The National Climate Change (Climate Change Mechanisms) Regulations, 2025

293 S T A T U T O R Y I N S T R U M E N T S 2025 No. 9 THE NATIONAL CLIMATE CHANGE (CLIMATE CHANGE MECHANISMS) REGULATIONS, 2025 ARRANGEMENT OF REGULATIONS Regulations Part I—Preliminary 1. Citation 2. Interpretation Part II— Measurement of greenhouse gas emissions 3. Measurement of emissions Part III— Registration of verifiers 4. Registration of verifiers 5. Certificate of registration of verifier 6. Validity of certificate of registration of verifier 7. Revocation of certificate of registration of verifier 8. Renewal of certificate of registration of verifier Part IV ― Approval of climate change mechanisms projects 9. Request to participate in climate change mechanisms STATUTORY INSTRUMENTS SUPPLEMENT No. 3 24th January, 2025 STATUTORY INSTRUMENTS SUPPLEMENT to The Uganda Gazette No. 6, Volume CXVIII, dated 24th January, 2025 Printed by UPPC, Entebbe, by Order of the Government. 294 10. Consideration of request to participate in climate change mechanisms 11. Grant of letter of no objection 12. Refusal to grant letter of no objection 13. Validity of letter of no objection 14. Cancellation of letter of no objection 15. Progress report 16. Extension of letter of no objection 17. Application for approval of climate change mechanisms 18. Benefit sharing plan 19. Consideration of application for approval of climate change mechanisms project 20. Grant of approval 21. Refusal to grant approval 22. Validity of approval 23. Commencement of climate change mechanisms project 24. Progress report of implementation of climate change mechanisms 25. Monitoring report on project emissions reduction 26. Cessation of climate change mechanisms project 27. Cancellation of approval 28. Transfer of approval 29. Validation of climate change mechanisms 30. Verification of climate change mechanisms project 31. Issue of certified emissions reduction units 32. Registration of certified emissions reduction units 33. Use of certified emissions reduction units 34. Ownership of emissions reduction units 295 Part V ― Transfer of certified emissions reduction units 35. Notification of transfer of certified emissions reduction units 36. Authorisation of domestic transfer of certified emissions reduction units 37. Authorisation of international transfer of verified emissions reduction units 38. Validity of authorisation 39. Cancellation of authorisation 40. Corresponding adjustment fee Part VI ― General 41. Register of climate change mechanisms project 42. Changes to climate change mechanisms project 43. Access to register 44. Appeals 45. Transition of climate change mechanisms project SCHEDULES Schedule 1― Currency Point Schedule 2― Forms Schedule 3― Fees 296 297 S T A T U T O R Y I N S T R U M E N T S 2025 No. 9 The National Climate Change (Climate Change Mechanisms) Regulations, 2025 (Under sections 8, 9, 12 and 29 of the National Climate Change Act, Cap. 182) IN EXERCISE of the powers conferred on the Minister responsible for climate change matters by sections 8, 9, 12 and 29 of the National Climate Change Act, these Regulations are made this 7th day of November, 2024. Part I—Preliminary 1. Citation These Regulations may be cited as the National Climate Change (Climate Change Mechanisms) Regulations 2025. 2. Interpretation In these Regulations, unless the context otherwise requires— “Act” means the National Climate Change Act; “Agreement” means the Paris Agreement, 2015 set out in Schedule 4 to the Act; “certified emissions reduction units” means quantified greenhouse gas emission reduction or removal from the atmosphere arising from implementing a climate change mechanism project certified by the following Standards- (a) the United Nations Framework Convention on Climate Change Carbon Markets Certification Standards; (b) Gold Standard; 298 (c) Verified Carbon Standard; (d) REDD+ Environmental Excellence Standard; or (e) Plan Vivo System; “climate change” means a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is, in addition to natural climate variability, observed over comparable time periods; “climate change mechanism” means a mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development and includes cooperative and non-market approaches as defined under article 6 of the Agreement; “Commissioner” means the commissioner responsible for the Department responsible for climate change in the Ministry; “currency point” has the value assigned to it in Schedule 1 to these Regulations; “Department” means the department responsible for climate change in the Ministry; “emissions” means the release of greenhouse gases or their precursors into the atmosphere over a specified area and period of time where the emissions are attributable to human activity; “emissions reduction units” means a tradable unit, that represents one ton, of verified quantified greenhouse gas emission reduction or removal from the atmosphere, arising from implementing a climate change mechanism project; “greenhouse gases” means those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation; 299 “lead agency” means a Ministry, department, agency of Government or a local government responsible for undertaking response measures for climate change in accordance with the Act and the National Climate Change Policy; “Minister” means the Minister responsible for climate change matters; “Ministry” means the Ministry responsible for climate change matters; “mitigation” means efforts that seek to prevent or reduce the increase of atmospheric greenhouse gas concentrations by limiting current or future emissions and enhancing potential sinks for greenhouse gases; “project proponent” means an individual, a lead agency or private entity that applies to the Minister for approval to participate in a climate change mechanism referred to in section 8 of the Act; “targeted greenhouse gases” means carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), Nitrogen Trifluoride (NF3) or any other greenhouse gas declared by the Minister in consultation with the Department, to be a targeted greenhouse gas. Part II ― Measurement of greenhouse gas emissions 3. Measurement of emissions (1) Subject to section 9 of the Act, a lead agency shall measure the emissions of greenhouse gases in accordance with the Intergovernmental Panel on Climate Change (IPCC) Guidelines for National Greenhouse Gas Inventories. 