Registry Operations

ACCOUNT CREATION

1. All Registry Account Holders must:
   1. Accept the ERS Registry Terms and Conditions. 
   2. Go through KYC/AML verification. Detailed information about the protocol can be found in the Anti-Fraud Policy. 

PROJECT CREATION

1. Projects within the ERS Registry are initiated by the ERS Certification team.
2. Projects are created under the ERS account. Each Project undergoing ERS certification has a registry page under the ERS account, referred to as “Project Page”. 
3. The Project lifecycle commences with the status "Project Feasibility."

PROJECT LIFECYCLE 

The Project lifecycle is visualised using a State Machine, which illustrates the progression of a Project through various states and the user roles responsible for managing each state. The State Machine is a visual representation of the Project lifecycle, ensuring clarity and consistency in managing Projects within the ERS Registry.

DOCUMENTATION

This section outlines the documentation requirements within the ERS Registry, detailing when and which documents the ERS Certification and Secretariat teams are responsible for uploading throughout the certification process.

These requirements ensure the transparency and accountability of the certification process and support the ongoing measurement, reporting and Verification of Projects.

1. Project Feasibility Phase. Upon completing the Project Feasibility phase, a Certification Agent is required to upload the following documents:
   1. Feasibility Study Report. A comprehensive report detailing the Feasibility study's findings and outcomes.
   2. Shapefile of the Project. Geographic information system (GIS) shapefiles providing spatial data related to the Project.
   3. Pre-submission Activities Report. A comprehensive report detailing the results of pre-submission activities. This is only applicable if the Project has carried out pre-submission activities. 
2. Project Design Phase. Upon completing the Project Design phase, ERS Certification must upload the following documentation:
   1. Provisional Project Design Document. A preliminary document outlining the project's design, key elements, and appendices. 
   2. Risk Assessment Matrix. An assessment of the Project risks and their potential impacts.
   3. Safeguards Declaration. Developer’s declaration of environmental and social safeguards in place during the Project.
   4. Project Budget. A simplified overview of project expenses.
3. Validation Phase. Upon completing the Validation phase, a Secretariat Agent is responsible for uploading the following documents:
   1. Validation Report. A report summarising the Project’s Validation and its results.
   2. Final Project Design Document. The finalised Project Design Document, including all Project’s details and specifications.
4. Annual Requirements. On an annual basis, a Certification Agent is required to upload the following document:
   1. Annual Report. A yearly report providing an update on the Project's progress, performance, and any significant changes.
   2. Grievance Reports (if applicable). A report of any grievance filed against a Project, composed of the claim, investigation findings and conclusion.
5. Verification Phase. 
   1. Every two (2) to four (4) years, at the end of the Verification Period, a Secretariat Agent is responsible for uploading the following documentation:
      1. Verification Report. A report summarising the Project’s Verification, including findings and results.
   2. Every four (4) years, at the end of the Verification Phase, a Certification Agent is responsible for providing the following documentation: 
      1. Verification Report. A report summarising the Project’s Verification, including findings and results.
      2. Updated Project Design Document. Any necessary updates or revisions to the project design document and its appendices. 
      3. Updated Risk Assessment Matrix. An updated assessment of project risks and their potential impacts.
      4. Updated Safeguards Declaration. The Developer’s declaration of environmental and social safeguards in place during the Project.
      5. Updated Project Budget. A simplified overview of the Project’s expenses.

ISSUANCE

1. Issuance Authorisation
   1. The issuance process within the ERS Registry occurs during the "Issuance and Transfer" status.
   2. Certification Agents request Restoration Units issuance for a Project.
   3. Only Secretariat users can approve an issuance request and concretely issue Restoration Units.
2. Issuance Allocation
   1. Upon issuance, 20% (rounded up) of PRUs is allocated to ERS Buffer Pool’s account. 
   2. The remaining 80% (rounded down) can subsequently be transferred to various Account Holders by the Secretariat.
3. Addressing Erroneous Issuance
   1. Erroneous issuance is considered: 
      1. The issuance of PRUs or VRUs that do not exist. 
      2. The allocation of Restoration Units, PRUs or VRUs, that do not belong to the Account Holder to which it was credited.
   2. Every issuance goes through a redundancy system, under which an ERS Secretariat Agent issues Restoration Units, and another ERS Secretariat Agent reviews all issuances of the past week.
   3. If an erroneous issuance is identified, a report is filed, and the Secretariat Agent cancels the Restoration Units in question.
   4. Account Holders are subsequently notified of the issue. 
   5. The Registry Administrator retains the authority to cancel erroneously issued assets on behalf of any Account Holder.
   6. These measures ensure the integrity and accountability of the issuance process within the ERS Registry, safeguarding against errors and discrepancies.

CONVERSION

1. Conversion Authorisation. Conversion of PRUs to VRUs can only be done by Secretariat Agents. This conversion action can occur exclusively when the Project status is “Issuance and Transfer”.
2. Volume Calculation. The volume of PRUs to be converted into VRUs is determined according to the Units & Issuance section of the ERS Programme. This calculation ensures accuracy and transparency in the conversion process.
3. Distribution of Converted Units. Upon successful conversion, PRUs must be sequentially converted into VRUs, with each PRU having a unique serial number that determines its conversion order. 

TRANSFER

1. Secretariat-Initiated Transfers
   1. Secretariat users possess the authority to initiate transfers of PRUs and VRUs. These transfers can originate from the Project Account and be directed to any Account Holder's account.
2. Account Holder-Initiated Transfers
   1. Account Holders can initiate proprietary PRUs and VRUs transfers at their discretion. This transfer privilege is not restricted by Project status, allowing Account Holders the flexibility to manage their units as needed.
   2. Erroneous transfers initiated by an Account Holder are not remediated by ERS.

CANCELLATION 

1. Cancellation Events

   1. Unit cancellations within the ERS Registry are initiated by the Secretariat in response to:
      1. A reversal event. For more details about compensation, refer to the Compensation section in ERS Programme. 
      2. A double counting event, in the context of Article 6 transfers. For more details about double counting, refer to the Double Counting section in the ERS Programme.
      3. A Project’s failure. For more details about Project failure, refer to the Project Failure section in the ERS Programme.
      4. A Project’s underperformance. For more details about Project underperformance, please refer to the Over/Underperformance section in the ERS Programme.
   2. All units cancelled in the ERS Registry can no longer be transferred, retired or cancelled.     

2. Secretariat's Authority

   Only the Secretariat can cancel VRUs in the Buffer Pool or a Project’s account whenever a cancellation event is identified. 

3. Reversal Events 

   1. In case of Reversals, the Secretariat must follow a systematic cancellation approach detailed below: 
      1. Step 1 - Reversal Quantification. At Verification, ERS determines if the impact of loss events resulted in Reversal or not. If one or more reversal(s) are confirmed, their nature - avoidable or unavoidable - is established pro-rata to the loss events. Refer to the Reversal Procedures at the Methodology level for more details. 
      2. Step 2 - Reversal Accounting. The quantified Reversal is accounted for the Verification Period’s RUs issuance. Refer to the quantification methods at the Methodology level for more details. 
      3. Step 3 - VVB Verification. An accredited VVB presents the ERS Secretariat with a Verification Report. If the Verification confirms the Reversal accounting, the Secretariat must proceed to cancellation.
      4. Step 4 - Notification.  The Developer associated with the affected VRUs is notified by ERS, via email, of the incoming cancellation event, and if it has been considered as ‘avoidable’ or ‘unavoidable’.
      5. Step 5 - Cancellation. The ERS Secretariat must cancel VRUs in the Buffer Pool in an amount equal to the net GHG loss during the Verification Period as full compensation for the Reversal. Refer to the Compensation section in the ERS Programme for more details. 
      6. Step 6 - Unit Replacement (if applicable). If the Reversal has been qualified as avoidable, the Developer must deposit VRUs issued by the Project or other ERS-certified Projects in the Buffer Pool in an amount equal to the net GHG loss of the Verification Period. 

