78654 The Rio de Janeiro Low Carbon City Development Program PROGRAM DOCUMENT © 2013 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. IBRD map number 40022 was produced by the Map Design Unit of the World Bank. The boundaries, colors, denominations and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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All images courtesy of Pedro Kirilos, Thinkstock/Getty Images and the World Bank The Rio de Janeiro Low Carbon City Development Program PROGRAM DOCUMENT ISO-CERTIFIED VERSION – JUNE 2012 Acknowledgements The Rio Low Carbon City Development Program has The World Bank Task Team comprised the following been jointly developed by the City Government of members: Sebastian M. Scholz (Task Team Leader, Rio de Janeiro and the World Bank, led by Rio de Environmental Economist), Lorraine Sugar (Climate Janeiro’s Casa Civil (City Hall) and the World Bank’s Change Specialist), Chandra Shekhar Sinha (Lead Sustainable Development Department in the Latin Financial Specialist), Sidney Nakao Nakahodo America and Caribbean Vice-Presidency. Based (Carbon Finance Analyst), Monali Ranade (Senior on the vision and leadership of his Excellency Environmental Specialist), Harvey Manuel Scorcia Eduardo Paes, Mayor of the City of Rio de Janeiro, (Transport Specialist), Flavia Azevedo Carloni and his staff working across different departments (Researcher at the Federal University of Rio de and organizational units, a team of World Bank Janeiro), and Marcelo Buzzatti (Researcher at the specialists put together this Program Document. Federal University of Rio de Janeiro). The team would This document forms the basis for the ISO like to thank the following World Bank colleagues 14001/14064 certification of the Rio Low Carbon for their guidance and input along the way: Neeraj City Development Program. Prasad (Manager, Climate Change Practice, World This Program is a collaborative effort within the Bank Institute), Karin Erika Kemper (Manager, City Government of Rio de Janeiro, coordinated Environment Unit, Latin America), Mark R. Lundell by Rodrigo Rosa (Special Advisor to the Mayor (Sector Leader, Sustainable Development, Latin and Rio+20 Municipal Executive Coordinator). America), and Sameh Wahba (Sector Leader, In particular, inputs from the following officials Sustainable Development, Latin America). have made the design of this Program possible: The report benefited from review comments Carlos Alberto Muniz (Deputy Mayor and Municipal provided by Axel E.N. Baeumler (Senior Urban Environment Secretary), Eduarda La Rocque Specialist, World Bank), Daniel Hoornweg (Lead (Municipal Secretary of Taxation and Finance), Urban Specialist, World Bank), Sergio Boanada Altamirando Fernandes Moraes (Municipal Sub- (Regional Director, Siemens), and Shomik Raj Secretary of Environment), Nelson Moreira Franco Mehndiratta (Lead Urban Transport Specialist, (Climate Change Manager), Bruno Ponsinet Neele World Bank). In addition, this version was revised (Advisor for International Relations, Mayor’s based on the validation protocol and feedback Office), Sergio Besserman Vianna (President of received from the DNV certification team: Miguel the Rio Sustainable Development Committee), Rescalvo, Otavio Costa, Juan Mata, and Mayra Ricardo Henriques (President of Instituto Pereira Rocha. Passos), Paula Serrano do Carmo (Chief of Staff, Core funding for this undertaking was provided Instituto Pereira Passos), Sergio Ferreira (Director by the World Bank Institute Climate Change of Information, Instituto Pereira Passos), Marcelo Practice Group and the Latin America Sustainable Hudson da Souza (Coordinator for Environmental Development Department. Recuperation), Maria Lucia Navarro Maranhao Errors and omissions remain the sole responsibility (Manager Bike Rio), and Stelio Marcos Amarante of the World Bank Task Team. Note: Affiliations of (Coordinator for International Relations). We would individuals represent those held in June 2012. also like to thank Professor Emilio Lebre La Rovere (Professor of the Energy Planning Program, Federal University of Rio de Janeiro). iii Acronyms and Abbreviations BAU: Business-as-usual BRT: Bus rapid transit BVRio: Bolsa Verde do Rio de Janeiro CDM: Clean Development Mechanism CER: Certified emission reduction (regulated under the CDM) CME: Coordinating Management Entity CO2/CO2e: Carbon dioxide/carbon dioxide equivalent COPPE/UFRJ: The Instituto Alberto Luiz Coimbra de Pós-Graduação e Pesquisa de Engenharia (COPPE) at the Federal University of Rio de Janeiro or Universidade Federal do Rio de Janeiro (UFRJ) DOE: Designated Operational Entity ER: Emission reduction GDP: Gross