On September 16, 2024, the Global Carbon Council (GCC) hosted a dynamic webinar exploring the impactful GCC 2.0 regulatory reforms. With over 375 participants, the event highlighted key updates that will shape the future of the carbon market.
Main Highlights
- New Compliance Framework: The updated framework aligns with international standards and introduces innovative project types, including Nature-Based Solutions (NBS) and Carbon Capture and Storage (CCS).
- Verification Process Enhancements: Streamlined verification processes are designed to improve efficiency and reliability, facilitating smoother operations for all stakeholders.
- Regulatory Document Updates: Significant revisions include flexible crediting periods and new requirements for stakeholder consultations, ensuring greater transparency and engagement.
- Environmental and Social Safeguards: The updated standards focus on stakeholder involvement and simplified reporting, promoting a thorough understanding of project impacts.
- Transition to GCC 2.0: The new framework offers various benefits, including the introduction of certification labels and opportunities for post-registration changes, paving the way for enhanced project implementation.
Summary of Key Q&A from the GCC 2.0 Regulatory Reforms Webinar
The Q&A session from the GCC 2.0 webinar provided valuable insights into the practical aspects of transitioning to the new framework. Here’s a summary of the key questions discussed:
- Transition to GCC 2.0 Without Fees: Projects under Request for Registration (RFR) or those yet to submit RFR can transition to GCC 2.0 without extra charges. However, potential fees for post-registration changes are still being considered.
- Incentives for Transition: Project owners are encouraged to transition to GCC 2.0 due to benefits like the ability to make post-registration changes and adopt renewable crediting periods.
- Issuance of AREC Credits: Only projects under GCC 2.0 can issue ARECs. Owners of projects in GCC 2.0 can choose between ACC credits and ARECs based on market conditions and their preferences.
- Letter of Intent (LOI): The LOI should come from the designated national authority managing Nationally Determined Contributions (NDCs), not directly from the company.
- Environmental Harm Assessments: Projects under GCC 1.0 are not required to undergo Environmental Harm Assessments, but transitioning to GCC 2.0 mandates these assessments for verification.
- Eligibility for Renewable Energy Projects: Renewable energy technologies such as solar and wind remain eligible under GCC 2.0. The framework will also apply for approving grid-connected renewable methodologies from ICVCM.
- Renewable Methodologies Exclusion by ICVCM: Despite ICVCM’s decision to exclude some renewable methodologies (e.g., ACM0002, AMS 1D), GCC plans to submit updated methodologies and new tools for ICVCM approval, ensuring that renewable projects remain active.
- Nature-Based Solutions (NBS): GCC 2.0 supports several NBS project types, such as afforestation, reforestation, urban forestry, agroforestry, and mangrove restoration.
- Methodologies for Gas Flaring Projects: Projects focused on gas flaring and pipeline leakage prevention can apply methodologies like AM 9 (for flaring) and AM 23 (for leakage prevention).
The high level of engagement during the webinar underscored the importance of these reforms for the industry’s future.
Missed the Live Session? The recording and presentation materials are now available on the links below:
🎬 Watch the full webinar replay here: GCC Webinar: New Regulatory Reforms | Full Recording (youtube.com)
📖View the PPTs here.
Stay tuned for further updates as we continue to advance our efforts in carbon market regulation!
