Environmental Management (Control and Management of Carbon Trading) Regulations, 2022

Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 1 GOVERNMENT NOTICE No. 636 published on 28/10/2022 THE ENVIRONMENTAL MANAGEMENT ACT, (CAP. 191) REGULATIONS (Made under sections 75 and 230(2)(s)) THE ENVIRONMENTAL MANAGEMENT (CONTROL AND MANAGEMENT OF CARBON TRADING) REGULATIONS, 2022 ARRANGEMENT OF REGULATIONS Regulation Title PART I PRELIMINARY PROVISIONS 1. Citation. 2. Application. 3. Interpretation. PART II GENERAL PRINCIPLES 4. General principle. PART III OBJECTIVES 5. Objectives. ISSN 0856 - 034X THE UNITED REPUBLIC OF TANZANIA Supplement No. 41 28th October, 2022 SUBSIDIARY LEGISLATION To The Gazette of the United Republic of Tanzania No. 42 Vol. 103 Dated 28th October, 2022 Printed by The Government Printer, Dodoma by Order of Government Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 2 PART IV ADMINISTRATION AND INSTITUTIONAL FRAMEWORK 6. Powers of Minister. 7. Delegation of functions. 8. Designated National Authority or National Focal Point. 9. Functions of Designated National Authority or National Focal Point. 10. Function of Director of Environment. 11. National Carbon Assessment Technical Committee. 12. Function of National Carbon Assessment Technical Committee. 13. Conflict of interest. 14. Function of sector Ministries. 15. Ministry responsible for local government authorities. 16. Regional Secretariats. 17. Local government authorities. 18. Managing Authority. 19. Proponent. 20. Functions of Council. 21. Village government or mtaa. 22. Roles of private sectors, development partners or civil society organisations. PART V REQUIREMENTS FOR CARBON TRADING 23. Qualifications of proponent. 24. Project requirements. 25. Environmental and social impacts assessment. PART VI CONTROL AND MANAGEMENT OF CARBON TRADING 26. Application and approval procedures. 27. Development and submission of Project Concept Note. 28. Development and submission of Project Document. 29. Contractual agreement between parties. 30. Commencement of project. 31. Cancellation of endorsement. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 3 PART VII VERIFICATION AND CERTIFICATION 32. Verification and certification. 33. Issuance of Certified Carbon Emission Reductions and Verified Emission Reductions. PART VIII COSTS AND BENEFITS SHARING 34. Costs and benefits. 35. Corporate social responsibility. PART IX CAPACITY BUILDING, AWARENESS RAISING AND PUBLIC PARTICIPATION 36. Capacity building, awareness raising and public participation. PART X OFFENCES AND PENALTIES 37. Offences and penalties. PART XI GENERAL PROVISIONS 38. Registrar. 39. Register. 40. Duty to keep records. 41. Duty to submit report. 42. Monitoring and evaluation of reports. 43. Duty to disclose information transparent manner. 44. Liability. 45. Non-transferability of endorsement. 46. Formulation of guidelines. 47. Operationalisation of regulations. 48. Transitional provisions. 49. Review. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 4 SCHEDULES THE ENVIRONMENTAL MANAGEMENT ACT, (CAP. 191) REGULATIONS (Made under sections 75 and 230(2)(s)) THE ENVIRONMENTAL MANAGEMENT (CONTROL AND MANAGEMENT OF CARBON TRADING) REGULATIONS, 2022 PART I PRELIMINARY PROVISIONS Citation 1. These Regulations may be cited as the Environmental Management (Control and Management of Carbon Trading) Regulations, 2022. Application 2. These Regulations shall apply to all types of carbon trading project in Mainland Tanzania. Interpretation 3. In these Regulations, unless the context otherwise requires Cap. 191 “Act” means the Environmental Management Act; “carbon credit” means the amount of one tonne of carbon dioxide or an equivalent of another greenhouse gases reduced for sale in the carbon trading project; “carbon trading” means buying and selling of verified or certified of carbon emission, reductions and Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 5 removals in accordance with the recognised international carbon standard; “Council” means the National Environment Management Council established under the provisions of the Act; “Designated National Authority or National Focal Point” means the ministry designated under this Regulation to co-ordinate matters relating to environment and carbon trading projects in the Country;. “Director” means the Director of Environment appointed under the Act; “Managing Authority” means the owner of the property involved in the carbon trading project; “Minister” means the Minister responsible for environment; “Ministry” means the Ministry responsible for environment; “National Carbon Projects Assessment Technical Committee” means an ad hoc committee constituted by the Designated National Authority or National Focal Point to review and scrutinise the submitted Project Concept Note or Project Document; “Nationally Determined Contribution” means climate change action plan to cut greenhouse gases emissions and adapt to climate change impacts as provided under the Paris Agreement; “proponent” means a legal or natural person proposing the execution of carbon trading project or programmes; “Project Document” means a document with detailed description of the carbon trading project; “Registrar” means the Designated National Authority or National Focal Point responsible for registration of carbon trading projects; and “relevant authority” means any Government institution responsible for registering entities involved in the carbon trading projects. PART II Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 6 GENERAL PRINCIPLES General principles 4.-(1) Any entity implementing a carbon project or any person exercising jurisdiction under these Regulations shall observe principles of (a) sustainable development; (b) environmental integrity and sustainability; (c) transparency; (d) efficiency; (e) inclusion of socio-economic and environmental co-benefits; and (f) international standards. (2) Any person exercising jurisdiction in accordance with these regulations shall, in making any decision, order, exercise of any power or performance of any function, be guided by the provisions of subregulation (1) together with the principle of equity fairness and common but differentiated responsibilities and respective capacities in light of national circumstances. PART III OBJECTIVE Objective 5.