300 (2) A project proponent who wishes to undertake a climate change mechanism project shall― (a) estimate the emissions or reductions of greenhouse gases; and (b) determine the net emissions reductions for the period in relation to the targeted greenhouse gas for that project in accordance with the greenhouse gas baseline in the project design document. Part III—Registration of verifiers 4. Registration of verifiers (1) Subject to section 12 of the Act, a person who intends to conduct validation or verification of emissions reduction units in Uganda shall apply to the Commissioner to be registered as a verifier in Form 1 set out in Schedule 2 to these Regulations. (2) An application referred to in subregulation (1) shall be accompanied by― (a) proof of accreditation in accordance with any of the following standards― (i) the United Nations Framework Convention on Climate Change Carbon Markets Certification Standards; (ii) Gold Standard; (iii) Verified Carbon Standard; (iv) REDD+ Environmental Excellence Standard; or (v) Plan Vivo System; and (b) evidence of proof of payment of the registration fees for a verifier prescribed in Schedule 3 to these Regulations. 301 5. Certificate of registration of verifier (1) The Commissioner shall consider the application submitted in regulation 4 within twenty-one working days of receipt and issue the applicant with a certificate of registration in Form 2 set out in Schedule 2 to these Regulations. (2) The Commissioner shall, upon issuing a certificate of registration of verifier, enter the details of the verifier on the register referred to in regulation 41. 6. Validity of certificate of registration of verifier A certificate of registration of a verifier issued under these Regulations shall be valid for the period specified in the proof of accreditation referred to in regulation 4(2) (a). 7. Revocation of certificate of registration of verifier (1) The Commissioner may revoke a certificate of registration of a verifier where― (a) the verifier violates any law of Uganda; (b) the verifier obtained the certificate of registration by misrepresentation of material information; or (c) the accreditation of the verifier under the standards referred to in regulation 4 (2)(a) has been revoked. (2) The Commissioner shall give the holder of a certificate of registration notice, stating the reasons in writing for the revocation or suspension of the certificate of registration. 8. Renewal of certificate of registration of verifier A verifier seeking to renew a certificate of registration shall apply to the Commissioner in Form 1 set out in Schedule 2 to these Regulations. 302 Part IV ― Approval of climate change mechanisms projects 9. Request to participate in climate change mechanisms (1) A project proponent who wishes to participate in a climate change mechanism shall, before commencing the climate change mechanism project, submit to the Minister a request in Form 3 set out in Schedule 2 to these Regulations. (2) The request referred to in subregulation (1) shall state — (a) the name and contact details of the applicant; (b) the legal nature of the applicant; (c) the geographical location of the proposed project for the climate change mechanism, indicating the coordinates, where applicable; and (d) any other information as may be required by the Minister. (3) The request referred to in subregulation (1) shall be accompanied by― (a) a project idea note in the form set out in Form 4 of Schedule 2 to these Regulations; and (b) proof of registration of the project proponent in Uganda. 10. Consideration of request to participate in climate change mechanisms (1) The Minister shall consider a request to participate in a climate change mechanism within twenty-one working days from the date of receipt of the request. (2) Where the Minister requests for additional information under regulation 9 (2) (d), the project proponent shall submit the information within seven working days. 11. Grant of letter of no objection 303 (1) The Minister may, upon being satisfied with a request to participate in a climate change mechanism, grant a letter of no objection to a project proponent in Form 5 set out in Schedule 2 to these Regulations. (2) The letter of no objection shall permit the project proponent to carry out feasibility studies on the proposed climate change mechanism project. 12. Refusal to grant letter of no objection Where the Minister refuses to grant a letter of no objection, he or she shall inform the applicant in writing, stating the reasons for the refusal. 13. Validity of letter of no objection A letter of no objection issued under these Regulations is valid for a period of twenty-four months from the date of issue. 14. Cancellation of letter of no objection The Minister may cancel a letter of no objection where a project proponent― (a) submitted false information under regulation 9; or (b) uses the letter of no objection for purposes other than the carrying out of feasibility studies. 15. Progress report (1) A project proponent issued with a letter of no objection shall, every six months, submit to the Minister a report of activities that the project proponent has initiated, carried out or completed in Form 6 set out in Schedule 2 to these Regulations. (2) A project proponent who fails to comply with subregulation (1) commits an offence and is liable, on conviction― (a) in the case of an individual, to a fine not exceeding five hundred currency points or a term of imprisonment not exceeding two years, or both; or 304 (b) in the case of an entity, to a fine not exceeding five hundred currency points. 16. Extension of letter of no objection (1) A project proponent who has commenced activities and has complied with the reporting obligations under regulation 15 may apply for extension of the validity of the letter of no objection, stating the reasons for the extension. (2) An application referred to in subsection (1) shall be submitted to the Minister at least 3 months before the expiry of the letter of no objection. (3) Where the Minister is satisfied with the reasons for seeking an extension of validity of a letter of no objection, he or she shall grant an extension. (4) Notwithstanding subregulation (3), the extension of a letter of no objection shall not― (a) exceed twenty-four months at a time; and (b) be granted more than twice. 