Carbon Credits Trading (General) Regulations, 2023

S.I. 150 of 2023 1011 Statutory Instrument 150 of 2023. [CAP. 20:27 Carbon Credits Trading (General) Regulations, 2023 ARRANGEMENT OF SECTIONS Section 1. Title. 2. Interpretation. 3. Objective. 4. Application. 5. Designated National Authority. 6. Carbon Credits Trading Committee. 7. Functions of the Carbon Trading Committee. 8. Mandatory Application and Registration Procedure. 9. Monitoring, Reporting and Verification. 10. Authorisation of International Transfer of Carbon Credits. 11. Procedure for Compliance of Existing Projects. 12. Share of Proceeds. 13. Amendment of Registration. 14. Suspension or Cancellation of Registration. 15. Carbon Credit Registry. 16. Carbon Trading Returns by Registered Entities. 17. Data and Information Provision. 18. Appeals. First schedule: Guidelines for Stakeholder and Public Participation. second schedule: Environmental Integrity Guidelines. third schedule: Project Idea Note Template. Fourth schedule: Fees. FiFth schedule: Sustainable Development Checklist. sixth schedule: Compliance of Existing Projects Template. DISTRIBUTED BY VERITAS e-mail: veritas@mango.zw; website: www.veritaszim.net Veritas makes every effort to ensure the provision of reliable information, but cannot take legal responsibility for information supplied. 1012 Carbon Credits Trading (General) Regulations, 2023 seventh schedule: Distribution of Share of Proceeds. IT is hereby notified that the Minister responsible for Climate Change Management has, in terms of section 140(2)(c) of the Environmental Management Act [Chapter20:27], made the following regulations:— Title 1. These regulations may be cited as the Carbon Credits Trading (General) Regulations, 2023. Interpretation 2. In these regulations— “adaptation” means the process of adjustment to actual or expected climate change and its effects, in order to moderate harm or exploit beneficial opportunities, in some natural systems; “appropriate authority” means a government agency that sets standards, practices, procedures and controls carbon trading business in a particular Intergovernmental Panel on Climate Change sector; “Article 6.4 Mechanism” means a mechanism that promotes the implementation of carbon credit generating projects governed by the Supervisory Body established by the Paris Agreement; “Authority” means the Designated National Authority as established in section 5; “carbon credit trading” means buying and selling of verified or certified carbon credits in accordance with the recognised international carbon standards; “carbon credit” means a tradable certificate representing one metric ton of carbon dioxide (CO2) equivalent that is either prevented from being emitted into the atmosphere or removed from the atmosphere as a result of climate change mitigation actions; “carbon credit issuing body” means an institution with the mandate to issue carbon credits; S.I. 150 of 2023 1013 “carbon registry” means a database platform for registering, tracking, archiving and management of carbon credits and investments; “climate change” means a change of climate that is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and that is in addition to natural climate variability observed over comparable time periods; “CMA” means Conference of Parties serving as the Meeting of the Parties to the Paris Agreement; “community” means a social group with a common territorial base where the carbon credit project is implemented; “compliance” means conformance of the existing carbon credit trading projects with the laws of Zimbabwe and these regulations; “Convention” means the United Nations Framework Convention on Climate Change, 1992; “Cooperative Approaches under Article 6.2” means a mechanism that promotes the implementation of carbon credit generating projects governed by Party to Party Agreements. “corresponding adjustment” means an adjustment made to a Party’s National Greenhouse Gas Inventory when a transfer of a mitigation outcome is made internationally to be counted towards another Party’s Nationally Determined Contribution or other mitigation pledge; “Department” means the Climate Change Management Department; “designated operational entity” means the independent assessor and verifier of carbon credit trading projects; “emissions” means the release of greenhouse gases and/or their precursors into the atmosphere over a specified area and period of time; “fund” means the Environment Fund established in terms of section 48 of the Environmental Management Act [Chapter 20:27]; 1014 Carbon Credits Trading (General) Regulations, 2023 “greenhouse gas” or “GHG”, means gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared radiation emitted by the earth, these include carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); hydrochlorofluorocarbons (HCFCs); chlorofluorocarbons (CFCs); perfluorocarbons (PFCs); sulphur hexafluoride (SF6); and Nitrogen Trifluoride (NF3); “greenhouse gas inventory” means an inventory of the types or categories of greenhouse gases specified by the Intergovernmental Panel on Climate Change; “Intergovernmental Panel on Climate Change (IPCC) sectors” means Energy, Waste, Industrial Processes and Product Use (IPPU), Agriculture, Forestry and Other Land Uses (AFOLU) and any other which may be established from time to time; “local authorities” means a municipal council, town council, rural district council or local board; “Minister” means the Minister responsible for Climate Change Management; “mitigation” means actions or interventions by human beings to avoid or reduce emission of greenhouse gases into the atmosphere to prevent the planet from warming to more extreme temperatures or by removing sources of emissions or enhancing their removal from the atmosphere through carbon sinks; “measurement, reporting and verification schedule” means a program of activities and a checklist of requirements to enable the authenticity of carbon reductions on the part of a project proponent to be verified by a specified designated operational entity; “Party to Party Agreement” means an agreement consistent with the Paris Agreement to trade carbon credits between Zimbabwe and