-(1) The objective of these Regulations is to provide for the control and management of carbon trading projects. (2) In the promotion of achievement of the objective referred to under sub regulation (1), these Regulations provide for legal framework necessary for ensuring sustainable environmental development by enhancing environmental conservation and country’s contribution towards global efforts on greenhouse gases emissions reduction. PART IV ADMINISTRATION AND INSTITUTIONAL FRAMEWORK Powers of Minister 6.-(1) The Minister shall have the overall responsibility for matters relating to climate change and shall in that respect be responsible for articulation of Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 7 policy guidelines necessary for climate change including carbon trading. (2) The Minister may issue general guidelines to sector Ministries, Government Departments, the Council, and local government authorities, any other public or civil society organizations or private institutions necessary for the purposes of implementation of the provisions of these Regulations. (3) In addition to the obligation under the preceding provisions, the Minister shall have mandate to approve and issue a letter of endorsement for implementation of a carbon trading project that means the necessary requirements. Delegation of functions 7. The Minister may, by notice in the Gazette, delegate some of the functions of the Designated National Authority or National Focal Point to any of the institutions referred to under regulation 6(2) on such conditions as may deem appropriate. Designated National Authority or National Focal Point 8. The Ministry responsible for environment shall be the Designated National Authority or the National Focal Point. Functions of Designated National Authority and or National Focal Point 9.-(1) The functions of the Designated National Authority or National Focal Point or National Authority shall include to (a) link the country with international processes for climate change; (b) coordinate climate change related matters across the country; (c) provide policy guidance on carbon trading and other crediting mechanism that promote investment, social, cultural, economic and environmental justice; (d) register carbon trading projects under compliance and voluntary mechanisms; Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 8 (e) constitute a National Carbon Assessment Technical Committee to review and scrutinise the Project Concept Note and Document; (f) issue a letter of no objection for the project qulifying for registration; (g) advise the project proponent to have/adhere to insurance policies on carbon trading projects; (h) provide key information to proponent in carbon trading project; (i) measure, reporte and verify of greenhouse gases; (j) coordinate and conduct monitoring and evaluation of the registered carbon trading project; (k) collaborate with the ministry responsible for environment of the Revolutionary Government of Zanzibar for issues concerning carbon trading; (l) keep a register of all carbon trading projects in the country; and (m) implement all necessary matters in accordance with these Regulations and other international treaties. (2) Without prejudice to the provisions of subregulation (1), the Designated National Authority or National Focal Point may establish a National Carbon Assessment Technical Committee which shall include multidisciplinary experts to advise on carbon trading project submitted. Functions of Director 10. In matters pertaining to implementation of the provisions of these Regulations, the Director shall have following functions: (a) to advise the Government on measures for the control and management of carbon trading; (b) to monitor and assess carbon trading activities being carried out by relevant stakeholders in order to ensure compliance with these regulations; Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 9 (c) to enhance sectoral coordination and mobilisation of stakeholders for effective control and management of carbon trading; (d) to coordinate and promote public participation and awareness on carbon trading activities; and (e) to facilitate research on carbon trading. National Carbon Projects Assessment Technical Committee 11.-(1) The National Carbon Projects Assessment Technical Committee shall be an advisory Committee to the Designated National Authority or National Focal Point. (2) The National Carbon Projects Assessment Technical Committee may be composed of members from Government ministries, departments, agencies, civil society organisations, academic institutions and private sector with experience in the respective carbon trading project. (3) The Director shall be the chairperson of the National Carbon Projects Assessment Technical Committee. (4) The National Carbon Projects Assessment Technical Committee shall regulate its own procedure in relation to the transaction of its business. Functions of National Carbon Projects Assessment Technical Committee 12. The National Carbon Projects Assessment Technical Committee shall have the following functions: (a) to scrutinise the Project Concept Note referred to it and provide recommendations to the Designated National Authority or National Focal Point; (b) to scrutinise the Project Document referred to it and provide recommendations to the Designated National Authority or National Focal Point; and (c) to perform any other function as may be referred to it by the Designated National Authority or National Focal Point under these Regulations. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 10 Conflict of interest 13.