NOTES

A Carbon Credit Trading and Benefit Sharing Bill is in the legislative process. Among the measures, the establishment of a Carbon Trading and Benefit Sharing Authority is proposed. This Authority would be mandated to issue carbon trading permits for persons trading in voluntary and compliance carbon markets. The bill also proposes the introduction of benefit-sharing ratios between this new entity, the national government, relevant local governments, communities, and project proponents. A Carbon Credit Trading Tribunal would be in charge of disputes arising from carbon credit trading operations.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

The Climate Change (Carbon Markets) Regulations, 2023

The Climate Change (Carbon Markets) Regulations, 2024 - Legal Notice No. 84

— — — — — — — — — — — — — —

OTHER DOCUMENTS

The Carbon Credit Trading and Benefit Sharing Bill

JCM Kenya - Japan

Singapore and Kenya MOU in carbon credits collaboration under Article 6 of the Paris Agreement

Statement of Intent on a Bilateral Cooperation under Article 6 of the Paris Agreement between the Swiss Federal Council and the Government of the Republic of Kenya

NATIONAL CARBON MARKET FRAMEWORK 

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

National Carbon Market Framework

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Rwanda Environment Management Authority (REMA)

— — — — — — — — — — — — — —

TYPE OF REGULATION

National policy document

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

2.12..2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

2.12.2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Rwanda's national carbon market framework details the administrative and institutional framework for Article 6 implementation, as well as the guiding principles to facilitate Rwanda's participation in carbon markets both within and outside Article 6 (6.2 & 6.4) and in non-market approaches under Article 6.8.

Administrative and Institutional Framework

The institutional framework consists of an Extended Governing Board (Oversight Body) and an Article 6 Unit.

1) Oversight Body

The Oversight Body provides long-term oversight of adopting necessary legislation and institutional mandates for the support of Article 6 activities. Its responsibilities include:

• Coordination among multiple ministries.
• Advising on Article 6 participation strategy.
• Monitoring of the implementation of the framework.
• Coordination with other climate and sectoral initiatives.

2) Article 6 Unit

The Article 6 Unit, also known as the carbon market office, is tasked with defining and implementing the Article 6 Framework. It is responsible for:

• Operationalizing activities;
• Managing the share of proceeds;
• Providing technical support;
• Overseeing transparency and accounting requirements, including recording and reporting activities and managing corresponding adjustments;
• Developing and implementing procedures to facilitate the country's participation in the framework, which includes:

-- Identifying eligible mitigation activities;

-- Establishing authorisation and approval mechanisms;

-- Verifying and issuing Internationally Transferred Mitigation Outcomes (ITMOs);

-- Applying corresponding adjustments;

-- Integrating reporting and accounting into the national system for reporting to the United Nations Framework Convention on Climate Change (UNFCCC).

3) Designated National Authority

The Rwanda Environment Management Authority (REMA), previously the Designated National Authority (DNA) for the CDM has been designated as the focal point for Article 6.4.

-

Policy Framework and Guiding Principles

Rwanda's guidelines for participation are in line with provisions of the Paris Agreement, and come with additional specifications for Rwanda's case. The framework mentions that the Government of Rwanda approves Article 6.2 activities and Article 6.4 projects based on national interest, and activities seeking recognition as non-market approaches require approval, and offset projects in the voluntary market need a letter of no-objection. Voluntary market projects labelled as Article 6 will imply the contribution of a share of proceeds (which can be thought of as a tax on market mechanisms) for the administration of carbon markets provision. There will also be special attention paid to forestry sector projects under Article 6, which will have to adhere to Law n47bis/2013 on the sale of forestry services.

-

Share of Proceeds & Fees

A share of proceeds will apply for the approval of Article 6 activities, and the issuance of a letter of no objection for voluntary market projects. However, the level of share of proceeds is yet to be determined.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: MoU on Article 6
• Sweden: Memorandum of Understanding on Article 6

— — — — — — — — — — — — — —

OTHER NOTES

In order to fulfil the unconditional targets of Rwanda's nationally determined contribution (NDC), an estimated USD 6.9 billion in international aid will be required. The Government of Rwanda itself has committed USD 4.1 billion to fulfil these targets. The use of Article 6 and other international climate finance mechanisms will be used to meet Rwanda's conditional targets.

The Rwanda Climate Change Portal has several guidance notes linked to the national carbon market framework, including guidance for applications that details the process of acquiring a letter of authorisation for a carbon project; a template for a Project Idea Note and mitigation activity design document; and a separate guidance on the carbon market framework.

The guidance on the carbon market framework outlines the elements a project needs in order to be registered as a carbon project:

a. Be in line with national policies, laws and strategies;

b. Indicate how the project shall contribute to the NDC (emission reductions at national level);

c. Adhere to national priority carbon market sectors;

d. Indicate how the project will contribute to the SDGs;

e. Ownership of the property involved in the project; community development agreements or agreements with property owners and other relevant entities;

f. Involvement of local communities in the project conceptualisation and development;

g. Adhere to transparency and fairness;

h. Adhere to national investment priorities, ecological, social, cultural and economic safeguards; and

i. Indicate expected employment creation to the national experts and local communities.

The guidance document also sets out the procedure for developing carbon projects. The project proponent should apply for non-objection of the carbon market project idea from the Designated National Authority (DNA) by filling out the Project Idea Note template. Within 90 days of the DNA's non-objection, the proponent should fill out the Mitigation Activity Design Document (MADD) and Contribution to Sustainable Development (SD) templates for approval by the DNA. Alongside these templates, the completed application should include additional supporting documents such as agreements and Memoranda of Understanding (MoUs).

On September, 2024, Rwanda, through the Rwanda Green Fund and the Rwanda Environment Management Authority (REMA), partnered with Gold Standard and Singapore-based investment firm GenZero to develop Article 6-compliant carbon credit projects in Rwanda. This collaboration aims to attract international climate finance while promoting sustainable development and decarbonization efforts in Rwanda.

Under the agreement, Rwanda and GenZero will assess potential projects, ensuring they meet Rwanda's National Carbon Market Framework and Gold Standard certification. These projects will issue credits with Corresponding Adjustments to prevent double counting, and GenZero will will set out investment parameters and assess proposals for commercial viability, such as the project's mitigation potential, project maturity and financial returns.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

National Carbon Market Framework

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Rwanda Climate Change Portal - Rwanda Carbon Market

Guidance to National Carbon Market Framework

Singapore and Rwanda sign Memorandum of Understanding to Collaborate on Carbon Credits to Accelerate Climate Action

Rwanda, Gold Standard, GenZero to collaborate on Article 6 carbon credit projects

Rwanda and Sweden sign Memorandum of Understanding to cooperate on the implementation of Article 6 of the Paris Agreement

CARBON TAX ACT 15 OF 2019 

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

South Africa Carbon Tax

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Finance

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

23.5.2019

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

1.6.2019

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Carbon Credits buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 South Africa's Carbon Tax Act 15 imposes a carbon pricing mechanism for large emitters. The Act is regulated by the Customs and Excise Act of 1964, requiring taxpayers to submit yearly environmental accounts and payments as per Act No. 91 of the 1964 Act. As of the financial year 2024, the tax is set at ZAR 190 (approximately USD 10.51, exchange rate 1 USD = ZAR 18.08 as of May 21, 2024)/tCO2e. The pricing mechanism was adopted in order to incentivise businesses and industries to reduce emissions and adopt cleaner technologies.

-

Implementation Phases

The tax is implemented in two phases: Phase I, which spanned from 1 June 2019 to December 2022 (and was extended to 2026), and Phase II, scheduled from 2026 to 2030.

Phase I: Phase I applies exclusively to Scope 1 emitters and allows for tax-free emission allowances, ranging from a threshold of 60% to 95% in certain sectors detailed below. This results in a net tax rate ranging from ZAR 6 to ZAR 48 (approximately USD 0.33 to USD 2.65, exchange rate USD 1 = ZAR 18.08 as of May 21, 2024).

Phase II: The basic 60% threshold will be discontinued, although additional tax-free allowances will be maintained at 35%.

-

Sectors and Activities Eligible for Allowances

• Energy industries, including electricity and heat production, petroleum refining and manufacture of solid fuels;
• Manufacturing industries, including iron, steel, chemicals, mining, textiles and leather;
• Transport, including domestic aviation, road transportation, railways and water-borne transport.

-

Of these sectors and activities, allowances include the following:

• Fugitive and process emissions allowance: 10%;
• Trade exposure allowance: up to 10%;
• Performance allowance against emissions-intensity benchmarks: up to 5%;
• Participation in phase 1 of the carbon budgeting system: 5%;
• Carbon "offsets" allowance: 5% to 10%, depending on the sector, wherein projects must be developed in South Africa.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

OTHER NOTES

• The Act was last amended on January 1st, 2022.
• The tax was amended under the Taxation Laws Amendment Act 20 of 2021, adapting certain provisions and the original tax increase schedule to align with South Africa's nationally determined contribution (NDC) to the Paris Agreement
• The initial tax rate was set at ZAR 120 (approximately USD 6.63, exchange rate 1 USD = ZAR 18.08 as of May 21, 2024) in 2019, with an annual increase planned at the rate of inflation plus 2% up until 2022, followed by adjustments based solely on inflation in subsequent years.
• Phase II was originally scheduled to commence in 2023 but was extended to 2026.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Carbon Tax Act 15 of 2019

— — — — — — — — — — — — — —

OTHER DOCUMENTS

South Africa's carbon tax: changes and implications for tax payers

CARBON TAX ACT REGULATIONS

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Carbon Offset Regulations

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Finance

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

29.11.2019

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

-

— — — — — — — — — — — — — —

STAKEHOLDERS

-

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The Carbon Offset Regulations are linked to Section 19c of the Carbon Tax Act 2019, and details the eligibility of carbon credit projects or activities, limitations, processes and institutional responsibilities for use of the Act's carbon "offset" allowance. The carbon tax can be offset by retiring domestic carbon offsets only. This offset allowance is capped at either 5% or 10% depending on the IPCC activity/sector, as identified in Schedule 2 of the Carbon Tax Act (2019). The offset use allowance will be increased by 5 percentage points from 2026 to encourage investment in low-carbon projects.

-

Eligible Standards and Project Types

• Carbon offset projects must be verified under the Verified Carbon Standard (VCS), Gold Standard (GS), or the Clean Development Mechanism (CDM).
• All projects in the AFOLU, waste, and transportation sectors.
• All community-based energy efficiency projects.
• Energy efficiency and co-generation projects which do not also generate thermal energy implemented on activities that are covered by the carbon tax resulting in reduced fuel consumption.
• All small-scale renewable energy (RE) projects up to 15 MW for both the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) and non-REIPPPP projects.
• For projects greater than 15 MW, either from the REIPPPP from Bidding Round 3 onwards or from non-REIPPPP projects, provided that their tariff, as per the signed PPA, is above R1.09/kWh.
• RE projects of any size under the REIPPPP signed after May 9, 2013.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

OTHER NOTES

South Africa launched a carbon registry in July 2020, the Carbon Offset Administration System (COAS), where emitters can surrender carbon credits against their tax obligations by retiring credits on the platform. The total volume of offsets listed on COAS in 2022 equalled 3 million. The same year, 2 million offsets were retired for the purpose of complying with South Africa’s carbon tax. Since the tax took effect in 2019, only in 2020 has the number of offsets retired for the purpose of complying with the country’s carbon tax exceeded the number of offsets listed on COAS in the same year.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Carbon Tax Act Regulations

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Carbon Offset Administration System

THE ENVIRONMENTAL MANAGEMENT (CONTROL AND MANAGEMENT OF CARBON TRADING) REGULATIONS, 2022

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

The Environmental Management (Control and Management of Carbon Trading) Regulations, 2022

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

28.10.2022

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

28.10.2022

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The Environmental Management (Control and Management of Trading) Regulations, 2022, establishes a legal and institutional framework for managing carbon trading projects in the environmental sector. It outlines the roles of various authorities, the procedure for project approval, and the distribution of financial benefits from the sale of carbon credits.

-

Administrative and Institutional Framework

• Ministry of Environment: Serves as the Designated National Authority (DNA), with the Minister authorised to approve carbon trading projects.
• Local government authorities: Oversee and monitor carbon trading projects within their jurisdictions.
• Managing Authority (MA): Implements carbon trading projects, ensuring compliance with legal standards including property ownership and government engagement.
• Project proponent: Manages the registration, development, and implementation of carbon trading projects, and sells the carbon credits.

-

Project Approval and Registration

• Application for approval: Proponents must submit an application to the DNA using a prescribed form.
• Project Concept Note: Post-approval, proponents have 90 days to develop a concept note in collaboration with the MA or project partners.
• Project Document: After receiving a letter of no objection, the project document is developed within twelve months and submitted for final approval.

-

Requirements for Carbon Trading

• Projects must support the nationally determined contributions (NDC) and align with priority carbon trading sectors.
• Consent from project partners and proof of property ownership are required.
• Local community involvement and transparent disclosure of project details are mandatory.
• Projects must demonstrate potential for employment creation and undergo environmental and social impact assessments. REDD+ projects need to meet specific safeguard standards.

-

Verification and Certification

Verification of the project shall be done in compliance with the accepted international carbon trading standards.

-

Benefit-Sharing

• - MA's share: The MA receives 61% of gross revenues from carbon credit sales.
• Remaining revenues: Out of the remaining 39%, 31% is retained by the proponent, and 8% to 9% is paid to the DNA as regulatory fees.

-

Fees

• Application fee for non-citizens at USD 500.
• Application fee for citizens at USD 250.
• Project registration fee of 1% of the expected CER from the project: The registration fees is calculated as = 1% of Expected Annual Credits x Average price determined by the government for that particular year. This registration fee is paid in cash during the registration process as once –off payment over the life of the project.

Charges

• Annual administrative charge of 3% of the expected annual carbon credits from the project.
• Project charge of 5% of the expected annual carbon credits from the project.
• If carbon credits will be generated in the same year when the registration fee is paid, the project will pay a total of 9% of the expected gross revenues from the annual CERs (Clause 34.3 e). However in the subsequent years the project will pay the 8%.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

OTHER NOTES

The regulation was amended on October 10, 2023. A significant change introduced by the amendment is the adjustment in the financial distribution: previously, out of the remaining thirty-nine percent of revenues, the proponent paid nine percent to the Designated National Authority. Following the amendment, the proponent now retains 31% and pays 8% to the Designated National Authority.

The managing authority is understood to be the owner of the project, whereas the project proponent is the carbon asset developer.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

The Environmental Management (Control and Management of Carbon Trading) Regulations, 2022

— — — — — — — — — — — — — —

OTHER DOCUMENTS

The Environmental Management (Control and Management of Carbon Trading) (Amendment) Regulations, 2022

Updated Application Form for Carbon Trading

NATIONAL CLIMATE CHANGE ACT, 2021

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

National Climate Change Act, 2021

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

The Parliament of Uganda

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

14.8.2021

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

14.8.2021

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Part III of the Uganda National Climate Change Act, 2021, outlines the country's involvement in climate change mechanisms. These mechanisms include compliance emissions trading systems, voluntary markets, non-market approaches, and cooperative measures as described in Article 6 of the Paris Agreement, along with any other mechanisms defined by future regulations.

The process for a project proponent to participate in these mechanisms requires approval from the Minister. Upon receiving this approval, the project proponent is allowed to engage in and benefit from the specified climate change mechanism.

The Act assigns the responsibility to the relevant Department to monitor the involvement of project proponents in these mechanisms and to ensure that the participants adhere to the approval conditions and comply with the requirements of the Act. The Department has a reporting obligation to the Minister.

Furthermore, the Act empowers the Minister to establish regulations regarding several aspects of these mechanisms. These include the procedures for obtaining approval, the maintenance of a register of all approvals granted to project proponents, and the ownership rights of emissions reduction units and certified emission reductions derived from participation in these mechanisms.

-

Measurement of Emissions, Reporting and Verification of Emissions

• Every two years, the volume of greenhouse gas emissions and their removals must be determined according to internationally recognised reporting practices established by the Convention, its Protocol, and the Agreement.
• The Minister will establish regulations that stipulate the standard format, requirements, and methodologies for measuring emissions and the removal of targeted greenhouse gases.
• All emissions and removals reports of carbon dioxide and other greenhouse gases submitted to the Department by lead agencies, individuals, and private entities must be verified by registered verifiers, and any person who wishes to become a verifier must apply to the Commissioner for registration.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

OTHER NOTES

Uganda is leveraging international carbon markets to finance adaptation and mitigation efforts by addressing the regulatory environment and enhancing capacity development. The government is diversifying and expanding its carbon trade projects through the Climate Finance Unit, which is also responsible for developing national policies, regulations, and building capacity for validation and verification. Certain Members of Parliament recognize the urgency to establish these regulations and mechanisms to ensure Uganda can effectively compete and benefit from the carbon trade market​.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

National Climate Change Act, 2021

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Sector players root active participation in carbon market

FOREST CARBON STOCK MANAGEMENT REGULATIONS, 2021

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Forest Carbon Stock Management Regulations, 2021

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Forestry Department (Ministry of Green Economy and Environment)

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

25.6.2021

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

25.6.2021

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The Forest Carbon Stock Management Regulations, 2021, is a regulation issued under Zambia’s Forest Act of 2015, and is applicable to forest carbon projects. Permits can be issued for various forest areas including national and local forests, botanical reserves, private forests, community forests, game management areas, community partner parks, bird and wildlife sanctuaries, national parks, and leased private land.

-

Eligibility for Applicants

• Applicants must demonstrate user rights through relevant documentation such as a title certificate or consent letters from appropriate authorities.
• Eligible entities include government agencies, business agencies, international organisations, local institutions, community forest management groups, and joint forest management communities.

-

Benefit-sharing Mechanism

• The regulation on benefit-sharing states that permit holders must submit their benefit-sharing mechanism to the Director for approval. This mechanism should include an agreement signed by all interested parties, be collaboratively developed with these parties, feature auditable benchmarks, and be based on the gross revenue from sold carbon credits.
• Once approved, the permit holder is required to make the benefit-sharing mechanism public.
• Additionally, this mechanism must undergo periodic reviews after it becomes operational.

-

Permit Application Process

1) Expression of Interest (EoI): The EoI is to be submitted using Form I. The Director of Forestry (the Director) has 30 days to approve or reject; if no response is made within 30 days, the EoI is deemed approved.

2) Formal application:

- The formal permit application is submitted using Form IV upon approval of EoI. It should include agreements, proof of user rights, environmental assessments, technical and financial proposals, and approved methodologies for emission reductions. The Director is to review the application within 30 days.

3) Permit validity and renewal: Permits are valid for up to 30 years. Permit renewal is required at least three months before expiry.

-

Fees

• Application: 375,000 units (ca. USD 4,500)
• Renewal: 75,000 units (ca. USD 900)
• Permit search: 1,667 units (ca. USD 20)

Note: As per Statuory Instrument 41 of 2015, one fee unit is the equivalent of 30 Ngwee (0.30 Zambian Kwacha). One unit is therefore the equivalent of approximately USD 0.011 (as of May 21 2024).

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Further Considerations

• Jurisdictional projects: Projects under jurisdictional programs take precedence over individual projects. A permit holder within a jurisdictional project or programm, that has traded carbon before the jurisdictional programme has been approved by the Director, may be granted specific permission to continue the permit holder’s independent trading, for a period not exceeding three years from the date of approval by the Director of the jurisdictional programme.
• For Monitoring, Reporting, and Verification (MRV): The Director needs to be notified 30 days before commencement of verification and validation; a forest officer will be assigned to attend the verification.
• Social, environmental, and fiduciary safeguards need to be incorporated in the project design.
• The permit holder needs to demonstrate capability to manage permanence risks and submit a risk management plan.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

Sweden: Memorandum of Understanding on Article 6.

— — — — — — — — — — — — — —

OTHER NOTES

A significant limitation of the Forest Carbon Regulations is their narrow focus on carbon related to forests, specifically decreasing deforestation, reducing forest degradation, and boosting carbon reserves. To address this issue, the Ministry of Green Economy and Environment released Interim Guidelines on Carbon Trading/Markets. These Interim Guidelines have developed into the first part of Zambia's Carbon Market Framework, which were published on October 17th, 2023. The remaining three parts are still under development.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

The Forest (Carbon Stock Management) Regulations, 2021

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Government launches guidelines to strengthen the interim guidelines for handling carbon markets

The state of Africa’s carbon markets

Sweden and Zambia in climate cooperation under the Paris Agreement

PART I OF THE CARBON MARKET FRAMEWORK FOR ZAMBIA

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Part I of the Carbon Market Framework for Zambia

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Green Economy and Environment

— — — — — — — — — — — — — —

TYPE OF REGULATION

National policy document

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

17.10.2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

17.10.2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The Ministry of Green Economy and Environment (MGEE), acting as Zambia's official Designated National Authority (DNA) to Article 6, has released the initial section of Zambia's Carbon Market Framework on guidelines for submitting and evaluating proposed activities aimed at reducing emissions under Article 6 of the Paris Agreement. Part 1 of Zambia's Carbon Market Framework offers preliminary guidelines for government entities and the private sector on how to submit and assess proposals.