another Party to the Paris Agreement; S.I. 150 of 2023 1015 “Project Design Document” means the full project proposal for carbon credit trading; “project proponent” means any person implementing or proposing to develop a carbon credit trading project; “Registry” means the Zimbabwe Carbon Credit Registry established in section 15; “removals” means technologies, practices and approaches that remove and durably store carbon dioxide from the atmosphere; “reporting” means submission of comprehensive carbon credit trading and greenhouse gas emissions information to the Authority; “Secretary” means the Secretary responsible for Climate Change Management: “share of proceeds” means the aggregated amount of gross proceeds a project proponent receives upon the sale of carbon credits; “stakeholder”, for the purposes of these regulations, means any person with a stake in a carbon credits trading project, or having any other interest or concern connected with it; “voluntary markets agreement” means an agreement other than a Party to Party Agreement. Objective 3. (1) The objective of these regulations is to provide for the control and management of carbon credit trading projects. (2) These regulations provide for the legal framework necessary for ensuring sustainable development and account for the country’s contribution towards global efforts to reduce or remove greenhouse gas emissions. Application 4. These regulations shall apply to all carbon credit trading projects in Zimbabwe. 1016 Carbon Credits Trading (General) Regulations, 2023 Designated National Authority 5. The Designated National Authority shall be established within the Climate Change Management Department. the main functions of the Authority shall be to— (a) provide technical advice to the Minister on carbon credit trading projects; (b) prepare reports for the Minister in compliance with national and international reporting requirements; (c) promote, build capacity and raise awareness on carbon credit trading; (d) establish and maintain the Zimbabwe Carbon Credit Registry and link the registry to the Convention and regional registries; (e) ensure that all carbon trading projects operating in Zimbabwe are registered; (f) monitor project implementation and implementation of the Stakeholder and Public Participation Guidelines as set out in the First Schedule; (g) ensure the environmental integrity of carbon credits generated in Zimbabwe using the guidelines set out in the Second Schedule; (h) develop carbon credit standardised baselines and methodologies for Zimbabwe; (i) provide a mechanism for effective adherence to confidentiality of data and information in line with standards set under various carbon crediting bodies and the Government of Zimbabwe; (j) make recommendations on distribution of share of proceeds and monitor adherence to benefit sharing; (k) track the entire carbon credit trading cycle; (l) provide secretarial services to the Carbon Credit Trading Committee; and (m) perform any other technical or administrative duties as required by a decision of the Minister and the Conference of Parties to the Convention. S.I. 150 of 2023 1017 Carbon Credit Trading Committee 6. (1) The Minister shall establish the Carbon Credit Trading Committee consisting of experts on— (a) climate change; (b) carbon markets; (c) environment; (d) finance; (e) law; and (f) any other as may be deemed necessary. (2) The Carbon Credit Trading Committee shall meet quarterly and at any other time as and when required. (3) The Carbon Credit Trading Committee shall report to the Minister. Functions of the Carbon Credit Trading Committee 7. Functions of the Carbon Credit Trading Committee shall be to— (a) provide advice to the Minister on issues that may arise in carbon credit markets; and (b) provide expert policy and technical recommendations to the Minister; and (c) advise on mitigation measures and/or areas of national strategic interest in which carbon credit trading shall not be conducted; and (d) perform any other function assigned to them by the Minister. Mandatory Application and Registration Procedure 8. (1) Any person who wishes to engage in carbon credit trading shall— (a) if he/she intends to participate in the voluntary carbon market, submit directly to the Authority a Letter of Intent to develop a carbon credit project accompanied by— 1018 Carbon Credits Trading (General) Regulations, 2023 (i) a Project Idea Note set out in the PIN Template provided in the Third Schedule and upon payment of the Participation in Carbon Trading Application Fee as set out in the Fourth Schedule; and (ii) written proof satisfactory to the Authority of any arrangements or consultations with any appropriate authority to enable the project to be realised; (b) if he or she intends to participate in Cooperative Approaches under Article 6.2 of the Paris Agreement, submit a Letter of Intent and a Project Idea Note guided by the PIN Template provided in the Third Schedule and a Party to Party Agreement in accordance with Decision 2/CMA3 of the Convention; (c) if he or she intends to participate in the Article 6.4 Mechanism, submit a Letter of Intent and a Project Idea Note guided by the PIN Template provided in the Third Schedule and in accordance with Decision 3/CMA3 of the Convention. (2) Upon receipt of the Letter of Intent and Project Idea Note, the Authority shall within 14 days issue a Letter of no Objection, with specified conditions or an Objection Letter, and copy the Minister thereto. (3) Upon receipt of the Letter of No Objection, the Project Proponent shall: (a) conduct feasibility studies which shall include— (i) the carrying out of adequate and meaningful consultations with the affected and interested parties; (ii) establishment of greenhouse gas emissions abatement potential; (b) within six months, notify the Authority of the commencement of such studies; and (c) within 24 months, submit a Project Design Document accompanied by a Submission of Project Design Document Fee as set out in the Fourth Schedule, which shall have the effect of reserving the subject matter of S.I. 150 of 2023 1019 the project from similar proposals affecting the same area for a period of