-(1) A member of the National Carbon Projects Assessment Technical Committee shall be required to declare any conflict of interest before taking part in the Committee proceedings. (2) Notwithstanding with the provisions of sub regulation (1), the Designated National Authority or National Focal Point shall determine whether the member can take part in the Committee proceedings or not. Functions of sector ministries 14. Sector ministries shall have the following functions: (a) to provide sectoral technical, administrative and legal advice on carbon trading project; (b) to provide clearance letter for a carbon trading project proposed in a specific sector; and (c) recognise Certified Carbon Emission Reduction Units from sector specific carbon trading projects in national greenhouse gases inventory. Ministry responsible for local government authorities 15. The Ministry responsible for local government authorities shall have the following functions: (a) to oversee and coordinate implementation of policies and guidelines related to carbon trading projects; (b) to issue directives on the revenues and expenditures related to carbon trading projects; (c) to facilitate capacity building on carbon trading; (d) to review agreements or memorandum of understanding related to carbon trading; and (e) to ensure that environmental conservation activities are prioritised in the expenditure of revenue accrued from carbon trading projects. Functions of Regional Secretariat 16. Regional Secretariat shall have the following functions: (a) to oversee and coordinate carbon trading projects in the area of its jurisdiction; Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 11 (b) to facilitate capacity building on carbon trading at regional, local government authorities and community level; and (c) to provide technical, administrative and legal support to Managing Authorities, local community and proponent. Functions of local government authorities 17. Local government authorities shall have the following functions: (a) overseeing carbon trading projects at their areas of jurisdiction, in consultation with regional secretariat; (b) screening and scrutinising carbon trading projects at the council level; (c) ensuring the safeguard of local community interest in the carbon trading projects or programmes; (d) coordinating supervising and monitoring the implementation of the carbon trading projects in their areas of jurisdiction; (e) preparing and implementing project or programmes as potential proponent in their areas of jurisdiction; (f) collecting statutory royalties accrued from carbon trading projects or programmes in their areas of jurisdiction; (g) facilitating capacity building on carbon trading projects to local communities and village leaders; (h) providing appropriate guidance on planning, budgeting and expenditure of carbon trading finance; and (i) providing technical, administrative and legal support on carbon trading project in the areas of their jurisdiction. Functions of Managing Authority 18. The Managing Authority shall have the following functions: (a) preparing and implementing project as a proponent or partner of the proponent; Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 12 (b) providing evidence of ownership of the property involved in the carbon trading project; (c) preparing, signing and implementing contracts related to carbon trading project; and (d) issuance of consent letter through respective Government authority confirming engagement in the carbon trading project. Functions of proponent 19.-(1) The proponent shall have the following functions: (a) registering the carbon trading project to the Registrar; (b) developing and implementing carbon trading project; (c) consulting with the respective Managing Authority and any other relevant stakeholders in the course of preparation and implementation of the carbon trading project; (d) preparing and enter into agreements with stakeholders on the implementation of the carbon trading the project; (e) selling the carbon credits generated by the project; (f) distributing the revenues from the sale of carbon credits to stakeholders in accordance with the prescribed costs and benefits sharing schemes under regulation 34; (g) in collaboration with relevant Government authority, Managing Authority or partner, preparing and submiting progress report on the implementation of the carbon trading project pursuant to regulation 41; and (h) capacity building on carbon trading to stakeholders. (2) Without prejudice to subregulation 1(e), the sale of the carbon credits generated may be done through appropriate stock exchange market established within the country. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 13 Functions of Council 20.-(1) The functions of the Council with regards to carbon trading projects shall be as follows: (a) to ensure compliance and enforcement of the law in carbon trading projects; and (b) raising awareness on carbon trading. Functions of Village Government or Mtaa 21. The village government or mtaa shall have the following functions: (a) preparing, signing and supervising the implementation of contracts related to carbon trading project in consultation with respective councils; (b) safeguarding local community interest in carbon trading projects; (c) ensuring engagement of local community in carbon trading projects; (d) supervising and monitoring the implementation of the carbon trade in the village or mtaa; (e) preparing and implementing project as a potential proponent; (f) ensuring public participation in capacity building in carbon trading; and (g) undertaking the planning, budgeting, expenditure and reporting of carbon trading finance in villages or mtaa. Functions of private sectors, development partners and civil society organizations 22. For the purpose of giving effect of these Regulations, private sectors, development partners and civil society organisations shall have the following functions: (a) planning, preparing and implementing carbon projects or programs; (b) conducting research on carbon trading; (c) facilitating capacity building on carbon trading; and (d) mobilising carbon finance. PART V REQUIREMENTS FOR CARBON TRADING Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 14 Qualifications of proponent 23.