Colombia Voluntary Emissions Trading system

COLOMBIA VOLUNTARY EMISSIONS

TRADING SYSTEM

SCOPING DOCUMENT FOR USER WORKSHOP

MAY 15, 2014

Leslie Durschinger

Workshop Purpose: Gather User Input to Create Conceptual Design

User Requirements => Conceptual Model

Conceptual Design is “a description of the proposed system in terms of a set of integrated ideas and concepts about what it

should do, behave, and look like, that will be understandable by the users in the manner intended”

… it is high-level compared to physical design

Completed to date 1. Initial review of other carbon trading platforms and registry systems 2. User scoping session with Fundacion Natura 3. First version of conceptual design for discussion in this workshop

Page 2

System Users, Roles and Functions

Page 3

Project Sponsors/

ProponentsBMC

FundacionNatura

Stakeholders

Project Listing Request by PP

Project proponent

submits documents for

review

Project Reviewed by BMC/FN

Project approved and posted on Colombia VER

platform

Corporate Partners/Buyers Listing Request

Corporate Partner/Buyer

submits documents

Corporate Partner/Buyer

Reviewed by BMC

Corporate Partner/Buyer approved and

posted on platform

Transactions

Indications screens provided,

transactions reported and

registries details

Issuance/Settlement

Projects interact per standard

rules for registration/issuance and

(and buyers) to transfer tons

DRUPAL (or similar CMS) with public and secure sites for content management by BMC/FN and user logins

Formal Pre-existing Registry System Sing

le lo

gin

Corporate Partners/

Buyers

Users

Functions

User Profile: Project/Program Developer

Role List on platform forest emission reduction projects and programs

seeking VER buyers

General Eligibility Requirements Forest carbon (wide definition i.e. related directly or indirectly to

forest)

Use recognized standard for carbon accounting and social/biodiversity

Submitted by “recognized and authorized entity”

Stage of development – earliest stage is they would complete the Colombia VER submission form (something like a PIN)

Optional, projects indicate price, transaction structure (pre-payment or POD)

Supporting Processes: Project/Program Developer

Supporting Process, Web-content and Documents Detailed explanation of submission process (web-content)

Eligibility requirements for projects (web content)

Guidelines for submission of pictures and videos (web content)

Colombia VER project submission PIN (Template download)

User login in administration (Process)

Tracking process for managing submissions, correspondence and approvals/rejections (process supported by web management system)

Project participation agreement (Template download)

Once approved the files and text provided by users is posted a nice “profile” with text, logo, pictures, documents and videos (web content from projects)

Example of Project Splash Page

Questions: Project Module

For Discussion (not necessarily system design issues) Project type eligibility (REDD, ARR, ALM, cookstoves, water filters, ???)

How early in process can they submit, by just providing information on Colombia VER Registration PIN (currently VCS has a “Project Listing” as first step, which is ~60% of a PD)

What level of due diligence will be done on the information provided

Who is the authorization to register projects and how is this verified with the carbon rights holders?

Who in the administration team will preform each of the admin functions (BMC and/or FN)

Most registries provide full document tracking and retention, once projects complete the first formal step in the standards process, how will be handle this between two systems?

Other thoughts?

User Profile: Corporate Partner/VER Buyer

Role Corporations or other entities that purchase emission reductions from

projects on platform There are two ways they interact 1) view the project listing indicating

ERs for sale and 2) have an active RFP for purchases they post online.

General Eligibility Requirements Public commitment to measure and report GHG footprint

Commitment to use emission reductions as all/part of reducing GHG footprint

Description of motivations and what type of ER project characteristics they will prioritize

Working with Bogota Chamber of Commerce

There will be not be a membership per see, but they will required to pass a screening process and sign an agreement

Will post indications of buying interest (tons) or RFP process (must provide some indication of size/frequency)

Supporting Processes: Corporate Partner/VER Buyer

Supporting Process, Web-content/Documents Detailed explanation of submission process (web-content)

Eligibility requirements for corporate partners/buyers (web content)

Submit information on corporate/buyer profile (download TEMPLATE)

User login administration (Process)

Tracking process for managing submissions, correspondence and approvals/rejections (process supported by web management system)

Corporate partner/buyer participation agreement (Template download)

Once approved the files and text provided by users is posted a nice “profile” with text, logo, pictures, documents and videos (web content from projects)

Questions: Corporate Partner/Buyer Module

For Discussion Should eligibility require reporting their GHG footprint?