one year: Provided that if the proponent fails to comply with the above, the proponent’s application shall lapse without prejudice to his or her right to make a new application in terms of subsection (1). (4) Upon receipt of the Project Design Document together with a proposed measurement, reporting and verification report for the purposes of section 9, the Authority shall assess the Project Design Document to determine if it meets the following— (a) aspects of the sustainable development criteria specified in the Fifth Schedule; and (b) environmental integrity guidelines as specified in the Second Schedule; and (c) compliance with legal obligations affecting the nature of the project; and (d) if the carbon credits require corresponding adjustments and the implications on the achievement of Zimbabwe’s Nationally Determined Contribution. (5) After assessing the Project Design Document, the Authority shall make recommendations to the Minister giving reasons thereof. (6) The Minister, in consultation with the President, shall within 30 days— (a) approve the Project Design Document by issuing a registration certificate to the project proponent upon payment of Registration Certificate Fees as specified in the Fourth Schedule. The Registration Certificate shall be valid for a specified period but not exceeding 10 years, subject to renewal; or (b) reject the Project Design Document giving written reasons thereof. (7) The project proponent shall commence project implementation within one year of the date of approval— (a) the project proponent shall notify the Authority in writing of the commencement of the project; 1020 Carbon Credits Trading (General) Regulations, 2023 (b) if no notification is made of the project commencement within 180 days (unless the project proponent has sought an extension from the Authority and the extension has been granted), the certificate will be deemed to have been cancelled without prejudice to his or her right to make a new application in terms of subsection (1). Monitoring, Reporting and Verification 9. (1) As and when necessary, the Authority or its authorised agents shall conduct monitoring of the project area on not less than 48 hours written notice: Provided that in any circumstances deemed by the Authority on reasonable grounds to be exigent, the Authority or its authorised agents may conduct monitoring of the project area without notice. (2) Every project proponent must authenticate the emission reductions within the time and manner specified in their measurement, reporting and verification schedule. (3) Upon authentication by a designated operational entity of an emission reduction and issuance of a Carbon Credit Certificate by a Carbon Credit Issuing Body, the project proponent shall— (a) notify the Authority in writing; and (b) provide the requisite information to enable registration on the Zimbabwe Carbon Credit Registry within 14 days. Authorisation of International Transfer of Carbon Credits 10. (1) Upon recommendation from the Authority, the Minister shall authorise the international transfer of carbon credits for both the compliance and voluntary carbon markets generated from all IPCC sectors. (2) The Authority shall apply corresponding adjustments to the Zimbabwe National Greenhouse Gas Inventory as provided in the Second Schedule and in accordance with Decision 2/CMA3 of the Convention. S.I. 150 of 2023 1021 Procedure for Compliance of Existing Projects 11. (1) All existing carbon credit projects deemed null and void shall be given 60 days from the gazetting of these regulations to comply with the provisions of section 8. (2) If a project proponent wishes to register an existing project, they shall submit directly to the Authority a Letter of Intent to register a Carbon Credit Project accompanied by Compliance of Existing Project Template provided in the Sixth Schedule upon payment of the Participation in Carbon Trading Application Fee as set out in the Fourth Schedule. (3) In addition to subsection (1) above, compliance with the provisions of section 8 shall include providing to the Authority, the following information— (a) carbon credits issued since inception and information related to the buyer; (b) income accrued and distributed to beneficiaries; (c) community level projects undertaken and entities or local authorities involved; (d) explicitly state if the carbon credits being generated by the project will require Zimbabwe to apply corresponding adjustments to its National Greenhouse Gas Inventory; and (e) any authorisation letters or letter of support provided by any government agency related to the project. (4) The Minister shall approve and issue a Registration Certificate, or reject the Project Design Document with written reasons thereof. Share of Proceeds 12. (1) For the first ten years of the project, the share of proceeds from carbon credit trading shall be allocated to the beneficiaries below as follows— (a) seventy per centum (70%) shall be retained by the Project Proponent and shared in terms of the Seventh Schedule; and 1022 Carbon Credits Trading (General) Regulations, 2023 (b) thirty per centum (30%) shall constitute an Environmental Levy to be deposited in the Environment Fund and shared in terms of the Seventh Schedule. (2) The Project Proponent shall deposit the share of proceeds in terms of subsection (1) not later than 30 days after receipt of proceeds from the sale. (3) Unless the Project Proponent has earlier requested and was granted by the Authority in writing any extension of the period for the payment of any amount referred to in subsection (2) (a) or (b) (which extension the Authority may grant in writing for good cause shown), if— (a) the Project Proponent fails to timeously pay any amount referred to in subsection (2) (a) or (b), the Authority shall notify the Project Proponent in writing of its default and afford it the opportunity to make good its default no later than thirty days from the date of issuance of such notification; and (b) the Project Proponent fails timeously make good its default as mentioned in proviso (a), such default shall be treated by the Authority as fundamental breach of the Project Proponent’s