StandardforDevelopmentofMethodologiesV3.1-2020GlobalCarbonCouncilStandardforDevelopmentofMethodologies3of14GlobalCarbonCouncilStandardforDevelopmentofMethodologies4of14Contents1.INTRODUCTION62.PURPOSE63.GCCMETHODOLOGYDEVELOPMENT73.1.GHGSECTORALSCOPE73.2.APPLICABILITYCONDITIONS83.3.PROJECTBOUNDARY83.4.BASELINESCENARIO93.5.PROJECTADDITIONALITY93.5.1.STANDARDIZEDPOSITIVELISTS93.5.2.PROJECTSPECIFICDEMONSTRATIONOFADDITIONALITY103.6.PROJECTEMISSIONREDUCTIONS/REMOVALS103.7.BASELINEANDPROJECTMONITORINGMETHODOLOGY113.8.REMAININGLIFETIMEOFBASELINEEQUIPMENT113.9.GLOBALWARMINGPOTENTIALS114.GENERALRULESFORPROJECTSWHENAPPLYINGGCCMETHODOLOGIES11GlobalCarbonCouncilStandardforDevelopmentofMethodologies5of14ACRONYMSACCsApprovedCarbonCreditsCDMCleanDevelopmentmechanismGCCGlobalCarbonCouncilGHGGreenHouseGasesGHG-SSGHGSectoralScopesGORDGulfOrganisationforResearchandDevelopmentGWPsGlobalWarmingPotentialsIPCCTheIntergovernmentalPanelonClimateChangeMENAMiddleEastandNorthAfricaUNFCCCUnitedNationsFrameworkConventiononClimateChange.GlobalCarbonCouncilStandardforDevelopmentofMethodologies6of141.Introduction1.TheGlobalCarbonCouncil(GCC)ProgramistheMiddleEast&NorthAfrica(MENA)region’sfirstvoluntarycarbonoffsettingprogramandaninitiativeofGulfOrganisationforResearchandDevelopment(GORD).Thevoluntarygreenhousegas(GHG)offsettingprogramdevelopedbyGCC,referredtoastheGCCProgram,aimstocontributetoavisionofasustainableandlow-carbonworldeconomy.AlthoughtheGCCProgramreceivesGHGemission-reductionprojectsfromtheentireworld,itplacesspecialemphasisonlow-carbondevelopmentintheMENAregion,whichhasbeenunder-representedincarbonmarkets.TheGCCProgramhelpstocatalyzeclimateactionontheground,whileensuringthatprojectconstructionandoperationscausenonetharmtotheenvironmentandsocietyandcontributetotheUnitedNationsSustainableDevelopmentGoalsasperhost-countrypriorities.TheGCCProgramiscomprisedoftheentiregovernancestructure,systemandthedocumentationframeworkadoptedtoachievetheseobjectives.12.TheGCCProgramdocumentsstipulatethefollowing:(a)TheProjectStandardrequiresthataProjectOwnerseekingtodesignaGCCProjectActivityshallapplythelatestversionsofeitheraGCCapprovedmethodologyormethodologiesandtoolsapprovedunderUNFCCC’sCleanDevelopmentMechanism;and(b)TheProgramProcessdescribesprocess-relatedrequirementsfortop-downdevelopmentofandrevisionstoBaselineandMonitoringMethodologiesundertheGCCProgram.3.TheStandardforDevelopmentofMethodologies(thisdocument)establishesrulesandrequirementsfordevelopinganewmethodologyundertheGCCProgram,includingsectionsandkeycomponentsthatamethodologyshallcontain.4.Thisdocumenthasbeendevelopedbasedonrequirementsestablishedinsection5oftheProgramManual,whichistheoverarchingprogramdocumentthatlinkstogethervariousGCCdocumentscontainingtherulesandrequirementsgoverningtheGCCProgram.5.TheProgramDefinitionsdocumentprovidesdefinitionsofthetermsusedinthisdocumentandshallbereferredtowhileapplyingthisdocument.26.Whenapplyingthisdocument,therequirementsstipulatedintheProgramManualandProgramProcessshallapplytoProjectOwners,GCCVerifiers,theGCCOperationsTeamandtheGCCSteeringCommittee.2.Purpose7.ThepurposesofthisdocumentistoprovidetheGCCrequirementsandrationaleforvarioussectionsandelementsofbaselineandmonitoringmethodologies1GCCdocumentsareavailablehere:www.globalcarboncouncil.com/resource-centre.html2InGCCdocuments,theterms/definitions/acronymsandthefirstletterofeachwordinnamesofregulatorydocumentsarecapitalized(e.g.,theProjectProcess).GlobalCarbonCouncilStandardforDevelopmentofMethodologies7of143.GCCMethodologyDevelopment8.Thisdocumentdescribestheelementsrequiredtobeincludedwhiledevelopinganewmethodologyandalsostipulatestherequirementsfordevelopingeachsectionofthemethodologyincluding:GHGsectoralscopes,applicability,theprojectboundary,thebaselinescenario,additionality,emissionreductions(includingbaselineemissions,projectemissionsandleakage)andmonitoring.9.AGCCbaselineandmonitoringmethodologyshallcontainmandatorysectionsandelementsasindicatedbelow(sections3.1to3.9).3.1.GHGSectoralScope10.TheGCCScopesandtheGHGSectoralscopes(GHG-SS)coveredbytheGCCProgramaredefinedintheGCCProgramFrameworkandinProgramDefinitionsdocuments.11.AGCCmethodologyshalldefinetherelevantGHG-SSasstipulatedinsection5oftheGCCProgramFrameworkandstatedbelow.GHGSectoralScope(GHG-SS#)GHGSectoralScopeTitle1.Energy(renewable/non-renewablesources)2.Energydistribution3.Energydemand4.Manufacturingindustries5.Chemicalindustry6.Construction7.Transport8.Mining/mineralproduction9.Metalproduction10.Fugitiveemissionsfromfuels(solid,oilandgas)11.FugitiveEmissionsfromproductionandconsumptionofhalocarbonsandsulfurhexafluoride12.Solventsuse13.Wastehandlinganddisposal14.AfforestationandReforestation33NotethatatpresentundertheGCCProgram,GHGSectoralScopeNo14isnotapplicableforprojectsapplyingforCORSIA-eligiblecarboncredits.GlobalCarbonCouncilStandardforDevelopmentofMethodologies8of1415.Agriculture16.CarbonCaptureandStorageofCO2inGeologicalFormations43.2.ApplicabilityConditions12.ThemethodologyshallincludeapplicabilityconditionsthatspellouttheeligibilitycriteriathataGHG-reductionprojectmustfulfilltobeabletoapplythemethodology,forpreparingaprojectsubmissionformaspartofanapplicationtoregisteraprojectundertheGCC.Theseconditionsincludetechnical,technological,policy,economicandregulatoryaspectsoftheProjectActivitythathaveimplicationsonitseligibilitytoapplythemethodology.13.TheapplicabilityconditionsshallbeexpressedwithoutanyambiguityinordertobringcompleteclarityintheassessmentofeligibilityofProjectActivitytoapplythemethodology.3.3.ProjectBoundary14.TheprojectboundaryofaGCCProjectActivityisdefinedasthephysicaldelineationand/orgeographicalareaoftheGCCProjectActivityandthespecificationofGHGsandsourcesunderthecontroloftheProjectOwnersthataresignificantandreasonablyattributabletotheGCCProjectActivity,inaccordancewiththeappliedmethodology.15.Themethodologyshalldescribeandjustifythephysicaldelineationoftheprojectboundary,includingthegasesandsourcesincluded,bearinginmindthatitshallencompassallanthropogenicemissionsbysourcesofgreenhousegasesundertheprojectandbaselinescenariosthataresignificantandreasonablyattributabletotheProjectActivity.16.Themethodologyshall:(a)ExplainthephysicaldelineationoftheeligibleProjectActivitybyuseofafigureorflowchart;(b)ExplicitlylistallsourcesandGHGsincludedintheprojectboundaryandexplainwhetheranysourcesrelatedtothebaselineand/orprojectemissionshavebeenexcluded,andifsojustifytheirexclusion;(c)Whendefiningtheemissionsourcesthatareincludedintheprojectboundaryinthebaselineandprojectscenarios,ProjectOwnersshallmakeconservativeassumptions.Forexample,themagnitudeofemissionsourcesomittedinthecalculationofprojectemissionsshallbeequaltoorlessthanthemagnitudeofsimilaremissionsourcesomittedinthecalculationofbaselineemissions.4NotethatatpresentundertheGCCProgram,GHGSectoralScopeNo16isnotapplicableforprojectsapplyingforCORSIA-eligiblecarboncredits.GlobalCarbonCouncilStandardforDevelopmentofMethodologies9of143.4.BaselineScenario17.ThebaselinescenarioisthescenariofortheGCCProjectActivitythatreasonablyrepresentstheanthropogenicemissionswithintheprojectboundarythatwouldoccurintheabsenceoftheGCCProjectActivity.18.Correspondingtothebaselinescenario,thebaselineofaGCCProjectActivityshallbedefinedbasedononeofthethreebaselineapproachesasstipulatedbyparagraph48(a),48(b)or48(c)ofModalitiesandProceduresforacleandevelopmentmechanism(Decision3/CMP.1).Thethreeapproachesare:(a)Existingactualorhistoricalemissions,asapplicable[48(a)];(b)Emissionsfromatechnologythatrepresentsaneconomicallyattractivecourseofaction,takingintoaccountbarrierstoinvestment[48(b)];(c)Theaverageemissionsofsimilarprojectactivitiesundertakeninthepreviousfiveyears,insimilarsocial,economic,environmentalandtechnologicalcircumstances,andwhoseperformanceisamongthetop20percentoftheircategory[48(c)].19.ThemethodologyshalldefinewhichofthethreeapproacheshasbeenappliedtodeterminethebaselineoftheGCCProjectActivity.20.Toavoidthefreeinterpretationoftheuseoftheaboveapproachestodeterminingbaselines,theCDMGuidelinesfordeterminingbaselinesformeasure(s)5shallbefollowedfornon-afforestationandreforestationprojects,todeterminewhenandunderwhichsituationsabaselineapproachasdefinedinparagraphs48(a),48(b)and48(c)referredaboveshallbeused.21.Whenselectingapproach48(c)above,GCC-approvedguideline/standardsorapprovedCDMguidelines/standardsmaybeusedfordefiningbenchmarks.63.5.ProjectAdditionality22.AspertheGCCProjectStandard,theadditionalityofprojectsshallbedemonstratedtoensurethatanthropogenicemissionsofGHGsarereducedtobelowthosethatwouldhaveoccurredintheabsenceoftheProjectActivity.23.ThefollowingapproachestodemonstratingadditionalityareacceptedinGCCmethodologies.3.5.1.StandardizedPositiveLists24.AGCCProjectActivityapplyingatechnology,fuelorfeedstocklistedunderapositivelistisdeemedautomaticallyadditional.25.PositivelistsincludetheGlobalPositiveListandtheRegionalPositiveList.Theselistsidentifyabroadsetofabatementactivitiesthataredeemedadditional.GCCProgramcanrefertheGlobaland/orRegionalPositiveListsinGCCmethodologies:5Guidelinesfordeterminingbaselinesformeasure(s)6Forexample,theCDMGuidelineforestablishingsectorspecificstandardizedbaselines.GlobalCarbonCouncilStandardforDevelopmentofMethodologies10of14(a)GlobalPositiveList:ThislistisprovidedinCDMTool327:;and(b)RegionalPositiveList:Followinglimitedpenetrationofalow-carbontechnology,fuelorfeedstockinaregion,thetechnology/fuel/feedstockmaybeplacedbytheGCCProgramonaPositiveListforspecificregion.GCCinclusionsoftechnologies/fuels/feedstocksonRegionalPositiveListsarebasedonthoroughresearchandanalysis,applyingcrediblesourcesofinformation.3.5.2.ProjectSpecificDemonstrationofAdditionality26.ForProjectActivitiesthatarenotautomaticallyadditional(i.e.,theydonotfallunderaPositiveList),themethodologyshallindicatespecificapproachestodeterminingadditionalityforeachtypeofprojectforwhichthemethodologyisapplicable.Twoapproachesmaybeused:(a)Investmentanalysisoftheprojectascomparedtootherprojectalternatives,demonstratingthattheprojectwithoutcarbonrevenueisnotthemosteconomically-attractivealternative;and(b)Barrieranalysisoftheproject,listingbarriers(e.g.,investmentbarriers,operational-ormaintenance-costbarriers,technologicalbarriers,institutionalbarriers,thefirst-of-its-kindbarrier,etc.)thatwouldpreventtheprojectfrombeingimplemented.27.Inabsenceofmethodology-specificadditionalityapproach,appropriateCDMtools/guidelines(andGCCtools/guidelines)referredinthemethodologyshallbefollowedtodemonstrateproject-specificadditionality,Theseincludethe:additionalitytool,8combinedtooltoidentifythebaselinescenarioanddemonstrateadditionality,9toolforadditionalityofsmall-scaleprojects,10microscaleadditionalitytool11,first-of-its-kindtool,12commonpracticetool,13theinvestmentanalysistool14,andbarrieranalysisguideline15.3.6.ProjectEmissionReductions/Removals28.Themethodologyshalldescribethemethodtobeusedtocalculatebaselineandprojectemissionsandleakage,aswellasGHGemissionreductions/removalsforproposedprojects.29.Fornon-afforestationandreforestationprojects,thebaselineapproachshallbeselected-asperCDMGuidelinesfordeterminingbaselinesformeasure(s).7CDMMethodologicaltool–Positivelistoftechnologies8CDMMethodologicaltool:Toolforthedemonstrationandassessmentofadditionality9CDMMethodologicaltool:Combinedtooltoidentifythebaselinescenarioanddemonstrateadditionality10CDMMethodologicaltool:Demonstrationofadditionalityofsmall-scaleprojectactivities11CDMMethodologicaltool:Demonstrationofadditionalityofmicroscaleprojectactivities12CDMMethodologicaltool:Additionalityoffirst-of-its-kindprojectactivities13CDMMethodologicaltool:Commonpractice.14CDMMethodologicaltool:Investmentanalysis15GuidelinesforobjectivedemonstrationandassessmentofbarriersGlobalCarbonCouncilStandardforDevelopmentofMethodologies11of1430.ThemethodologyshallincludemethodsfordeterminingprojectemissionsandleakagefromvariousGHGsources,asperappropriateapprovedGCCandCDMmethodologicaltools.3.7.BaselineandProjectMonitoringMethodology31.Themethodologyshalldescribethemonitoringmethod,managementstructureformonitoring,theparameterstobemonitored(parametersusedforcalculatingbaseline,projectandleakageemissionsaswellasemissionreductionsforproposedprojects),datamonitoringprocedures(measurement,collection,aggregation,qualitycontrol,reportingformat)andotherimportantmonitoringrequirements.32.Foreachmonitoredparameter,themethodologyshalldefinewhethertheparametervaluewillbefixedex-ante(priortoregistration)ormonitoredregularlyatprescribedintervalsbymethodology.33.Foreachmonitoredparameter,themethodologyshallrequireProjectOwnerstodefinethevalueassignedtotheparameter,frequencyofmeasurement,methodofmeasurement,measurementandinstrumentcalibrationrequirementsandaccuracyrequirements,dataaggregationandreportingprocedures.34.Themethodologyshalldefinethedefaultvaluesforbaseline,projectorleakageparametersallowedforeachrelevantspecifictypeofProjectActivityforwhichthemethodologyisapplicable,andshallprovidereferencesforthevaluesselected,andjustificationfortherepresentativenessandconservativenessofthedefaultvalues.3.8.RemainingLifetimeofBaselineEquipment35.Themethodologyapplicabletoretrofitorreplacementprojectsshallrequiredeterminingtheremaininglifetimeofthebaselineequipment.36.TheGCCwillonlyissuecarboncreditsforsuchprojectsfortheperiodequivalenttotheremaininglifetimeofthebaselineequipmentandtheprojectcreditingperiod(fixcreditingperiodofmaximum10years),whicheverisshorter.3.9.GlobalWarmingPotentials37.Themethodologyshallusetheglobalwarmingpotentials(GWPs)asstipulatedinparagraph28oftheProjectStandardtocalculateGHGemissionreductionsornetanthropogenicGHGremovalsachievedbyGCCProjectActivities.4.GeneralRulesforProjectsWhenApplyingGCCMethodologies38.Unlessotherwisespecifiedinanapplicablemethodologyortool,IPCCdefaultvaluesshallbeusedonlywhencountry-orproject-specificdataaredocumentedtobeeither:(i)notavailable;and/or,(ii)notreliableorofnotsufficientqualitybasedonevidence-basedjudgmentofProjectOwnerorGCCVerifier.GlobalCarbonCouncilStandardforDevelopmentofMethodologies12of1439.Whenapplyingmethodologiesortoolsthatrequiredeterminationofparameter(s)forcalculatingbaselineandprojectemissionsbutdonotprescribeproceduresfordeterminingthoseparameters,thesamedatasources(e.g.,IPCCvalues,nationalvalues)andcalculationand/ormeasurementproceduresforeachparameter(e.g.,calculationofannualaverageflowrate,hourlymeasurements)shallbeappliedforbothbaseline-andproject-emissionscalculations.Forexample,ifacalculatedemissionfactorbasedonmeasureddataisusedforcalculatingemissionsinthebaseline,acalculatedemissionfactorshallalsobeusedfordeterminingprojectemissions,unlessotherwisespecifiedintheappliedmethodologyortool.Ifitisnotpossibletousesamedatasources,theconservativenessofemissionreductionsshallbethebasisforselectionofdatasources.40.Valuesofmonitoredordefaultparametersthatareappliedinthecalculationofbaselineemissions,projectemissionsandleakageshallbedocumented.Ifmorethanonevalueisfoundtobeappropriate,themostconservativevalueamongtheappropriatevaluesshallbeused.41.Todemonstratethatappropriateandconservativevalueshavebeenutilized,ProjectOwnersshalltransparentlylistanddescribethesourcesofallvaluesused(e.g.,peer-reviewedliterature,testresults,officialreports/statistics).42.Originalsourcesshallbereferencedusingastandardreferencingmethod,ratherthanquotingsecondarypublicationsthatrefertooriginalsources.43.Whenmorethanonesourceisusedtoaggregatedatatoderiveavalue,thesourcesusedshallbeclearlyindicated.44.ProjectOwnersshalljustifywhythevaluesselectedandtheirsourcesareappropriate,applicable,andconservative.GlobalCarbonCouncilStandardforDevelopmentofMethodologies13of1416SeeICAOrecommendationforconditionalapprovalofGCCathttps://www.icao.int/environmental-protection/CORSIA/Documents/TAB/Excerpt_TAB_Report_Jan_2020_final.pdfVersionDateCommentV3.131/12/2020▪ThenameofGCCProgram’semissionunitshasbeenchangedfrom“ApprovedCarbonReductions”orACRsto“ApprovedCarbonCredits”orACCs.V3.017/08/2020▪RevisedversionreleasedonapprovalbytheSteeringCommitteeaspertheGCCProgramProcess;▪Revisedversioncontainsthefollowingchanges:oChangeofnamefromGlobalCarbonTrust(GCT)toGlobalCarbonCouncil(GCC);oChangeofnameofdocumentfrom“StandardonKeyProjectRequirementsandMethodologyDevelopment”to“StandardforDevelopmentofMethodologies.”oConsideredandaddressedcommentsraisedbytheSteeringCommittee:➢duringphysicalmeeting(SCM01,dated29Oct2019,DohaQatar);and➢electronicconsultationsEC01-Round03(08.08.2020-16.08.2020).▪FeedbackfromtheTechnicalAdvisoryBoard(TAB)ofICAOonGCCsubmissionsforapprovalunderCORSIA16.V2.025/06/2019▪RevisedversionreleasedforapprovalbytheGCCSteeringCommittee.▪Thisversioncontainsdetailsandinformationtobeprovided,consequenttothelatestworldwidedevelopments(e.g.,CORSIAEUC).v1.001/11/2016▪InitialversionreleasedforapprovalbytheGCCSteeringCommitteeunderGCCProgramVersion1DocumentHistoryGlobalCarbonCouncilStandardforDevelopmentofMethodologies14of14