-

Assessment Process for Mitigation Activities

The assessment process for mitigation activities consists of two main stages: no-objection and authorisation.

1) No-Objection

To obtain a Letter of No Objection, the Activity Proponent (AP) is required to submit the initial mitigation activity idea note (MAIN) to the Technical Climate Change Committee for Mitigation (TCC-MIT) for preliminary review during the concept phase. If the proposed activity broadly meets the authorisation criteria, a Letter of No Objection is issued.

2) Letter of Authorisation

To secure a Letter of Authorisation, the AP is required to submit the detailed mitigation activity design document (MADD) along with its validation report to the TCC-MIT for a comprehensive final review.

Assessment: The assessment of both the MAIN and the MADD is guided by a set of 16 indicators found in Section 3.3 of the Framework and are related to environmental integrity, sustainable development, and ambition raising. The MAIN is evaluated based on 5 indicators, while the MADD is assessed against 14 criteria. For transfer authorisation from TCC-MIT, the MADD must meet all 14 criteria. Elements such as financial cash flow, additionality assessment, and contribution to transformational change must be submitted twice—first during the MAIN phase and again during the MADD phase. However, the information provided after the MAIN phase must be further refined for submission in the MADD phase.

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Further Considerations

• The fees and share of proceeds are outlined in Part 3 of the Carbon Market Framework, which is still in the process of being developed. Additionally, rules for transitioning projects from the Voluntary Carbon Market (VCM) and Clean Development Mechanism (CDM) specified in Part 2, as well as Infrastructure/Registry procedures detailed in Part 3, are also being formulated.
• The Zambia Environmental Management Agency (ZEMA) carries the reporting obligations to the United Nations Framework Convention on Climate Change (UNFCCC).

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

Sweden: Memorandum of Understanding on Article 6.

— — — — — — — — — — — — — —

OTHER NOTES

The framework is to be expanded with more sections: the second part will address the rules for transitioning CDM and VCM projects; the third part will detail the infrastructure and procedures for registries; and the fourth part will outline the fees and distribution of proceeds. These additional parts are currently under development.

A forthcoming Climate Change Bill will provide additional clarity on legal obligations concerning carbon markets and updates to Nationally Determined Contributions (NDCs).

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Part 1 of the carbon market framework for Zambia

— — — — — — — — — — — — — —

OTHER DOCUMENTS

GGGI Technical Report No. 25: Developing Carbon Markets based on Article 6 of the Paris Agreement: Challenges and Opportunities

Sweden and Zambia in climate cooperation under the Paris Agreement

CARBON CREDITS TRADING (GENERAL) REGULATIONS, 2023

JURISDICTION TYPE

National

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SHORT NAME

Carbon Credits Trading (General) Regulations, 2023

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment, Water and Climate-Change

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

18.8.2023

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ENTRY INTO FORCE DATE

18.8.2023

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STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

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REGULATION SUMMARY

🡒 The Carbon Credits Trading (General) Regulations, 2023, are a set of regulations enacted under the Environmental Management Act. The objective of the regulations is to manage and control carbon credit trading projects in Zimbabwe to ensure that these contribute to sustainable development and support Zimbabwe’s efforts of reducing greenhouse gas emissions.

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Institutional Arrangements

The Regulations stipulate the establishment of a Designated National Authority (DNA) and Carbon Credit Trading Commmittee. The DNA is tasked with the establishment of the Zimbabwe Carbon Credit Registry, the development of standardised baselines and methodologies specific to Zimbabwe, and the provision of services to the Carbon Credit Trading Committee, which provides expert policy and technical recommendations to the Minister. Furthermore, the DNA is vested with the authority to authorise the international transfer of carbon credits, both for compliance and voluntary markets.

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Application and Registration Requirements

The Regulations set forth application and registration requirements, such as the submission of Letter of Intent, a Project Idea Note following a provided template, and the payment of an application fee, before obtaining a Letter of No Objection. The requirements also apply to existing projects, which additionally must provide information on already issued carbon credits, buyer details, income accrued, benefit distributions, and clarification on whether a corresponding adjustment is necessary.

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Project proponents are required to inform the Authority in writing and submit information for registration to the Carbon Credit Registry upon verification of emission reductions. Every registered carbon credit project must submit annual reports to the Authority by March 31st of the following year, detailing progress on implemementation, emission reductions, credits generated and market prices, receipts on share of proceeds, and environmental and social safeguards.

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Mandatory Application and Registration Procedure

1) Initial Submission:

• Voluntary Carbon Market: Submit a Letter of Intent, a Project Idea Note using the PIN Template (Third Schedule), application fee (Fourth Schedule), and proof of consultations with relevant authorities.
• Cooperative Approaches (Article 6.2 of the Paris Agreement): Submit a Letter of Intent, a Project Idea Note using the PIN Template, and a Party to Party Agreement as per Decision 2/CMA3.
• Article 6.4 Mechanism: Submit a Letter of Intent and a Project Idea Note following the guidelines in the Third Schedule and Decision 3/CMA3.

2) Review Process:

• The Authority reviews submissions within 14 days and issues either a Letter of No Objection or an Objection Letter, copying the Minister.

3) Post-Approval Requirements:

• Conduct feasibility studies, notify the Authority of their commencement within six months, and submit a Project Design Document within 24 months along with a fee (Fourth Schedule).

4) Final Approval:

• The Authority assesses the Project Design Document for sustainability, environmental integrity, legal compliance, and impact on national contributions.
• Recommendations are made to the Minister, who decides to approve (issuing a Registration Certificate valid for up to 10 years) or reject the project.

5.) Project Commencement:

• Start within one year of approval, notify the Authority at the start, and maintain the right to reapply if the project lapses due to non-compliance with notification requirements.

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Environmental Integrity

The Environmental Integrity Guidelines in the Second Schedule stipulate that project proponents must demonstrate high quality in their Internationally Transferred Mitigation Outcomes (ITMOs). This shall be achieved by:

• Conservative Reference Levels and Baselines: Set below 'business as usual' emissions, considering existing policies and addressing quantification uncertainties and potential leakage.
• Minimizing Non-Permanence Risk: Addressing the risk of non-permanence over multiple Nationally Determined Contributions periods and fully addressing any reversals of emission removals.
• Carbon credits should be verified through a science-based analytical model of an ongoing verification programme

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Share of Proceeds

The Regulations stipulate a share of proceeds, with 70% to be retained by the project proponent and 30% designated as an environmental levy.

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BILATERAL AGREEMENTS

No bilateral agreements in place

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OTHER NOTES

The Zimbabwean government is nearing the final stages of public consultations on a bill to regulate carbon credits and ensure significant benefit-sharing with local communities.

According to an August 2024 report by New Zimbabwe, the proposed law would mandate that project proponents allocate 25% of their 70% share of carbon proceeds to the community where the project is located.The remaining 30% would be retained by the government. This marks a shift from the government's decision in September 2023 to reduce the benefit-sharing requirement for host communities.

Zimbabwe is preparing to enhance its carbon market by allowing international trade of ITMO credits under Article 6 of the Paris Agreement. Environment, Climate, and Wildlife Minister Sithembiso Nyoni announced efforts to improve the legal and policy framework for Zimbabwe’s participation in carbon markets on October, 2024. This will assist private sector projects, including sustainable energy initiatives, in accessing the lucrative compliance carbon market.

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OFFICIAL DOCUMENT

Carbon Credits Trading (General) Regulations, 2023

Carbon Credits Trading (General) Regulations, 2023 (Amendment)

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OTHER DOCUMENTS

Zimbabwe seeks to craft water-tight carbon trading laws, setting up of Climate Change Fund

Zimbabwe setting up legal framework for ITMO trade -media

RESOLUTION 385/2023 [RESOLUCIÓN 385/2023]

JURISDICTION TYPE

National

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SHORT NAME

Resolution 385/2023 [Resolución 385/2023]

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of the Environment and Sustainable Development [Ministerio de Ambiente y Desarrollo Sostenible]

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TYPE OF REGULATION

National Policy Document

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

12 Nov. 2023

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ENTRY INTO FORCE DATE

14 Nov. 2023

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STAKEHOLDERS

Project Developers

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REGULATION SUMMARY

🡒 The National Strategy for the Use of Carbon Markets [Estrategia Nacional para el Uso de los Mercados de Carbono (ENUMeC)] aims to establish a common framework for carbon market utilisation at the national level. It seeks to foster enabling conditions for project development in the country, contribute to mitigation and adaptation efforts, and provide transparency, integrity, and certainty for all stakeholders involved. The strategy outlines 9 strategic axes and 63 associated actions, and proposes the development of specific roadmaps for its implementation.

From the 63 actions mentioned, 8 are relevant to the voluntary market as listed below:

• Identify activities aligned with national climate objectives.
• Recommend high-integrity criteria for voluntary market implementation.
• Promote the development of projects with associated environmental and social co-benefits, particularly those aligned with national and subnational adaptation priorities, with special attention to indigenous peoples and socially vulnerable groups.
• Support the private sector in implementing voluntary markets with high environmental integrity criteria aligned with Article 6.4 of the Paris Agreement.
• Facilitate exchange between voluntary market participants and subnational and national governments.
• Define the tax framework for voluntary carbon markets in collaboration with relevant national public sector actors.
• Guide the private sector on the possible uses of unauthorised credits (i.e.,"mitigation contributions") and their alignment with national climate policy.
• Strengthen the capacities of small and medium-sized enterprises (SMEs) interested in accessing voluntary markets.

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Further considerations

• Scope: voluntary and regulated markets at the subnational, national and international level.
• Sectors and gases: All sectors and gases covered by the National Greenhouse Gas Inventory (INGEI).
• Stakeholders: all stakeholders involved in carbon market matters at the national government level, subnational governments, the private sector, and civil society.
• Initiatives: It encompasses all agreements, programs, and projects related to carbon markets developed within the country.
• The establishment of a national office for carbon markets, responsible for implementing the national strategy, is proposed as part of the institutional arrangements. However, it has not been formally adopted yet.
• The strategy outlines principles for the use of carbon markets at the national level, institutional arrangements, and general requirements for monitoring, reporting, and verification (MRV) for ENUMeC implementation.

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OTHER NOTES

No significant updates have occurred regarding the regulation, and no official comments have been provided.

In December 2023, President Javier Milei of Argentina proposed provisions for a national cap-and-trade system in an omnibus reform bill presented to Congress, reaffirming the country's commitment to establishing a carbon market. However, in April 2024, this provision was removed from the latest draft document, leaving its future reconsideration uncertain.

Argentine legislators are working on a draft law to establish a national voluntary carbon market (VCM), aligning with ongoing efforts to develop an Emissions Trading System (ETS). Speaking at the Chile Carbon Forum on October 9, 2024, Camilo Trujillo, Latin America lead at the International Emissions Trading Association (IETA), confirmed that discussions are taking place between members of Congress and industry executives.

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OFFICIAL DOCUMENT

Resolution 385/2023

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OTHER DOCUMENTS

• Argentina removes carbon market from major reform bill
• Argentina tackles voluntary carbon market law, ETS plans ongoing

CLIMATE CHANGE AND CARBON MARKET INITIATIVES ACT, 2022

JURISDICTION TYPE

National

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SHORT NAME

Climate Change and Carbon Market Initiatives Act, 2022

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Parliament of the Bahamas

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

5 Aug 2022

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ENTRY INTO FORCE DATE

5 Aug 2022

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STAKEHOLDERS

Project Developers

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REGULATION SUMMARY

🡒 The Climate Change and Carbon Market Initiatives Act, 2022 is a legislative framework aimed at managing carbon trading projects within The Bahamas.The Act has three primary objectives:

1) Incentivise Emissions Reduction: To create incentives and initiatives supporting the global target of GHG emissions reduction, aligning with The Bahamas' Nationally Determined Contributions (NDCs).

2) Ensure Compliance with Paris Agreement: To ensure The Bahamas meets its obligations under the Paris Agreement.

3) Establish a Carbon Credit Market: To facilitate the establishment of a carbon credit market within The Bahamas.

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Ownership of Carbon Credits

The Act stipulates that carbon credits associated with activities within The Bahamas' land, airspace, and maritime zones, including internal and territorial waters, seabed, ecosystems, and forests, are the property of The Bahamas.

Principles for Carbon Credit Trading

The Act emphasises the following principles for trading carbon credits:

• Additionality: Ensuring that carbon credits represent genuine reductions in emissions.
• Measurability: Quantifying emissions reductions accurately.
• Permanence: Ensuring that reductions are long-term and irreversible.
• No Double Counting: Avoiding the same emissions reductions being counted multiple times.
• Verification and Validation: Requiring reliable, independent auditors to validate and verify each project before trading can occur.

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Role of the Prime Minister

The Act allows the Prime Minister to create and implement initiatives and incentives that align with the Paris Agreement. These initiatives should encourage participation from both international and local private entities, as well as other parties to the Paris Agreement. Participation in carbon credit trading can occur through:

• Bilateral or multilateral trading agreements.
• Trading with private entities.
• Participation in a voluntary carbon market.

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Establishment of the National Emissions Registry

The Act mandates the creation of a National Emissions Registry, which will maintain a record of:

• Initiatives aimed at reducing GHG emissions.
• Permits granted for participation in emission reduction initiatives.
• Emission allowances and GHG reduction units.
• Carbon credits issued or recognised by The Bahamas.
• Emission reduction project and program promoters.
• Emission allocations and the transfer of carbon credits.

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OFFICIAL DOCUMENT

Climate Change and Carbon Market Initiatives Act, 2022

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OTHER DOCUMENTS

Carbon Credits Trading Act No. 36 of 2022.

CARBON CREDITS TRADING ACT NO. 36 OF 2022

JURISDICTION TYPE

National

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SHORT NAME

Carbon Credits Trading Act No. 36 of 2022

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GOVERNMENT/AUTHORITY ISSUING REGULATION

National Environment Commission

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

11 Aug 2022

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ENTRY INTO FORCE DATE

11 Aug 2022

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STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

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REGULATION SUMMARY

🡒 The Bahamas Carbon Trading Act establishes a regulatory framework for the promotion, marketing, arrangement, purchase, and sale of carbon trading products within the jurisdiction. This regulation applies to any individual or legal entity involved in carbon trading activities, regardless of their physical location.

The Securities Commission of the Bahamas is tasked with regulating, monitoring, and supervising carbon trading activities. This includes developing rules, guidance, and codes of practice related to carbon trading. All entities involved in carbon trading, such as trading exchanges, verification bodies, and carbon trading registries, are required to register with the Commission.

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Registration Process

• Entities must complete Form 1 under Part A of the First Schedule and submit required documentation.
• Registration is renewed annually by January 31st, with the payment of an annual fee and submission of an update and declaration form, including an insurance policy.
• Late renewals incur a penalty of 10% of the annual fee.
• Any changes in registration details must be promptly notified to the Commission using the Second Schedule.
• Entities intending to establish and operate a carbon trading exchange shall submit Form 1 under Part C of the First Schedule and indicate an operational plan for the carbon trading exchange. Further details for applications of carbon trading exchanges are stated in Section 8 and Section 9.

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Additional Requirements

Each carbon trading business must maintain an account at a carbon trading registry for trading, delivery, receipt, and transfer of tradeable carbon credits.

All carbon credits must be verified by a carbon credit verification body recognised by International Standards or by the International Accreditation Forum (for verification bodies from abroad) or registered with the Commission (domestic verification bodies).

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Approval of Carbon Trading Products

• Applications for carbon trading products must be submitted using Form 1 under Part D of the First Schedule, along with the prescribed fees and supplementary information.
• The Commission reviews the application within 30 days to ensure it meets the necessary requirements.
• Disclosure and regulation of carbon securities are governed by Part IX of the Securities Industry Act or other relevant provisions.
• Carbon trading exchanges must apply for the listing of trading derivatives at least 45 days before the derivative is listed.

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OFFICIAL DOCUMENT

Carbon Credits Trading Act No. 36 of 2022

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OTHER DOCUMENTS

Climate Change and Carbon Market Initiatives Act, 2022

LAW PROJECT N° 2.148 2015 [PROJETO DE LEI N° 2.148, DE 2015]

JURISDICTION TYPE

National

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SHORT NAME

Establishes the Brazilian Greenhouse Gas Emissions Trading System [Institui o Sistema Brasileiro de Comércio de Emissões de Gases de Efeito Estufa (SBCE)]

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Brazilian National Congress [Congresso Nacional do Brasil]

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TYPE OF REGULATION

Legal instrument

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STATUS OF REGULATION

Proposed (formally)

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ENACTMENT/PUBLISHING DATE

Not applicable

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ENTRY INTO FORCE DATE

Not applicable

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STAKEHOLDERS

• Carbon Credit Buyers
• Project Developers

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REGULATION SUMMARY

🡒 PL 2148/2015 establishes greenhouse gas emission limits for companies, with those exceeding the limits required to compensate their emissions by purchasing certified emission reductions. Conversely, companies emitting below the limit can sell surplus certified emission reductions on the market.

The draft bill also includes provisions for the governance framework and legal obligations for covered entities, with key design elements such as scope, cap, and allocation to be determined in subsequent years. Covered entities can use domestic compensation credits to meet part of their compliance obligations, subject to independent conformity assessment. Once verified, compensation credits become Verified Emissions Reduction or Removal Certificates [Certificado de Redução ou Remoção Verificada de Emissões (CRVE)] eligible for use under the Brazilian Greenhouse Gas Emissions Trading System [Sistema Brasileiro de Comércio de Emissões de Gases de Efeito Estufa (SBCE)] .

Carbon credits will only be considered CRVEs, as part of the SBCE, if they are:

• Originated from methodologies accredited by the SBCE management body;
• Measured and reported by those responsible for developing or implementing the project or programme and verified by an independent entity, under the terms of the methodology accredited by the SBCE; and
• Registered in the SBCE Central Registry.

The following areas are eligible to generate carbon credits and CRVE:

1. Indigenous lands, quilombola territories, and areas traditionally occupied by indigenous peoples and traditional communities.
2. Conservation units provided for in Articles 8 and 14 of Law no. 9.985, of 18 July 2000 [Lei nº 9.985, de 18 de julho de 2000], as long as this is not prohibited by the unit's management plan.
3. Settlement projects.
4. Undesignated public forests.
5. Other areas without legal prohibitions.

• Carbon credit projects in public areas require monitoring, expression, and prior consent from managing agencies. For projects in public domains used by third parties, prior communication to the relevant public agency is required for potential monitoring at the request of the carbon credit holders.

Engagement under Article 6

Brazil will issue Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement only to carbon projects using nationally designed methodologies. Beatriz Soares da Silva, of the Ministry of Development, Industry, and Trade, stated that baselines and data for standards like Verra will need Brazilian review and adjustments, termed "topicalization." Brazil will use satellite data from the National Institute for Space Research [Instituto Nacional de Pesquisas Espaciais (INPE)] for monitoring.

The government will not regulate the VCM unless Corresponding Adjustments (CAs) to its Nationally Determined Contribution (NDC) are needed. Any surplus emissions reductions may be auctioned as ITMOs, pending congressional approval of the carbon trading bill, which faces delays amid political focus on upcoming municipal elections.

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Further considerations

• The agriculture, land-use change, and forestry sectors are expected to play a significant role in generating CRVE, with provisions for reducing emissions from deforestation and forest degradation (REDD+) credits already included.
• The draft bill also addresses indigenous peoples' and traditional communities' rights regarding carbon crediting, including the right to commercialise compensation credits generated on their lands and compensation for any project-related damages.
• Carbon credits generated in Brazil intended for the international transfer of mitigation results must be registered as CRVEs, and received authorisation by the designated national authority for Article 6 of the Paris Agreement.
• The draft bill has interlinkage with other rules such as PL 528/2021 and PL 412/2022 as they deal with the same matter.
• Additionally, the Chamber approved a device for environmental compensation for vehicle emissions, allowing vehicle owners to purchase carbon credits. Transit agencies are responsible for regulating this rule.

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OTHER NOTES

As reported by specialized media in October 2024, a new version of Brazil's ETS draft bill is expected to be published soon, following successful negotiations between Congress and the Federal government. According to Vivian Mendes, the government secretary leading the talks, the bill is anticipated to be approved by the end of the year. Mendes noted that key disagreements, particularly regarding REDD+ and tax incentives for specific sectors within the ETS, have been resolved. She expressed confidence that both the government and Congress are now well-positioned to pass the law ahead of COP29.