obligations entitling the Authority to cancel the registration of its carbon credits trading project, without prejudice, however, to the Authority’s right to recover the amounts due in any court of competent jurisdiction. (4) From the eleventh year of the project, the share of proceeds shall be renegotiated taking into account the prevailing circumstances. Amendment of Registration 13. (1) The Authority may, at the initiative of the Project Proponent, at any time amend the registration or any terms or conditions of the registration of a carbon credits trading project, upon payment of an Amendment Fee in terms of the Fourth Schedule— (a) to correct any error in the registration where such error was made by no fault of the Authority or its agents; or (b) where the Project Proponent requests the amendment; S.I. 150 of 2023 1023 Provided that the Authority shall give to affected stakeholders not less than seven days’ notice of the changes through any public communications medium or platform to enable them to make representations on the matter. (2) The Authority may, on its own initiative at any time amend the registration or any terms or conditions of the registration of a carbon credits trading project— (a) to correct any error in the registration where such error is attributable to the Authority or its agents; or (b) if for any reason it considers the amendment necessary or desirable in the interest of the environment or in the public interest: Provided that the Authority shall notify the Project Proponent accordingly and give to affected stakeholders not less than seven days’ notice of the changes through any public communications medium or platform to enable them to make representations on the matter. (3) The Authority shall not amend the registration or any terms or conditions of the registration of a carbon credits trading project unless it has duly taken into consideration any representations on the proposal received in terms of the proviso to subsection (1) or (2)(b) and responded in writing to those representations. Suspension or Cancellation of Registration 14. (1) The Minister may suspend or cancel the registration of any carbon credits trading project for— (a) false declaration of information during the application process; (b) false declaration of financial returns; (c) misrepresentation or non-disclosure of material facts by the Project Proponent; (d) contravention of any provision of the Act or these regulations or any condition of the registration certificate; (e) failure to implement the project within the stipulated one year after issuance of the registration certificate; 1024 Carbon Credits Trading (General) Regulations, 2023 (f) failure to register carbon credits with the Authority within 14 days of issuance of carbon credit certificate; (g) corruption and underhand dealings; (h) failure to disclose information required by the Authority; (i) abandonment of the project; (j) acts of economic sabotage; and (k) breach of environmental and social safeguards: Provided that the Authority shall give the affected project proponents seven days within which to make representations to the Minister. Carbon Credit Registry 15. (1) There shall be established, a central registry and repository of all carbon trading information in both the compliance and voluntary markets by the Authority and shall be known as the Zimbabwe Carbon Credit Registry. (2) The Registry shall— (a) record all carbon credits and registration certificates of projects implemented in Zimbabwe; and (b) register transfers of carbon credits and the associated seller and buyer information, including the carbon credit prices. (3) The Registry shall also facilitate the tracking of each carbon credit until retirement and apply corresponding adjustments where applicable, to Zimbabwe’s National Greenhouse Gas Inventory. Carbon Trading Returns by Registered Entities 16. (1) Every registered project shall, by the 31st of March of the following year, furnish the Authority with annual reports or other information in connection with— (a) progress on programme or project implementation; (b) quantities of greenhouse gases abated; (c) carbon credits generated including market prices; S.I. 150 of 2023 1025 (d) receipts of share of proceeds; (e) the status of Environmental and Social Safeguards; and (f) any other information that may be required. (2) Any person who fails to comply with subsection (1) shall be guilty of an offence and liable to a fine not exceeding level 14 or imprisonment for a period not exceeding twelve months or both such fine and imprisonment. Data and Information Provision 17. (1) Subject to these regulations, all project proponents shall provide relevant activity data as specified by the Authority by 31st March of the following year. (2) Activity data collected in terms of subsection (1) shall enable the estimation of sector specific emissions using agreed templates and tracking generation of carbon credits and implementation of climate change mitigation and adaptation actions. Appeals 18. (1) Any person who is aggrieved by the decision of the Authority— (a) to issue a letter of objection or letter of no objection in terms of section 8(2); (b) not to grant any extension of the period for the payment of any amount referred to in section 12(2)(a) or (b); (c) made in terms of section 13; may lodge an appeal in writing with the Minister, and copy it to the Secretary, no later than 30 days after the issuance of the letter of objection or letter of no objection, giving adequate grounds for the appeal and, if applicable, stating what decision ought to be substituted for the decision appealed against. (2) The effect of lodging an appeal under subsection (1) shall be to suspend the decision appealed against until the appeal is determined by the Minister. (3) The Minister may— 1026 Carbon Credits Trading (General) Regulations, 2023 (a) dismiss the appeal by upholding the decision of the Authority if, in the Minister’s opinion, the appellant fails to on a balance of probabilities to show why the decision of the Authority should be overturned; or (b) refer the decision back to the Authority for reconsideration (whether with