domestic product GHG: Greenhouse gas IBGE: Instituto Brasileiro de Geografia e Estatística (Brazilian Institute for Geography and Statistics) IME: Information Management Entity IPP: Instituto Pereira Passos ISO: International Organization for Standardization LCCDP: Low Carbon City Development Program MRV: Monitoring, reporting and verification MWG: Multi-Sector Municipal Working Group RJ: Rio de Janeiro TAE: Technical Advisory Entity UNFCCC: United Nations Framework Convention on Climate Change VCS: Verified Carbon Standard VCU: Verified Carbon Unit (regulated under the VCS) VVB: Validation/Verification Body VVE: Validation and Verification Entity WB: World Bank Acronyms for Municipal Departments in Box A1 iv The Rio de Janeiro Low Carbon City Development Program Table of Contents GUIDE TO THIS PROGRAM DOCUMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vi 1. RIO DE JANEIRO AND SUSTAINABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 PROFILE OF THE CITY OF RIO DE JANEIRO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 RIO’S 2016 STRATEGIC PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.3 PLANNING FOR SUSTAINABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2. THE RIO DE JANEIRO LOW CARBON CITY DEVELOPMENT PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2.1 PROGRAM ROLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.2 PROGRAM PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.3 PROGRAM PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.4 INTERVENTION REGISTRATION PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2.4.1 INTERVENTION ELIGIBILITY CRITERIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.4.2 EMISSION REDUCTION (ER) ASSESSMENT CRITERIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.4.3 METHODOLOGY ASSESSMENT CRITERIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.4.4 RETIRE OR SELL DECISION CRITERIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.4.5 VALIDATION/VERIFICATION CRITERIA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.5 INTERVENTION MONITORING, REPORTING AND VERIFICATION (MRV) PROCESS. . . . . . . . . . . . . . 21 2.6 PROGRAM EVALUATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 ANNEX. IMPLEMENTATION OF THE RIO DE JANEIRO LOW CARBON CITY DEVELOPMENT PROGRAM . . . . . 25 A.1. PROGRAM ROLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 A.2. PROGRAM PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 A.3. PROGRAM PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 A.4. INTERVENTION REGISTRATION PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 A.4.1. ELIGIBILITY CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 A.4.2. ER ASSESSMENT CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 A.4.3. METHODOLOGY ASSESSMENT CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 A.4.4. RETIRE OR SELL DECISION CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 A.4.5. VALIDATION/VERIFICATION CHECKLIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 A.5. INTERVENTION MRV PROCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 A.6. PROGRAM EVALUATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 v Guide to this Program Document This Program Document presents the Rio de Janeiro Low Carbon City Development Program (LCCDP). The first section, Rio de Janeiro and Sustainability, sets the stage and provides the context and insight into the situation on the ground that gave rise to the development of the Rio de Janeiro LCCDP. The second section, The Rio de Janeiro Low Carbon City Development Program, describes in detail the design of the Program, including the Program Roles and Process. Details on specific implementation-related aspects of the Program in the City of Rio de Janeiro are provided in the Annexes to this document. Key Features: • Separation of design and implementation. The descriptions of the Program design (provided in the second section) and specific implementation- related aspects of the Program (provided in the Annexes) are intentionally reported in separate sections of the document. This ensures that the Program Roles and Process are well-defined and maintain integrity during potential changes in municipal administrations or reorganizations of municipal departments over time. Annexes may be updated to reflect changes to role assignments, if needed. • Checklists. Checklists are provided in Annex A.4 for each stage of the Program Process. • Quick reference table. Table 5 provides a quick reference and page numbers for the criteria and checklists for each stage of the Program Process. iv 1. Rio de Janeiro and Sustainability The City of Rio de Janeiro is home to a wealth of