Carbon Certification and Finance Facilitation
Historically, the public and private businesses and industries in the GCC region are not active in the global drive of carbon management and climate actions operated through various GHG management programs worldwide. While the region is highly carbon intensive and there exist many opportunities, the key reasons for inactivity in carbon have been lack of capacity, motivation and willingness. Moreover, the oil and gas revenues out-competed any alternative investments and returns associated with them. With change in economic scenario of the region with crude oil prices touching the bottom, the improvement of bottom-line becomes the realistic necessity.
GCT will facilitate the climate actions by organizing the climate finance for the projects which cannot take off the ground without adequate support. GCT will develop standards and eligibility criteria for regional GHG emission reduction projects to ensure the highest level of environmental integrity, register and approve the eligible projects under GCT program, provide assurance for real, measurable and additional emission reductions, organize regional project supporters for upfront and result-based financing, and release the carbon finance needed to reward the additional efforts taken by the project owners to abate GHG emissions. In this process appropriate stakeholder and expert consultation will be taken and strategies will be formulated or updated based on inputs of key stakeholders in the region who will join the advisory board of GCT.
GCTs regulatory framework includes the GCT program manual, program standard, process for GHG reduction project submission, approval and release of finance, standard for verification of projects, process for baseline and monitoring methodology development and approval, and various forms and templates. Apart from this, GHG reduction methodologies for various project categories will be developed by GCT program depending upon the regional demand.
GCT also accepts projects using the other international carbon credit standard under GHH reduction programs: Climate Action Reserve (CAR), Clean Development Mechanism (CDM), Gold Standard (GS), and Verified Carbon Standard (VCS). If the project owner opts for the registration of its project under these GHG reduction programs, GCT offers to facilitate additional carbon finance through project supporter, to enable the project to kick start.