or without directions on how the decision is to be reconsidered, including a direction to the Authority to investigate the matter further and make a report and recommendations); or (c) uphold the appeal and substitute any other decision for that of the Authority, if the Minister finds that there was interest in the cause, bias, malice or corruption on the part of any person involved in making or contributing to the decision: Provided that the Minister shall not make a finding on this ground without affording the Authority an opportunity to respond to the proposed finding; or (d) substitute the Authority’s decision, on the basis of any policy directive previously communicated to the Authority by the Minister setting forth the overriding national interest as it affects cases of a like nature to the one being considered by the Authority. (5) Any person who is aggrieved by a decision of the Minister under these regulations may seek a review of such decision by the Administrative Court within 30 days of the date of its notification. (6) The taking of a decision on review under subsection (5) shall not suspend the decision sought to be reviewed until the review is determined by the Administrative Court. S.I. 150 of 2023 1027 First schedule GUIDELINES FOR STAKEHOLDER AND PUBLIC PARTICIPATION 1. The project proponent in consultation with the relevant government ministry, department, agency and local authority shall ensure broad stakeholder and public consultation and participation in the development and implementation of a project. 2. Each project proponent shall submit a stakeholder and public participation plan to the Authority as part of the PIN. 3. These guidelines shall be complemented by those set by the compliance mechanism or voluntary standards through which the project proponent seeks credits. 4. For projects of a spatial nature and proposed to be implemented across Ward boundaries, stakeholder and public consultations shall be held in each Ward. 5. Public and stakeholder consultations shall be held in the presence of a government official from a relevant ministry, department or agency as recommended by the Authority. 6. The Authority may, at its discretion seek further information from the project proponent or stakeholders and may provide additional requirements to be included by the proponent in the Stakeholder and Public Participation Plan. 7. In projects involving local communities, prior informed consent by each individual participant or household representative shall be mandatory and shall be clearly outlined in the Stakeholder and Public Participation Plan. 1028 Carbon Credits Trading (General) Regulations, 2023 R ec om m en de d El em en ts fo r i nc lu sio n in th e St ak eh ol de r a nd P ub lic P ar tic ip at io n Pl an To ol s R ec om m en de d ac tiv ity fo r s ta ke ho ld er an d pu bl ic p ar tic ip at io n E vi de nc e re qu ir ed b y th e A ut ho ri ty A dd iti on al to ol s t ha t m ay b e u se d by th e pr oj ec t p ro po ne nt 1. In fo rm in g th e pu bl ic t o en ab le un de rs ta nd in g of th e pr oj ec t In p er so n pu bl ic m ee tin gs f or c om m un iti es an d/ or st ak eh ol de rs M ee tin g m in ut es a nd s ig ne d pa rt ic ip an t re gi st er s w it h co nt ac t d et ai ls i. W eb si te s; i i. In fo rm at io n re po si to rie s, ho tli ne s an d ki os ks ; ii i. So ci al m ed ia ; iv . O th er p rin te d an d el ec tro ni c pr es s. Br ie fin gs fo r c om m un ity le ad er sh ip in cl ud in g co un ci llo rs , t ra di tio na l l ea de rs , b us in es s an d re lig io us le ad er s C on su lta tio n w ith g ov er nm en t an d lo ca l au th or ity te ch ni ca l o ffi ci al s Pr in te d in fo rm at io n – pu bl is h in te nd ed pr oj ec t i n th e go ve rn m en t g az et te a nd a lo ca l n ew sp ap er c irc ul at in g in th e pr oj ec t ar ea C op y of p ub lic at io n 2. To ol s to g en er at e an d ob ta in pu bl ic i np ut a nd p ro vi de op po rt un iti es t o m em be rs o f th e pu bl ic to s ha re in fo rm at io n an d ex pr es s th ei r op in io ns a nd pe rs pe ct iv es K ey in fo rm an t i nt er vi ew s R ep or ts i. Co m pu te r a ss ist ed p ro ce ss es Fo cu s g ro up d is cu ss io ns D is cu ss io n m in ut es Pu bl ic h ea rin gs Pu bl ic h ea rin g re po rt/ m in ut es Pu bl ic W or ks ho ps W or ks ho p re po rts Su rv ey s Su rv ey re po rts 3. To ol s f or co ns en su s b ui ld in g an d ag re em en t s ee ki ng C on se ns us w or ks ho ps o r m ee tin g W or ks ho p re po rts o r m in ut es K ey st ak eh ol de r m ee tin gs M ee tin g re po rts o r m in ut es S.I. 150 of 2023 1029 second schedule ENVIRONMENTAL INTEGRITY GUIDELINES 1. Carbon credits generated in Zimbabwe shall be certified as having actually reduced or avoided greenhouse gas emissions through a science-based analytical model of an ongoing verification programme. 2. The unit of measurement for greenhouse gas emission reduction or avoidance shall be one carbon credit which represents one metric ton of CO2 equivalent. 3. In recommending approvals and authorisations, and in the quest to achieve environmental integrity, the Authority is required to ensure the following attributes are achieved: (a) Zimbabwe’s greenhouse gas emissions do not increase due to transfers of Internationally Transferred Mitigation Outcomes compared to the situation where such transfers did not occur; (b) Zimbabwe shall apply corresponding adjustments to all authorised Internationally Transferred Mitigation Outcomes from eligible mitigation activities to ensure environmental integrity; and (c) No net increase in emissions within and between Nationally Determined Contributions implementation periods occurs as a result of an approved/authorised mitigation activity. 