-(1) A proponent and associated partners to operate in carbon trading projects shall be legal or natural persons. (2) The proponent shall have the following capacity: (a) possession of relevant expertise on carbon trading; (b) possession of financial capacity to invest in carbon trading projects; and (c) adherence to all applicable legal requirements in operating carbon trading projects. Project requirements 24.-(1) A person shall not operate carbon trading project without being registered by the Registrar. (2) The project to be registered as a carbon trading project shall have the following elements: (a) be in line with national policies, laws and strategies; (b) indicate how the project shall contribute to the Nationally Determined Contributions; (c) adhere to national priority carbon trading sectors; (d) obtained a letter of consent and participation of partners engaged in the project; (e) clearance of ownership of the property involved in the project; (f) involvement of local communities in the project implementation; (g) adhere to transparency and fairness in business; (h) adhere to national investment priorities, ecological, social, cultural and economic safeguards; (i) disclose relevant project information including costs incurred, verified emission reductions and estimated revenues; (j) indicate expected employment creation to the national experts and local communities; and Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 15 (k) indicate commitment to corporate social responsibility. Environmental impact assessment GN. No. 474 of 2018 25.-(1) Carbon trading projects shall be required to undergo environmental and social impacts assessment in accordance with the Environmental Impacts Assessment Regulations. (2) Without prejudice to subregulation (1), reducing emissions from deforestation and forest degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries projects are required to undergo REDD+ safeguard standards assessment. PART VI CONTROL AND MANAGEMENT OF CARBON TRADING Steps to establish and operate carbon trading projects 26. Establishment and operation of carbon trading projects shall be required to undergo the following steps: (a) the project proponent or Managing Authority shall apply for approval of carbon trading project idea to Designated National Authority or National Focal Point by filling the application form prescribed in the First Schedule; (b) the completed application form for registration of the project idea shall be accompanied by proof of payment of non-refundable application fees as prescribed in the Second Schedule; (c) the Designated National Authority or National Focal Point shall within thirty days’ process and respond to the proponent on the registration of the project idea; and (d) where the requirements for application have been complied with, the Designated National Authority or National Focal Point shall direct the proponent or the Managing Authority to develop Project Concept Note. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 16 Development and submission of Project Concept Note 27.-(1) The project proponent in collaboration with Managing Authority or project partners shall, within a period of ninety days from the date of registration of the project idea, be required to develop a Project Concept Note. (2) Without prejudice to subregulation (1), the Project Concept Note developed by the proponent shall have the following elements: (a) title of the project; (b) name and contacts of the proponent; (c) brief project description; (d) proposed activities; (e) stakeholders to be involved; (f) proposed project location, site and size; (g) potential project benefits; (h) sources of finance and estimated investment cost; (i) mode of financing or crediting mechanism; and (j) adherence to environmental and socio economic safeguards. (3) The developed Project Concept Note shall be submitted to the Designated National Authority or National Focal Point for review and scrutiny accompanied by (a) proof of payment of project registration fees as prescribed in the Second Schedule; and (b) consent of the Managing Authority in the form of extract minutes in accordance with established procedures of the respective authority. (4) Within thirty days from the date of receiving the Project Concept Note, the Designated National Authority or National Focal Point shall issue (a) a letter of no objection for a qualified Project Concept Note as prescribed in the Third Schedule; or (b) a letter of recommendation for improvement of the Project Concept Note. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 17 Development and submission of Project Document 28.-(1) The proponent in collaboration with Managing Authority or project partners shall develop a Project Document within twelve months after obtaining the letter of no objection. (2) Subject to subregulation (1), the proponent may through a written notice, request for extension of time by stating the reasons for delay to develop and submit the Project Document. (3) The Designated National Authority or National Focal Point may grant extension of time of not more than six months to the proponent to develop and submit the Project Document after being satisfied with the reasons provided. (4) Without prejudice to subregulation (1), the Project Document developed by the proponent shall be in conformity with the requirements prescribed under regulation 24(2). (5) In addition to the provisions of regulation 27(2), the developed Project Document shall contain the following elements: (a) general description of the project activity; (b) detailed description of the baseline and monitoring methodology; (c) duration of the