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OFFICIAL DOCUMENT

Law project N° 2.148 2015 [Projeto de lei N° 2.148, DE 2015]

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URLS

Chamber approves project that regulates the carbon market in Brazil

Brazil to publish updated ETS draft bill for approval in 2024: official

VOLUNTARY CARBON MARKET DISCLOSURES BUSINESS REGULATION ACT 

JURISDICTION TYPE

Subnational

— — — — — — — — — — — — — —

SHORT NAME

Voluntary Carbon Market Disclosures Business Regulation Act

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GOVERNMENT/AUTHORITY ISSUING REGULATION

State of California

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TYPE OF REGULATION

Legal instrument

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STATUS OF REGULATION

In Force

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ENACTMENT/PUBLISHING DATE

7.10.2023

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ENTRY INTO FORCE DATE

1.1.2024

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STAKEHOLDERS

• Carbon Credit Buyers

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REGULATION SUMMARY

🡒 The Voluntary Carbon Market Disclosures Act compels disclosure requirements on entities that operate within California and purchase or use carbon "offsets" to achieve claims regarding net zero emissions, carbon neutrality or GHG emission reductions. It also applies to companies making such claims even if they do not use "offsets" to justify these claims. The law applies to companies that purchase or use voluntary carbon "offsets" sold within California and/or make greenhouse gas emissions marketing claims (i.e. claims that the entity, a related entity, or a product has achieved net zero emissions, is carbon neutral, does not add net carbon dioxide or other greenhouse gases to the climate or has made significant reductions to its carbon dioxide and other greenhouse gas emissions.)

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Disclosure Requirements

• The law requires an entity that makes these claims to disclose on its website all information documenting how, if at all, a claim was determined to be accurate or actually accomplished, how interim progress toward that goal is being measured and whether there is independent third-party verification of the company data and claims listed.
• This law also requires business entities marketing or selling voluntary carbon "offsets" within the State of California to disclose on their websites information about the carbon offset project from which the voluntary carbon "offsets" derive and details regarding accountability measures if a carbon offset project is not completed or does not achieve the forecast greenhouse gas emissions reductions or greenhouse gas removal benefits. Such information includes, inter alia, the specific carbon offset protocol used to estimate the volume of greenhouse gas emissions reductions or greenhouse gas removals and the location of the carbon offset project.
• Disclosures required by this law must be updated no less frequently than annually.

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BILATERAL AGREEMENTS

Not applicable

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OFFICIAL DOCUMENT

Voluntary Carbon Market Disclosures Business Regulation Act

LAW NO. 20.780 - TAX REFORM MODIFYING THE INCOME TAX SYSTEM AND INTRODUCING VARIOUS ADJUSTMENTS TO THE TAX SYSTEM [LEY NO. 20.780 - REFORMA TRIBUTARIA QUE MODIFICA EL SISTEMA DE TRIBUTACIÓN DE LA RENTA E INTRODUCE DIVERSOS AJUSTES EN EL SISTEMA TRIBUTARIO]

JURISDICTION TYPE

National

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SHORT NAME

Law No. 20.780 [Ley No. 20.780]

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Finance [Ministerio de Hacienda]

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TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

26.09.2014

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ENTRY INTO FORCE DATE

29.9.2014

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STAKEHOLDERS

• Project Developer
• Validation and Verification Bodies
• Carbon Credit Buyers

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REGULATION SUMMARY

🡒 Article 8 of Law No. 20.780 introduced an annual tax targeting emissions into the air, encompassing particulate matter (PM), nitrogen oxides (NOx), sulphur dioxide (SO2), and carbon dioxide (CO2). This levy applies to establishments whose emitting sources, either individually or collectively, release 100 or more tons per year of PM, or 25,000 or more tons per year of CO2. The tax is due in April of the subsequent calendar year following the generation of emissions.

Taxpayers falling under the purview of this legislation have the option to compensate a portion or all of their taxed emissions for tax payment calculation purposes. This can be achieved by implementing emission reduction projects targeting the same pollutants.

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Mitigation Activity Requirements

• Being additional, measurable, verifiable, and permanent.
• Reductions should exceed obligations imposed by existing prevention or decontamination plans, emission standards, environmental qualification resolutions, or any other legal obligations.
• Projects aimed at reducing emissions of PM, NOx, or SO2 must be conducted within the declared saturated or latent zones where the emissions subject to compensation occur. If such a declaration has not been made at the project submission time, they may occur within the same commune where the emissions originate or in adjacent communes.
• All projects must receive authorisation from the Ministry of the Environment and adhere to various stipulations, including certification by an external auditor authorised by the Environmental Superintendence (SMA).

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Further Considerations

• Emissions linked to hot water boilers exclusively for personnel services and power generators with less than 500 kWt are exempt from the tax.
• Regarding CO2 emissions, the tax rate is set at USD 5 per emitted ton. However, CO2 emission tax exemptions apply to emitting sources operating based on unconventional renewable generation means primarily fuelled by biomass energy.
• The SMA will maintain a publicly accessible registry containing authorised external auditors and projects with verified emissions reductions.

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BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM
• Singapore: MoU on Article 6
• Switzerland: Implementation Agreement

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OTHER NOTES

Law No. 21.210 was published on February 24, 2020. It modernises tax legislation by allowing taxpayers to fully or partially compensate their taxed emissions through the implementation of emission reduction projects.

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OFFICIAL DOCUMENT

Law No. 20.780 [Ley No. 20.780]

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OTHER DOCUMENT

Law No. 21.210 [Ley No. 21.210]

JCM Chile - Japan

Singapore and Chile sign Memorandum Of Understanding to collaborate on carbon credits

Implementing Agreement to the Paris Agreement between the Swiss Federal Council and the Government of the Republic Of Chile

SUPREME DECREE NO. 4 - APPROVES REGULATIONS FOR POLLUTANT EMISSION REDUCTION PROJECTS TO COMPENSATE TAXABLE EMISSIONS PURSUANT TO ARTICLE 8 OF LAW NO. 20.780 [DECRETO SUPREMO NO. 4 - APRUEBA REGLAMENTO DE PROYECTOS DE REDUCCION DE EMISIONES DE CONTAMINANTES PARA COMPENSAR EMISIONES GRAVADAS CONFORME A LO DISPUESTO EN EL ARTICULO NO.8 DE LA LEY NO. 20.780]

JURISDICTION TYPE

National

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SHORT NAME

Supreme Decree No. 4 [Decreto Supremo No. 4]

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of the Environment [Ministerio del Medio Ambiente]

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TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

29.01.2023

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ENTRY INTO FORCE DATE

29.9.2023

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STAKEHOLDERS

• Project Developer
• Independent Crediting Standards
• Validation and Verification Bodies
• Carbon project auditors and/or third-party validators
• Carbon Credit Buyers

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REGULATION SUMMARY

🡒 Supreme Decree No. 4 establishes requirements, obligations, procedures, and records for emission reduction projects and certificates used to compensate taxed emissions on fixed sources introduced by Law No. 20.780.

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Mitigation Activity Provisions

• Taxed emissions compensated limited to implementation of emissions reduction projects targeting the same pollutant. For CO2, reductions must correspond to CO2 or CO2 equivalent.
• Maximum three-year gap allowed between emission reduction and taxed emission generation years.
• Taxed emissions of particulate matter, nitrogen oxides, and sulphur dioxide compensated through projects executed in the same or adjacent communes.

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Criteria for Ineligible Projects

• Emission reduction projects from closing activities or establishments due to specified lifespan expiration, administrative sanctions, court judgments, or authority actions.
• Projects causing increased emissions of other taxed pollutants, unless best available technology is used to minimise impact.
• Reduction projects in sources subject to the tax.

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Further Considerations

• The Ministry will maintain a public registry including approved methodologies, third-party methodologies, and recognised external certification programs.
• The criteria from Article 6, paragraph 4, of the Paris Agreement can be applied in establishing, reviewing, and approving methodologies for emission reduction projects.
• Taxpayers must utilise the compensation mechanism through the designated online platform.
• The national registry of emission reduction projects will be overseen by the Environmental Superintendence.
• External auditors providing verification services must be authorised by the Environmental Superintendence.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM
• Singapore: MoU on Article 6
• Switzerland: Implementation Agreement

— — — — — — — — — — — — — —

OTHER NOTES

Eight electricity generation projects were the first to submit their applications to be part of the Emission Compensation System, compensating more than 250,000 tons of CO2 as of April 2024.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Supreme Decree No. 4 [Decreto Supremo No. 4]

— — — — — — — — — — — — — —

OTHER DOCUMENT

Eight power generation projects enter the Green Tax Emissions Compensation System [Ocho proyectos de generación eléctrica entran al Sistema de Compensación de Emisiones del Impuesto Verde]

JCM Chile - Japan

Singapore and Chile sign Memorandum Of Understanding to collaborate on carbon credits

Implementing Agreement to the Paris Agreement between the Swiss Federal Council and the Government of the Republic Of Chile

EXEMPT RESOLUTION NO. 1420/2023 OF THE MMA - IT RECOGNISES THE EXTERNAL CERTIFICATION PROGRAMS INDICATED, THEIR VERIFYING ENTITIES, AND VALIDATES THEIR METHODOLOGIES EX OFFICIO, IN ACCORDANCE WITH THE PROVISIONS OF SUPREME DECREE NO. 4 OF 2023, ISSUED BY THE MINISTRY OF THE ENVIRONMENT, WHICH APPROVES THE REGULATION OF PROJECTS FOR THE REDUCTION OF EMISSIONS OF POLLUTANTS TO COMPENSATE TAXABLE EMISSIONS AS PROVIDED FOR IN ARTICLE 8 OF LAW NO. 20.780  [RESOLUCIÓN EXENTA N° 1420/2023 DEL MMA - RECONOCE A LOS PROGRAMAS DE CERTIFICACIÓN EXTERNOS QUE INDICA, A SUS ENTIDADES VERIFICADORAS, Y VALIDA DE OFICIO SUS METODOLOGÍAS; DE CONFORMIDAD CON LO DISPUESTO EN EL DECRETO SUPREMO Nº 4, DE 2023, DEL MINISTERIO DEL MEDIO AMBIENTE, QUE APRUEBA REGLAMENTO DE PROYECTOS DE REDUCCIÓN DE EMISIONES DE CONTAMINANTES PARA COMPENSAR EMISIONES GRAVADAS CONFORME A LO DISPUESTO EN EL ARTÍCULO 8º DE LA LEY Nº 20.780]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Exempt Resolution No. 1420/2023 of the MMA [Resolución Exenta N° 1420/2023 del MMA]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of the Environment [Ministerio del Medio Ambiente]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

19.12.2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

28.12.2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developer
• Independent Crediting Standards
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Exempt Resolution No. 1420/2023 recognizes and partially approves the following 'External Certification Programs':

• Clean Development Mechanism (CDM)
• Verified Carbon Standard by Verra
• Gold Standard for the Global Goals by the Gold Standard Foundation

-

Key Points for Mitigation Activities

• The recognised methodologies and verifiers are those accepted by these certification programs.
• Approved credits correspond to those verified during 2020, 2021, 2022, and 2023 from projects executed until September 29, 2023.
• For projects without issued certificates, electricity generation projects connected to the national electricity system are required to have a technology representing a fraction equal to or less than 5% of the gross installed capacity in the national electricity system to be considered additional. This provision implies that reductions from electricity generation via coal, natural gas, or diesel oil plants; reservoir and run-of-river hydroelectric plants; wind and photovoltaic solar sources, not yet executed, cannot be certified.
• Other External Certification Programs may be subsequently recognised once they comply with the requirements established by the applicable regulations.

-

Further Considerations

The Chilean Ministry of the Environment has enabled the platform for submitting projects and certification requests under the carbon tax through the Single Window for the Registry of Emissions and Pollutant Transfer [Ventanilla Única del Registro de Emisiones y Transferencia de Contaminantes].

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM
• Singapore: MoU on Article 6
• Switzerland: Implementation Agreement

— — — — — — — — — — — — — —

OTHER NOTES

In an official press release in January 2024, Minister of the Environment, Maisa Rojas, emphasised the importance of the compensation system, stating that it "opens the possibility for taxpayers to compensate emissions from fixed sources taxed with the green tax by presenting emission reduction certificates of the same pollutant. This will allow resources to be mobilised from polluters towards carbon neutrality and improving air quality." This comment highlights Chile's ongoing support of the compensation system and underscores the benefits it brings to the country's climate goals.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Exempt Resolution No. 1420/2023 of the MMA [Resolución Exenta N° 1420/2023 del MMA]

— — — — — — — — — — — — — —

OTHER DOCUMENT

The Green Tax Emissions Compensation System advances: Ministry enables platform for submission of projects and certification requests [Avanza el Sistema de Compensación de Emisiones del Impuesto Verde: Ministerio habilita plataforma para la presentación de proyectos y solicitudes de certificación]

Single Window for the Registry of Emissions and Pollutant Transfer [Ventanilla Única del Registro de Emisiones y Transferencia de Contaminantes]

JCM Chile - Japan

Singapore and Chile sign Memorandum Of Understanding to collaborate on carbon credits

Implementing Agreement to the Paris Agreement between the Swiss Federal Council and the Government of the Republic Of Chile

LAW 1819 OF 2016 [LEY 1819 DE 2016]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Law 1819 of 2016 [Ley 1819 de 2016]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Congress of Colombia [Congreso de la República de Colombia]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

29.12.2016

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

29.12.2016

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Section IX of Law 1819 of 2016 establishes Colombia's national carbon tax aimed at discouraging the use of fossil fuels and fulfilling the country's commitments under the Paris Agreement. This tax is levied on the amount of carbon released into the atmosphere as greenhouse gases when fuels such as gasoline, kerosene, jet fuel, diesel, and fuel oil are burned.

The law mandates the Ministry of Environment and Sustainable Development [Ministerio de Ambiente y Desarrollo Sostenible (MADS)] to establish a procedure to encourage the implementation of mitigation initiatives that result in emissions reductions or greenhouse gas removals in exchange for exemption from the tax, which led to the issuance of Decree 926 of 2017.

-

The tax is applied at three points in the distribution chain of fossil fuels:

• When sold domestically
• When withdrawn for personal consumption by the producer
• When imported.

These actions are considered tax-generating events. The tax is levied only once, triggered by the first event.

-

Further Considerations

• Taxpayers who certify their carbon neutrality, as per regulations set by the Ministry of Environment and Sustainable Development, are exempt from this tax.
• The funds collected from this tax are allocated to finance environmental and sustainability projects through the Fund for Environmental Sustainability and Sustainable Rural Development in Areas Affected by Conflict [Fondo para la Sostenibilidad Ambiental y Desarrollo Rural Sostenible en Zonas Afectadas por el conflicto (“Fondo para una Colombia Sostenible”)].
• For liquefied petroleum gas, the tax is only applied to sales made to industrial users.
• For natural gas, the tax is only applied to sales made to the hydrocarbon refining and petrochemical industry.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: MoU on Article 6

— — — — — — — — — — — — — —

OTHER NOTES

According to the National Directorate of Taxes and Customs [Dirección de Impuestos y Aduanas Nacionales (DIAN)] of Colombia, the rate per ton of carbon dioxide equivalent (CO2eq) for 2024 is COP 25,799.56 (approximately USD 6.75, exchange rate USD 1 = COP 3,823.76 as of May 21, 2024)

Lilia Tatiana Roa, Deputy Minister of Territorial Environmental Planning and Environmental Policies and Standardisation at the Ministry of Environment, mentioned to local media in March 2024, that it had been observed that simply engaging in compensations was not transforming production processes. Therefore, the government seeks to incentivise them to move towards a path of fair Energy Transition and sociological transitions.

According to the leader of Asocarbono, the Colombian Association of Carbon’s Market Members, the limit caused demand to contract and supply to grow, resulting in an oversupply of carbon credits today.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Law 1819 of 2016 [Ley 1819 de 2016]

— — — — — — — — — — — — — —

OTHER DOCUMENT

RESOLUTION NUMBER 000007 - By which the rates of the National Tax on gasoline and diesel, and the National Carbon Tax, are adjusted [RESOLUCIÓN NÚMERO 000007 - Por la cual se ajustan las tarifas del Impuesto Nacional a la gasolina y al ACPM, y del Impuesto nacional al carbono]

Is a carbon credit market viable in the country? [¿Viable en el país mercado de bonos de carbono?]

Singapore signs Memorandum of Understanding with Colombia to collaborate in carbon credits

DECREE 926 OF 2017 [DECRETO 926 DE 2017]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Decree 926 of 2017 [Decreto 926 de 2017]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Congress of Colombia [Congreso de la República de Colombia]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

1.6.2017

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

1.6.2017

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Independent Crediting Standards
• Validation and Verification Bodies
• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Decree 926 of 2017 establishes a method to avoid paying the carbon tax by providing an exemption for those who compensate for their greenhouse gas (GHG) emissions. This exemption can be total or partial and is available to all taxpayers required to pay the carbon tax, provided they can show they have reduced or compensated their GHG emissions.

-

Criteria for Emissions Reductions and GHG Removals

• - They must originate from mitigation initiatives carried out within the national territory.
• - They should be certified through programs or standards that include public registries.
• - They need to adhere to recognised methodologies, such as those from the Clean Development Mechanism (CDM), methodologies issued by the national government through the National Standardisation Agency, or steps outlined by the REDD+ registry.
• - Actions required by environmental authorities for compensation purposes are not included.
• - They must be officially cancelled in their original certification program or carbon standard before being registered in the forthcoming National Registry of Greenhouse Gas Emissions Reductions.
• - They must obtain certification from the respective program or carbon standard.

-

Further Considerations

• - Projects transitioning from the CDM to the voluntary market must be removed from the CDM registry to prevent double counting.
• - 80% of tax revenue is allocated to finance environmental and sustainability projects.
• - Verification of eligible CO2 tons must be conducted by accredited third-party verification bodies, in compliance with the schemes established in Chapter 1 of Title 11 of Decree 926 of 2017 and Decree 446 of 2020.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: MoU on Article 6

— — — — — — — — — — — — — —

OTHER NOTES

A maximum price was set for the certificates, which could not exceed the value of the carbon-tax rate. Furthermore, the maximum limit of the carbon tax is higher than the international price of mitigation outcomes, leading to domestically generated credits being generally sold for tax compensation purposes rather than to international buyers.

Eligible mitigation activities, as stated by the Ministry of Environment and Sustainable Development, include, amongst others:

• Implementation of renewable energies;
• Forestry projects;
• Projects reducing methane emissions in landfills;
• Sustainable livestock projects;
• Improvement of energy efficiency in boilers.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Decree 926 of 2017 [Decreto 926 de 2017]

— — — — — — — — — — — — — —

OTHER DOCUMENT

Frequently asked questions about the national carbon tax and the tax treatment of non-incurrence for carbon neutrality

Singapore signs Memorandum of Understanding with Colombia to collaborate in carbon credits

LAW 2277 OF 2022 [LEY 2277 DE 2022]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Law 2277 of 2022 [Ley 2277 de 2022]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Congress of Colombia [Congreso de la República de Colombia]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

13.12.2022

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

13.12.2022

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Law 2277 of 2022 introduces amendments to the national carbon tax, outlined as follows:

• The exemption from the national carbon tax shall not exceed 50% of the tax incurred under any circumstances.
• The use of carbon-neutral certification to exempt from the carbon tax cannot be reused to obtain the same benefit or any other tax treatment.
• The national carbon tax is not incurred for taxpayers who certify themselves as carbon-neutral, whether the certification is obtained directly by the taxpayer or by the end consumer in accordance with regulations issued by the Ministry of Environment and Sustainable Development.

-

Further Considerations

• The tax does not apply to coking coal
• The Ministry of Environment and Sustainable Development may regulate control mechanisms and define technical criteria for greenhouse gas mitigation outcomes used to qualify for the non-incurrence mechanism.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: MoU on Article 6

— — — — — — — — — — — — — —

OTHER NOTES

Lilia Tatiana Roa, Deputy Minister of Territorial Environmental Planning and Environmental Policies and Standardisation at the Ministry of Environment, explained to local media in March 2024, that the objective of reducing the compensation percentage is to compel companies to make real transformations. "It had been observed that simply making compensations was not transforming production processes. Therefore, this government has been addressing the need for these transformations, incentivizing them, and moving towards the path of a just energy transition and the sociological transitions that we have been proposing from this Ministry."

As a solution to this issue, the Ministry has been advancing transformation processes such as "a decree to regulate these markets to ensure environmental justice conditions, respect for the rights of peoples, and the consolidation of the national safeguards system." It will be important for project developers to monitor its progress and implementation closely.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Law 2277 of 2022 [Ley 2277 de 2022]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Is a carbon credit market viable in the country? [¿Viable en el país mercado de bonos de carbono?]

Singapore signs Memorandum of Understanding with Colombia to collaborate in carbon credits

RESOLUTION NO. 1447 OF 2018 [RESOLUCIÓN NO. 1447 DE 2018]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Resolution No. 1447 of 2018 [Resolución No. 1447 de 2018]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment and Sustainable Development [Ministerio de Ambiente y Desarrollo Sostenible]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

1.8.2018

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

1.8.2018

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Independent Crediting Standards
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Resolution 1447 of 2018 aims to regulate the Monitoring, Reporting, and Verification (MRV) system of mitigation actions at the national level and to establish the National Registry of Greenhouse Gas Emission Reductions [Registro Nacional de Reducción de Emisiones de Gases Efecto Invernadero (RENARE)]. RENARE is a platform of the MRV System designed to manage information at the national level regarding greenhouse gas (GHG) mitigation initiatives.