17. Application for approval of climate change mechanism (1) A project proponent shall, during the period of validity of the letter of no objection, apply for approval of a climate change mechanism project in Form 7 set out in Schedule 2 to these Regulations. (2) An application for approval of a climate change mechanism project shall be accompanied by― (a) a project design document in accordance with Form 8 set out in Schedule 2 to these Regulations; (b) a feasibility study or business plan; and (c) a letter of recommendation from the relevant lead agency. 305 18. Benefit sharing Plan (1) A project proponent shall submit a benefit sharing plan in Form 9 set out in Schedule 2 to these Regulations, together with the application for approval of a climate change mechanism project. (2) The benefit sharing plan shall demonstrate equity, fairness, engagement and consultation of beneficiaries and other interested groups. 19. Consideration of application for approval of climate change mechanism project (1) The Minister shall, upon receipt of an application for approval of a climate change mechanism project, consider the application within twenty-one working days from receipt. (2) The Minister, in considering the application, shall take into account the sustainable development criteria prescribed in Form 10 set out in Schedule 2 to these Regulations. (3) Where the Minister is of the view that the application for approval of a climate change mechanism requires further information, the Minister shall, in writing, inform the person of the areas that require additional information. (4) The project proponent shall provide the additional information required within fourteen working days from the date on which the request for further information is made. 20. Grant of approval (1) Where the Minister is satisfied with the application for approval of a climate change mechanism, he or she may issue an approval of climate change mechanisms project in Form 11 set out in Schedule 2 to these Regulations. (2) The Minister may impose conditions as he or she may deem necessary on an approval of a climate change mechanism. 306 21. Refusal to grant approval (1) Where the Minister refuses to grant approval for a climate change mechanism project, he or she shall inform the person in writing, stating the reasons for the refusal. (2) Notwithstanding subregulation (1), a project proponent may reapply for approval of a climate change mechanism project. 22. Validity of approval The approval for a climate change mechanism project granted under regulation 19 shall be valid for the crediting period of the climate change mechanism. 23. Commencement of climate change mechanism project (1) A project proponent shall, within twelve months after receiving an approval for a climate change mechanism project, commence the implementation of the climate change mechanism activities. (2) The project proponent shall, within six months of commencing of the climate change mechanism project, notify the Minister in writing of the commencement of the project. (3) Where a project proponent has not commenced the implementation of the climate change mechanism activities within twelve months, the Minister shall cancel the approval of the climate change mechanism project. 24. Progress report of implementation of climate change mechanism (1) A project proponent shall submit a progress report on the project to the Commissioner in accordance with the reporting cycle specified in the project design document. (2) The report referred to in subregulation (1) shall be in Form 12 set out in Schedule 2 to these Regulations. 307 25. Monitoring report on project emissions reduction (1) A project proponent shall, during the course of the climate change mechanism project, prepare a monitoring report on the project emissions reduction in relation to baseline emissions in accordance with the project design document. (2) The project proponent shall submit the monitoring report on the project emissions reduction to the Minister once in each year. (3) A project proponent who contravenes this regulation commits an offence, and is liable, on conviction― (a) in the case of an individual, to a fine not exceeding five hundred currency points or imprisonment for a period not exceeding two years or both; or (b) in the case of an entity, to a fine not exceeding five hundred currency points. 26. Cessation of climate change mechanism project (1) A project proponent who wishes to cease carrying out a climate change mechanism project shall notify the Minister within thirty working days before the intended date of cessation of the climate change mechanism project. (2) The notice of cessation shall be in Form 13 set out in Schedule 2 to these Regulations. 27. Cancellation of approval The Minister may cancel the approval for a climate change mechanism project for the following reasons― (a) failure to commence the project activities within twelve months; (b) non-compliance with the conditions of the approval; (c) obtaining approval through misrepresentation or fraud; 308 (d) where it is necessary to protect human health or to prevent harm or further harm to the environment, cultural resources or affected communities due to a situation that was not foreseen; (e) continued implementation of the project activities is overridden by other public interests; or (f) where information is brought to the attention of the Minister which could have precluded the approval, had it been made available prior to the issuance of the letter of approval. 28. Transfer of approval An approval for a climate change mechanism project issued under these Regulations shall not be transferable. 29. Validation of climate change mechanism (1) A project proponent of a climate change mechanism project shall, upon receipt of the approval for a climate change mechanism under regulation 19, submit the documents relating to the climate change mechanisms project to a registered verifier for validation. (2) The project proponent shall submit the validation report to the Minister in accordance with the approved project design document. 30. Verification of climate change mechanism project (1) A project proponent shall submit to a registered verifier the monitoring report, referred to in regulation 24, for verification. (2) Upon receipt of a verification report from the registered verifier, the project proponent shall submit a copy of the monitoring report and verification report to the Minister. 