Con el objetivo de ingresar al mercado de los bonos de carbono, en el marco del proyecto Mecanismo de Mitigación Voluntaria de Gases de Efecto Invernadero – MVC Colombia liderado por la Fundación Natura, se adelantó el Taller de Diseño Conceptual de la Plataforma Transaccional de Verificación de Reducción de Emisiones VERs. La exitosa participación de entidades como la Bolsa Mercantil de Colombia, empresas comisionistas de Bolsa, la Corporación Ambiental Empresarial – filial de la Cámara de Comercio de Bogotá, el Ministerio de Ambiente y Desarrollo Sostenible, el Ideam y por supuesto la Fundación Natura, fue fundamental en la construcción de una plataforma tecnológica para tranzar los bonos pues estas organizaciones entrarán a jugar un papel muy importante desde el punto de vista, oferta, demanda, certificación, registro, compra y venta.

1. COLOMBIA VOLUNTARY EMISSIONS
TRADING SYSTEM
SCOPING DOCUMENT FOR USER WORKSHOP
MAY 15, 2014
Leslie Durschinger

2. Page 2
Workshop Purpose: Gather User
Input to Create Conceptual Design
User Requirements => Conceptual Model
Conceptual Design is “a description of the proposed system in
terms of a set of integrated ideas and concepts about what it
should do, behave, and look like, that will be understandable by
the users in the manner intended”
… it is high-level compared to physical design
Completed to date
1. Initial review of other carbon trading platforms and registry systems
2. User scoping session with Fundacion Natura
3. First version of conceptual design for discussion in this workshop
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3. Page 3
System Users, Roles and Functions
Page 3
Project
Sponsors/
Proponents
BMC
Fundacion
Natura
Stakeholders
Project Listing
Request by PP
Project
proponent
submits
documents for
review
Project Reviewed
by BMC/FN
Project approved
and posted on
Colombia VER
platform
Corporate
Partners/Buyers
Listing Request
Corporate
Partner/Buyer
submits
documents
Corporate
Partner/Buyer
Reviewed by BMC
Corporate
Partner/Buyer
approved and
posted on
platform
Transactions
Indications
screens provided,
transactions
reported and
registries details
Issuance/
Settlement
Projects interact
per standard
rules for
registration/
issuance and
(and buyers) to
transfer tons
DRUPAL (or similar CMS) with public and secure sites for content management by BMC/FN and user logins
Formal Pre-existing Registry System
Singlelogin
Corporate
Partners/
Buyers
Users
Functions

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User Profile:
Project/Program Developer
Role
 List on platform forest emission reduction projects and programs
seeking VER buyers
General Eligibility Requirements
 Forest carbon (wide definition i.e. related directly or indirectly to
forest)
 Use recognized standard for carbon accounting and social/biodiversity
 Submitted by “recognized and authorized entity”
 Stage of development – earliest stage is they would complete the
Colombia VER submission form (something like a PIN)
 Optional, projects indicate price, transaction structure (pre-payment or
POD)

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Supporting Processes:
Project/Program Developer
Supporting Process, Web-content and Documents
 Detailed explanation of submission process (web-content)
 Eligibility requirements for projects (web content)
 Guidelines for submission of pictures and videos (web content)
 Colombia VER project submission PIN (Template download)
 User login in administration (Process)
 Tracking process for managing submissions, correspondence and
approvals/rejections (process supported by web management system)
 Project participation agreement (Template download)
 Once approved the files and text provided by users is posted a nice
“profile” with text, logo, pictures, documents and videos (web content
from projects)

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Example of Project Splash Page

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Questions:
Project Module
For Discussion (not necessarily system design issues)
 Project type eligibility (REDD, ARR, ALM, cookstoves, water filters, ???)
 How early in process can they submit, by just providing information on
Colombia VER Registration PIN (currently VCS has a “Project Listing” as
first step, which is ~60% of a PD)
 What level of due diligence will be done on the information provided
 Who is the authorization to register projects and how is this verified
with the carbon rights holders?
 Who in the administration team will preform each of the admin
functions (BMC and/or FN)
 Most registries provide full document tracking and retention, once
projects complete the first formal step in the standards process, how
will be handle this between two systems?
 Other thoughts?