-

Types of GHG Mitigation Initiatives that can be registered in RENARE

1. GHG mitigation programmes such as Nationally Appropriate Mitigation Actions (NAMAs), Low Carbon Development Programmes (LCDPs), and REDD+ Programmes.
2. GHG mitigation projects such as Clean Development Mechanism (CDM) projects and programmes of activities, LCDPs, and REDD+ projects.
3. Other mitigation initiatives defined by the United Nations Framework Convention on Climate Change within its GHG mitigation mechanisms, or by the Ministry of Environment and Sustainable Development [Ministerio de Ambiente y Desarrollo Sostenible (MADS)].

-

The accounting rules established in the resolution aim to delineate the following aspects for each type of mitigation initiative:

1. Methodologies used for the formulation of GHG mitigation initiatives.
2. Parameters for constructing baseline emissions.
3. Maximum GHG mitigation potential for REDD+ projects subject to national accounting.
4. Guidelines for establishing GHG mitigation goals for initiatives.
5. Validation and verification criteria.
6. Additionality criteria.

-

Further Considerations

The specifications for the use of RENARE will be established in the Technical Guide of RENARE, which will be developed and updated by the Ministry of Environment and Sustainable Development.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: MoU on Article 6

— — — — — — — — — — — — — —

OTHER NOTES

As of 2022, there were 267 registered mitigation initiatives. However, since that year, the RENARE ceased functioning due to a ruling by the State Council, leaving no active registry thereafter.

Resolution No. 0418 of 15 April 2024, which mandates the Institute of Hydrology, Meteorology and Environmental Studies [Instituto de Hidrología, Meteorología y Estudios Ambientales (IDEAM)] to officially transfer the technological platform, supporting documentation, and data of GHG mitigation initiatives to the Ministry of Environment and Sustainable Development. GHG mitigation initiative holders must register and update their data once the platform is enabled, following guidelines provided by the Ministry.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Resolution No. 1447 of 2018 [Resolución No. 1447 de 2018]

— — — — — — — — — — — — — —

OTHER DOCUMENT

Is a carbon credit market viable in the country? [¿Viable en el país mercado de bonos de carbono?]

Resolution No. 0418 of 15 April 2024 [Resolución No. 0418 de 15 de abril de 2024]

Singapore signs Memorandum of Understanding with Colombia to collaborate in carbon credits

Brazil ITMOs to be subject to national methodologies: official

DECREE N° 37.926/MINAE - GUIDELINES FOR THE REGULATION AND OPERATION OF THE DOMESTIC CARBON MARKET [DECRETO N° 37.926/MINAE - REGLAMENTO DE REGULACIÓN Y OPERACIÓN DEL MERCADO DOMÉSTICO DE CARBONO]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Guidelines for the regulation and operation of the domestic carbon market [Reglamento de regulación y operación del mercado doméstico de carbono]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment and Energy [Ministerio de Ambiente y Energía (MINAE)]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

10.9.2013

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

11.11.2013

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Decree No. 37.926/MINAE approves guidelines for regulating and operating the domestic carbon market, aiming to establish and define requirements for Costa Rica's Domestic Carbon Market [Mercado Doméstico de Carbono (MDC)].

This market serves as a tool to support the country's efforts towards achieving carbon neutrality goals by facilitating the commercialisation of carbon credits generated from projects or activities aimed at reducing greenhouse gas emissions. The MDC operates as a voluntary mechanism for generating carbon credits at the local level through Costa Rican Compensation Units [Unidades Costarricenses de Compensación (UCC)].

-

Project Types

• - Independent projects: For sectors without a registered protocol or developers opting out of protocol participation, projects can be independently registered using an approved or accepted methodology by the MDC.
• - Project protocol for national interest activities: In sectors of national interest, the Carbon Board, based on an approved or accepted methodology by the MDC, collaborates with other public or private institutions as deemed necessary to design and register a protocol for projects.

-

The decree includes the sector that are considered to generate UCC, among these are:

• - Forestry: Reforestation, forest management, and forest conservation.
• - Energy: New renewable energy sources and energy efficiency on the demand side.
• - Other Sectors: UCCs from other sectors can be assessed by the Carbon Board through the development of methodologies and protocols, including calculation and sizing effects of the market, and scenarios demonstrating the quality and competitiveness of UCCs against designated sectors.

-

Further Considerations

• - A project registry is established to record basic data of each project participating in the MDC, necessary for project and UCC traceability, managed by the Technical Secretariat.
• - To mitigate risks associated with Protocol-Embedded Activities (PEA), a reserve account managed by the Carbon Board or the protocol developer, authorised by the Carbon Board, is created. It retains a predetermined percentage of UCCs from each activity to cover performance risks, leakage, or other environmental integrity considerations.
• - Carbon experts [peritos de carbono] are responsible for validating projects for inclusion in the MDC, as well as verifying project implementation and monitoring plans. To be accredited by the MDC, professionals must demonstrate expertise in fields related to the project type, and pass the corresponding carbon expert training course.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM.
• Singapore: MoU on Article 6

— — — — — — — — — — — — — —

OTHER NOTES

Given the challenges faced by the MDC, the design of an updated substitute mechanism, the Costa Rica Compensation Mechanism [Mecanismo de Compensación de Costa Rica (MCCR)], was initiated. This mechanism is expected to align with international requirements under the Paris Agreement and the country's climate commitments outlined in its nationally determined contribution (NDC).

Decreto Nº 41122-MINAE entered into force on May 28th, 2018 and formalises the Carbon Neutrality Country Program 2.0. It indicates that until the Costa Rica Compensation Mechanism is operational, compensation processes through UCC must be conducted through the National Forestry Financing Fund [Fondo Nacional de Financiamiento Forestal (FONAFIFO)].

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Decree No. 37.926/MINAE [Decreto Nº 37.926/MINAE]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Decree No. 41122-MINAE [Decreto Nº 41122-MINAE]

Costa Rica Carbon Neutrality Country Program [Programa País Carbono Neutralidad de Costa Rica]

JCM Costa Rica - Japan

Singapore and Costa Rica sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

MINISTERIAL AGREEMENT NO. MAATE-2023-053 [ACUERDO MINISTERIAL NO. MAATE-2023-053]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Technical standard establishing Ecuador's greenhouse gas emissions compensation scheme [Norma técnica que establece el esquema de compensación de emisiones de gases de efecto invernadero del Ecuador]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment, Water and Ecological Transition [Ministerio de Ambiente, Agua y Transición Ecológica (MAATE)]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

16.6.2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

16.6.2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Independent Crediting Standards
• Validationand Verification Bodies
• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒Ministerial Agreement No. MAATE-2023-053 aims to establish and issue the scheme, guidelines, and technical criteria for the compensation of greenhouse gas emissions in Ecuador. This technical standard applies to voluntary mitigation initiatives for the reduction and/or removal of greenhouse gas emissions, whether public, private, community-based, or mixed, developed within the national territory, to be used as compensation for greenhouse gas emissions by national or foreign proponents.
-
The National Environmental Authority [Autoridad Ambiental Nacional (AAN)] will gradually enable the following compensation mechanisms:

• Compensation without transferring greenhouse gas emissions to another nationally determined contributions (NDC) or transferring ownership of Equivalent Carbon Units [Unidades de Carbono Equivalentes (UCE)] to a proponent. This pathway rewards initiatives in the land-use, land-use change, and forestry (LULUCF) sector, and all mitigation sectors within the compensation portfolio that generate verified emissions reductions or removals.
• Compensation without transferring greenhouse gas emissions to another NDC, with the transfer of ownership of UCE to a proponent. Applicable to the energy, agriculture, waste, and industrial processes sectors meeting AAN-approved certification standards.
• Compensation with the transfer of greenhouse gas emissions to another NDC, with or without the transfer of ownership of a UCE to a proponent. This mechanism will be defined by the AAN considering national capacity development and the provisions established in the Article 6 rulebook of the Paris Agreement.
  

-

Mitigation activities falling under the following categories may enter the compensation portfolio:

• LULUCF sector
• Other mitigation sectors (Energy, Waste, Industrial Processes, Agriculture)

-

Further Considerations

• Compensation will be carried out by a proponent who has previously made efforts to decarbonise their processes.
• The AAN will approve GHG certification programs to be used, defining the evaluation methodology.
• The National Compensation Registry will maintain traceability of mitigation initiatives and UCE generated, registered, and rewarded under the scheme.
• For initiatives in the LULUCF sector, the AAN will retain 10% of the UCE from each mitigation initiative for the UCE Reserve Account.
• Conformity assessment bodies, those responsible of the validation and verification processes, must be accredited, registered, designated, or recognised by the competent authority.
  

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

OTHER NOTES

The official government's page includes key documents for the implementation of projects within the country, including:

• Ministerial Agreement - Complementary Technical Standard
• Annex 1. Mitigation Initiatives Design Guide
• Annex 2. Environmental and social safeguards assessment guide
• Annex 3. Guidance for Co-Benefit Analysis of Mitigation Initiatives

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Ministerial Agreement No. MAATE-2023-053 [Acuerdo Ministerial Nro. MAATE-2023-053]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

National Greenhouse Gas Emissions Compensation Scheme of Ecuador

DRAFT LAW REFORMING THE ORGANIC ENVIRONMENTAL CODE [PROYECTO DE LEY REFORMATORIA AL CÓDIGO ORGÁNICO DEL AMBIENTE]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Draft Law Reforming the Organic Environmental Code [Proyecto de Ley Reformatoria al Código Orgánico Del Ambiente]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

National Assembly Ecuador

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

Proposed (formallty)

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

19.9.2024

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

ND

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Independent Crediting Standards
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The draft bill in Ecuador was vetoed, so it will not move forward.
The proposed amendment to the Organic Environmental Code [Código Orgánico del Ambiente (COA)] introduces significant changes regarding environmental services, enabling their commercialization and fostering the development of carbon markets within the country.

Environmental Authority's Role

All greenhouse gas reduction projects within both compliance and voluntary markets must comply with procedures set by the Environmental Authority, following national development plans and Ecuador's Nationally Determined Contributions (NDCs). These projects will earn Certified Emission Reductions (CERs).

Incentives for Project Development

Tax exemptions will be available for individuals, legal entities, communities, and indigenous groups that engage in various environmental initiatives. Beneficiaries include those who:

• Make donations, investments, or sponsorships for programs and projects related to climate change prevention and adaptation, clean energy, nature-based solutions, environmental restoration and remediation.
• Measure or certify their carbon footprint.
• Participate in local or international voluntary carbon markets or compliance carbon markets.

Compensation Modalities

Compensation can be structured around several specific services:

1. Water quality and regulation

2. Biodiversity conservation

3. GHG reduction and absorption

4. Cultural and recreational benefits

5. Carbon market participation: Including compensation within local and international voluntary carbon markets, as well as the compliance market.

General Regulation of Environmental Services

To implement compensation projects, the following minimum information must be provided:

• Identify the project area and ecosystem.
• Identify the service to be developed.
• Identify the property.
• Provide the corresponding property titles where the environmental service project is to be developed and permission from the owner to develop the environmental service.
• Identify the financial sources and resource management mechanisms.
• Project registration or verification according to established standards.

Approved Standards

Projects must adhere to one of the following standards for both the compliance and the voluntary market:

- Gold Standard WWF

- Verra/VCS

- Climate Action Reserve (CAR)

- Certified Carbon Standard (Cercarbono)

- Biocarbon Registry (BCR Standard)

- Colcx

- SustainCERT (Gold Standard)

- American Carbon Registry

- Climate Action Reserve

- Plan Vivo

- Social Carbon

- Global Carbon Council

- CCB Standards

- Climate Forward

- Other standards endorsed by the UNFCCC or organizations with environmental service standards are also applicable.

Project Execution Procedure

1. Submission: Beneficiaries must submit a greenhouse gas reduction project to the Environmental Authority or recognized certifying entities.

2. Standards: The project must leverage one of the approved standards to develop the project.

3. Registration: The Environmental Authority must register the project within 15 days to prevent double counting of carbon credits.

4. Operational authorization: Beneficiaries receive operational authorization from the Environmental Authority within 15 days upon meeting regulatory requirements.

5. Certification: After authorisation, projects must be certified by an accredited certifying entity.

6. Community involvement: If projects occur in indigenous territories, prior informed consent is required.

Projects registered in the international voluntary carbon market that lack certification from a recognised entity will have two years from the regulation's enactment to obtain certification and enable their operations.

Conservation Fund for Natural Heritage

A Conservation Fund is established, financed by 10% of revenues from carbon, blue, and green credits, as well as environmental services. Resources will exclusively support forest conservation and sustainable tourism development, prioritising areas directly affected by environmental impacts from operational companies.

Compensation Considerations

• Compensation must be linked to legitimate property titles, either registered in the Property Registry or through notarised agreements between property owners and beneficiaries.
• Compensation for environmental services does not alter property ownership or rights.
• In indigenous territories, the application of this title must respect self-determination, autonomy, and the rights of communities regarding their lands and resources, recognizing their traditional practices and integral life plans.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

OTHER NOTES

The draft bill in Ecuador was vetoed, so it will not move forward. In September 2024, Ecuador passed reforms to the Organic Environmental Code aimed at protecting the country’s biodiversity while promoting economic development through environmental sustainability. Assemblyman Guido Vargas, president of the Biodiversity Commission, emphasized that the reforms pave the way for a future where economic growth and environmental protection are aligned.

The legislation, expected to be signed by President Daniel Noboa, will also clarify ambiguities related to Article 74 of Ecuador's constitution, strengthening the legal framework for environmental protection.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Draft Law Reforming the Organic Environmental Code [Proyecto de Ley Reformatoria al Código Orgánico Del Ambiente]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Ecuadorian legislature votes to legalise carbon markets

Daniel Noboa vetoes reforms to the Environmental Code

DECREE NO. 54-2023 [DECRETO NO. 54-2023]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Special Law on Forest Carbon Transactions for Climate Justice [Ley Especial de las Transacciones de Carbono Forestal para la Justicia Climática]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

National Congress of Honduras [Congreso Nacional de Honduras]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

27.7.2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

30.10.2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒Decree No. 54-2023 aims to establish a legal framework and administrative, technical, and financial conditions for leveraging and distributing environmental, social, and economic benefits derived from the sustainable management of forest carbon sinks. It focuses on authorizing carbon transactions as a results-based payment mechanism, based on technical and environmental jurisprudence, with the aim of generating comprehensive, sustainable, and equitable solutions towards achieving 'National Climate Justice'.

-

Authorised Carbon Transaction Modalities

• Debt-for-Nature and carbon swap: Primarily addressing external debt, this modality allows parties to voluntarily exchange a portion of the debt for the conservation and preservation of natural areas or climate action.
• National carbon market: A domestic trading system where national entities trade negotiable carbon credits equivalent to one ton of carbon dioxide or the equivalent amount of another greenhouse gas that has been reduced, sequestered, or avoided.
• Results-based payments: Commercialisation associated with the decrease in emissions or increase in forest carbon removals, in relation to the country's goals related to its nationally determined contributions (NDC).

-

Further Considerations

The technical body of the National Commission for Carbon Transactions, attached to the Ministry of Natural Resources and Environment and subordinate to the National Commission for Carbon Transactions, is designated as the technical entity. Among its functions are:

• Design, creation, and implementation of a forest carbon transaction registry system;
• Accreditation of companies or entities providing services in this field

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

NOTES

In July 2024, the head of the Minister of Natural Resources and Environment, Lucky Medina, provided comments on the special law to local media. She mentioned that, in the initial stage, Honduras could access approximately 30 million dollars, and by the end of 2024 or early 2025, a capture of 120 million dollars is projected.

This comment is significant as it outlines the financial resources Honduras expects to access through the special law. However, further guidance will be required regarding the starting date of the forest carbon transaction registry system.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Decree No. 54-2023 [Decreto No. 54-2023]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

National Congress approves Special Law on Forest Carbon Transactions for Climate Justice in Honduras [Congreso Nacional aprueba Ley Especial de las Transacciones de Carbono Forestal para La Justicia Climática en Honduras]

EXECUTIVE DECREE N° 100 OF OCTOBER 20, 2020 [DECRETO EJECUTIVO N° 100 DEL 20 DE OCTUBRE DE 2020]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Executive Decree N°100 [Decreto Ejecutivo N° 100]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment [Ministerio de Ambiente (MiAMBIENTE)]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

20.10.2020

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

20.10.2020

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒Executive Decree N° 100 of October 20, 2020, establishes Panama's National Reduce Your Footprint Programme [Programa Nacional Reduce Tu Huella], aiming to manage and monitor low-carbon economic and social development. It mandates the Ministry of Environment to progressively establish a national carbon market for sustainable recovery, emphasizing inclusivity, emissions reduction, and climate resilience.

Additionally, the Mitigation Actions Registry [Registro Nacional de Acciones (ReNA)] component is created within the National Climate Transparency Platform, serving as the repository for information regarding emission reductions resulting from mitigation actions implemented under national and international schemes. To facilitate the tracking of climate change mitigation measures, all mitigation actions developed within the national territory are expected to be registered in it.

-

Mitigation Actions that will require registration include:

• Emissions reductions resulting from Nationally Appropriate Mitigation Actions (NAMAs).
• Emissions reductions resulting from programmes and projects under the Reducing Emissions from Deforestation and Forest Degradation (REDD+) mechanism.
• Emissions reductions resulting from projects operating under the Clean Development Mechanism (CDM) defined by the Kyoto Protocol and regulated nationally by Ministerial Resolution No. AG-0155-2011 of April 5, 2011.
• Emissions reductions resulting from mitigation policy instruments.
• Emissions reductions under national and international market-based approaches, both regulated and voluntary.
• Other reduction programs and actions with Measurement, Reporting, and Verification (MRV) systems for various sectors, approved by the Ministry of Environment.

-

Further Considerations

Any natural or legal person, public or private, intending to benefit from payments for results, the generation of greenhouse gas emission compensation units, and/or access to climate finance through national mitigation actions, including those under the CDM, REDD+, and/or mitigation policy instruments, must follow the parameters established by the Procedure Manual for reporting and registering mitigation actions.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

NOTES

The Ministry of Environment (MiAMBIENTE) clarified in a press release in September 2023, that executive decrees concerning the National Carbon Market [Mercado Nacional de Carbono de Panamá (MNCP)] do not limit the trade of carbon credits from private reforestation projects in the voluntary market.

In September 2024, Panama reactivated its National Climate Change Committee after a five-year hiatus, with a renewed focus on developing the country's carbon market. The committee, led by the environment ministry, will be responsible for monitoring mitigation efforts, creating a climate change framework law, establishing national carbon market guidelines, and overseeing the national adaptation plan.

The committee, established in 2009, includes 27 public institutions, such as ministries, the Panama Canal Authority, and the University of Panama. It previously played a key role in shaping the country's REDD+ program to avoid deforestation.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Executive Decree N° 100 of October 20, 2020 [Decreto Ejecutivo N° 100 del 20 de octubre de 2020]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

COMMUNICATION: National Carbon Market of Panama [COMUNICADO: Mercado Nacional de Carbono de Panamá]

Panama reactivates climate committee to establish carbon market rules

LAW 7190/2023, OF CARBON CREDITS [LEY Nº 7190 / DE LOS CRÉDITOS DE CARBONO]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Law N° 7190 [Ley Nº 7190]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

National Congress of Paraguay [Congreso Nacional de la República del Paraguay]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

12.10.2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

12.10.2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒Paraguay’s law on carbon credits establishes general procedures for issuing and monetizing carbon credits under voluntary schemes, along with provisions for international transfers. It also mandates the creation of a carbon credits registry and outlines penalties for non-compliance. The carbon credits registry, situated under the Ministry of the Environment and Sustainable Development [Ministerio del Ambiente y Desarrollo Sostenible (MADES)], serves to record data related to any mitigation project aiming to acquire carbon credits within the voluntary market. Participation in the voluntary carbon market, as per the law's provisions, requires demonstrating registration of carbon credits in the carbon credits registry.

-

Projects must demonstrate additionality, regardless of their origin, which may come from the following sectors:

• Forestry and land use;
• Agriculture and livestock;
• Waste;
• Energy;
• Transportation;
• Industrial processes and product use (IPPU);
• Others deemed applicable by the implementing authority.