309 31. Issue of certified emissions reduction units (1) A registered verifier shall, on behalf of a project proponent, apply to the standards referred to in the project design document for issuance of the certified emissions reduction units. (2) The standard to which the verification report is submitted shall issue the project proponent with a certificate of certified emissions reduction units. 32. Registration of certified emissions reduction units The project proponent shall, upon receipt of the certificate of certified emissions reduction units referred to in regulation 31, lodge the certificate with the Ministry for purposes of entry into the register. 33. Use of certified emissions reduction units The project proponent shall use the certified emissions reduction units for the purpose stated in the project design document referred to in regulation 17 and for the approval of a climate change mechanism. 34. Ownership of emissions reduction units (1) A person who owns― (a) a source of emissions reduction units; or (b) emissions reduction mitigation technology, shall be deemed to be the owner of the emissions reduction units. (2) Where the person owns the source of emissions reduction units but does not own the emissions reduction mitigation technology, the ownership of the emission reduction units shall be stipulated in the benefit sharing plan referred to in regulation 18. 310 Part V―Transfer of certified emissions reduction units 35. Notification of transfer of certified emissions reduction units (1) A project proponent who wishes to transfer certified emissions reduction units shall within thirty working days before the transfer, notify the Minister in writing― (a) stating whether the transfer is a domestic or international transaction; (b) attaching proof of registration of the certified emission reductions; (c) indicating the particulars of the person or country to whom the transfer is being made; (d) stating the intended use of the verified emissions reduction units by the transferee; and (e) indicating the amount of verified emissions reduction units being transferred. (2) A project proponent who contravenes this regulation commits an offence and is liable, on conviction― (a) in the case of an individual, to a fine not exceeding five hundred currency points or a term of imprisonment not exceeding two years or both; or (b) in the case of an entity, to a fine not exceeding five hundred currency points. 36. Authorisation of domestic transfer of certified emissions reduction units (1) A project proponent who transfers certified emissions reduction units to another person within Uganda shall, within fourteen working days of the transfer, submit a report to the Minister in Form 14 set out in Schedule 2 to these Regulations. 311 (2) A project proponent who contravenes this regulation commits an offence, and is liable, on conviction― (a) in the case of an individual, to a fine not exceeding five hundred currency points or a term of imprisonment not exceeding two years or both; or (b) in the case of an entity, to a fine not exceeding five hundred currency points. 37. Authorisation of international transfer of verified emissions reduction units (1) A project proponent who wishes to carry out an international transfer of verified emissions reduction units shall apply for authorisation from the Minister in Form 15 set out in Schedule 2 to these Regulations. (2) The application referred to in subregulation (1) shall state― (a) proof of ownership of the emissions reduction units; (b) proof of registration of the verified emissions reduction units; (c) the particulars of the person or country to whom the transfer is being made; (d) the intended use of the verified emissions reduction units of the transferee; (e) the amount of verified emissions reduction units being transferred; and (f) evidence of payment of the prescribed fee. (3) The Minister shall consider the application within thirty working days from the date of receipt. (4) Where the Minister is satisfied with the information in the application he or she shall issue a letter of authorisation in Form 16 set out in Schedule 2 to these Regulations. 312 38. Validity of authorisation An authorisation granted under regulation 35 shall be valid only for the transfer for which it was sought. 39. Cancellation of authorisation The Minister may cancel an authorisation before the use of the verified emissions reduction units where― (a) the holder of the authorisation contravenes any provision of the Act; (b) the holder of the authorisation fails to comply with the conditions stipulated under the Authorisation; (c) the Minister considers it to be in the interest of the environment or in the public interest to cancel the Authorisation; or (d) the holder submitted false information or misrepresentation in the application. 40. Corresponding adjustment fee Emissions reduction units that are transferred internationally for the purpose of meeting National Determined Contributions commitments of another country and other international mitigation purposes, including Carbon Offsetting and Reduction Schemes for International Aviation shall attract a corresponding adjustment fee specified in Schedule 3 to these Regulations. Part VI―General 41. Register of climate change mechanism project (1) The Department shall keep and maintain a register of climate change mechanism projects approved by the Minister. (2) The Department shall indicate against every climate change mechanism project — (a) the name of the project; 313 (b) the physical location of the project; (c) the details of the project proponent; (d) registration of mitigation activities and voluntary carbon market projects; (e) carbon market project activities; (f) data for the greenhouse gas accounting of the National Determined Contributions of Uganda and for international reporting; and (g) information on transfers and retirements of all emissions reduction units. 42. Changes to climate change mechanism project A project proponent shall, before making any planned changes to a climate change mechanism project, notify the Minister in Form 17 set out in schedule 2 to these Regulations of the intended change, not less than sixty working days before the effective date of the change. 