Inception Report Verification policies, processes and procedures for
Contents Outline and revised work plan... 3 1. Product (1): Bibliography Review... 3 2. Product (2): User s Requirement Analysis... 5 3. Product (3): Terms of Reference for Verification Entities... 5 4. Product (4): Technical Verification Manual for Verification Entities... 5
Outline and revised work plan This Inception Report provides an outline for the analysis and activities to be carried out in the context of the World Bank assignment titled Development of a verification standard for land use climate funds - definition of policies, processes and procedures (1259711) (the Project ). The Project seeks to specify policy-aspects, processes and procedures for the verification of emission reductions (ER) and removals achieved by ER-Programs under both the FCPF and the ISFL, and includes the elaboration of a manual to provide guidance for verifiers. The verification standard developed will establish the way Carbon Fund and ISFL BioCarbon participant countries will have their emission reductions verified. The verification process is a key step for the enforcement of Emission Reduction Program Agreements and the subsequent resultbased payment of ERs. The first step will require participant countries to submit their inputs through the Emission Reduction Monitoring Report (ER-MR). The second step will require the FCPF and ISFL management teams to conduct the ER-MR completeness check. The third step, which will be developed in detail in the Project, will use the ER-MR and perform desk review and country visit to verify ER and issue a verification report. Below, the four phases of the Project and its respective products are described in more detail, reflecting the kick-off call held with the World Bank s Fund Management Team (FMT) on January 8 th 2019. 1. Product (1): Bibliography Review Content: The objective of phase 1 is to examine and review the main verification requirements of existing GHG standards. Our assessment will focus on GHG standards that have already developed requirements for the verification of programmatic approaches (with project-based verification requirements reviewed where deemed relevant). The bibliography review will provide the initial inputs to develop a preliminary structure of the key elements of the verification process and identify and analyze the existing different options including their related procedures and policies implications. Structure: The bibliography review will be delivered in the form of comparative tables that describes the main verification requirements, provides an overview of the best practices from existing GHG standards, and relates these to the governance documents of the FCPF and the ISFL. An initial sketch of the tables is provided below. Timeline: Draft submitted by January 28 th. Table 1 Main verification requirements in existing GHG programmes and their standards GHG Standards Verification practices Scope Principles Accreditation requirements Monitoring methods Means of verification Assurance / materiality Reversals / buffer requirements Liability rules
Verra (VCS JNR) Gold Standard UNFCCC REDD+ CDM REDD Early Movers (REM) Alberta s GHG program CA Air Resource Board s Initiative ISO14064 Table 2 Main verification requirements and how these relate to the governance of the FCPF and ISFL Relation of verification requirements to FCPF and ISFL s governance documents Main verification elements FCPF ISFL Scope Principles Accreditation requirements Monitoring methods Means of verification Assurance / materiality Reversals / buffer requirements Liability rules
2. Product (2): User s Requirement Analysis Content: The objective of phase 2 is to outline the overarching components of verification of ER- Programs and specify the key policy choices that must be taken in relation to these components and the requirements identified during product 1 development. A comparison of the pros and cons in relation to the policy options will also be provided. Structure: The user requirement analysis will be delivered in the form of a brief report using visual tools (e.g. flow charts and tables) to provide the FMT and CF Participants inputs for their decision-making. This analysis will be carried out in three steps: - Step one provides a description of the overarching components of verification and sets out the main policy questions needing resolution. These are drawn from both the Bibliography Review (Product 1) and consultations with CFPs and the FMT (during January and early February); - Step two provides a set of options for the policy questions identified and an preliminary assessment of the pros and cons of these options. It includes the preparation of structured power point presentation containing the referred policy options and their envisaged benefits and drawbacks. The presentation will be delivered during CF19; - Step three reflects the inputs received from CFPs (prior, during and after CF19) into the report, outlining the preferred policy options and their main implications. Timeline: Steps one and two submitted by January 30 th. Step three submitted by March 8 th 3. Product (3): Terms of Reference for Verification Entities Content: The objective of phase 3 is to define the eligibility requirements and technical specifications for the verifier, as well as the scope and outputs of the verification process. Structure: The ToR will be delivered in the form of a detailed template document that outlines the purpose, means, timeframe, expected activities and outputs of the verification process. It will also include a detailed list of eligibility requirements for the selection of the verification body. Timeline: An outline of the TORs will be provided by March 8 th. The first draft submitted by 22 nd of March. Complete draft submitted by April 15 th. 4. Product (4): Technical Verification Manual for Verification Entities Content: The objective of phase 4 is to prepare a verification manual reflecting the principles, technical specifications, and the verification process (pursuant to the technical and policy choices selected during the previous phases). The verification manual will serve as a reference guideline for the verification bodies during their implementation of the verification process. Structure: The technical verification manual will be delivered in the form of a technical guideline and will include both visual tools to provide an overview of the structure of the verification process as well as list of instructions to guide the verification process. Timeline: An outline of the Verification Manual will be provided by March 8 th. The first draft of the Verification Manual will be submitted by April 5 th. Complete draft by April 29 th.