-

Further Considerations

• The law allows registration of carbon credits in other public or private, national, foreign, or international registries if needed by the holder.
• Transfer of carbon credits is exempt from Value Added Tax.
• Paraguayan labour must constitute at least 50% of actual participation in each project, including technical professionals.
• Administrative fees can be up to 500 minimum daily wages. Given that one minimum daily wage is equivalent to PYG 103,091, 500 minimum daily wages amount to PYG 51,545,500 (approximately USD 6.87, exchange rate of 1 USD = PYG 7,507.73 as of May 21, 2024).
• To ensure compliance with the country’s nationally determined contributions (NDC), carbon credit holders must retain and not transfer a percentage of such credits derived from the same project, ranging from 3% to a maximum of 10% as determined by the implementing authority.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: concluded negotiations on the Carbon Credit Cooperative Implementation Agreement, expected to be signed by both countries in 2024.
• United Arab Emirates: Memorandum of Understanding (MoU) on Article 6.

— — — — — — — — — — — — — —

NOTES

According to Rolando de Barros Barreto, Minister of Environment and Sustainable Development, the Paraguayan state will be responsible for establishing criteria for market intermediary companies to ensure compliance with conditions and the preservation of natural spaces. He added in a statement to local media in October 2023 that the government will not intervene in the carbon market but will ensure that all processes are transparent and that transactions conducted within Paraguayan territory are recorded on a digital platform. To achieve this, the government will establish a National Registry, aiming to prevent double accounting of greenhouse gas emissions.

In a step towards the operationalisation of carbon markets in the country, the government conducted participatory stakeholder workshops in August 2024 to develop a practical framework and gather feedback on draft regulations. The mid-August workshops, included representatives from public institutions, the private sector, academia, NGOs, industry representatives, and indigenous groups.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Law 7190/2023, of Carbon Credits [Ley Nº 7190 / de los créditos de carbono]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Paraguayan president enacts law regulating the country's carbon credit market [El presidente de Paraguay promulga una ley que regula el mercado de créditos de carbono en el país]

Paraguay and Singapore conclude negotiations for Carbon Credit cooperation

Paraguay and the United Arab Emirates agreed on an instrument for carbon credits

Paraguay translating carbon markets law into regulation

MINISTERIAL RESOLUTION N.° 156-2022-MINAM [RESOLUCIÓN MINISTERIAL N.° 156-2022-MINAM]

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Ministerial Resolution N.° 156-2022-MINAM [Resolución Ministerial N.° 156-2022-MINAM]

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

National Congress of Paraguay [Congreso Nacional de la República del Paraguay]

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

27.7.2022

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

2.8.2022

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Independent Crediting Standards

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒Ministerial Resolution No. 156-2022-MINAM delineates provisions for establishing the country’s National Registry for Mitigation Measures [Registro Nacional de Medidas de Mitigación (RENAMI)]. It outlines various governmental frameworks for registering mitigation activities, whether government-implemented, voluntary, related to Reducing Emissions from Deforestation and Forest Degradation (REDD+), or intended for Article 6 purposes. The resolution also provides interpretations of safeguards and general administrative processes and procedures for activity registration, including granting authorisations for Article 6.

-

Categories of Mitigation Measures included in RENAMI

• Measures applicable to carbon markets within the scope of Article 6 of the Paris Agreement.
• Measures applicable to carbon markets outside the scope of Article 6 of the Paris Agreement.
• Measures proposed by the High-Level Climate Change Commission [Comisión de Alto Nivel de Cambio Climático (CANCC)].

-

The registration of mitigation measures includes the following requirements:

• Application forms and descriptive sheets: Registration application for the mitigation measure and descriptive sheet of the mitigation measure [Ficha Descriptiva de la Medida de Mitigación (FIDEM)].
• Legal and administrative documentation: The registry number of legal representation (if applicable), the number of the administrative resolution granting the enabling title, the number of the registry accrediting ownership of the area or proof of property rights, the resolution number approving the environmental impact assessment, the resolution number authorizing the start of activities.
• Community and stakeholder engagement: Copy of the Minutes of the Community Assembly [Acta de la Asamblea Comunal] with the agreement to implement the mitigation measure.
• Payment: Corresponding payment for processing fee.

-

Further Considerations

• Recognition of Emissions Reduction Units [Unidades de Reducción de Emisiones (URE)] in RENAMI requires compliance with validation and verification processes under a certification standard accredited by the Ministry of Environment [Ministerio del Ambiente (MINAM)]. Criteria for accreditation of URE certification standards are established.
• For project developers, requirements for registering mitigation measures include compliance with general and sectoral regulations, ownership of the asset or service, additionality with respect to the nationally determined contributions (NDC), and sustainable development criteria.
• Templates are provided, such as the "Application for Registration of Mitigation Measures Applicable to Carbon Markets" .
• RENAMI's guidelines include registration requirements for REDD+ mitigation measures, such as proof of land or forest tenure rights, compliance with REDD+ safeguards, and documentation of the assigned quota of the Forest Reference Emission Level (FREL) by MINAM. This requirement is crucial for aligning subnational initiatives, including jurisdictional programs or private projects, with the national REDD+ effort.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: Memorandum of Understanding (MoU) on Article 6.
• Switzerland: Implementation Agreement.

— — — — — — — — — — — — — —

NOTES

In October 2020, Peru entered into a carbon credit agreement with Switzerland, marking the world's inaugural carbon compensation arrangement under Article 6. Switzerland will finance projects aimed at fostering sustainable development in Peru, with emissions reductions contributing to its nationally determined contribution (NDC). Additionally, Peru signed a Memorandum of Understanding (MoU) with Singapore in September 2022, to develop a bilateral trading agreement under Article 6.

Peru's Environmental Ministry aims to launch the country's carbon registry, the National Registry for Mitigation Measures [Registro Nacional de Medidas de Mitigación (RENAMI)], by November’s COP29 climate summit in Baku. Berioska Quispe, Director of Climate Change and Greenhouse Gas Mitigation, stated at the Peru Carbon Forum held on October 2, 2024. According to the Director, the goal is to have the registry approved by the summit, though its initial launch faced delays due to feedback from sectors on the complexity of processes. The ministry is working to simplify the system to avoid excessive paperwork.

The RENAMI will catalog all Peruvian carbon credits, covering both voluntary and compliance markets, and align with the Paris Agreement's requirements for high integrity and real mitigation outcomes. Although Quispe did not confirm whether RENAMI will host Article 6 ITMOs, she emphasized that listed credits will meet stringent social and environmental integrity standards, including third-party reviews and stakeholder consultations.

Additionally, Peru's Environment Ministry plans to unveil a national carbon strategy aimed at achieving net-zero emissions by 2050 during COP29.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Ministerial Resolution N.° 156-2022-MINAM [Resolución Ministerial N.° 156-2022-MINAM]

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Peru And Switzerland Sign ‘World’s First’ Carbon Offset Deal Under The Paris Agreement

Implementing Agreement to the Paris Agreement between the Swiss Confederation and the Republic of Peru

Singapore and Peru to Collaborate on Carbon Markets to Advance Climate Ambition

Peru’s national carbon registry looks to launch by COP29 -official

GUIDES FOR THE USE OF ENVIRONMENTAL MARKETING CLAIMS

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Green Guides

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Federal Trade Commission

— — — — — — — — — — — — — —

TYPE OF REGULATION

Environmental Claims Guidance

— — — — — — — — — — — — — —

STATUS OF REGULATION

In Force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

1.10.2012

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

11.10.2012

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒First issued in 1992 and subsequently revised in 1996, 1998 and 2012, the Green Guides are a non-enforceable guidance to companies selling goods and/or services on the US market that is designed to help marketers ensure that the claims they make about the environmental attributes of their products are truthful and non-deceptive.

-

Applicability of the Green Guides

The Guides apply to companies that sell goods and/or services on the US market and make environmental marketing claims about these goods and/or services.

-

Guidelines for General Environmental Marketing Claims

In its Green Guides, the Federal Trade Commission advises claimants to maintain competent and reliable scientific evidence to support their carbon offset claims, including using appropriate accounting methods to ensure that they are properly quantifying greenhouse gas emission reductions and not selling those reductions more than once, disclose if consumers’ carbon offset purchases fund greenhouse gas emission reductions/greenhouse gas removals that will not occur for two years or longer and refrain from using carbon "offsets" if the activity that forms the basis of the carbon offset is already required by law. More broadly, in the Guides, the Federal Trade Commission advises claimants, who make environmental marketing claims about the good and/or services they sell, to:

• use plain language and sufficiently large type, place disclosures in close proximity to the qualified claim and avoid making inconsistent statements or using distracting elements that could undercut or contradict the disclosure;
• specify whether an environmental-related claim refers to the product, the product’s packaging, a service or to just a portion of the product, package or service;
• not overstate, directly or by implication, an environmental attribute or benefit and not imply environmental benefits if these benefits are negligible;
• be clear about environment-related claims comparing one product against another to avoid consumer confusion;
• avoid general environmental benefit claims and unqualified environmental benefit claims; and be able to substantiate all environment-related claims with evidence.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

No bilateral agreements in place

— — — — — — — — — — — — — —

NOTES

In the wake of an increase in the number of environmental marketing claims being made by sellers of goods and/or services on the American market, the Federal Trade Commission is seeking to update the Green Guides. On 14 December 2022, the Federal Trade Commission announced that it would launch a public comment period seeking feedback on updates to its Green Guides; the public comment period closed in spring 2023.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Guides for the Use of Environmental Marketing Claims

— — — — — — — — — — — — — —

OTHER DOCUMENTS

FTC Seeks Public Comment on Potential Updates to its ‘Green Guides’ for the Use of Environmental Marketing Claims

CARBON MARKETS RULES FOR THE KINGDOM OF BHUTAN 2023

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Carbon Markets Rules for the Kingdom of Bhutan 2023

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

National Environment Commission

— — — — — — — — — — — — — —

TYPE OF REGULATION

National Policy Document

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

27 Mar 2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

27 Mar 2023

— — — — — — — — — — — — — —

STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The 2023 Carbon Markets Rules for the Kingdom of Bhutan provides guidance on how Bhutan will facilitate its participation in cooperative approaches with other parties to the Paris Agreement under Article 6.2.The rules are applicable to all activities within Bhutan that seek to participate in either compliance or voluntary carbon markets, specifically for the issuance of a Letter of Authorisation to facilitate corresponding adjustments. For activities of the voluntary market that do not require a Letter of Authorisation, entities do not need to obtain approval, as these activities do not impact Bhutan’s international climate commitments.

-

Institutional Arrangements

National Climate Change Committee (NCCC): This high-level committee sets the overall scope for Article 6 engagement and approves fees for corresponding adjustments.

Climate Change Coordination Committee (C4): This committee reviews and develops methodologies, oversees technical guidelines, and proposes activities eligible for carbon market participation for NCCC approval. It also sets technical standards, accredits third-party auditors, and handles the certification and issuance of emission reduction credits. C4 is responsible for authorising projects and participants to generate and transact Internationally Transferred Mitigation Outcomes (ITMOs), and managing grievances and appeals.

Department of Environment and Climate Change (DECC): The DECC defines the carbon asset development process, accredits auditors, registers projects, and certifies emission reductions. It also proposes project authorisations for generating and transacting ITMOs, sets fees for corresponding adjustments, executes the transfer of Article 6 units. Additionally, the DECC implements corresponding adjustments and reports on projects and transfers in the Biennial Transfer Reports for Article 6 Technical Expert Review.

-

Process

• Participation requirement: Entities must obtain a Letter of Authorisation from the DECC.
• Validation and verification: Mitigation activities need to be validated and verified according to procedures established by the National Environment Commission (NEC).
• Authorisation details: Once authorised, entities can manage, sell, and transfer any mitigation Outcomes arising from the authorised activities, in accordance with the conditions set in the Letter of Authorisation.
• Payment for corresponding adjustments: The DECC specifies the payment required for corresponding adjustments at the time of granting the Letter of Authorisation.

— — — — — — — — — — — — — —

OTHER NOTES

• In December 2023, The Kingdom of Bhutan has become the first national registry to fully integrate with the Climate Action Data Trust (CAD Trust) Metadata Layer, a blockchain-based platform designed to ensure transparent accounting in carbon markets. By collaborating with CAD Trust, Bhutan aims to enhance the efficiency and transparency of its climate mitigation efforts in accordance with Article 6 implementation.
• Bhutan and Singapore signed a Memorandum of Understanding in May 2023. Under the MOU, Singapore and Bhutan agreed to work towards signing a legally binding bilateral agreement that sets out a framework for the international transfer of correspondingly adjusted carbon credits. Both countries will also identify mutually beneficial Article 6-compliant carbon credit projects that will support both countries in achieving their nationally determined contributions (NDCs).L7

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Carbon Markets Rules for the Kingdom of Bhutan 2023

— — — — — — — — — — — — — —

OTHER DOCUMENTS

CAD Trust Integrates Kingdom of Bhutan as First National Registry

Singapore and Bhutan sign Memorandum of Understanding to collaborate on carbon credits

OPERATIONS MANUAL FOR THE IMPLEMENTATION OF ARTICLE 6 OF THE PARIS AGREEMENT ON CLIMATE CHANGE IN CAMBODIA

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

-

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

14.12.2023

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ENTRY INTO FORCE DATE

14.12.2023

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STAKEHOLDERS

• Project Developers

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REGULATION SUMMARY

🡒 The Royal Government of Cambodia (RGC) has issued an operations manual for the implementation of Article 6, which acts as a legal framework on Article 6 implementation and participation, including a governance and institutional framework; an engagement approach and defined processes from pre-implementation and implementation to issuance, transfer, and the application of corresponding adjustments. The manual also outlines the eligibility of projects for authorisation through a 'positive list' of projects, referred to as greenhouse gas emission reduction (GHG ER) projects. The manual appoints the Ministry of Environment as the National Authority for the GHG ER Mechanism, giving it the authority to issue letters of no objection, letters of authorisation (LoA), and positive examinations for GHG ERs from eligible projects in the country.

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Governance and Institutional Framework

The National Authority's functions encompass the following entities and responsibilities:

(1) The Chair of the National Authority signs letters of authorisation for the international transfer of GHG ERs under Article 6;

(2) The Coordinator of the National Authority:

• Signs letters of no objection for GHG ER projects;
• Submits LoAs to the Chair of the National Authority;
• Notifies project proponents about rejection, authorisation, and positive examination; and
• Monitors compliance with provisions of the Article 6 Operational Manual.

(3) The Technical Group of the National Authority reviews and assesses requests for authorisation and prepares a technical assessment report with findings and recommendations.

(4) The Secretariat of the National Authority:

• Receives requests for no objection, authorisation, and positive examination;
• Supports assessments and monitoring of activities of the National Authority;
• Supports information management of the National Registry.

A National Registry: The RGC will develop a National GHG ER Registry to support the tracking of GHG ER projects being planned or implemented in the country.

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Eligibility of GHG ER Projects for Article 6 Authorisation

All project proponents seeking the authorisation of GHG ERs generated from their projects are required to satisfy the following criteria:

• Inclusion in the ‘positive list’ of GHG ER projects;
• Share of GHG ERs reserved for domestic use;
• Authorisation period aligned to Article 6.4 crediting periods;
• Authorised GHG ERs issued by an eligible carbon mechanism;
• GHG ERs are real, verified, and additional;
• GHG ERs are generated from 2021 onward;
• GHG ER project ensures environmental integrity by setting conservative baselines and below ‘business-as-usual’ emission projections and minimizing risk of non-permanence;
• GHG ER project is aligned with RGC's sustainable development priorities.

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Process for Article 6 GHG ER Projects

1. Project pre-implementation

Step 1: No Objection (optional): Requesting a Letter of No-Objection is an optional step for all GHG ER projects.

Step 2: Validation: Requesting independent validation in line with the procedures established by the relevant carbon mechanism.

Step 3: Authorisation: Requesting a LoA is a mandatory step for all project proponents seeking the Article 6 authorisation of GHG ERs.

Step 4: Initial report: Following the issuance of LoA, the National Authority Secretariat will submit an Article 6 initial report to the United Nations Framework Convention on Climate Change (UNFCCC).

2. Project implementation

Step 1: Project registration

Step 2: Project implementation

Step 3: Verification

Step 4: Positive examination

Step 5: Update project information in national registry

3. Issuance and transfer/cancellation

Step 1: Request issuance of GHG ERs

Step 2: Inform National Authority of GHG ER issuance

Step 3: Request first transfer/cancellation of GHG ERs

Step 4: Inform National Authority of first transfer/cancellation of GHG ERs

Step 5: Include GHG ER use in annual information

Step 6: Apply corresponding adjustment(s): Corresponding adjustments apply to the total authorised GHG ERs first transferred each year in the NDC implementation period. For GHG ERs authorised for use towards another country's NDC, the 'first transfer' is the initial international transfer, triggering the adjustment. For GHG ERs authorised for Other International Mitigation Purposes (OIMP), the 'first transfer' is either authorisation, issuance, or use/cancellation as specified in the LoA.

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Ownership of Authorised GHG ERs for International Transfer and Fees

The RGC has sovereign rights to the GHG ER resources that can be achieved in Cambodia, however, Cambodia can also grant ownership of GHG ER units to authorised project participants. For projects with Letters of Authorisation, ownership is transferred at the time of GHG ER issuance according to the distribution. If the government facilitates enabling policies or legal frameworks for ER projects but is not a participant, it can claim up to 10% ownership. Furthermore, ownership of GHG ER units can be revoked if the project proponent fails to comply with Article 6 Operations Manual provisions. Revenue from sales of ERs owned by RGC goes to the Environmental and Social Fund. Administrative fees for Article 6 authorisation will be charged, as well as a corresponding adjustment fee. This fee supports the RGC in increasing its level of mitigation and adaptation efforts. REDD+ fees may apply for monitoring and evaluating REDD+ projects.

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Article 6 Engagement Approach and Participation Requirements

Phase 1, Pilot Article 6 Engagement: Criteria for evaluating Article 6 authorisation requests will be established until December 2025. This limited period aims to minimise authorisations while the government becomes accustomed to new governance frameworks, tracking systems, and reporting to the UNFCCC.

Phase 2, Scaled-up Article 6 Engagement: Lessons from Phase 1 will inform a review of authorisation criteria, updated in the next revision of the Article 6 Operations Manual in 2025.

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BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM.
• Singapore: MoU on Article 6.

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OTHER NOTES

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OFFICIAL DOCUMENT

Operations Manual for the Implementation of Article 6 of the Paris Agreement on Climate change in Cambodia

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OTHER DOCUMENTS

JCM Cambodia - Japan

Singapore and Cambodia sign Memorandum Of Understanding to collaborate on carbon credits

LIST OF ACTIVITIES UNDER BILATERAL/COOPERATIVE APPROACHES IN INDIA UNDER ARTICLE 6.2 MECHANISM OF PARIS AGREEMENT

JURISDICTION TYPE

National

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SHORT NAME

List of activities under bilateral/cooperative approaches in India under article

6.2 mechanism of Paris Agreement

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment, Forest and Climate Change

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TYPE OF REGULATION

National policy document

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STATUS OF REGULATION

Not applicable

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ENACTMENT/PUBLISHING DATE

17.2.2023

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ENTRY INTO FORCE DATE

17.2.2023

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STAKEHOLDERS

• Project Developers

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REGULATION SUMMARY

🡒 February 2023, the National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA) finalised a list of activities that are considered for trading under Article 6.2 of the Paris Agreement. Eligible activities are as follows:

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I. GHG Mitigation Activities:

• Renewable energy with storage (only stored component)
• Solar thermal power
• Off-shore wind
• Green hydrogen
• Compressed bio-gas
• Emerging mobility solutions like fuel cells
• High end technology for energy efficiency
• Sustainable aviation fuel
• Best available technologies for process improvement in hard-to-abate sectors
• Tidal energy, ocean thermal energy, ocean salt gradient energy, ocean wave energy and ocean current energy
• High voltage direct current transmission in conjunction with the renewal energy projects
• Clean cooking using renewable energy at scale (Government or Public-Private Partnership project only)

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II. Alternate Materials:

• Green ammonia

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III. Removal Activities:

• Carbon capture utilisation and storage

The list of activities is valid for three years initially and may be updated/revised by NDAIAPA.

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BILATERAL AGREEMENTS

No bilateral agreements in place

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OTHER NOTES

India has set up a Nationally Designated Authority for the Implementation of Article 6 of the Paris Agreement (NDAIAPA), to govern and facilitate the participation of Indian project proponents in the international carbon markets.

An Office Memorandum of the Ministry of Environment, Forest and Climate Change states that if a project/programme aligns with national priorities, considered positive in the sustainable development evaluation framework (SDEF), the NDAIAPA will approve the project for trading under either Article 6.2 or Article 6.4 mechanisms, and accordingly provide an authorisation for use towards India’s nationally determined contribution (NDC) or as an international transfer in the form of Internationally Transferred Mitigation Outcomes (ITMOs).

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OFFICIAL DOCUMENT

Office Memorandum of the Ministry of Environment, Forest and Climate Change on List of Activities under Article 6.2 Mechanism

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OTHER DOCUMENTS

Office Memorandum of the Ministry of Environment, Forest and Climate Change on List of Activities in India under Article 6.4 Mechanism

LIST OF ACTIVITIES FINALIZED IN INDIA UNDER ARTICLE 6.4 MECHANISM OF PARIS AGREEMENT -REG.