43. Access to register Every person shall have a right to access any information in the register, subject to the Constitution and the Access to Information Act. 44. Appeals (1) A person aggrieved by a decision of the Minister made under these Regulations may appeal to the High Court within thirty days of receipt of the decision. (2) A person aggrieved by a decision of the Commissioner made under these Regulations may appeal in writing to the Minister within thirty days of receipt of the decision. 45. Transition of climate change mechanism project A climate change mechanism approval granted before the commencement of these Regulations shall remain valid until the 31st day of December, 2027. 314 SCHEDULE 1 Regulation 2 CURRENCY POINT A currency point is equivalent to twenty thousand shillings. 315 SCHEDULE 2 FORMS FORM 1 Regulations 4(1) and 8 APPLICATION FOR REGISTRATION OF VERIFIER  New application  Renewal of certificate 1. Background Information of Entity 1.1 Name of entity 1.2 Country of operation 1.3 Business areas 1.4 Business address 2. Business Information of Entity 2.1 Business registration number 2.2 Business Documentation Attachments  Certification of registration/incorporation  Tax clearance certificate 316 3. Contact Persons Information of Entity 3.1 Name of key contact person 3.2 Position of key contact person 3.3 Phone number of key contact person 3.4 Email address of key contact person 4. Declaration by contact person I declare that the information provided in this form represents the formal application to the Commissioner for consideration for registration as a Climate Change Mechanism Project Verifier in Uganda and that the information I have provided is true and complete to the best of my knowledge. Submitted by: Full name: Signature: Designation: Submission date: 317 FORM 2 Regulation 5(1) CERTIFICATE OF REGISTRATION OF VERIFIER Name of verification entity: ……………………….……………....… Contact person of verification entity ………………………………… Accreditation body of verification entity ………………………….… Sector/sub-sector/technology of accredited verification entity………. ………………………….……………………….…….…….……...… Sector/sub-sector/technology certified to validate or verify climate change mechanism project in Uganda  Renewable energy  Transport  Forestry  Sustainable cooking  Waste management  Industry  Electricity and heat production  Others [Specify…………………………………………..…] Validity period: Issued from …………………. to…………...……… Issued by: Commissioner…………………………………………… Signature of Commissioner…………………………………………. Date of issue ……………………………………………………… Seal or stamp 318 FORM 3 Regulation 9(1) REQUEST TO PARTICIPATE IN CLIMATE CHANGE MECHANISM 1. Name ……………………………………………………...…… 2. Postal address: …………………………………………....……. 3. District or City: ………………………………………....……… 4. Street or road name: …………………………………....………. 5. GPS Location: ……………………………………....…………. 6. Proposed project information (a) Location of project …………………………....…………. (b) Proposed technology to be used ……………...…………. (c) Sector …………………………………………....………. (d) Purpose of project– (tick appropriate answer) (i) international transfer for use towards the National Determined Contributions of the Paris Agreement; (ii) international mitigation purposes; (iii) other international mitigation purpose as determined by the participating parties; (iv) mitigation contribution units; or (v) Other purpose (elaborate) ……………….....…… Submitted by ………....................…………………………………… 319 FORM 4 Regulation 9(3) (a) PROJECT IDEA NOTE Section A (For official use only) A1 Date of submission …………………………................................… A2 Project Idea Note file number…………………………….............… Section B (To be completed by the Project Proponent) B1 Name of project proponent Sector(s) in which mitigation activity is to be undertaken: Agriculture, Forestry and other land use (AFOLU) Energy Transport Waste Industrial processes and products use Targeted Climate Change Mechanism Article 6.2 Article 6.4 Voluntary Carbon Market Location of interest (District, subcounty) B2 Summary of proposed mitigation activity 320 B3 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 PIN document including interactions with government agencies or local authorities.) (Max 500 words) B4 Objectives (Outline the objective(s) of the proposed project) (Max 300 words) B5 Description of mitigation activity, technology and approximate greenhouse gas emissions reduction or removal (Outline the mitigation activity and the proposed approach to activity implementation. Include lifespan of the project, estimated crediting period and permanence period. Provide a description of the proposed mitigation technology including how it abates greenhouse gas emissions and why it is most appropriate for the proposed area, entity or activity. Provide an estimate of the greenhouse gas abatement potential in tonnes of CO2eq.) (Max 1500 words) 321 B6 Linkage with Uganda’s Nationally Determined Contribution, Low Emission Development Strategy, National Climate Policy and relevant sector policies (Provide a description of how the intended project supports the implementation of Uganda’s Nationally Determined Contribution, the Low Emission Development Strategy. (Max 500 words) B7 Contribution to Sustainable Development (Indicate the proposed project’s envisaged contribution to social, environmental and economic sustainability using the sustainable development. (Max 500 words) B8 Proposed project governance and financial arrangements (Provide information on the proposed governance structure for the project and how it links with existing structures in the sector, shareholding structure, partnerships, and financial arrangements) (Max 500 words) B9 Work plan towards the submission of the Project Design Document (Briefly outline the proposed activities, timeframe and milestones towards the submission of a Project Design Document to the Authority. (Max 1000 words) 322 B10 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 activities) (Max 500 words) B11 Documentation indicating adherence to registration. (Tick the boxes for documents provided and attach relevant documents as evidence) Tax Clearance Agreement between local and international partner Other (Please specify) Registration information Information on project proponent Name of project proponent: Name of project proponent representative: Date: Signature: Email address: Telephone number: Note: For sections B 3 – B11 attach the requirements and mark them as annexures. 