Project Deviations Procedures

PROJECT EXPANSION

This section details the principles and procedures that Developers must follow when expanding the Project's geographical boundaries post-certification.

  1. Principles

    1. Definition. Project Expansion refers to the inclusion of a new area, referred to as the Expansion Area, within an already certified Project.
    2. Restrictions. ERS does not restrict the Project Expansion frequency or size as long as the areas are located in the same jurisdiction and biome of the originally certified Project. 
    3. Requirements. The Project Expansion must comply with ERS’ requirements at both Programme and Methodology levels.
    4. Validation & Verification. The Expansion Area is only considered part of the Project Area after undergoing Verification. Refer to the Validation and Verification Procedure for more details. 
    5. Crediting Period. The crediting period for the Expansion Area ends on the same date as the original Project. The start date is the publication date of the updated Project Design Document (PDD).

  2. Inclusion Process

    1. Process. The certification of the Expansion Area must go through all the steps enunciated in the Project Feasibility Review and Project Design Review. The inclusion results in the publication of an updated Project Design Document.
    2. Documentation. Documents to be updated by the Developer will depend on the nature and impact of the expansion. ERS will issue a new Risk Assessment and a GHG Quantification Report accounting for the Expansion Area.
    3. Fees. Expansion Fees are only charged if the expansion occurs outside of the Adaptive Management phase. Otherwise, the Project Expansion is free of charge. Refer to the ERS Fee Schedule for more details.  

  3. MRV Procedures 

    1. Schedule. The Expansion Area must follow the Project’s MRV schedule and procedures.
    2. Documentation. The new interventions must be added to the Monitoring Plan. This specifically includes the Seedlings Monitoring indicators that must be monitored during first four (4) years following the plantations in the Expansion Area.
    3. Verification. The VVB will assess the Project based on the updated geographic boundaries and documentation.

  4. Units Issuance

    1. PRUs. Units from the Project Expansion will be added to the Developer's account in the ERS Registry.
    2. VRUs. PRUs conversion into VRUs will follow the same Verification schedule as the initial PRUs. 

PROJECT HALTING

  1. Concept

A Project is considered halted when ERS temporarily suspends its crediting capacity due to non-compliance with one or more requirements or procedures of the ERS Programme and/or the applicable Methodology. 

  1. Conditions

ERS considers the following as grounds for halting a Project:

    1. Failure to comply with ERS requirements as set out in the Programme and the applicable Methodology.
    2. Incapacity to provide ERS with required MRV documents within two months past the deadline or request date without prior agreement from ERS.
    3. Incapacity to provide ERS with a plan to comply with methodological or Programme updates within one hundred and eighty (180) days after update notification and to be fully compliant within Verification following an update.
    4. If the Project is undergoing investigation resulting from a grievance complaint filed against it. Refer to the ERS Grievance Mechanism section for more details.
    5. If the fifteen-days (15) grace period accorded by ERS to proceed with Fees payment is exceeded.

  1. Notification

    1. ERS’s Certification Agents will notify the Developer of the risk of the Project being halted, by email, thirty (30) days before the deadline.
    2. Once the Project is considered halted, the Certification Agent will notify the Developer within twenty-four (24) hours. 

  2. Delays

    1. A Project can be halted for up to one hundred eighty (180) consecutive days. 
    2. Exceptions to the duration of a halting status can be made when:
      1. Halting occurs due to ERS’ inaccessibility to satellite data; in which case the Project will remain halted until access is regained.
      2. Halting occurs due to a grievance; in which case the Project will remain halted until the grievance is resolved.
      3. Natural disasters, civil unrest or other macro circumstances out of the Developer's control.

  3. Halted Projects Monitoring

    1. Halted Projects continue to be monitored by ERS for reversals.
    2. Unless explicitly requested by an ERS Certification Agent via email, Developers must continue ongoing monitoring and reporting as specified in the MRV Procedures section of the applicable Methodology. 

  4. Fees payment

    1. The Developer must continue to pay ERS the MRV fees regardless of the Project’s halted status. 

  5. Conclusion

    1. Reached the determined delay, a halted Project: 
      1. Can resume activities if it satisfies the condition(s) that originated the temporary stop.  
      2. Will be considered as failed if it does not meet the condition(s) that caused the temporary stop.  

PROJECT FAILURE 

  1. Concept

    1. A Project is considered to fail when an event permanently prevents Project activities from happening, resulting in the Project’s termination.
    2. Project failure can include but is not limited to: 
      • Civil war; 
      • Developer default; 
      • VVB termination recommendation; 
      • Unavoidable environmental disasters;
      • Changes in the Host Country’s legislation;
      • Irreversible grievances between Stakeholders.

  1. Notification

    1. The Developer must communicate the Project’s failure to ERS as early as possible. The Developer is required to provide:
      1. Description of the event(s) leading to failure, including date, magnitude, and Stakeholders involved.
      2. Justification of why the Project’s activities cannot be continued.
      3. A plan for Project termination, including detailed description of how Stakeholders, specifically IPLCs, will be notified and any measures taken to prevent the deterioration of existing activities.
      4. The Annual Report measuring the Project’s developments since the last monitoring period.

  2. Investigation

    1. Based on the documentation submitted, a Certification Agent will investigate the nature of event(s) leading to Project failure. 
      1. Failure can be classified as avoidable or unavoidable. 
    2. An official Failure Report containing findings and a conclusion will be issued and communicated to the Developer. 
    3. The Developer has ten (10) working days to contest the investigation’s conclusion via email.
      1. ERS will assign an accredited VVB to assess the investigation’s conclusion. 
      2. The cost of the VVB must be carried by the Developer.
      3. The VVB’s conclusion will prevail. 

  3. Sanctions

    1. If failure is concluded to be avoidable, the Developer will have a twelve-month (12) sanction period, during which it will not be allowed to certify any new Projects under the ERS Standard.
    2. If the Developer has other ongoing ERS-certified Projects, those are allowed to continue their activities. 
      1. ERS reserves the right to mandate a VVB to perform a site visit to assess whether those Projects are implemented according to the Project Design Document. 

  4. Disclosure

    1. ERS will update the Project’s status in the ERS Registry to “Cancelled”.
    2. ERS will publish all documentation provided by the Developer and the Failure Report, including the VVB conclusion.

  5. Cancellation

    1. Remaining PRUs are cancelled. 
    2. The terms and obligations related to refunds or compensation must follow arrangements established between the Developer and Buyers.

  6. Retirement

    1. Unit owners have a twelve-month (12) window following Project failure to retire issued VRUs. 
    2. VRUs not retired within this twelve-month (12) period will be automatically cancelled in the ERS Registry.
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