JURISDICTION TYPE

National

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SHORT NAME

List of activities finalized in India under Article 6.4 mechanism of Paris Agreement -reg.

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment, Forest and Climate Change

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TYPE OF REGULATION

National policy document

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STATUS OF REGULATION

Not applicable

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ENACTMENT/PUBLISHING DATE

06 Jul. 2024

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ENTRY INTO FORCE DATE

06 Jul. 2024

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STAKEHOLDERS

• Project Developers

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REGULATION SUMMARY

🡒 In July 2024, the National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA) finalised a list of activities that are considered for trading under Article 6.4 of the Paris Agreement. Eligible activities are as follows:

I. GHG Mitigation Activities:

• Renewable energy with storage (only stored component)
• Solar thermal power
• Off-shore wind
• Green hydrogen
• Compressed bio-gas
• Emerging mobility solutions like fuel cells
• High end technology for energy efficiency
• Sustainable aviation fuel
• Best available technologies for process improvement in hard-to-abate sectors
• Tidal energy, ocean thermal energy, ocean salt gradient energy, ocean wave energy and ocean current energy
• High voltage direct current transmission in conjunction with the renewal energy projects
• Clean cooking using renewable energy at scale (Government or Public-Private Partnership project only)

II. Alternate Materials:

• Green ammonia

III. Removal Activities:

• Carbon capture utilisation and storage

The list of activities is valid for three years initially and may be updated/revised by NDAIAPA.

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BILATERAL AGREEMENTS

No bilateral agreements in place

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OTHER NOTES

India has set up a Nationally Designated Authority for the Implementation of Article 6 of the Paris Agreement (NDAIAPA), to govern and facilitate the participation of Indian project proponents in the international carbon markets.

An Office Memorandum of the Ministry of Environment, Forest and Climate Change states that if a project/programme aligns with national priorities, considered positive in the sustainable development evaluation framework (SDEF), the NDAIAPA will approve the project for trading under either Article 6.2 or Article 6.4 mechanisms, and accordingly provide an authorisation for use towards India’s nationally determined contribution (NDC) or as an international transfer in the form of Internationally Transferred Mitigation Outcomes (ITMOs).

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OFFICIAL DOCUMENT

Office Memorandum of the Ministry of Environment, Forest and Climate Change on List of Activities in India under Article 6.4 Mechanism

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OTHER DOCUMENTS

Office Memorandum of the Ministry of Environment, Forest and Climate Change on List of Activities under Article 6.2 Mechanism

PRESIDENTIAL REGULATION NO. 98/2021  ON THE IMPLEMENTATION OF CARBON ECONOMIC VALUE TO ACHIEVE NATIONALLY DETERMINED CONTRIBUTION AND TO CONTROL GHG EMISSIONS IN NATIONAL DEVELOPMENT  (PERATURAN PRESIDEN NOMOR 98 TAHUN 2021 TENTANG PENYELENGGARAAN NILAI EKONOMI KARBON UNTUK PENCAPAIAN TARGET KONTRIBUSI YANG DITETAPKAN SECARA NASIONAL DAN PENGENDALIAN EMISI GAS RUMAH KACA DALAM PEMBANGUNAN NASIONAL)

JURISDICTION TYPE

National

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SHORT NAME

Perpres No. 98/2021

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GOVERNMENT/AUTHORITY ISSUING REGULATION

President of Republic of Indonesia (Presiden Republik Indonesia)

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

29.10.2021

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ENTRY INTO FORCE DATE

29.10.2021

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STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies
• Carbon Credit Buyers

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REGULATION SUMMARY

🡒 Perpres No.98/2021 establishes the carbon pricing regime in Indonesia including the introduction of a domestic crediting mechanism, an emissions trading scheme, a carbon tax and a result-based payments mechanism. This regulation lays out the framework for the implementation of a “carbon economic value (Nilai Ekonomi Karbon, NEK)”, the introduction of a carbon price to help achieve the nationally determined contribution (NDC) target of the country. It sets out high-level implementation guidelines for both domestic and international carbon trading, including an emissions trading and offset system, result-based payments for emissions reductions and a carbon tax.

The regulation also mandates various line ministries to further provide specific guidelines on the above carbon pricing schemes. More specifically, the regulation mandates a 'mutual recognition process' for international carbon trading, in which methodologies from international standards need to be 'mutually recognised'/converted into Indonesia's domestic crediting mechanism.

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Provision for Carbon Trading

• Implementation for international carbon trading should not affect Indonesia's NDC target achievement.
• Carbon trading can be done through an emissions trading system or offsets.
• Details on carbon trading such as trading procedures, measurement, reporting, verification (MRV) procedures, the use of carbon units, allowance setting will be provided in technical regulations issued by relevant ministries.
• International and/or domestic carbon trading shall be done through carbon market mechanisms such as a carbon exchange, or through direct trading.
• The regulations mandates the establishment of carbon trading infrastructure.

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Carbon Levy

A carbon tax will be applied to eligible taxable projects/products. The regulation mandates the Ministry of Finance to formulate the implementing policies for the carbon tax. Although the regulation does not set the carbon tax rate, the carbon tax rate was set in Law No.7/of 2021. The minimum carbon tax rate is set at IDR 30,000 (approximately USD 1.88, exchange rate 1 USD = 15,988.69 IDR as of May 21, 2024).

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Measurement, Reporting, Verification (MRV)

• Measurement of emissions reduction of a mitigation activity against a baseline shall be done at least once a year.
• Reporting shall be done by relevant technical ministries and recorded in the national registry system. More details on the MRV procedures will be provided in derivative regulations.
• The mitigation activity shall be validated and verified by an independent third-party. Further details will be provided in derivative regulations.

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National Registry System (Sistem Registri Nasional - SRN)

Every business entity is obligated to report its mitigation activity. Failure to do so may result in administrative sanction from the government. Further details on sanction will be provided in derivative regulations.

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Emissions Reduction Certificate (Sertifikate Pengurangan Emisi Gas Rumah Kaca - SPE-GRK)

• SPE-GRK is Indonesia's own domestic crediting mechnism which can be used for carbon trading, climate labellling of products and organisations, and for information for consumer on sustainable supply chains.
• Emission reductions certified by international crediting standard may be used for domestic carbon trading if the emissions reduction occurred in Indonesia before 2021, certified by a credible international crediting standard and recorded in the National Registry System - Climate Change Control (Sistem Registri Nasional - Pengendalian Perubahan Iklim; SRN-PPI).
• The Ministry of Environment and Forestry performs 'mutual recognition' for international carbon trading. More details on mutual recognition will be provided in derivative regulations.

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BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM.
• Norway: MoU to Reduce Greenhouse Gas Emissions from Forestry and Other Land Use.
• Singapore: MoU Concerning Cooperation on Climate Change and Sustainability (including carbon markets).

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OTHER NOTES

• Launched in 2016, the National Registry System (Indonesian: Sistem Registri Nasional - SRN) is Indonesia's web-based national registry system for managing, providing data and information about actions and resources for climate change mitigation, climate change adaptation, and carbon pricing activities in Indonesia.
• The President Regulation No.98 of 2021 mandates ministries and other government agencies to establish specific regulations to provide further details on the implementation of the carbon pricing in Indonesia. A few derivative regulations of the Presidential Regulation No. 98/2021 that have been established include:

1. Ministry of Energy Regulation No.16 of 2022 on the Implementation Guidelines for Carbon Economic Value in the Power Generation Sub Sector
2. Ministry of Environment and Forestry Regulation No. 21 of 2022 on Guidelines for the Implementation of Carbon Economic Value
3. Ministry of Environment and Forestry Regulation No. 7 of 2023 on Procedures for Carbon Trading in the Forestry Sector
4. Financial Services Authority Regulation No. 14 of 2023 on Carbon Trading in the Carbon Exchange.

More regulations are expected to be established such as the Ministry of Finance Regulation on Carbon Tax; the Ministry of Environment and Forestry's environment on NDC; and a sectoral NDC roadmap from each technical ministry (e.g. Ministry of Energy and Mineral Resources for the energy sector). It is not clear when these regulations will be established.

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OFFICIAL DOCUMENT

Presidential Regulation No. 98/2021 on The Implementation of Carbon Economic Value to Achieve Nationally Determined Contribution and to Control GHG Emissions in National Development (in Indonesian)

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OTHER DOCUMENTS

Ministry of Energy Regulation No.16 of 2022 on the Implementation Guidelines for Catbon Economic Value in the Power Generation Subsector

Ministry of Environment and Forestry Regulation No. 21 of 2022 on Guidelines for the Implementation of Carbon Economic Value

Ministry of Environment and Forestry Regulation No. 7 of 2023 on Procedures for Carbon Trading in the Forestry Sector

Financial Services Authority Regulation No. 14 of 2023 on Carbon Trading in the Carbon Exchange

Indonesia's National Registry System (Sistem Registri Nasional - SRN)

Pajak Karbon Indonesia, Upaya Mitigasi Perubahan Iklim dan Pertumbuhan Ekonomi Berkelanjutan (Ministry of Energy and Mineral Resources, 2 December 2021)

JCM Indonesia - Japan

Indonesia and Norway signed a New Partnership to Reduce Greenhouse Gas Emissions from Forestry and Other Land Use.

Singapore and Indonesia Sign Memorandum of Understanding Concerning Cooperation on Climate Change and Sustainability

MINISTRY OF ENVIRONMENT REGULATION NO.21/2022 ON GUIDELINES FOR THE IMPLEMENTATION OF CARBON ECONOMIC VALUE  (PERATURAN MENTERI LINGKUNGAN HIDUP DAN KEHUTANAN NOMOR 21 TAHUN 2022 TENTANG TATA LAKSANA PENERAPAN NILAI EKONOMI KARBON)

JURISDICTION TYPE

National

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SHORT NAME

Permen LHK No. 21/2022

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment and Forestry (Kementerian Lingkunghan Hidup dan Kehutanan)

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TYPE OF REGULATION

Legal Instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

21.9.2022

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ENTRY INTO FORCE DATE

20.10.2022

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STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies
• Carbon credit buyers

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REGULATION SUMMARY

🡒 Permen LHK No.21/2022 is a derivative regulation of Perpres No.98/2021. The bill includes more detailed guidelines for the implementation of "carbon economic value (Nilai Ekonomi Karbon - NEK)", i.e. carbon trading, results-based payments, carbon levy, and other carbon pricing schemes in Indonesia.

It also includes more detailed guidelines on the implementation of a domestic crediting mechanism, a national registry system, and the overall institutional framework for the implementation of carbon pricing in Indonesia.

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Carbon Trading Requirements

• Must follow the carbon trading roadmap;
• Provide an emissions buffer;
• Must use the emissions reductions certificate, Sertifikate Pengurangan Emisi Gas Rumah Kaca (SPE-GRK), for cross-sectoral carbon trading.

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Emissions Buffer

The emissions buffer is the amount of carbon units retained as a risk mitigation effort to ensure the achievment of the nationally determined contribution (NDC) target of Indonesia. The required buffer amount is as follows:

• 0.5% from SPE-GRK for carbon offset in the country;
• Minimum 10% and maximum 20% of SPE-GRK for carbon offset abroad;
• Minimum 20% of SPE-GRK for carbon offset abroad outside of NDC scope (i.e. voluntary market).

The buffer amount is set by the Ministry of Environment and Forestry in coordination with the relevant technical ministry. The buffer amount can be amended periodically based on Indonesia's NDC achievement in any given year. If the NDC target is achieved for two consecutive years and there is any excess buffer, it can be returned in part or in full to the project proponent.

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Carbon Offset

• The business entity shall develop a Mitigation Action Plan Document (Dokumen Rencana Aksi Miitgasi - DRAM) for the mitigation activity they implement.
• The DRAM shall be validated by a validator. The validated results shall then be reported to National Registry System (SRN).
• The business entity shall develop a DRAM report in every compliance period.

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International Carbon Trading Requirements

• Recorded in SRN;
• No transfer of carbon unit to another country's NDC;
• No claim on emission reductions;
• Not tied to emissions reduction claim of foreign cooperation partners;
• Must obtain authorisation from the Minister of Environment and Forestry;
• Only using CO2e as unit and in line with the NDC.

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Approval and Authorisation of International Carbon Trading

Business entity and/or relevant technical ministry submits a proposal and cooperation plan to the Minister of Environment and Forestry.

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SPE-GRK requirements

• The activity must have a DRAM;
• The activity must be located in Indonesia;
• The activity must be recorded in SRN;
• The activity must use a methodology set by the Directorate General of Climate Change, the National Standardisation Agency and/or approved by the United Nations Framework Convention on Climate Change (UNFCCC).

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Mutual Recognition

Emission reductions certificates issued by independent crediting standards can be considered equal to Indonesia's SPE-GRK after following a thorough mutual recognition process, where mutual recognition is performed for international carbon trading.

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BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding (MoU) under the JCM.
• Norway: MoU to Reduce Greenhouse Gas Emissions from Forestry and Other Land Use.
• Singapore: MoU Concerning Cooperation on Climate Change and Sustainability (including carbon markets).

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OTHER NOTES

• Launched in 2016, the National Registry System (Indonesian: Sistem Registri Nasional - SRN) is Indonesia's web-based national registry system for managing, providing data and information about actions and resources for climate change mitigation, climate change adaptation, and carbon pricing activities in Indonesia.
• The President Regulation No.98 of 2021 mandates ministries and other government agencies to establish specific regulations to provide further details on the implementation of the carbon pricing in Indonesia. A few derivative regulations of the Presidential Regulation No. 98/2021 that have been established include:

1. Ministry of Energy Regulation No.16 of 2022 on the Implementation Guidelines for Carbon Economic Value in the Power Generation Sub Sector
2. Ministry of Environment and Forestry Regulation No. 21 of 2022 on Guidelines for the Implementation of Carbon Economic Value
3. Ministry of Environment and Forestry Regulation No. 7 of 2023 on Procedures for Carbon Trading in the Forestry Sector
4. Financial Services Authority Regulation No. 14 of 2023 on Carbon Trading in the Carbon Exchange.

More regulations are expected to be established such as the Ministry of Finance Regulation on Carbon Tax; the Ministry of Environment and Forestry's environment on NDC; and a sectoral NDC roadmap from each technical ministry (e.g. Ministry of Energy and Mineral Resources for the energy sector). It is not clear when these regulations will be established.

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OFFICIAL DOCUMENT

Ministry of Environment Regulation No.21/2022 on Guidelines for the Implementation of Carbon Economic Value (in Indonesian)

Ministry of Environment Regulation No.21/2022 on Guidelines for the Implementation of Carbon Economic Value (English Translation)

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OTHER DOCUMENTS

Ministry of Energy Regulation No.16 of 2022 on the Implementation Guidelines for Catbon Economic Value in the Power Generation Subsector

Ministry of Environment and Forestry Regulation No. 21 of 2022 on Guidelines for the Implementation of Carbon Economic Value

Ministry of Environment and Forestry Regulation No. 7 of 2023 on Procedures for Carbon Trading in the Forestry Sector

Financial Services Authority Regulation No. 14 of 2023 on Carbon Trading in the Carbon Exchange

Indonesia's National Registry System (Sistem Registri Nasional - SRN)

Pajak Karbon Indonesia, Upaya Mitigasi Perubahan Iklim dan Pertumbuhan Ekonomi Berkelanjutan (Ministry of Energy and Mineral Resources, 2 December 2021)

JCM Indonesia - Japan

Indonesia and Norway signed a New Partnership to Reduce Greenhouse Gas Emissions from Forestry and Other Land Use.

Singapore and Indonesia Sign Memorandum of Understanding Concerning Cooperation on Climate Change and Sustainability

NATIONAL GUIDANCE ON VOLUNTARY CARBON MARKET MECHANISMS

JURISDICTION TYPE

National

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SHORT NAME

National Guidance on Voluntary Carbon Market Mechanisms

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment and Water

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TYPE OF REGULATION

National policy document

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

9.1.2021

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ENTRY INTO FORCE DATE

-

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STAKEHOLDERS

• Project Developers
• Validation and Verification Bodies

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REGULATION SUMMARY

🡒 The National Guidance on Voluntary Carbon Market Mechanisms includes provisions related to the institutional arrangement in the carbon market in Malaysia, specifically on the roles and responsibilities of project participants and the ministry in charge of climate change. The guidance sets out the technical requirements for a carbon project and requirements for project registration and reporting. The guidance also provides a short description and status of Malaysia's domestic emissions trading scheme.

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Responsibilities of the carbon project developer

Project participants shall report the following to the Ministry in charge of climate change (Ministry of Natural Resources and Environmental Sustainability of Malaysia) and National Steering Committee on Climate Change (NSCCC):

a) Information on the carbon project;

b) The scope of the activity and the crediting periods;

c) The project boundary;

d) The methodology used and baselines developed;

e) Policy guidance applied to achieve the emission reductions; and

f) Annual reporting of units generated, sold, retired and cancelled.

For forestry projects, a project developer shall report the above to the National Steering Committee on REDD Plus (NSC REDD Plus)

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Responsibilities of the Ministry in charge of climate change (Ministry of Natural Resources and Environmental Sustainability of Malaysia)

a) Host the Secretariat to the National Steering Committee on Climate Change (NSCCC) or any specific committee established under the NSCCC;

b) Provide guidance on carbon markets and propose mechanisms for domestic carbon markets as appropriate;

c) Maintain a registry to track all carbon projects;

d) Verify that no double counting occurs when reporting on nationally determined contribution (NDC) progress and achievement;

e) Undertake corresponding adjustments consistent with the decisions of the United Nations Framework Convention on Climate Change (UNFCCC) on Article 6 of the Paris Agreement;

f) Report to UNFCCC on Malaysia’s participation in market mechanisms under the UNFCCC and voluntary carbon market;

g) Maintain Malaysia’s NDC in accordance with Article 4 paragraph 2 of Paris Agreement and decision 4/CMA.1 under the UNFCCC;

h) Ensure Malaysia’s participation in the voluntary carbon markets contributes to the implementation of Malaysia’s NDC and long-term low GHG emission development strategy;

i) Any other requirements agreed under Article 6 of the Paris Agreement.

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Technical requirements of a carbon project

Activity design

- The mitigation activity must

a) deliver real, measurable and long-term benefits related to climate;

b) minimise the risk of reversals and displacements of emission reductions, and where such reversals occur, ensure that they are fully addressed;

c) avoid negative environmental and social impacts;

d) avoid double financing;

e) establish a robust accounting system

- In developing a carbon project, project developer/proponent must undergo stakeholder consultations including with local communities and indigenous peoples

- There must be a transfer of technology, the applied technology must be environmentally sound and applicable for local environment

- The mitigation activity must also 1) set a baseline 2) be additional 3) be monitored and 4) be quantifiable.

In addition to activity design, the national guidance also sets out the key requirements for carbon accounting, risks and reversal, corresponding adjustments, validation and verification, monitoring, issuance and renewal (Section 4.3 of the Guidance), as well as guidance on project registration and reporting (Section 5).

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• Singapore: Frameworks on Cooperation in Green Economy (including carbon markets).

— — — — — — — — — — — — — —

OTHER NOTES

The national guidance is not legally binding and is intended to be a point of reference and guide to any entity planning to engage in voluntary carbon market mechanisms or international carbon market-related activities in Malaysia.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

National Guidance on Voluntary Carbon Market Mechanisms

— — — — — — — — — — — — — —

OTHER DOCUMENTS

VCM Handbook

Factsheet on Frameworks on Cooperation In Digital Economy and Green Economy between Singapore and Malaysia

CARBON PRICING ACT 2018

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Carbon Pricing Act 2018

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

President and Parliament

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

20.3.2018

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

1.1.2019

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 Singapore's Carbon Pricing Act 2018 establishes the emissions limits for any business facility in Singapore, outlines reporting requirements, and establishes the carbon pricing regime in Singapore.

-

Reporting Requirements

Any business facility that exceeds the first emissions threshold of 2,000 tCO2e is required to register as a reportable company and report its emissions to the National Environment Agency (NEA).

-

Carbon Tax Applicability

Any business entity exceeding the second emissions threshold of 25,000 tCO2e is required to register as a taxable company and is liable for paying the carbon tax.

-

Carbon Tax Rate

The Act sets the carbon tax rate at SGD 5 (approximately USD 3.71, exchange rate USD 1 = SGD 1.34775 as of May 21, 2024).

-

Carbon Tax Payment Method

The Act allows a taxable entity to surrender carbon credits as a payment method for the carbon tax.