4. Double Claiming 

   1. Step 1 - Identification and Quantification. The Secretariat identifies the double claiming event following the double counting principles in the ERS Programme.
   2. Step 2 - Notification. The Developer is notified and must elaborate and execute the mandatory compensation plan. The plan guarantees that any double-claimed units must be compensated with the same volume of eligible units, as detailed in the Avoiding Double Claiming procedure.
   3. Step 3 - Cancellation. The Developer must cancel the replacement units as full compensation for the double counting. Replacement units can be ERS units or comparable eligible units approved by ERS that have not been sold or otherwise retired. 

5. Double issuance

   1. Step 1 - Identification and Quantification. The Secretariat identifies the double issuance event following the double counting principles in the ERS Programme.
   2. Step 2 - Notification. The Developer is notified by the ERS Certification Agent.
   3. Step 3 - Cancellation. The Secretariat must cancel the affected Restoration Units.

RETIREMENT

1. Identifying The Retirement Reason
   1. Account Holders must select the retirement reason from the following list of options:
      1. Compensation Claim. When the retirement aims to balance or neutralise the negative effects of GHG emitted.
      2. Contribution Claim. When the retirement aims at adding up to GHG reduction efforts, but does not replace or balance emissions. 
2. Retirement on Behalf of a Specific Entity
   1. Account Holders must retire Restoration Units on behalf of a specific Legal Entity or Individual, ensuring that the retirement is attributed to the rightful owner.
   2. Units can only be retired once, regardless of the reason for retirement. Units retired in the ERS Registry can no longer be transferred or cancelled.     
3. Documentation
   1. Documentation of the retirement action includes: 
      1. The Account Holder requesting the retirement;
      2. The legal entity or individual attributed to the retirement;
      3. The chosen retirement reason and any supporting details;
      4. This documentation is recorded and maintained within the ERS Registry for transparency and verification purposes.

UNIT STATUS

Every Restoration Unit in the ERS Registry must have one of the following status:

• Active;
• Cancelled;
• Retired.

DOCUMENTATION DISCLOSURE

1. Documentation and Record-Keeping
   1. The ERS Registry publicly discloses the content of the Buffer Pool, including details about the origin of Restoration Units such as the Project type, vintage, etc.
   2. The ERS registry publicly discloses on every Project page:
      1. Project ID;
      2. Project Name;
      3. Country;
      4. Geographic coordinates on a map;
      5. Project description;
      6. Project Developer;
      7. Type;
      8. Methodology;
      9. Status;
      10. Labels
      11. Project registration;
      12. Crediting period start;
      13. Crediting period end;
      14. Project size (hectares);
      15. Annual Reports containing all loss events, including those leading to cancellations;
      16. Project Design Documents.

INTER-REGISTRIES OPERATIONS 

1. Definition 

Inter-registries operations involve the interaction and exchange of carbon credits and related data between different carbon registries or platforms. These operations may include credit transfers, retirement tracking, and credit issuance across multiple registries.

2. Transfer Restrictions

As of the current policy and operational framework, ERS’ Restoration Units held within the ERS Registry cannot be transferred out from the APX registry. This restriction ensures the integrity, tracking, and transparency of ERS unit transactions while maintaining consistency within the APX registry ecosystem.

3. Future Considerations
   1. ERS remains committed to exploring opportunities for inter-registries operations that align with industry standards and regulatory requirements. Future considerations include potential collaborations, partnerships, or regulatory changes that enable the secure and compliant transfer of ERS units between registries.
      1. ERS closely follows the work done by Climate Action Data Trust and is willing to connect the ERS Registry at a more developed stage.
4. Compliance and Adaptation

ERS is committed to monitoring industry developments, regulatory changes, and best practices related to inter-registry operations. The organisation is prepared to adapt its policies and procedures as needed to facilitate such operations while maintaining the highest standards of transparency and accountability.