323 FORM 5 Regulation 11 LETTER OF NO OBJECTION The Ministry acknowledges receipt of Project Idea Note on [name of project] being developed by [name of project proponent] and located at in Uganda for the period . The [name of project] seeks to create emission reduction units under these Regulations from . This Letter of No Objection is NOT the same as an approval of the Climate Change Mechanism Project for the [name of project] and thus [name of project proponent] may proceed to prepare the Project Design Document (PDD) for the [name of project] accordance with the project development steps prescribed in the Regulations. Note that in developing the PDD for the [name of the project], you will be required to show evidence of your engagement with key stakeholders. You may contact the Ministry on [email and phone number] for any further explanations. Minister, Ministry of Water and Environment 324 FORM 6 Regulation 15(1) NOTIFICATION OF PROGRESS FORM 1. Information on Project Proponent 1.1 Name of Project Proponent 1.2 Contact of Proponent 1.3 Business address 1.4 Letter of No Objection Reference Number 2. Project Information 2.1 Title of Project 2.2 Description of Project 2.2 Location of Project 2.3 Project category 325 3. Status of Project Proponent Activities 3.1 Activities Status (Initiated, carried out or completed) (a) (b) 4. Declaration by contact person I hereby declare that the information provided for notification of progress to the Minister is true and complete to the best of my knowledge. Submitted by; Full aame:……………………………………………. Designation:…………………………………………… Signature:……………………………………………… Submission date:……………………………………… 326 FORM 7 Regulation 17 APPLICATION FOR APPROVAL CLIMATE CHANGE MECHANISMS PROJECT APPROVAL PART 1: BACKGROUND (a) Name of project proponent (b) Name of other participating entities (c) Title of proposed project (d) Location of proposed project (e) Benefits sharing plan (f) Sectoral scope of proposed project (g) Expected Emission Reduction (tCO2e) (h) Alignment of Project to Uganda’s National Determined Contributions (i) Corresponding adjustment required for emissions reduction units (j) Contribution of project to sustainable development contribution of project (k) International Carbon Standard used in PDD preparation (l) PDD validation status (m) PDD validation entity Date (dd/mm/yyyy): 327 (n) We declare that the proposed project meets all relevant validation requirements and hereby request for approval Name of proponent: Signature: PART 2: APPROVAL REQUEST ATTACHMENTS (a) List of documents attached to this Form (Tick boxes)  Project Design Document (PDD)  Feasibility study or Business Plan  Environmental or Social Impact Assessment Certificate  Sustainable Development Criteria  Letter of support from Lead Agency in the proposed sector (b) Comments received in the validation by the Independent Assessment Entity are attached  Yes  No 328 FORM 8 Regulation 17(2)(a) PROJECT DESIGN DOCUMENT A. Overview of Project 1. General information 2. Transferring country 3. Managing entity in transferring country 4. Receiving country 5. Entity in receiving country 6. Mitigation activity name 7. Sector 8. Mitigation rationale 9. Summary of mitigation activity 10. Geographical coverage 11. Date and place 12. Document version B. Methodology Discuss against the scenario the emissions reduction of the project will be credited. Baseline for determination of emissions reduction (a) Autonomous development (“business as usual”): Describe the emissions scenario in the absence of the project under autonomous development. Use conservative assumptions to project technology diffusion. (b) Effect of existing and/or planned policies and measures in line with the National Determined Contributions: Complement the above considerations on autonomous development with the expected effect of existing and/or planned policies and measures for National Determined Contributions implementation. Consider the timeline for policy implementation and use conservative assumptions to not underestimate their effect. 329 (c) Crediting baseline: Based on the above considerations on autonomous development and policy effects, describe the emissions scenario against which the emission reductions of the project shall be credited (crediting baseline). It should consider factors for incentivising enhanced climate action in Uganda, i.e., the need for raising ambition along the National Determined Contributions cycle and for a LEDS consistent with the global goal of net-zero emissions by 2050. Crediting Period (Indicate the credit period of the proposed project and how it is linked to the National Determined Contributions implementation period of Uganda) C. Technology scope and demonstration of additionality Describe the technology behind the project and how it will work to lead emissions reduction within the project boundary. D. Preventing Double Claiming of Finance (Declare the potential overlaps and interactions over time with climate finance, governmental support and other sources of finance attributed to emissions reduction). (Describe how the activity is promoting sustainable development. The following aspects shall be addressed― (a) Consistency with the SDG priorities of the transferring country. (b) Compliance with environmental and social requirements and standards as framed in applicable policies and frameworks of the transferring country. (c) Respect for human rights. (d) Avoidance of corruption and bad governance. (e) Indicators of sustainable development. 