-

Carbon Credit Registry

The Act mandates NEA to open a carbon registry account for each taxable business facility.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

Singapore has signed treaties (MoU or Implementation Agreement.) under Article 6 with 21 countries:

1. Bhutan: MoU on Article 6.

2. Cambodia: MoU on Article 6.

3. Chile: MoU on Article 6.

4. Colombia: MoU on Article 6.

5. Costa Rica: MoU on Article 6.

6. Dominican Republic: MoU on Article 6.

7. Fiji: MoU on Article 6.

8. Ghana: Implementation Agreement.

9. Indonesia: MoU Concerning Cooperation on Climate Change and Sustainability.

10. Kenya: MoU on Article 6.

11. Mongolia: MoU on Article 6.

12. Morocco: MoU on Article 6.

13. Papua New Guinea: MoU on Article 6 and Implementation Agreement.

14. Paraguay: concluded negotiations on the Carbon Credit Cooperative Implementation Agreement., expected to be signed by both countries in 2024.

15. Peru: MoU on Article 6.

16. Rwanda: MoU on Article 6.

17. Senegal: MoU on Article 6.

18. Sri Lanka: MoU on Article 6.

19. Vietnam: Letter of Intent on the Continuation of Implementation of Memorandum of Understanding for Collaboration under Article 6.

20. Lao PDR; MoU on Article 6.

21. Philippines: MoU on Article 6

-

Singapore has also signed treaties under general carbon markets:

1. Brunei: MoU on Cooperation in Energy and Green Economy (including carbon markets).

2. Malaysia: Frameworks on Cooperation in Green Economy (including carbon markets).

3. Thailand: Memorandum of Cooperation (MoC) and Implementation Workplan 2022 – 2024 on Article 6.

— — — — — — — — — — — — — —

OTHER NOTES

The Carbon Pricing Act 2018 was amended in 2023 to add more detailed provisions on the use of carbon credits in the carbon tax scheme. (See "Carbon Pricing Act 2018, Carbon Pricing (Carbon Tax and Carbon Credits Registry) (Amendment) Regulations 2023)

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Carbon Pricing Act 2018

— — — — — — — — — — — — — —

OTHER DOCUMENTS

National Climate Change Secratariat Singapore, Carbon Tax

Singapore and Bhutan sign Memorandum of Understanding to collaborate on carbon credits

Singapore and Cambodia sign Memorandum Of Understanding to collaborate on carbon credits

Singapore and Chile sign Memorandum Of Understanding to collaborate on carbon credits

Singapore signs Memorandum of Understanding with Colombia to collaborate in carbon credits

Singapore and Costa Rica sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

Singapore and Dominican Republic sign Memorandum Of Understanding to collaborate on carbon credits

Singapore and Fiji sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

Singapore signs Implementation Agreement with Ghana to collaborate on Carbon Credits under Article 6 of the Paris Agreement

Singapore and Indonesia Sign Memorandum of Understanding Concerning Cooperation on Climate Change and Sustainability

Singapore and Kenya MOU in carbon credits collaboration under Article 6 of the Paris Agreement

Singapore and Mongolia to Collaborate on Carbon Markets to Advance Climate Ambition

Official Visit of Minister for Foreign Affairs Dr Vivian Balakrishnan to The Kingdom of Morocco, 2 to 4 July 2022

Singapore signs first Implementation Agreement with Papua New Guinea to collaborate on Carbon Credits under Article 6 of the Paris Agreement

Paraguay and Singapore conclude negotiations for Carbon Credit cooperation

MOU Signing Ceremony with Peru at the COP27 Singapore Pavilion - Ms Grace Fu

Singapore and Rwanda sign Memorandum of Understanding to Collaborate on Carbon Credits to Accelerate Climate Action

Singapore and Senegal sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

Singapore and Sri Lanka sign Memorandum of Understanding to collaborate on carbon credits

Singapore and Vietnam sign Memorandums of Understanding to Collaborate on Energy and Carbon Credits

Singapore and Brunei MoU on Cooperation in Energy and Green Economy

Factsheet on Frameworks on Cooperation In Digital Economy and Green Economy between Singapore and Malaysia

Singapore and Thailand enhance bilateral economic relations at Sixth Singapore-Thailand Enhanced Economic Relationship Ministerial Meeting

Singapore and Lao PDR sign Memorandum of Understanding on carbon credits collaboration under Article 6 of the Paris Agreement

Philippines and Singapore to bring relations to new trajectory

CARBON PRICING ACT 2018, CARBON PRICING (CARBON TAX AND CARBON CREDITS REGISTRY) (AMENDMENT) REGULATIONS 2023

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

-

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Sustainability and Environment

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

30.9.2023

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

1.1.2024

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Buyers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The bill states that one eligible international carbon credit may be surrendered in place of one fixed-price carbon credit in respect of any tax starting from 2024.The bill also includes the prescribed criteria for an international carbon credit, the prescribed limit for the use of international carbon credits, the application for NEA's approval for the use of international carbon credits, as well as the surrender of international carbon credits.

-

International Carbon Credit Criteria

The international carbon credits eligible to be used as a payment method for the carbon tax refer to the Internationally Transferred Mitigation Outcomes under Article 6.2 of the Paris Agreement, i.e. credits that require corresponding adjustment with the host country. The international carbon credit eligiblity criteria are as follows:

• No double counting in contravention to the Paris Agreement;
• The certified emissions reductions must have occurred between 1 January 2021 and 31 December 2030, both dates inclusive;
• The certified emissions reductions must be additional;
• The certified emissions reductions must be quantified in a realistic, defensible, and conservative estimate;
• The certified GHG emissions reductions or removals must have been calculated in a manner that is conservative and transparent, and must have been measured and verified by an accredited and independent third-party verification entity before the international carbon credit was issued;
• The certified emissions reductions must be permanent/non-reversible. In case non-permanence may occur, measures to monitor, mitigate and compensate any reversal should be in place;
• The project/programme that generated the GHG emissions reductions/removals must not violate the host country's laws and regulatory requirements as well as any international obligations of the host country; and
• The project/programme that generated the certified emissions reductions/removals should not result in a material increase in GHG emissions at any other place other than the site of that project/programme (no leakage).

-

International Carbon Credits Limit

• 5% of total reckonable GHG emissions

Applications for the Use of International Carbon Credits

Any entity that wishes to use international carbon credits to pay any tax should apply to NEA between 1 July of the emission year and 30 June of the following year.

Surrender of International Carbon Credits:

Any entity that wishes to surrender an eligible international carbon credit to pay any tax must surrender the carbon credit by 31 August in the year following the emission year.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

Singapore has signed treaties (MoU or Implementation Agreement.) under Article 6 with 21 countries:

1. Bhutan: MoU on Article 6.

2. Cambodia: MoU on Article 6.

3. Chile: MoU on Article 6.

4. Colombia: MoU on Article 6.

5. Costa Rica: MoU on Article 6.

6. Dominican Republic: MoU on Article 6.

7. Fiji: MoU on Article 6.

8. Ghana: Implementation Agreement.

9. Indonesia: MoU Concerning Cooperation on Climate Change and Sustainability.

10. Kenya: MoU on Article 6.

11. Mongolia: MoU on Article 6.

12. Morocco: MoU on Article 6.

13. Papua New Guinea: MoU on Article 6 and Implementation Agreement.

14. Paraguay: concluded negotiations on the Carbon Credit Cooperative Implementation Agreement., expected to be signed by both countries in 2024.

15. Peru: MoU on Article 6.

16. Rwanda: MoU on Article 6.

17. Senegal: MoU on Article 6.

18. Sri Lanka: MoU on Article 6.

19. Vietnam: Letter of Intent on the Continuation of Implementation of Memorandum of Understanding for Collaboration under Article 6.

20. Lao PDR; MoU on Article 6.

21. Philippines: MoU on Article 6

-

Singapore has also signed treaties under general carbon markets:

1. Brunei: MoU on Cooperation in Energy and Green Economy (including carbon markets).

2. Malaysia: Frameworks on Cooperation in Green Economy (including carbon markets).

3. Thailand: Memorandum of Cooperation (MoC) and Implementation Workplan 2022 – 2024 on Article 6.

— — — — — — — — — — — — — —

OTHER NOTES

Although not explicitly mentioned in the bill, the carbon tax was raised to Singapore dollars SGD 25/tCO2e (approximately USD 18.55, exchange rate USD 1 = SGD 1.34775 as of May 21, 2024) with effect from 2024 from SGD 5 between 2019-2023. It will be raised to SGD 45/tCO2e (USD 33.39, exchange rate USD 1 = SGD 1.34775, May 21 2024) in 2026 and 2027, with a view to reaching SGD 50-80/tCO2e (approximately USD 37-59, exchange rate USD 1= SGD 1.34775 as of May 21, 2024) by 2030.

The Singapore government has set out specific eligibiity criteria for project types i.e. only ITMOs from the following projects are eligible for carbon tax compliance:

Renewable energy

• Offshore wind technology

• Waste-to-energy technology

• RE project technologies linked to energy storage systems

• All RE project technologies from Least Developed Countries (LDCs)

• Micro-grids that are not linked to national grids

• RE projects in Lower Middle-Income Countries with less than 5% RE installation capacity in their national grid at the point of registration or renewal

Nature-based solutions

Reducing Emissions from Deforestation and Forest Degradation (REDD/REDD+) projects from High Forest cover, Low Deforestation (HFLD) countries (developing countries with more than 50% forest cover and a deforestation rate of less than 0.22% per year) are not eligible.

The Singapore government has also set out specific eligibility criteria for methodology and carbon crediting programmes depending on the country in which the project is located.

For Papua New Guinea

Gold Standard

All active methodologies published before 31 March 2023 are eligible, except for;

1) Land Use and Forestry & Agriculture

2) Methodology For Animal Manure Management and Biogas Use for Thermal Energy Generation V1.1

3) Carbon Sequestration Through Accelerated Carbonation of Concrete Aggregate V1.0

4) Two And Three Wheeled Personal Transportation V1.0

Verified Carbon Standard (VCS)

Eligible: All active methodologies published before 31 March 2023.

Not Eligible: Methodologies under Sectoral Scope 14 (Agriculture, forestry and other land use) with a few exceptions, as follows:

• Scenario 2a and 3 of VCSN Jurisdictional and Nested REDD+ (JNR) framework;

• VM0012 Improved Forest Management in Temperate and Boreal Forest, v1.2;

• VM0022 Quantifying N2O Emissions Reductions in Agricultural Crops through Nitrogen Fertiliser Rate Reduction, v1.1;

• VM0026 Methodology for Sustainable Grassland Management, v1.1;

• VMD0040 Leakage from Displacement of Grazing Activities, v.1.0;

• VM0032 Methodology for the Adoption of Sustainable Grasslands through Adjustment of Fire and Grazing, v1.0;

• VM0033 Methodology for Tidal Wetland and Seagrass Restoration, v2.1;

• VM0036 Methodology for Rewetting Drained Temperate Peatlands, v1.0;

• VM0041 Methodology for the Reduction of Enteric Methane Emissions from Ruminants through the Use of Feed Ingredients, v.2.0;

• VM0042 Methodology for Improved Agricultural Land Management, v2.0.

American Carbon Registry (ACR)

All active methodologies published before 31 March 2023, except methodologies under the “Sectoral Scope 3 (Land Use, Land Use Change and Forestry) category of ACR.

Global Carbon Council (GCC)

All active methodologies published before 31 March 2023 except for Nuclear energy, HFC-23 abatement, REDD, REDD; A&R, Carbon Capture & Storage (CCS), GCCM004 Methodology for Water Grid Connected Renewable Energy Based Desalination Plant, v1.0; GCCM005 Methodology for Desalinated Water Savings in Buildings, v1.0.

For Ghana

Gold Standard

All active methodologies published before 31 March 2023 are eligible except for methodologies under “Land Use and Forestry & Agriculture” category.

Verified Carbon Standard (VCS)

Eligible: All active methodologies published before 31 March 2023.

Not Eligible: Methodologies under Sectoral Scope 14 (Agriculture, forestry and other land use) with a few exceptions, as follows;

• Scenario 2a and 3 of VCSN Jurisdictional and Nested REDD+ (JNR) framework

• VM0012 Improved Forest Management in Temperate and Boreal Forest, v1.2;

• VM0017 Adoption of Sustainable Agricultural Land Management, v1.0;

• VM0021 Soil Carbon Quantification Methodology, v1.0;

• VM0022 Quantifying N2O Emissions Reductions in Agricultural Crops through Nitrogen Fertiliser Rate Reduction, v1.1;

• VM0024 Methodology for Coastal Wetland Creation, v1.0;

• VM0026 Methodology for Sustainable Grassland Management, v1.1;

• VMD0040 Leakage from Displacement of Grazing Activities, v.1.0;

• VM0032 Methodology for the Adoption of Sustainable Grasslands through Adjustment of Fire and Grazing, v1.0;

• VM0036 Methodology for Rewetting Drained Temperate Peatlands, v1.0;

• VM0041 Methodology for the Reduction of Enteric Methane Emissions from Ruminants through the Use of Feed Ingredients, v.2.0;

• VM0042 Methodology for Improved Agricultural Land Management, v2.0.

For both countries, where any VCS methodology is used, the project participant will be required to demonstrate the Sustainable Development contributions or co-benefits of the relevant mitigation activity by submitting to the Joint Committee its verification report under the Climate, Community and Biodiversity Standards (CCB Standards), the Sustainable Development Verified Impact Standard (SD VISta) or another standard recognised by VCS for such purpose.

The eligibility criteria will be reviewed annually to maintain relevance and high environmental integrity standards.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Carbon Pricing Act 2018, Carbon Pricing (Carbon Tax and Carbon Credits Registry) (Amendment) Regulations 2023

— — — — — — — — — — — — — —

OTHER DOCUMENTS

National Climate Change Secratariat Singapore, Carbon Tax

Singapore and Bhutan sign Memorandum of Understanding to collaborate on carbon credits

Singapore and Cambodia sign Memorandum Of Understanding to collaborate on carbon credits

Singapore and Chile sign Memorandum Of Understanding to collaborate on carbon credits

Singapore signs Memorandum of Understanding with Colombia to collaborate in carbon credits

Singapore and Costa Rica sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

Singapore and Dominican Republic sign Memorandum Of Understanding to collaborate on carbon credits

Singapore and Fiji sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

Singapore signs Implementation Agreement with Ghana to collaborate on Carbon Credits under Article 6 of the Paris Agreement

Singapore and Indonesia Sign Memorandum of Understanding Concerning Cooperation on Climate Change and Sustainability

Singapore and Kenya MOU in carbon credits collaboration under Article 6 of the Paris Agreement

Singapore and Mongolia to Collaborate on Carbon Markets to Advance Climate Ambition

Official Visit of Minister for Foreign Affairs Dr Vivian Balakrishnan to The Kingdom of Morocco, 2 to 4 July 2022

Singapore signs first Implementation Agreement with Papua New Guinea to collaborate on Carbon Credits under Article 6 of the Paris Agreement

Paraguay and Singapore conclude negotiations for Carbon Credit cooperation

MOU Signing Ceremony with Peru at the COP27 Singapore Pavilion - Ms Grace Fu

Singapore and Rwanda sign Memorandum of Understanding to Collaborate on Carbon Credits to Accelerate Climate Action

Singapore and Senegal sign Memorandum of Understanding to collaborate on carbon credits to accelerate climate action

Singapore and Sri Lanka sign Memorandum of Understanding to collaborate on carbon credits

Singapore and Vietnam sign Memorandums of Understanding to Collaborate on Energy and Carbon Credits

Singapore and Brunei MoU on Cooperation in Energy and Green Economy

Factsheet on Frameworks on Cooperation In Digital Economy and Green Economy between Singapore and Malaysia

Singapore and Thailand enhance bilateral economic relations at Sixth Singapore-Thailand Enhanced Economic Relationship Ministerial Meeting

Singapore and Lao PDR sign Memorandum of Understanding on carbon credits collaboration under Article 6 of the Paris Agreement

Philippines and Singapore to bring relations to new trajectory

REGULATIONS GOVERNING THE COLLECTION OF CARBON FEES

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Regulations Governing the Collection of Carbon Fees

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal INSTRUMENT

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

29.08.2024

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

29.08.2024

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Byers
• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 August 2024, Taiwan's Ministry of Environment (MOENV) announced three carbon fee related regulations that establish a carbon pricing system. The first regulation, entitled “Regulations Governing the Collection of Carbon Fees”, outlines how the carbon fees will be collected from entities.

Scope: Entities subject to carbon fees: Power and gas supply industries, along with manufacturing industries emitting 25,000 metric tons or more of CO2e annually, will be subject to carbon fees.

Payment Timing: Starting from the year after the fee rate takes effect, entities must pay carbon fees annually by the end of May. Payment is based on the total emissions of the preceding year, calculated using the announced rates. For instance, if the rates become effective on January 1, 2025, then payment for emissions during 2025 would be due by May 2026.

Transitional Adjustment Mechanism: To ease the transition, a mechanism adjusts chargeable emissions, particularly for industries susceptible to carbon leakage, through an adjustment coefficient that increases over time. The emission adjustment coefficient value for the first period is 0.2, 0.4 for the second, and 0.6 for the third period.

Carbon credits: Entities can utilize both domestic and carbon credits. Domestic credits can offset up to 10% of chargeable emissions. International credits require MOENV approval and can only be used by industries not considered high risk for carbon leakage.

Implementation Timeline

Following a trial declaration without payment in 2025, payments based on 2025 emission levels will commence in 2026. The fee rate, to be determined by October 2024 and effective from January 1, 2025, will be reviewed annually.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• No bilateral agreements in place.

— — — — — — — — — — — — — —

OTHER NOTES

The three regulations establishing a carbon pricing system are the following:

1) Regulations Governing the Collection of Carbon Fees

2) Regulations for Administration of Self-Determined Reduction Plans

3) Designated Greenhoue Gas Reduction Goal for Entities Subject to Carbon Fees

_

Taiwan's government committee proposed setting the country’s long-anticipated carbon tax at NT$300 (approximately USD 9.31, exchange rate USD 1 = NT$32.21 as of October 14, 2024) per tonne of carbon dioxide (tCO2) in October, 2024. 

The committee also recommended preferential rates of NT$50/tCO2 (approximately USD 1.55, exchange rate USD 1 = NT$32.21 as of October 14, 2024) and NT$100/tCO2 (approximately USD 3.10, exchange rate USD 1 = NT$32.21 as of October 14, 2024) for emitters that meet high international carbon reduction standards, offering industry-specific incentives.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Regulations Governing the Collection of Carbon Fees

Taiwan committee recommends $9/t carbon tax level

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Taiwan's Ministry of Environment announces three Carbon Fee regulations, officially ushering in the era of carbon pricing

REGULATIONS FOR ADMINISTRATION OF SELF-DETERMINED REDUCTION PLANS

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Regulations for Administration of Self-Determined Reduction Plans

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

29.08.2024

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

29.08.2024

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Byers
• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 August 2024, Taiwan's Ministry of Environment (MOENV) announced three carbon fee related regulations that establish a carbon pricing system. The second regulation, entitled “Regulations for Administration of Self-Determined Reduction Plans”, outlines how the implementation of emission reduction plans may qualify an entity for preferential carbon fee rates.

- Entities reducing emissions through low-carbon measures can submit Self-Determined Reduction Plans to apply for preferential carbon fee rates.

- By April 30th each year, entities must report their progress to the Ministry of Environment, detailing improvements and risks; failure to meet targets results in rates reverting to the general fee.

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• No bilateral agreements in place.

— — — — — — — — — — — — — —

OTHER NOTES

The three regulations establishing a carbon pricing system are the following:

1) Regulations Governing the Collection of Carbon Fees

2) Regulations for Administration of Self-Determined Reduction Plans

3) Designated Greenhoue Gas Reduction Goal for Entities Subject to Carbon Fees

Taiwan's government committee proposed setting the country’s long-anticipated carbon tax at NT$300 (approximately USD 9.31, exchange rate USD 1 = NT$32.21 as of October 14, 2024) per tonne of carbon dioxide (tCO2) in October, 2024. 

The committee also recommended preferential rates of NT$50/tCO2 (approximately USD 1.55, exchange rate USD 1 = NT$32.21 as of October 14, 2024) and NT$100/tCO2 (approximately USD 3.10, exchange rate USD 1 = NT$32.21 as of October 14, 2024) for emitters that meet high international carbon reduction standards, offering industry-specific incentives.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Regulations for Administration of Self-Determined Reduction Plans

Taiwan committee recommends $9/t carbon tax level

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Taiwan's Ministry of Environment announces three Carbon Fee regulations, officially ushering in the era of carbon pricing

DESIGNATED GREENHOUSE GAS REDUCTION GOAL FOR ENTITIES SUBJECT TO CARBON FEES

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Designated Greenhouse Gas Reduction Goal for Entities Subject to Carbon Fees

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

Ministry of Environment

— — — — — — — — — — — — — —

TYPE OF REGULATION

Legal Instrument

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

29.08.2024

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

29.08.2024

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit Byers
• Project Developers

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 August 2024, Taiwan's Ministry of Environment (MOENV) announced three carbon fee related regulations that establish a carbon pricing system. The third regulation, entitled “Designated Greenhouse Gas Reduction Goal for Entities Subject to Carbon Fees”, specifies how different designated emission reduction rates relate to specific preferential rates.