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User Profile:
Corporate Partner/VER Buyer
Role
 Corporations or other entities that purchase emission reductions from
projects on platform
 There are two ways they interact 1) view the project listing indicating
ERs for sale and 2) have an active RFP for purchases they post online.
General Eligibility Requirements
 Public commitment to measure and report GHG footprint
 Commitment to use emission reductions as all/part of reducing GHG
footprint
 Description of motivations and what type of ER project characteristics
they will prioritize
 Working with Bogota Chamber of Commerce
 There will be not be a membership per see, but they will required to
pass a screening process and sign an agreement
 Will post indications of buying interest (tons) or RFP process (must
provide some indication of size/frequency)

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Supporting Processes:
Corporate Partner/VER Buyer
Supporting Process, Web-content/Documents
 Detailed explanation of submission process (web-content)
 Eligibility requirements for corporate partners/buyers (web content)
 Submit information on corporate/buyer profile (download TEMPLATE)
 User login administration (Process)
 Tracking process for managing submissions, correspondence and
approvals/rejections (process supported by web management system)
 Corporate partner/buyer participation agreement (Template
download)
 Once approved the files and text provided by users is posted a nice
“profile” with text, logo, pictures, documents and videos (web content
from projects)

10. Page 10
Questions:
Corporate Partner/Buyer Module
For Discussion
 Should eligibility require reporting their GHG footprint?
 How should the platform support the calculation and reporting of GHG
footprint?
 Should the agreement require that a certain amount is purchased within some
time frame, otherwise they get branding but no demand
 Are there any buyer entities, who have already agreed to be on the platform to
support finalizing design?
 Other thoughts?

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VER Transaction Module:
Scope of Functionality
Scope of Transaction Functionality
 In the beginning there will be no formal transaction execution
functionality
 Screen on both the project and buyers interest, would provide
summary information and indicate price (if included) this is a “quick
view” of sellers and buyers interest
 All transaction negotiation is directly between buyer and seller but
must be reported to the Colombia VER platform to meet contractual
requirements
 Designed to handle both forward sales and POD, on issued and
unissued VERs

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VER Transaction Module: Functionality
Transaction reporting “module”, will include:
 Transaction reporting template (seller completes) including:
– Full transaction details (minimum for public disclosure include tons
traded, vintages and settlement type)
– Settlement details (registry account of buyer and seller, Colombia
VER retirement account for wholesale retirements of small
amounts without registry account)
 Notification is made to buyer, for review and approval of
transaction
 Review and approval by BMU/FN, posted to VER platform
 Transactions (indications and executions) will be posted on
summary page, in addition to each project page and buyers page
 Settlement of transaction is handled on registry system, with
single user login

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Example of Transaction Listing
With better marketing appeal and different data columns

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Issuance and Settlement
Registry Functions
 VER platform user can access registry functions with single online,
once accounts have been setup properly on both ends, this gives the
user a seamless experience with all functions on the platform
 Project proponent has account established in registry
 Main functions including on registry for project proponent:
– 1. Project Listing with the first recognized step of standard is completed
on registry, including required documents
– 2. Registration (validation), with document review and approval
– 3. Issuance (verification), with document review and approval
 Buyers have accounts established in registry to receive tons
 VER platform will offer a service to small buyers to retire tons, under
omnibus account
Functions Managed Fully in Proven Registry System

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Mockup of Site Map

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# Colombia VER Platform
MAR APR MAY JUN JUL
Phase 1 - Develop overall system purpose, users, modes of interface and priorities
1.1Develop initial description of the system’s high-level functionality 1
1.2Initial Interviews - Interview all project partners to document expectations 1 1
1.3In-county workshops to define user specs (with main users BMC and Chamber of Bogotá) 1
1.4Identify modes of interaction 1
1.5Prioritize the itemized functionality 1
1.6Identify existing systems that could be leveraged in developing the VER platform 1
Phase 2 - Identification of main functional modules
2.1Define detailed and per-user group functionality of information module 1
2.2Define detailed and per-user group process and procedures management module 1
2.3Define detailed and per-user group functionality of registration and issuance module 1
2.4Define detailed and per-user group functionality of registry interface module 1
Phase 3 – Scoping of required functionality
3.1
Creation of a comprehensive set of “user stories” for each per-user group functionality identifying the
(1) user group, (2) desired functionality,, and (3) reason why the user group needs the functionality
1
Phase 4 – Review of existing systems for leverage and/or integration
4.1Evaluate existing international and local registry systems for potential integration of functionality 1 1
4.2Evaluate existing international and local transaction systems for potential integration of functionality 1 1
4.3Evaluate any other partner’s systems for potential integration of functionality 1
Phase 5 – High level implementation plan
5.1Analyze complexity of and dependencies between user stories 1
5.2
For each user story, make a recommendation to use existing services or infrastructure or build from
scratch
5.3
Propose prioritization in the implementation of the user stories and compile this in a concrete
implementation plan
Deliverables
D.1A 30-35 page Conceptual Systems Design document, detailing: 1
D1.a High-level overview of overall system purpose and main user groups
D1.b Identification of main functional modules and purpose for each user group
D1.c
Identification of existing registry systems and transaction systems and review of their
potential for integration within the VER system
D1.d
Implementation plan containing a prioritized list of detailed “user stories” together with their

17. Name Leslie Durschinger
Phone +1 415 215 5941
Email leslie.durschinger@terraglobalcapital.com
www.terraglobalcapital.com
THANK YOU
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