How should the platform support the calculation and reporting of GHG footprint?

Should the agreement require that a certain amount is purchased within some time frame, otherwise they get branding but no demand

Are there any buyer entities, who have already agreed to be on the platform to support finalizing design?

Other thoughts?

VER Transaction Module: Scope of Functionality

Scope of Transaction Functionality In the beginning there will be no formal transaction execution

functionality

Screen on both the project and buyers interest, would provide summary information and indicate price (if included) this is a “quick view” of sellers and buyers interest

All transaction negotiation is directly between buyer and seller but must be reported to the Colombia VER platform to meet contractual requirements

Designed to handle both forward sales and POD, on issued and unissued VERs

VER Transaction Module: Functionality

Transaction reporting “module”, will include: Transaction reporting template (seller completes) including:

– Full transaction details (minimum for public disclosure include tons traded, vintages and settlement type)

– Settlement details (registry account of buyer and seller, Colombia VER retirement account for wholesale retirements of small amounts without registry account)

Notification is made to buyer, for review and approval of transaction

Review and approval by BMU/FN, posted to VER platform

Transactions (indications and executions) will be posted on summary page, in addition to each project page and buyers page

Settlement of transaction is handled on registry system, with single user login

Example of Transaction Listing With better marketing appeal and different data columns

Issuance and Settlement

Registry Functions VER platform user can access registry functions with single online,

once accounts have been setup properly on both ends, this gives the user a seamless experience with all functions on the platform

Project proponent has account established in registry

Main functions including on registry for project proponent:

– 1. Project Listing with the first recognized step of standard is completed on registry, including required documents

– 2. Registration (validation), with document review and approval

– 3. Issuance (verification), with document review and approval

Buyers have accounts established in registry to receive tons

VER platform will offer a service to small buyers to retire tons, under omnibus account

Functions Managed Fully in Proven Registry System

Mockup of Site Map

# Colombia VER Platform

MAR APR MAY JUN JUL Phase 1 - Develop overall system purpose, users, modes of interface and priorities

1.1 Develop initial description of the system’s high-level functionality 1 1.2 Initial Interviews - Interview all project partners to document expectations 1 1

1.3 In-county workshops to define user specs (with main users BMC and Chamber of Bogotá) 1

1.4 Identify modes of interaction 1 1.5 Prioritize the itemized functionality 1 1.6 Identify existing systems that could be leveraged in developing the VER platform 1

Phase 2 - Identification of main functional modules 2.1 Define detailed and per-user group functionality of information module 1 2.2 Define detailed and per-user group process and procedures management module 1 2.3 Define detailed and per-user group functionality of registration and issuance module 1 2.4 Define detailed and per-user group functionality of registry interface module 1

Phase 3 – Scoping of required functionality

3.1 Creation of a comprehensive set of “user stories” for each per-user group functionality identifying the (1) user group, (2) desired functionality,, and (3) reason why the user group needs the functionality

1

Phase 4 – Review of existing systems for leverage and/or integration

4.1 Evaluate existing international and local registry systems for potential integration of functionality 1 1

4.2 Evaluate existing international and local transaction systems for potential integration of functionality 1 1

4.3 Evaluate any other partner’s systems for potential integration of functionality 1 Phase 5 – High level implementation plan

5.1 Analyze complexity of and dependencies between user stories 1

5.2 For each user story, make a recommendation to use existing services or infrastructure or build from scratch

5.3 Propose prioritization in the implementation of the user stories and compile this in a concrete implementation plan

Deliverables D.1 A 30-35 page Conceptual Systems Design document, detailing: 1 1

D1.a High-level overview of overall system purpose and main user groups D1.b Identification of main functional modules and purpose for each user group

D1.c Identification of existing registry systems and transaction systems and review of their potential for integration within the VER system

D1.d Implementation plan containing a prioritized list of detailed “user stories” together with their dependencies and recommendation to build or to leverage existing systems

Name Leslie Durschinger

Phone +1 415 215 5941

Email [email protected]

www.terraglobalcapital.com

THANK YOU

Colombia Voluntary Emissions Trading system

Environment

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