By 2030, two designated reduction rates will apply to different preferential rates:

• Industry-specific targets from a 2021 baseline aligned with science-based targets qualify for Preferential Rate A.
• Technology benchmark targets from 2018-2022 baselines, accounting for emissions by fuel type, processes, and electricity usage, qualify for Preferential Rate B

— — — — — — — — — — — — — —

BILATERAL AGREEMENTS

• No bilateral agreements in place.

— — — — — — — — — — — — — —

OTHER NOTES

The three regulations establishing a carbon pricing system are the following:

1) Regulations Governing the Collection of Carbon Fees

2) Regulations for Administration of Self-Determined Reduction Plans

3) Designated Greenhoue Gas Reduction Goal for Entities Subject to Carbon Fees

Taiwan's government committee proposed setting the country’s long-anticipated carbon tax at NT$300 (approximately USD 9.31, exchange rate USD 1 = NT$32.21 as of October 14, 2024) per tonne of carbon dioxide (tCO2) in October, 2024. 

The committee also recommended preferential rates of NT$50/tCO2 (approximately USD 1.55, exchange rate USD 1 = NT$32.21 as of October 14, 2024) and NT$100/tCO2 (approximately USD 3.10, exchange rate USD 1 = NT$32.21 as of October 14, 2024) for emitters that meet high international carbon reduction standards, offering industry-specific incentives.

— — — — — — — — — — — — — —

OFFICIAL DOCUMENT

Designated Greenhouse Gas Reduction Goal for Entities Subject to Carbon Fees

Taiwan committee recommends $9/t carbon tax level

— — — — — — — — — — — — — —

OTHER DOCUMENTS

Taiwan's Ministry of Environment announces three Carbon Fee regulations, officially ushering in the era of carbon pricing

CARBON CREDIT MANAGEMENT GUIDELINE AND MECHANISM

JURISDICTION TYPE

National

— — — — — — — — — — — — — —

SHORT NAME

Carbon Credit Management Guideline and Mechanism

— — — — — — — — — — — — — —

GOVERNMENT/AUTHORITY ISSUING REGULATION

National Committee on Climate Change Policy

— — — — — — — — — — — — — —

TYPE OF REGULATION

National policy document

— — — — — — — — — — — — — —

STATUS OF REGULATION

In force

— — — — — — — — — — — — — —

ENACTMENT/PUBLISHING DATE

16.03.2022

— — — — — — — — — — — — — —

ENTRY INTO FORCE DATE

16.03.2022

— — — — — — — — — — — — — —

STAKEHOLDERS

• Carbon Credit bByers
• Project Developers
• Validation and Verification bodies

— — — — — — — — — — — — — —

REGULATION SUMMARY

🡒 The Carbon Credit Management guidelines and mechanism aim to provide guidelines regarding carbon credit management for the purpose of achieving the national greenhouse gas emissions reduction targets under the Paris Agreement.

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Trading and Use of Carbon Credits

The trading and utilisation of carbon credits in Thailand can occur either over the counter or through a designated carbon credit trading center, each governed by specific regulations. Participants, whether buyers, sellers, or users, must adhere to the requirements set forth by the Thailand Greenhouse Gas Management Organisation, including opening an account in the registry system, registering trades or transfers of credits, and reporting their use to the organisation for recording and unit cancellation. Carbon credit traders must establish agreements, ensure compatibility between trading and registry systems, and report transactions through the trading center. Additionally, third-party validation and verification bodies must seek registration with the Organisation to conduct project validation and verification activities.

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Obligations of Project Developers

• Register project implementation with Thailand Greenhouse Gas Management Organisation for any projects located in Thailand that use independent standards and issue carbon credits.
• Report the issuance, purchase, sale, transfer, cancellation, and use of carbon credits.
• Apply for registration of the project and open an account in the registry system.
• Apply for issuance of the carbon credits coming from the implementation of its project.
• Marking the carbon credits for offsetting or compensation purposes should be in accordance with the law establishing the Thailand Greenhouse Gas Management Organisation.

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Use of Carbon Credits for International Purposes

Carbon credits should be generated via the following project types:

• Renewable energy or energy that substitutes fossil fuels;
• Increase of the efficiency of electricity generation and heat generation;
• Use of public transportation system;
• Use of electric vehicles;
• Increase of engine efficiency;
• Increase of the efficiency of energy consumption in buildings and factories, and in households;
• Use of clinker substitutes;
• Waste management;
• Community wastewater management;
• Methane gas recovery;
• Industrial wastewater management;
• Mitigation, absorption, and removal of greenhouse gases from forestry and the agricultural sector;
• Capture, storage, and/or utilisation of greenhouse gases; and other projects specified by the Committee.

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Project characteristics:

(a) Project leading to GHG reduction, enhancement of GHG sinks or reservoirs in addition to those highlighted in national GHG mitigation plans.

(b) Project supporting GHG reduction in order to achieve Thailand's nationally determined contribution (NDC) and its Long-Term Low GHG Emissions Development Strategy.

(c) Fair credit allocation considering investment contribution, international rules or international framework, or applicable regulation.

(d) Crediting period not exceeding the timeframe of the NDC implementation period.

(e) Project promotes development and transfer of advanced technology and innovation.

(f) The mitigation outcomes operated in Thailand for international use should be certified in tons of carbon dioxide equivalent (tCO2eq).

(g) Issuance of a letter of authorisation to use carbon credits for an international objective should follow these steps:

• Detailed project summary in accordance with the international agreement and submit it to the Office;
• The Office considers conformity of the project, approval, and submission to the Cabinet;
• The Office prepares a letter of authorisation for the use case and submit it to the Cabinet for approval and designated signatory.

Further guidance is given regarding project authorisation processes for carbon projects, including specific steps for project registration, monitoring, verification, issuance, and reporting. This involves registering projects and opening accounts in the carbon credit registry system with the Thailand Greenhouse Gas Management Organisation, submitting verified monitoring reports to both the Office and the Organisation, and requesting carbon credit issuance upon successful examination. The Office and the Organisation collaborate to prepare an initial report aligned with the Paris Agreement guidelines for submission to the secratariat of the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat. Regarding international transfer of carbon credits, developers must adhere to Thai laws and Organisation procedures, with transfers recorded by the Organisation. Annual information on transfers is compiled in a format specified by the Paris Agreement and submitted to the Office, which ensures adjustments to prevent double counting of mitigation outcomes. Only authorised projects with recorded transfers and usage for approved objectives are eligible for international purposes.

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BILATERAL AGREEMENTS

• Japan: Memorandum of Understanding under the JCM.
• Singapore: Memorandum of Cooperation (MoC) and Implementation Workplan 2022 – 2024 on Article 6.
• Switzerland: Implementation Agreement.

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OTHER NOTES

The Department of Climate Change and Environment (DCCE), operating under the Ministry of Natural Resources and Environment (MONRE), is progressing with the second version of the Climate Change Bill, presently undergoing public hearing until mid-April 2024. The Bill is anticipated to be reviewed by the cabinet for preliminary approval in June 2024.

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OFFICIAL DOCUMENT

Green House Gas Mitigation Mechanism

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OTHER DOCUMENTS

Thailand: Thai government pushing ahead with the Climate Change Bill

JCM Japan - Thailand

Singapore, Laos sign Article 6 MoU; Thailand, Japan update JCM deal

Singapore and Thailand enhance bilateral economic relations at Sixth Singapore-Thailand Enhanced Economic Relationship Ministerial Meeting

Implementing Agreement to Paris Agreement between the Swiss Confederation and the Kingdom of Thailand

SUBSTANTIATION AND COMMUNICATION OF EXPLICIT ENVIRONMENTAL CLAIMS (GREEN CLAIMS DIRECTIVE)

JURISDICTION TYPE

International

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SHORT NAME

Green Claims Directive

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GOVERNMENT/AUTHORITY ISSUING REGULATION

Directive of the European Parliament and of the Council

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TYPE OF REGULATION

Legal instrument

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STATUS OF REGULATION

Proposed (formally)

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ENACTMENT/PUBLISHING DATE

Not applicable

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ENTRY INTO FORCE DATE

Not applicable

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STAKEHOLDERS

• Buyers
• Project Developers

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REGULATION SUMMARY

🡒 On 22 March 2023, the European Commission published a proposal for a new directive on substantiation and communication of explicit environmental claims (“Green Claims Directive”). The proposed directive is intended to further advance the European Union's project to update European consumer law, to complement the Unfair Commercial Practices Directive (Directive 2005/29/EC), and to fulfil the obligations imposed on the European Commission under the European Green Deal.

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Scope

If adopted, the directive would set detailed rules and address what is seen as the proliferation of misleading or unfounded claims (“greenwashing”), which may arise from the use of terms such as “eco-friendly,” “carbon neutral” or “recycled.” Claims based on the use of carbon credits on improved future performance, including neutrality, reduced or positive environmental impact would be prohibited.

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Substantiation of Explicit Claims

If adopted, EU Member States need to address and ensure that corporates carry out an assessment to substantiate explicit environmental claims. However, at present, the proposed directive does not mention any assessment method. Corporate entities will be required to:

• - Specify whether the claim applies to the entire product or part of it, if it pertains to all activities of a company or only some.
• - Base the claims on recognised scientific evidence and therefore providing accurate information based on international standards.
• - Adopt a life-cycle perspective, including considering environmental impacts to accurately access environmental performance.
• - Demonstrate that the claim is not equivalent with the requirements imposed by law.
• - Ensure that positive achievement(s) do not have adverse impact on climate change, resource consumption, pollution prevention, biodiversity and ecosystems;
• - Report carbon credits transparently, distinguishing between emission reductions and removals, detailing the quality of the offsets, and separate from the corporate entity's GHG emissions, as additional environmental information.
• - For carbon credits use, specify the proportion of residual emissions as a percentage of base-year emissions, detail the mix of biogenic and fossil emissions within these residual emissions, and describe the quantity and type of activity underlying the credits used.
• - Provide proof that the credits have been retired from the registry to prevent double counting.

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Claims about Future Performance

• - Must include a time-bound, science-based commitment with measurable targets within the value chain.
• - Must have an implementation plan with measurable and verifiable targets, detailing resource allocation, and a monitoring and reporting schedule based on specified intervals.
• - Information and reports must be publicly accessible.

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Environmental Labelling

The proposed directive outlines detailed requirements for environmental labelling schemes, including:

• - Transparency in ownership and decision-making structure.
• - Clear information about objectives, as well as transparent requirements and procedures for monitoring compliance.
• - Scientifically robust requirements that are relevant from a societal perspective.
• - A mechanism for handling complaints and resolving disputes.
• - Clearly defined procedures for addressing non-compliance and for withdrawing the label in such cases.

Labels that present a rating or score for a product or company based on an aggregated indicator of cumulative environmental impacts will be prohibited, unless they are issued under environmental labeling schemes established by the European Union.

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Penalties for non-Compliance

EU Member States will establish a system of penalties in case of infringements.

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Carbon Credits and Removals

Environmental claims based solely on carbon credit schemes will continue to be prohibited. However, companies may reference offsetting and carbon removal schemes in their advertisements if they have already reduced their emissions and are using the schemes only for residual emissions. The carbon credits used in these schemes must be certified and of high integrity, such as those under the Carbon Removals Certification Framework. The proposed directive states that any carbon credits used should be reported separately from GHG emissions as additional environmental information, specifying whether the credits relate to emission reductions or removals.

The Council adopted its position ('general approach') on the Green Claims Directive and introduced new requirements on carbon credits related to climate related claims. The Council's position differentiates between two claims: (1) Contribution claims that contribute to climate action, and (2) Offset claims that balance out emission share. Regarding the offset claims, corporates need to demonstrate a net-zero target and show progress, including the share of total greenhouse gas emissions that have been offset.

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OTHER NOTES

Next steps

The European Parliament has adopted its first reading position. The European Council adopted its position ('general approach') on the Green Claims Directive on 17 June 2024. The general approach will serve as the foundation for negotiations with the European Parliament. It is likely that the Green Claims Directie will be adopted early or mid-2025.

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OFFICIAL DOCUMENTS

Green Claims Directive
Substantiation and communication of explicit environmental claims (Green Claims Directive)

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OTHER DOCUMENTS

Parliament wants to improve consumer protection against misleading claims

Green claims directive: Council ready to start talks with the European Parliament

LOI N° 2021-1104 DU 22 AOÛT 2021 PORTANT LUTTE CONTRE LE DÉRÈGLEMENT CLIMATIQUE ET RENFORCEMENT DE LA RÉSILIENCE FACE À SES EFFETS

JURISDICTION TYPE

National

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SHORT NAME

Climate and Resilience Law

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GOVERNMENT/AUTHORITY ISSUING REGULATION

French Government

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TYPE OF REGULATION

Legal instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

22.8.2021

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ENTRY INTO FORCE DATE

25.8.2021

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STAKEHOLDERS

• Carbon Credit Buyers
• Project Developers

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REGULATION SUMMARY

🡒 France's Climate and Resilience Law allows companies to use the low-carbon label 'label bas-carbone' (LBC) as credits for compliance purposes. The creation of the label was established in November 2018 under Decree n° 2018-1043.

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Usage of the LBC

LBC cannot be used in the EU-ETS. However, LBC can be used by buyers to meet their offset obligations in application of the law (see Articles L. 229-57 and L. 229-68 of the Environmental Code and Article 36 of Law No. 2022-1158 of 16 August 2022 on emergency measures to protect purchasing power).

The LBC label is applicable to aircraft operators and fossil fuel power generation facilities. Since 1 January 2022, aircraft operators generating at least 1,000 tonnes of CO2e/year must offset emissions from domestic flights by purchasing carbon credits from projects located within the EU (CORSIA-eligible or LBC). The obligation covers 50% of GHG emissions in 2022, 70% in 2023 and 100% in 2024. Fossil fuel power generation facilities that reopened in the winter of 2022/2023 (to address energy risks related to the war in Ukraine) have obligations to offset their emissions on French territory, and the LBC label is recommended in this context.

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Guidelines on LBC Project Activities

Preference is given to carbon absorption projects located on French territory or on the territory of other Member States of the European Union, in particular those that promote forest renewal, agroforestry and, more generally, the adoption of any agricultural practice that reduces GHG emissions or any practice that promotes the storage of carbon in the soil. The LBC is also encouraged in the context of Article 227, for the protection and conservation of land, as well as biodiversity on which it depends (Article 227). The law also encourages the deployment of methods and projects that could result in carbon credits in favour of sustainable forestry practices in France (Article 50).

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OTHER NOTES

Decree n° 2022-667 in the Conseil d'État will specify the conditions governing the eligibility of these programmes and the use of carbon credits.

The principles of this decree are the following:

• The reductions and sequestration of GHG emissions must be quantified, for each offsetting project, using a methodology based on the most recent scientific and technical knowledge.
• The methodology must take into account contextual best practices and account the risks of jeopardising permanence.
• Emissions reductions that are not sufficiently sustainable will result in a reduction in the number of carbon credits.
• Emissions reductions need to be checked and validated by a competent independent body
• Information relating to the main characteristics of the project, the methodology on which it is based, the methods used to account for emission reductions and sequestration, the price of the corresponding carbon credits, as well as information enabling the permanence of the offsetting measures, must be made available to the public in an easily accessible manner.

A subsection of this decree also details provisions for aircraft operators to meet.

To date (6 May 2024), there are 1071 projects labelled with the LBC that claim a reduction in potential emissions of over 3.5 million CO2eq.

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OFFICIAL DOCUMENTS

LOI n° 2021-1104 du 22 août 2021 portant lutte contre le dérèglement climatique et renforcement de la résilience face à ses effets

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OTHER DOCUMENTS

Décret n° 2022-667 du 26 avril 2022 relatif à la compensation des émissions de gaz à effet de serre

Label Bas Carbone

GREEN CLAIMS CODE

JURISDICTION TYPE

National

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SHORT NAME

Green Claims Code

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GOVERNMENT/AUTHORITY ISSUING REGULATION

The Competition and Markets Authority's (CMA)

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TYPE OF REGULATION

Environmental Claims Guidance

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

Not applicable (Published 21.09.2021)

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ENTRY INTO FORCE DATE

Not applicable (Published 21.09.2021)

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STAKEHOLDERS

• Carbon Credit Buyers

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REGULATION SUMMARY

🡒The UK Green Claims Code (GCC), established by the Competition and Markets Authority (CMA), provides a comprehensive framework to ensure that environmental claims made by businesses about their products or services are truthful, clear, and substantiated, preventing misleading green claims, commonly known as "greenwashing." The code is designed to help businesses understand how to communicate their environmental impact to consumers responsibly and in compliance with existing consumer protection laws. The GCC is not a law in and of itself. Rather, it is based on the CMA’s interpretation of laws relating to unfair commercial practices, specifically, the Consumer Protection from Unfair Trading Regulations 2008.

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Six Guiding Principles of Environmental Claims

• Truthful and accurate: All green claims must be factually correct. Claims should not imply environmental benefits where none exist or significantly exaggerate benefits.
• Clear and unambiguous: Information must be presented in a way that is understandable to consumers, avoiding technical jargon and unclear terminolog.
• Substantiation: Claims must be supported by reliable and up-to-date scientific evidence.
• Comparisons: Any comparative claims should be fair and must compare similar products or services. The basis for comparison must be clear to consumers.
• Consideration of the full life cycle: Claims should take into account the entire life cycle of the product or service.
• Visibility of information: Important information should not be hidden or difficult to find. All environmental claims should be easily accessible to consumers.

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OFFICIAL DOCUMENTS

Making environmental claims on goods and services

Consumer Protection from Unfair Trading Regulations 2008

RESOLUTION A39-3: CONSOLIDATED STATEMENT OF CONTINUING ICAO POLICIES AND PRACTICES RELATED TO ENVIRONMENTAL PROTECTION – GLOBAL MARKET-BASED MEASURE (MBM) SCHEME
CORSIA ELIGIBLE EMISSIONS UNITS

JURISDICTION TYPE

International

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SHORT NAME

Resolution A39-3: Consolidated statement of continuing ICAO policies and practices related to environmental protection – Global Market-based Measure (MBM) scheme

CORSIA Eligible Emissions Units

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GOVERNMENT/AUTHORITY ISSUING REGULATION

International Civil Aviation Organisation Assembly

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TYPE OF REGULATION

Legal instrument

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STATUS OF REGULATION

In force

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ENACTMENT/PUBLISHING DATE

10.1.2016

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ENTRY INTO FORCE DATE

1.1.2021

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STAKEHOLDERS

• Project Developers

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REGULATION SUMMARY

🡒 This assembly resolution follows a previous ICAO Assembly resolution that called for the development of a 'global market-based measure' (GMBM) to mitigate the international aviation sector's carbon dioxide emissions and resolves ICAO to implement a GMBM in the form of CORSIA. The resolution states that CORSIA's purpose is to ensure the carbon-neutral growth of the international aviation sector, while 'taking into account special circumstances and respective capabilities' of ICAO member states. The resolution also spells out the phased implementation of CORSIA, with the pilot (2021–2023) and first (2024–2026) phases being voluntary in nature––from the perspective of ICAO member states––and the second phase (2027–2035) being mandatory, with some exceptions for certain ICAO member states. The resolution also states CORSIA's review cycle (every three years), application to aeroplane operators, method of calculation of the offsetting obligations on individual aeroplane operators and other details of CORSIA's regulatory framework.

On 08 November 2023, CORSIA released and enforced the CORSIA Eligible Emissions Units. This document lists the carbon offset standards––referred to in ICAO parlance as 'Emissions Units Programmes'––eligible to supply offsets eligible to be surrendered for compliance with CORSIA's three phases. Referred to as 'Eligible Emissions Units' (EEUs), these offsets derive from carbon offset projects issued by approved carbon offset standards. The CORSIA Eligible Emissions Units document further lists the eligibility timeframes, unit dates (vintages and crediting periods) and scopes of the projects from which EEUs may derive.

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NOTES

ICAO implemented CORSIA due to the international aviation sector's falling outside of the scope of the Paris Agreement, as the sector's GHG emissions are not attributed to any individual country's greenhouse gas emissions inventory. The ICAO Council conducts a review of the implementation of CORSIA every three years, with the first review having been conducted in 2022. These reviews include an assessment of the impact of CORSIA on the growth of the international aviation sector. The results of these assessments serve as an important basis for the ICAO Council to consider adjustments and make recommendations to the ICAO Assembly for decisions about the next implementation phase or compliance period, as appropriate.

A special review will be performed by the end of 2032 to determine if the scheme should be terminated, extended unchanged or extended with modifications beyond its current 2035 end date.

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OFFICIAL DOCUMENTS

Resolution A39-3: Consolidated statement of continuing ICAO policies and practices related to environmental protection – Global Market-based Measure (MBM) scheme

CORSIA Eligible Emissions Units

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OTHER DOCUMENTS

Introduction to CORSIA