330 (f) Stakeholder engagement: Identification of and consultations with stakeholders. What partnerships or legal means is in place to ensure the fundamental rights of the stakeholders? (g) Exit strategy: Explain, if applicable, to what extent the activity is expected to transition to a self-sustaining mode after emissions reduction units revenue ceases E. Determination, monitoring, and reporting of mitigation outcomes Describe the detailed procedures for determining the mitigation outcomes for which ITMOs shall be created. Describe how the mitigation outcomes will be monitored and reported. (a) Quantification of mitigation outcomes: Describe how the emission reductions are determined relative to the crediting baseline. List the parameters defined ex-ante as well as those measured. Provide reference if a known methodology is used per international standards. (b) Carbon Leakage: Discuss, if appropriate, the avoidance of carbon leakage and the permanence of emissions reduction achieved. (c) Data acquisition: Describe the acquisition of data used to calculate emissions reduction units. F. Institutional Arrangement Project Implementation Arrangement (a) Describe the governance structure of the project, including roles and responsibilities, management structures, and operational processes. Describe the lead institutions and participants involved in the Project. (b) State names and roles of key participants and their designated representatives concerning the revision of this PDD, etc. 331 (c) Describe the benefit-sharing mechanism with which Uganda imposes a share of proceeds to compensate implementation costs and fund a separate fund. Discuss the level of share of proceeds needed and the impact on the business model and pricing. Interaction with transferring country (in case authorisation is required for international transfer of emissions reduction units) (a) Describe the coordination structure and interaction between the project and competent authorities of the transferring country. (b) Propose what national coordinating structures (e.g., inter- ministerial, cross-sectoral) established to ensure proper interaction between the transferring country and the project. G. Financing Arrangement for implementing the proposed project (Elaborate on the financial model for the project and how the emissions reduction units revenue will contribute to making the project viable). H. Implementation plan for the proposed project I. Interactions with receiving entity 332 FORM 9 Regulation 18 BENEFITS-SHARING PLAN (1) Description of project ……………………………………………………………..………… ………………………………………………………………..……… (2) Description of stakeholder consultations and expectations ……………………………………………………………..………… ………………………………………………………………..……… (3) List of beneficiaries ……………………………………………………………..………… ………………………………………………………………..……… (4) Description of benefits ……………………………………………………………..………… ………………………………………………………………..……… (5) Description of benefits distribution ……………………………………………………………..………… ………………………………………………………………..……… (6) Description of monitoring approach ……………………………………………………………..………… ………………………………………………………………..……… (7) Communication approach ……………………………………………………………..………… ………………………………………………………………..……… 333 FORM 10 Regulation 19(2) SUSTAINABLE DEVELOPMENT CRITERIA The criterion comprises environmental, social, economic, and technological elements and monitoring indicators. The elements are subdivided into sub-elements. Project proponents are expected to provide baselines for each sub-element and a monitoring plan Aspect Criteria Maximum Score Environmental Certificate of approval of the Environmental Social Impact Assessment (ESIA) by the National Environment Management Authority (NEMA) where applicable (If not applicable present a letter of exemption from NEMA). Social A. Social 40 1. Enhancing community access to essential social services for example; energy, safe water and hygiene, communication, health, education, and clean air, among others. 10 2. Community engagement and participation in project implementation, monitoring, and evaluation 7 3. Gender balance and participation of disadvantaged groups. 5 4. Cultural heritage. 3 5. Land ownership. 7 334 6. Health and safety. 5 7. Indigenous people where applicable. 3 Economic B. Economic 35 1. Contribution to employment generation 8 2. Contribution to saving and generation of foreign exchange. 7 3. Contribution to increased production of marketable goods and services 6 4. Mutual economic benefits accruing from project activities 5 5. Contribution to increased demand for services 5 6. Contribution to redistribution of development to address area imbalances in development. 4 Technology C. Technology 25 1. Environmentally friendly technologies 10 2. Technology transfer (hard and software) 7 3. Efficiency of technologies 4 4. Acceptability of technology by local community. 4 Total Score 100 335 FORM 11 Regulation 20(1) APPROVAL OF CLIMATE CHANGE MECHANISM PROJECT Date of issue: ……………. Approval No: ……………. Name of project proponent: ………………………………………… Name of project: …………………………………….……………… Address: …………………………………………….......…………… You are hereby approved to carry out ……………………… [name of project] in …………………… [location], Uganda. This approval is valid from …………20…………to…………20…… Conditions: (a) This Approval is NOT THE SAME as the Letter of Authorisation, which is required before the international transfer of emissions reduction units for use towards the nationally determined contribution of an acquiring entity or for international mitigation purposes or overall mitigation of global emissions or mitigation contribution claims. (b) All emissions reduction units generated from the project implementation that will be authorised for international transfer shall be used within the implementation period of Uganda's nationally determined contribution. (c) The implementation of the project shall comply with the required environmental integrity, sustainable development, monitoring and safeguarding (safety, social and environmental) requirements in the PDD and validation report. (d) Submission of annual monitoring reports to the Department on the progress of implementation and achievement of the project. MINISTER OF WATER AND ENVIRONMENT 336 FORM 12 Regulation 24 PROJECT PROGRESS REPORT 1. Title of project 2. Department reference number of Project 3. Version number of the PDD is applicable to this monitoring report. 4. Version number of this monitoring report 5. Completion date of this monitoring report 6. Duration of this monitoring period 7. Project owner 8. Transferring participating party 9. Acquiring participating party 10. Applied methodologies and standardised baselines. 11. Sectoral scope 12. Project activities implemented in the monitoring period 337 13. Amount of GHG emissions reduction or net anthropogenic GHG removals achieved by the mitigation activity in this monitoring period. Amount achieved before period 1 Amount achieved from period 1 Amount achieved from period 2 14. Amount of GHG emissions reduction or net anthropogenic GHG removals estimated for this monitoring period in the PDD. Date:…………………………………….. Contact person:………………………… Signature:……………………………… 338 FORM 13 Regulation 26 NOTIFICATION OF VOLUNTARY CANCELLATION OF PROJECT 1. Name of project proponent: …………………………………………. 