implementation of the project activity; and (d) crediting period. (6) The Project Document submitted shall abide with accepted international standards on carbon trading including validation of the project where required. (7) The developed Project Document shall be submitted to the Designated National Authority or National Focal Point for review and scrutiny. (8) Where it is determined that the project document needs to be improved, the Designated National Authority or National Focal Point shall issue to the proponent a letter to recommend the required improvements. (9) Within thirty days from the date of receipt of the project Document, the Designated National Authority or National Focal Point shall, upon Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 18 satisfaction that the Project Document has met the requirements, submit to the Minister the project proposal for endorsement of implementation. (10) The letter of endorsement for implementation of the project shall be as prescribed in the fourth schedule. Contractual agreement 29.-(1) Persons intending to collaborate on carbon trading project shall enter into contractual agreements. (2) Any contract entered shall include the following: (a) name of the parties; (b) address and contact of the parties; (c) legal capacity of the parties; (d) description and scope of the project; (e) scope of the agreement; (f) terms and conditions of parties; (g) project costs and benefits sharing arrangements; (h) mode of payment of revenues or benefits accrued; (i) operation and duration of the project; (j) breach of the terms and conditions of the contract; (k) dispute settlement; (l) applicable law; (m) amendments; (n) suspension and termination of the contract; (o) force majure; (p) signature and legal capacity of signatories; (q) signature of the witnesses of the signatories; and (r) seal of the parties. Commencement of project 30. The proponent shall, within two years after receiving the endorsement start the implementation of the project activities. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 19 Cancelation of endorsement 31. Circumstances under which the endorsement for project implementation may be cancelled shall include (a) failure to submit the Project Concept Note or Project Document within the prescribed time; (b) failure to commence the project activities within the prescribed time; (c) non-compliance of the project requirements prescribed in these Regulations; (d) where the proponent voluntarily cancel the project by submitting an official notice; (e) where the endorsement was obtained through misrepresentation; (f) where the continued operation of the project activity is or is likely to be injurious to the environment or human health; (g) where the project activities are overrided by other public interest; and (h) where there was insufficient or holding of information in the application process. PART VII VERIFICATION AND CERTIFICATION Verification and certification 32. Verification of the project shall be done in dcompliance with the accepted international carbon trading standards. Issuance of carbon credits 33. Issuance of carbon credits shall be done in accordance with the accepted international carbon trading standards. PART VIII COSTS AND BENEFITS SHARING Costs and benefits sharing 34.-(1) Stakeholders who may incur various costs or benefits from carbon trading include (a) proponent; (b) managing Authority; (c) regulatory authority; and Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 20 (d) local communities. (2) Costs and benefits sharing schemes in the carbon trading shall take into consideration capital invested, roles and responsibilities of project stakeholders. (3) Without prejudice to subregulation (2), for land based projects: (a) the Managing Authority shall be entitled to sixty one percent of the gross revenues accrued from the sale of Certified Emission Reduction; (b) in case the Managing Authority is under the council, ten percent out of the sixty one percent shall be given to the council for conservation activities including carbon trading; (c) the remaining fifty one percent shall be used by the village government or mtaa for community development and conservation activities at the village or mtaa level; (d) in case the Managing Authority is not under the council, ten percent out of sixty one percent shall be used for community activities at the village or mtaa level, where as six percent shall be entitled to adjacent villages or mtaa whereas four percent shall be entitled to local government council for conservation activities, and the remaining fifty one percent shall be duly entitled to the respective Managing Authority; and (e) out of the remaining thirty-nine percent, the proponent shall pay nine percent to the Designated National Authority or National Focal Point as prescribed in the Second Schedule; and (f) the Designated National Authority or National Focal Point shall pay two percent of the nine percent to the National Environmental Trust Fund, one percent out of the remaining seven percent shall be paid to the agency responsible for energy for the purpose of subsiding costs Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 21 of cooking energy and the remaining six percent shall be used by the Designated National Authority or National Focal Point for management, control and development of carbon trading projects in the country. (4) In respect of other projects whereby the level of initial investment costs is high, the costs and benefits sharing arrangements shall be determined and negotiated between the Managing Authority and the Project Proponent. (5) Notwithstanding the provisions of sub regulation (3) and (4), the designated National Authority or National Focal Point shall provide guidance in facilitating fair and equitable costs and benefits sharing arrangements for carbon trading projects. Corporate social responsibility 35. Without prejudice to the provisions of regulation 34, project proponent