4. Project proponents are required to demonstrate to the Authority the following: (a) high quality of Internationally Transferred Mitigation Outcomes are achieved through conservative reference levels, baselines are set conservatively and below ‘business as usual’ emission projections, considering all existing policies and addressing uncertainties in quantification and potential leakage; and (b) minimising the risk of non-permanence of mitigation across several Nationally Determined Contributions periods and when reversals of emission removals occur, ensuring that these are addressed in full. 1030 Carbon Credits Trading (General) Regulations, 2023 third schedule PROJECT IDEA NOTE TEMPLATE 1. All project proponents shall use this template to prepare a Project Idea Note for the mitigation activity that seeks to generate carbon credits and submit to the Authority to enable determination of the project’s alignment with Zimbabwe’s Nationally Determined Contribution, Low Emission Development Strategy, National Climate Policy and sustainable development priorities. 2. The Project Idea Note shall be prepared using the template provided in this Schedule. 3. The completed template shall be accompanied by a Letter of Intent addressed to the Authority and shall be submitted upon payment of the Participation in Carbon Trading Application Fee specified in the Fourth Schedule. 4. The Authority may request further information in relation to the Project Idea Note before a Letter of No Objection or Objection is issued. S.I. 150 of 2023 1031 Pr oj ec t I de a N ot e (P IN ) T em pl at e SE C TI O N A (F or o ffi ci al u se o nl y) A 1 D at e of S ub m is si on : (d d/ m m /y yy y) A 2 PI N fi le n um be r: SE C TI O N B (F or u se b y th e Pr oj ec t P ro po ne nt ) B 1 N am e of P ro je ct P ro po ne nt O rg an is at io n: N am e of P ro je ct D ev el op er : S ec to r( s) in w h ic h m iti ga tio n ac tiv ity is to b e un de rta ke n: En er gy Tr an sp or t A gr ic ul tu re Fo re st ry a nd O th er L an d U se In du st ria l P ro ce ss es a nd P ro du ct U se W as te C ar bo n m ar ke t t ar ge te d: (P le as e tic k ap pr op ri at e bo x) C om pl ia nc e M ar ke t: A rti cl e 6. 2 C om pl ia nc e M ar ke t: A rti cl e 6. 4 Vo lu nt ar y C ar bo n M ar ke t 1032 Carbon Credits Trading (General) Regulations, 2023 A re a or E nt ity o f I nt er es t: (P le as e pr ov id e in fo rm at io n on th e pr ov in ce (s ) an d lo ca l a ut ho ri ty (ie s) , w ar d, c o or di na te s a nd /o r n am e of e nt ity a nd a dd re ss i. e. , c om pa ny , i ns tit ut io n et c) B 2 Su m m ar y of p ro po se d m iti ga tio n ac tiv ity (M ax im um 3 00 w or ds ) B 3 In tro du ct io n (P ro vi de in fo rm at io n on th e fo llo w in g: Br ie f d es cr ip tio n on th e p ro je ct p ro po ne nt ; p ro po ne nt ’s le ga l s ta tu s i nc lu di ng co un tr y of re gi st ra tio n; p ro po ne nt ’s ex pe rt is e a nd ex pe ri en ce in th e s ub je ct a re a; a ls o pr ov id e in fo rm at io n re la te d to th e pr oj ec t d ev el op er . Pr ov id e in fo rm at io n on w or k al re ad y un de rt ak en in r el at io n to th e pr oj ec t o ut lin ed in t hi s PI N d oc um en t in cl ud in g in te ra ct io ns w ith g ov er nm en t ag en ci es o r lo ca l au th or iti es .) (M ax 1 00 0 w or ds ) B 4 O bj ec tiv es (O ut lin e th e ob je ct iv e( s) o f t he p ro po se d ca rb on c re di t p ro je ct ) M ax (3 00 w or ds ) B 5 D es cr ip tio n of m iti ga tio n ac tiv ity , t ec hn ol og y an d ap pr ox im at e gr ee nh ou se g as em is si on s r ed uc tio n or re m ov al (O ut lin e t he m iti ga tio n ac tiv ity a nd th e p ro po se d ap pr oa ch to a ct iv ity im pl em en ta tio n. In cl ud e lif es pa n of th e pr oj ec t, es tim at ed c re di tin g pe ri od a nd p er m an en ce p er io d. Pr ov id e a de sc ri pt io n of th e pr op os ed m iti ga tio n te ch no lo gy in cl ud in g ho w it a ba te s gr ee nh ou se g as e m is si on s an d w hy i t is m os t ap pr op ri at e fo r th e pr op os ed a re a, en tit y or a ct iv ity . Pr ov id e an e st im at e of th e gr ee nh ou se g as a ba te m en t p ot en tia l i n to nn es o f C O 2e q. ) (M ax 2 00 0 w or ds ) S.I. 150 of 2023 1033 B 6 Li nk ag e w ith Z im ba bw e’ s N at io na lly D et er m in ed C on tri bu tio n, L ow E m is si on D ev el op m en t S tra te gy , N at io na l C lim at e Po lic y an d re le va nt se ct or p ol ic ie s (P ro vi de a d es cr ip tio n of h ow th e in te nd ed p ro je ct s up po rt s th e im pl em en ta tio n of Zi m ba bw e’s N at io na lly D et er m in ed C on tr ib ut io n to th e U ni te d N at io ns F ra m ew or k C on ve nt io n on C lim at e C ha ng e, th e Lo w E m is si on D ev el op m en t S tr at eg y an d th e N at io na l C lim at e Po lic y. Ad di tio na l i nf or m at io n is r eq ui re d on r el ev an ce o f t he p ro je ct to s ec to ra l p ol ic ie s re la te d to th e se ct or in di ca te d in S ec tio n 1 of th is te m pl at e) (M ax 1 50 0 w or ds ) B 7 C on tri bu tio n to S us ta in ab le D ev el op m en t (I nd ic at e th e pr op os ed p ro je ct ’s en vi sa ge d co nt ri bu tio n to so ci al , e nv iro nm en ta l a nd ec on om ic s us ta in ab ili ty u si ng th e su st ai na bl e de ve lo pm en t c he ck lis t p ro vi de d in th e Fi fth S ch ed ul e of th es e re gu la tio ns . T he c om pl et ed c he ck lis t s ha ll be a tta ch ed to th is PI N T em pl at e on su bm is si on to th e Au th or ity ) ( M ax 1 50 0 w or ds ) B 8 Pr op os ed p ro je ct g ov er na nc e an d fin an ci al a rr an ge m en ts (p ro vi de in fo rm at io n on th e pr op os ed g ov er na nc e st ru ct ur e fo r t he p ro je ct a nd h ow it lin ks w ith e xi st in g st ru ct ur es in th e se ct or , s ha re ho ld in g st ru ct ur e, p ar tn er sh ip s, an d fin an ci al a rr an ge m en ts )( M ax 5 00 w or ds ) B 9 W or k pl an to w ar ds th e su bm is si on o f t he P ro je ct D es ig n D oc um en t (B ri ef ly o ut lin e th e pr op os ed a ct iv iti es , tim ef ra m e an d m ile st on es t ow ar ds t he su bm is si on o f a P ro je ct D es ig n D oc um en t t o th e Au th or ity . (M ax 1 00 0 w or ds ) 1034 Carbon Credits Trading (General) Regulations, 2023 B 10 M ea su re s to e ns ur e st ak eh ol de r en ga ge m en t, pu bl ic p ar tic ip at io n, a w ar en es s an d pr io r i nf or m ed c on se nt . (O ut lin e p ro po se d en ga ge m en t a nd fe ed ba ck m et ho ds . A lso st at e t he p ro po se d pr in ci pa l go ve rn m en t d ep ar tm en t o r ag en cy th at w ill b e pa rt o f t he s ta ke ho ld er e ng ag em en t, pu bl ic p ar tic ip at io n, a w ar en es s an d pr io r in