2. Name of project: …………………………………………………… 3. Postal address: ……………………………………………………… (a) District or City: …………………………………………... (b) Street or road name: …………………………………………… (d) GPS Location: ……………………….………………………. 4. Details of Contact person: (a) Name: ………………………………………………………… (b) Contact details: ………………………………………………. 5. Approval number: ………………………………………….……… 6. Date of issuance of approval: ……………………………………. 7. Date of expiry of the approval: …………………………………… 8. Date of notification of cessation of activities: ………………………… 9. Reason for cessation of activities ……………………………………………………………………… ……………………………………………………………………… 10. Activities prior to cessation ……………………………………………………………………… ……………………………………………………………………… Submitted by ……………………………………… 339 FORM 14 Regulation 36(1) REPORT OF DOMESTIC TRANSFER OF VERIFIED EMISSIONS REDUCTION UNITS 1. Project Information (a) Name of project proponent (b) Name of project (c) Location of project (d) Implementation period of project (e) Expected emissions reduction units (f) Validation status of project (g) Approval status of project (h) Monitoring period (i) Verified emissions reduction units issued (j) Name International Crediting Standard (ICS) Registry includes a unique identifier. 2. Issuance (a) Reference of project proponent on ICS registry (b) Reference of project on registry (c) Emissions reduction units issued in tonnes units: (d) Emissions reduction units issued with serial number units: (e) Emissions reduction units use labels on the registry 340 (f) Date of issuance of emissions reduction units on registry 3. Domestic Transfer (a) Emissions reduction units transfer occurred. (b) Reference of transaction (c) Transaction date (d) Reference of originating registry (e) Name and address of transferee (f) Reference of receiving registry (g) Emissions reduction units transferred (h) Stated purpose of domestic transfer (i) Use cases of domestic transfer. (j) Transactions actions (k) Date of transaction (l) Notification of completion of the transfer (m) Notification of recognition of transfer (n) Quantity of emissions reduction units cancelled or retired. Transaction Report submitted by: ..…………………………………………… Name:……………………………………… Project Proponent:…………………………. Date:……………………………………… Signature:…………………………………. Stamp 341 FORM 15 Regulation 37(1) REQUEST FOR AUTHORISATION OF INTERNATIONAL TRANSFER OF VERIFIED EMISSIONS REDUCTION UNITS 1. Name of project proponent …………………………………….. 2. Name of project ………………………………………………… 3. Technology/component used in project ………………………… 4. Sector …………………………………………………………… 5. Location of project ……………………………………………... 6. Purpose of transfer………………………………………………. 7. Amount of emissions reduction units to be transferred ………… 8. Name of acquiring participating party …………………………… Attachments  Proof of ownership;  Proof of registration of the verified emissions reduction units;  To whom the transfer is being made;  Intended use of the verified emissions reduction units by the transferee;  Amount of verified emissions reduction units being transferred;  Evidence of payment of prescribed fee. Submitted by …………………………………………………………. 342 FORM 16 Regulation 37(4) AUTHORISATION FOR TRANSFER OF CERTIFIED EMISSIONS REDUCTION UNITS FOR INTERNATIONAL TRANSFER Date of issue of authorisation……… Authorisation No. ………………….. Name of project proponent :…………………………………………… Name of project: ……………………………………………………… Address: ……………………………………………………………… You are hereby authorised to transfer ………………. (amount of emissions reduction units) to ……………………. I wish to confirm the following: 1. Uganda ratified the Paris Agreement on 21st September 2016 and submitted its latest National Determined Contributions to the National Determined Contributions registry in accordance with Article 4, paragraph 12 of the Paris Agreement on 12th September, 2022 2. Uganda's participation in the cooperative approaches is referred to in Article 6, paragraph 2, of the Paris Agreement on a voluntary basis. 3. This letter constitutes Uganda’s authorisation, as defined per the guidance on cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement (Decision 2/CMA.3) with the following: (a) Verified emissions reduction units generated from the approved project in Uganda in respect of, or representing emissions reduction from 2021 onwards. 343 (b) The Government of Uganda will not use the emissions reduction units generated from the authorised project to demonstrate the achievement of its own National Determined Contributions. (c) The verified emissions reduction units issued in a recognised registry and the transfer and use are consistent with the guidance and relevant decisions of the CMA. (d) Amount of certified emissions reduction units to be transferred 4. Through this authorisation, the Government of Uganda commits to apply corresponding adjustments consistently with the guidance on cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement (Decision 2/CMA.3) and relevant future decisions of the CMA, in a transparent, accurate, complete, comparable and consistent manner. 5. The authorisation shall be applicable until the authorisation lapses unless there are an unforeseeable circumstance that prevents Uganda or the project proponent or participating acquiring Party from fulfilling the terms and condition of the letter. 6. For achieving higher mitigation ambition over the crediting period, this letter may be modified through an addendum to the original letter to allow upscaling the scope and target of the project. MINISTER OF WATER AND ENVIRONMENT 344 FORM 17 Regulation 41 NOTIFICATION OF CHANGE IN PROJECT INFORMATION 1. Name of project proponent…………………………………… 2. Name of project ……………………………………………… 3. Technology/component ……………………………………… 4. Sector ………………………………………………………… 5. Location …………………………………………………….... Indicate change in the following project information. Type of project information Existing details New or updated details Submitted by: ……………………………. Name of project proponent:………………………………………. 345 SCHEDULE 3 Regulations 4(2)(b),9(3) and 37(5) FEES Fee Type Category Fees (UGX) 1. Application for approval of climate change mechanism Project Proponent 2,000,000/= 2. Corresponding Adjustment (CA) fee (CA fee/ ITMO) Project proponent 10% of each ITMO 3. Registration of verifier Verifiers 6,000,000/= 4. Inspection of Register Interested persons 3,000,000/= SAM MANGUSHO CHEPTORIS, Minister of Water and Environment. 346