shall be responsible to fulfil corporate social responsibility in the area of operation in accordance with national laws. PART IX CAPACITY BUILDING, AWARENESS RAISING AND PUBLIC PARTICIPATION Capacity building, awareness raising and public participation 36. The proponent in the implementation of a carbon trading project the proponent, shall within the framework of international and national climate change policies take necessary measures to (a) facilitate, enhance, promote, develop and strengthening capacity, awareness and participation of stakeholders on carbon trading projects; (b) in collaboration with the Designated National Authority or National Focal Point, develop training and educational programmes on carbon trading projects; (c) provide relevant information concerning respective carbon trading projects to Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 22 Managing Authority, local community, sector ministries and regulatory authorities; (d) involve the local community in planning, implementation and monitoring processes in the respective carbon trading projects; and (e) share experiences, lessons learnt and best practices with other stakeholders for the successful implementation of carbon trading projects. PART X OFFENCES AND PENALTIES Offences and penalties 37.-(1) Any person who (a) implements a carbon trading project without endorsement issued under these regulations; (b) violates any conditions attached to the grant of endorsement under these Regulations; (c) fails to furnish information related or connected to the project as required by the provision of these Regulations; (d) provide false, misleading or deceptive information in order to secure an endorsement; and (e) violates any provision of these Regulations, commits an offence and shall on conviction be liable to a fine not less than ten million shillings but not exceeding ten billion shillings or to imprisonment for a term not exceeding twelve years or to both. (2) Any person convicted of an offence under subregulation (1) shall be prohibited from engaging in any carbon trading project. PART XI GENERAL PROVISIONS Registrar 38. The Designated National Authority or National Focal Point shall be the Registrar of carbon trading projects. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 23 Register 39. The Registrar shall keep and maintain a register of carbon trading projects regulated under these Regulations. Duty to keep records 40. The project proponent of a carbon trading projects under these Regulations shall keep documents and records of transactions connected to the carbon trading projects. Duty to submit report 41.-(1) The proponent of the approved project shall be required to submit to the Designated National Authority or National Focal Point a report on commencement of the project as prescribed to in regulation 30. (2) The project Proponent who carries out the project activity under these Regulations shall prepare and submit to the Designated National Authority or National Focal Point the following report: (a) annual report on the status of the project implementation; and (b) copies of five years external auditon reports. (3) The format of the annual report on the status of the project implementation shall be as prescribed in the fifth schedule. Monitoring and evaluation 42. The Designated National Authority or National Focal Point shall coordinate periodic monitoring and evaluation of the registered carbon trading projects to measure and assess the success and performance of carbon trading projects. Duty to disclose information in transparent manner 43.-(1) Each proponent undertaking carbon trading projects shall provide information in a transparent manner in relation to the projects as may be required by the managing authority Designated National Authority or National Focal Point; and (2) The information to be provided under sub regulation (1) shall include revenues from the sold-out carbon credits. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 24 Liability 44. where any damage is caused by the carbon trading facility which has been installed into the environment, a person who installed or the project Proponent who permitted it to be installed shall be liable for the damage caused in the environment or human health as provided under the Act. Non transferability of endorsement 45. An endorsement for a carbon trading project issued under these Regulations shall not be transferable. Formulation of guidelines 46.-(1). The Minister may, from time-to-time issue guidelines, manuals or orders to facilitate effective implementation of these Regulations. (2) Without prejudice to sub-regulation (1), the guidelines issued may be on (a) procedures and requirements to operate carbon trading projects; (b) costs and benefits sharing; and (c) any other matter relating to carbon trading projects. Operationalisation of Regulations 47. These Regulations shall operate together with ratified international treaties and any other written laws applicable on carbon trading projects. Transition provisions 48.-(1) Any person engaged in carbon trading project before coming into operation of these Regulations shall be required to comply with the provision these Regulations after coming into operation of the regulations.. (2) Without prejudice to the of subregulation (1), the Designated National Authority or National Focal Point may grant to the Proponent a transition period of not more than one year to allow the proponent to comply with the requirement of these Regulations. (3) Without prejudice to the provision of subregulation (1), any payment payable in accordance with these Regulations shall be paid during the transition period. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 25 Review 49. (1) Any person aggrieved by any decision made under these Regulations save for a decition of the Minister, may appeal to the Minister. (2) without prejudice to subregulation (1), a person who is aggrived by the decision of the Minister may apply for review to the Minister; (3) Any person who appeals pursuant to subregulation (1) or applies for review pursuant to subregulation (2) shall submit the appeal or application or review; (4) the relevant authority which recieves an appeal or application for review under this regulation determine the appeal or application for review within fourteern days for the date of receipt. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 26 FIRST SCHEDULE (Made under regulation 26) APPLICATION FORM FOR CARBON TRADING Name of Project:…………………………………………..…………………… Project Application Reference Number:………………………………………. Date of Application: …………………………………………………………… Type of credit mechanism or approach (Tick the appropriate): (a) Clean Development Mechanism (CDM) (……) (b) Voluntary Carbon Credit Trading (VCCT) (……) (c) Joint Credit Mechanism (JCM) (…….) (a) Others …………………………………………………………………………………… …………………………………………………………………………………… ………………………… Project Details A. Project description, type, location, site, size and schedule General description A.1 Brief Project description and proposed activities (What is the project all about, objectives, expected benefits, time line, budget and linkage to National priorities etc Max 250 words) A.2 Is the project proponent the Managing Authority YES NO Remarks If No: Attach the support letter from the Managing Authority Project proponent registering the PCN A.3 Name A.4 Organizational category (Choose one or more) a. Central Government (Ministries, Departments and Agencies) b. Local Government (City Council, Municipal Council District Council, Town Council, Mtaa and Village Council) c. Private (individual, company) d. Civil Society Organization A.5 Other function(s) of the project developer in the project (Choose one or more) a. Sponsor b. Intermediary c. Technical advisor A.6 Summary of relevant Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 27 experience A.7 Address A.8 Contact person A.9 Telephone / fax A.10 E-mail and web address Project Managing Authority A.11 Name A.12 Organizational category (Choose one or more) a. Central Government (Ministries, Departments and Agencies) b. Local Government (City Council, Municipal Council District Council, Town Council, Mtaa and Village Council) c. Private (individual, company) d. Civil Society Organization A.13 Address A.14 Contact person A.15 Telephone / fax A.16 E-mail and web address Project sponsor(s) or upfront buyer financing the project (List and provide the following information for all project sponsors) A.17 Name A.18 Organizational category (Choose one or more) a. Government b. Government agency c. Municipality d. Private company e. Civil Society Organization A.19 Address (Include web address) A.20 Main activities A.21 Summary of the financials (total assets, revenues, profit, etc.) Type of project A.22 Greenhouse gases targeted CO2 / CH4 / N2O/CFCs A.23 Type of activities Eg. Sequestration/Conservation (REDD Location of the project A.24 Region(s) A.25 District(s) A.26 Division(s) A.27 Ward(s) A.28 Village(s) A.29 Precise location (GPS coordinates) For Forest Carbon Trade projects, state Management and Governance A.30 Approved YES NO Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 28 Management Plan A.31 Approved By-Laws YES NO A.32 Free from land disputes and conflicts. YES NO A.33 Proposed, Declaration or Gazettement if applicable. YES NO A.34 Village land-use plans if applicable (for Village Land Forest Reserves). YES NO A.35 Does the project require Environmental Impact Assessment (EIA) as per the Forest Act Sect.18 (1)? YES NO Expected schedule A.36 Earliest project start date (Year in which the project will be operational) A.37 Estimate of time required before becoming operational after approval of the PCN A.38 Year of the first expected CERs/VERs delivery e.g. 2022/2023 A.39 Project lifetime (Number of years) A.40 Current status or phase of the project B. Expected Environmental and Social Benefits Environmental benefits B.1 Estimate of carbon sequestered or conserved (In metric tonnes of CO2 equivalent – t CO2e. Please attach spreadsheet.) Provide estimates from REDD activities separately Up to and including e.g. 2022: xx t CO2e Up to and including e.g. 2023: xx t CO2e B.2 Baseline scenario (What would the future look like without the proposed project? What would the estimated total carbon sequestration/ conservation be without the proposed project? Mention the baseline methodology, as per the CoP9 text. Also explain why the project is additional referring to the Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 29 EB16 guidelines). If REDD activity, mention the main drivers and agents for deforestation and how the project will address them. B.3 Existing vegetation and land use (What is the current land cover and land use? Is the tree cover more or less than 10%? Is the area more than 0.5 ha?) B.4 Environmental benefits B.4.a Local benefits B.4.b National benefits B.4.c Global benefits B.5 Consistency between the project and the environmental priorities of the Host Country Socio-economic benefits B.6 How will the project improve the welfare of the community involved in it or surrounding it. What are the direct effects which can be attributed to the project and which would not have occurred in a comparable situation without that project? (e.g. Revenue collection, employment creation, poverty alleviation, foreign exchange savings). Indicate the number of communities and the number of people that will benefit from this project. B.7 Is there any benefit sharing arrangement in place? If yes attach B.8 Are there other benefits? (e.g., training/education due to the introduction of new technologies and products, replication in the country, region or district) Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 30 C. Finance Project costs C.1 Preparation costs US$ million C.2 Establishment costs US$ million C.3 Other costs (explain) US$ million C.4 Total project costs US$ million Declaration I……………………………………………………….do hereby declare that, the information provided in this application are true to the best of my knowledge. Name:……………………………….. Official Seal Qualification:……………………....... Signature:…………………………… Date:…………………………………. Witnessed by Name:……………………………….. Qualification:……………………....... Signature:…………………………… Date:…………………………………. Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 31 SECOND SCHEDULE (Made under regulation 26(b) and 27(3)(a)) FEES AND CHARGES a) Fees S/N Type of Fee Amount charged 1. Application fee (Non-citizen) 500 USD 2. Application fee (citizen) 250 USD 3. Project registration fee 1% of the expected CER from the project b) Charges S/N Type of Charge Amount charged 1. Annual Administrative charges 3% of the income accrued from sold CER 2. Annual project charges 5% of the income accrued from sold CER Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 32 THIRD SCHEDULE (Made under regulation 27(4)(a)) LETTER OF NO OBJECTION UNITED REPUBLIC OF TANZANIA VICE PRESIDENT’S OFFICE Telegraphic address: “MAKAMU”, Telephone: +255 -26-2329006 Fax. No.: +255 -26-2329007 E-mail: ps@vpo.go.tz In reply please quote: Mtumba Government City, Vice President’s Office Street, Mtumba, P. O. Box 2502, 40406 DODOMA Our Ref: ........................ Date…………. Address of the proponent(s)… ……………………………….. ……………………………….. RE: Letter of No Objection (LoNO) regarding project titled………. …………………………………………………………………………………. Reference is made to the above captioned subject and the letter with reference No………. dated………... 2. The Vice President’s Office received and considered the project concept note on the project herein above. 3. This is to inform that: a. The United Republic of Tanzania is party to Kyoto Protocol and or Paris Agreement. b. The Government of the United Republic of Tanzania has no objection to the proposed project as prescribed in the concept note. c. The project is in conformity with Tanzania’s national priorities, strategies, and plans. 4. The Office wishes to inform that, the registration number for the project shall be made available for public notice as appropriate. 5. Signed at…………..., by……………. Official Seal PERMANENT SECRETARY Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 33 FOURTH SCHEDULE (Made under regulation 28(10)) LETTER OF ENDORSEMENT UNITED REPUBLIC OF TANZANIA VICE PRESIDENT’S OFFICE Telegraphic address: “MAKAMU”, Telephone: +255 -26-2329006 Fax. No.: +255 -26-2329007 E-mail: ps@vpo.go.tz In reply please quote: Mtumba Government City, Vice President’s Office Street, Mtumba, P. O. Box 2502, 40406 DODOMA Our Ref: ........................ Date…………. Address of the proponent(s)… ……………………………….. ……………………………….. RE: Letter of Endorsement (LoE) regarding project titled……….. …………………………………………………………………………………. Reference is made to the above captioned subject and your letter with reference No………. dated………... 2. The Vice President’s Office received and considered the project document on the project herein above. 3. This is to inform you that: a. The United Republic of Tanzania is party to Kyoto Protocol and or Paris Agreement. b. The Government of the United Republic of Tanzania hereby endorse the project as detailed in the Project Document. c. The project is in conformity with Tanzania’s national priorities, strategies, and plans. 4. This letter of endorsement is an approval of the project, whereas the project proponent shall be required to adhere to the Laws of the United Republic of Tanzania and the international treaties governing carbon trading. 5. The Office wishes to inform that, the registration number for the project shall be made available for public notice as appropriate. 6. Signed at…………..., by……………. Official Seal MINISTER OF STATE, VICE PRESIDENT’S OFFICE (UNION AND ENVIRONMENT) Environmental Management (Control and Management of Carbon Trading) GN. NO. 636 (Contd.) 34 FIFTH SCHEDULE (Made under regulation 41(3)) ANNUAL REPORTING FORMAT Format for Progress reports Project name:……………………………………………………………………………… Reporting period:……………………………………………………………………………….. Completed by:…………………………………………………………………………………... 1. Project performance during reporting period a. Technical a) Description of project activities implemented during the reporting period against the workplan b) Generated CERs compared to the expected CER from the project document b. Financial (A financial statement showing the brief summary of generated revenues from the sold CER, and the distribution of costs and benefits to stakeholders) 2. Project impacts of project to date (a brief assessment of the extent to which the purpose has been achieved, this shall include but not limited to: local, national and international achieves on capacity building, Nationally Determined Contributions, awareness raising, technology transfer, environmental integrity among others) 3. Adaptive management a. Constraints and opportunities during reporting period (an explanation of major deviations from the plan) b. Future risk and opportunity assessment (an assessment of problems and risks (internal or external to the Project) that may affect success, as well as opportunities) c. Project response (an assessment of the need for adjustments to activity plans and/or inputs and outputs, including actions for risk mitigation) 4. Way forward a. Planned activities (an outline of activities planned for next reporting period) b. Sustainability (an assessment of the extent to which the positive effects of the Project) Progress reports should not exceed 10 pages. Name of the project implementor: ........................................................................................... Signature:........................................................................ Date:................................................................................ Location:......................................................................... Dodoma, SELEMANI SAIDI JAFO, 27th October, 2022 Minister of State, Vice President’s Office Union and Environment