fo rm ed c on se nt a ct iv iti es ) (M ax 1 00 0 w or ds ) B 11 D oc um en ta tio n in di ca tin g ad he re nc e to c om pa ny re gi st ra tio n (T ic k th e bo xe s f or d oc um en ts p ro vi de d an d at ta ch re le va nt d oc um en ts a s e vi de nc e) Ta x C le ar an ce A gr ee m en t b et w ee n lo ca l a nd in te rn at io na l p ar tn er O th er (P le as e sp ec ify ) Co m pa ny R eg ist ra tio n D oc um en ts B 12 In fo rm at io n on p ro je ct p ro po ne nt N am e of P ro je ct P ro po ne nt O rg an is at io n: N am e of P ro je ct P ro po ne nt O rg an is at io n R ep re se nt at iv e: D at e: Si gn at ur e: Em ai l a dd re ss : Te le ph on e nu m be r: B 13 N am e of Z im ba bw ea n ex pe rt/ re pr es en ta tiv e (if d iff er en t f ro m a bo ve ): Si gn at ur e Em ai l a dd re ss Ph ys ic al a dd re ss Te le ph on e nu m be r S.I. 150 of 2023 1035 Fourth schedule FEES 1. The following fees and levies shall apply to all carbon credit generating project in Zimbabwe. (a) Participation in Carbon Trading Application Fee . . . . 00 USD (b) Submission of Project Design Document Fee . . . . 5,000 USD (c) Change of Project Scope Fee . . . . . . . . . . . 5,000 USD (d) Registration Certificate Fees . . . . . . . . . . . . 0.10 USD per credit with a cap of . . . . . . . . . . . . 10 000,00 USD (e) Amendment Fee . . . . . . . . . . . . . . . . . . 500 USD (f) Renewal of Registration Certificate Fees . . . . . . . 20% of the initial registration fees. FiFth schedule SUSTAINABLE DEVELOPMENT CHECKLIST 1. The project proponent shall take into consideration sustainable development policy and strategic priorities of the Government of Zimbabwe in developing their Project Idea Note and Project Design Document. 2. The Sustainable Development Checklist shall be used by all project developers and should be submitted as an annex to the Project Idea Note and should be updated during the Project Design Document development phase and submitted together with the Project Design Document. 3. For projects that were already on-going before the promulgation of these regulations, the checklist shall be submitted together with the Compliance of Existing Project and the Project Design Document (if available at the time an ongoing project seeks compliance). 4. All parameters indicated as being partly/fairly/highly part of the project sustainable development co-benefits shall be accompanied by explanatory notes including relevant statistics and figures for ongoing projects. 5. All the selected sustainable development co-benefits shall be part of the project monitoring and reporting and shall be verifiable by the Authority. 1036 Carbon Credits Trading (General) Regulations, 2023 Sustainable Development Checklist Se ct or Sustainable Development Parameter N /A Pa rt ly Fa ir ly H ig hl y Explanatory Notes Agriculture and food security La nd Producing or using compost Producing or using manure or mineral fertiliser Preventing soil erosion or restoring degraded land Promoting minimum tillage Other means to improve land quality Fo od se cu rit y Increasing area under climate smart irrigation Increasing the use of traditional crops Increasing crop diversification Preserving food Environmental Benefits A ir Reducing SOx Reducing NOx Reducing fly ash Reducing ozone depleting substances Reducing suspended particulate matter Reducing non-methane volatile organic compounds Reducing noise pollution Reducing odours Reducing dust Other air quality improvements W as te Minimising or eliminating solid waste W at er Improving management or control of waste water Saving or conserving water Improving reliability or accessibility of water Purification or cleaner water supply Rehabilitating degraded wetlands Other means to protect water resources S.I. 150 of 2023 1037 Se ct or Sustainable Development Parameter N /A Pa rt ly Fa ir ly H ig hl y Explanatory Notes N at ur al R es ou rc es Enhancing sustainable mining or use of mineral resources Protecting and enhancing plant life Protecting and enhancing species diversity Protecting and enhancing forests Protecting wild animals Socio-economic benefits Jo bs New formal jobs New informal jobs New sources of income generation Other employment opportunities H ea lth a nd sa fe ty Disease prevention Minimising and preventing accidents Reducing indoor air pollution Enhancing access to and improving health services Improving sanitation and hygiene Ed uc at io n Enhancing access to and improving education services Improving access to post basic education learning opportunities In cl us iv ity Fosters participation of women in socio-economic development Mainstreams the participation of vulnerable groups in socio-economic development Empowers youths with skills and knowledge for participation in socio economic development En er gy Enhances access to clean and affordable energy Increases or improves energy efficiency 1038 Carbon Credits Trading (General) Regulations, 2023 sixth schedule COMPLIANCE OF EXISTING PROJECTS 1. All project proponents seeking to ensure that prior existing projects are in compliance with these regulations shall use this template to prepare a summary of the project and submit to the Authority for the Authority to determine the project’s alignment with Zimbabwe’s Nationally Determined Contribution, Low Emission Development Strategy, National Climate Policy and sustainable development priorities. 2. The completed template shall be accompanied with a Letter of Intent addressed to the Authority and Project Design Document and proof of payment of the Participation in Carbon Trading Application Fees specified in the Fourth Schedule. 3. The Authority may request further information in relation to the project before a Letter of No Objection or Objection is issued. S.I. 150 of 2023 1039 Compliance of Existing Projects Template SECTION A (For official use only) A1 Date of Submission: (dd/mm/yyyy) A2 CEP file number: SECTION B (For use by the Project Proponent) B1 Name of Project Proponent Organisation: Name of Project Developer: Sector(s) in which mitigation activity is being undertaken: Energy Transport Agriculture Forestry and Other Land Use Industrial Processes and Product Use Waste Carbon market: (Please tick appropriate box) Compliance Market: Article 6.2 Compliance Market: Article 6.4 Voluntary Carbon Market Area or Entity of Interest: (Please provide information on the Province(s) and Local Authority(ies), ward and/or name of entity and address i.e., company, institution etc) B2 Was the project authorised by any government agency before commencement of activities? If yes, please attach relevant documentation (authorisation or support letter, Agreement or other relevant document). B3 Summary of proposed mitigation activity (Maximum 300 words) 1040 Carbon Credits Trading (General) Regulations, 2023 B4 Introduction (Provide information on the following: Brief description on the project proponent; proponent’s legal status including country of registration; proponent’s expertise and experience in the subject area; also provide information related to the project developer. Provide information on work already undertaken in relation to the project outlined in this document including interactions with other government agencies or local authorities.) (Max 1000 words) B5 Objectives (Outline the objective(s) of the carbon credit project) (Max 300 words) B6 Description of mitigation activity, technology and approximate greenhouse gas emissions reduction or removal (Outline the mitigation activity and the approach to activity implementation. Provide a description of the mitigation technology including how it abates greenhouse gas emissions and why it is most appropriate for the area, entity or activity. Include the start date of the mitigation activity, the crediting period(s) and details on permanence. Provide information on the greenhouse gas abatement potential in tonnes of CO2eq.) (Max 2000 words) B7 Carbon credits issued since inception (Indicate amount by year, when they were accrued, issuer and information related to the buyers) B8 Income accrued from the sale of carbon credits since project inception (Please also include income distributed to beneficiaries (in USD) and provide supporting documents – income and expenses) B9 Is the project planning to transition from the voluntary carbon market to the compliance market? (State whether corresponding adjustments to Zimbabwe’s Greenhouse Gas Inventory will be required) S.I. 150 of 2023 1041 B10 Linkage with Zimbabwe’s Nationally Determined Contribution, Low Emission Development Strategy, National Climate Policy and relevant sector policies. (Provide a description of how the project supports the implementation of Zimbabwe’s Nationally Determined Contribution to the United Nations Framework Convention on Climate Change, the Low Emission Development Strategy and the National Climate Policy. Additional information is required on relevance of the project sectoral policies related to the sector(s) indicated in Section B1 of this template) (Max 1500 words) B11 Contribution to Sustainable Development (Indicate the project’s contribution to social, environmental and economic sustainability using the sustainable development checklist provided in the Fifth Schedule. The completed checklist shall be attached to this CEP Template on submission to the Authority. Include community level projects undertaken and entities or local authorities involved.) (Max 1500 words) B12 Disputes related to the project (Highlight any existing disputes with regards to the project including any legal cases. If there is any dispute, outline how the dispute is being resolved.) (Max 500 words) B13 Proposed project governance and financial arrangements (Provide information on the governance structure for the project and how it links with existing structures in the sector, shareholding structure, partnerships, and financial arrangements) (Max 500 words) B14 Project status (Level of development of the project e.g., planning stage, development of the Project Design Document, implementation etc – include supporting documents) (Max 300 words) B15 Measurement, reporting and verification summary (Summarise the project measurement, reporting and verification system including stakeholders involved and timelines) (Max 1000 words) 1042 Carbon Credits Trading (General) Regulations, 2023 B16 Measures to ensure stakeholder engagement, public participation, awareness and prior informed consent. (Outline proposed engagement and feedback methods. Also state the proposed principal government department or agency that will be part of the stakeholder engagement, public participation, awareness and prior informed consent) (Max 1000 words) B17 Documentation indicating adherence to company registration (Tick the boxes for documents provided and attach relevant documents as evidence) Tax Clearance Agreement between local and international partner Project Design Document if available Other (please specify) C o m p a n y Registration Documents B18 Information on project proponent Name of Project Proponent Organisation: Name of Project Proponent Organisation Representative: Date: Signature: Email address: Physical address: Telephone number (including country code): B19 Name of Zimbabwean expert/representative (if different from above): Signature Email address Telephone number seventh schedule DISTRIBUTION OF THE SHARE OF PROCEEDS 1. The seventy per cent retained by the project proponent shall be shared as follows: (a) at least twenty-five per cent shall be invested in the community in consultation with the Local Authority; and (b) the project proponent shall retain not more than seventy-five per cent. 2. The Environmental Levy deposited in the Fund shall be shared as follows: (a) Investment in climate change adaptation and low carbon development projects . . . . . . . . . . . . . . . . 55% (b) Loss and damage relief fund . . . . . . . . . . . . . 5% S.I. 150 of 2023 1043 (c) Appropriate authority and local authority levies . . . . 10% (d) Administrative costs and capacity enhancement of the Authority, Registry, and Carbon Credit Trading Committee 15% (e) Treasury fiscal requirements . . . . . . . . . . . . . 15% 1044 Carbon Credits Trading (General) Regulations, 2023 Supplement to the Zimbabwean Government Gazette dated the 18th August, 2023. Printed by the Government Printer, Harare.