investment over the next couple years, and actions natural beauty and cultural richness. Situated have been put forth in the City Government’s among rolling hills covered in lush Atlantic 2016 Strategic Action Plan that ensure investment rainforests, Rio is the city where the natural and improves the quality of life for residents, increases the urban environment harmoniously co-exist. access to services, and addresses climate change With this unique setting, Rio is the ideal place to and other environmental issues. During this pivotal host the international sustainability community moment in its history, the City of Rio is taking the during special occasions, such as the Earth lead in showing the world how the city of the future Summit in 1992 and Rio+20 in June 2012. Rio can be sustainable and livable for all of its residents. has successfully showcased its magnificence and With the paramount goal of being a world-class potential to the world, winning bids to host future city with a high quality of life for all residents, Rio mega events, including the 2014 World Cup and the de Janeiro is leading the way on sustainable, low- 2016 Olympic Games. Rio de Janeiro is expecting carbon urban development. an almost unprecedented influx of visitors and Figure 1: The City of Rio de Janeiro is bounded by the Atlantic Ocean, Sepetiba Bay, Guanabara Bay and its northern border. Coordinates: 22.9°S, 43.2°W. Figure 1: Map of the City of Rio de Janeiro, Brazil. 1 Figure 2: Administrative Divisions of the City of Rio de Janeiro. POPULATION DEMOGRAPHICS 1.1 PROFILE OF THE CITY OF RIO DE JANEIRO The municipal census in the year 2000 counted GEOGRAPHIC BOUNDARIES AND an official population of 5,859,000 inhabitants in ADMINISTRATIVE DIVISIONS OF RIO DE JANEIRO the City of Rio de Janeiro, according to the Instituto The City of Rio de Janeiro is the administrative Brasileiro de Geografia e Estatística (Brazilian capital of the State of Rio de Janeiro, located in Institute for Geography and Statistics (IBGE)). In the southeast of Brazil. The city has a total land 2009, the IBGE-estimated population for the City area of about 1,260 km2, bounded by the Atlantic of Rio de Janeiro was 6,186,710, with 11,812,482 Ocean to the south, Sepetiba Bay to the west and people living in the greater metropolitan area. This Guanabara Bay to the east (Figure 1). makes the Rio de Janeiro metropolitan region the second largest urban agglomeration in Brazil. The City Government of Rio de Janeiro, known locally as Rio Prefeitura, currently has five Planning The population growth rate in Rio has experienced Areas, 33 Administrative Regions and 160 Districts ups and downs over the past century. Before the (Figure 2). 1960s, intense immigration put Rio’s population 2 The Rio de Janeiro Low Carbon City Development Program growth rate above the national average. Since then, proper. According to demographic indicators of lower than average fertility rates, a phenomenon Brazil, the city’s population grew at a mean annual that has always characterized the city, has resulted rate of 0.75% and 0.8% in 1991-2000 and 2000- in a population growth rate below the national 2006, respectively. In the metropolitan area, the average. In particular, between 1991 and 2000, mean annual population growth rates were 1.18% the population growth rate in Rio did not even reach between 1991 and 2000 and 1.43% between half of the national population growth rate. Figure 2000 and 2006. In general, the growth rate of 3 shows the population growth rate of the City of municipalities in the greater Rio metropolitan area Rio compared to State of Rio and Brazil as a whole. has accelerated, compared to a relatively smaller In the last 20 years, the metropolian area of Rio increase in the growth rate in the capital itself. de Janeiro has grown at a faster rate than the city 5 4.5 Average annual rate of population growth (%) 4 3.5 3 2.5 2 1.5 1 0.5 0 1860 1880 1900 1920 1940 1960 1980 2000 Brazil State of Rio de Janeiro City of Rio de Janeiro Figure 3: Average rate of annual population growth in Brazil, the State of Rio de Janeiro, and the City of Rio de Janeiro between 1872 and 2000. Source: IBGE, various demographic censuses 3 ECONOMIC OVERVIEW in the City of Rio grew by about 31% , while the The gross domestic product (GDP) of the City of Rio State of Rio’s GDP grew by about 44%. The share de Janeiro, the State of Rio de Janeiro and Brazil of value added by sector, shown in Table 2 for the during 2002-2005 are shown in Table 1. The GDP City of Rio de Janeiro, is consistantly highest for the service sector, followed by industry and agriculture. Table 1: Gross domestic product of the City of Rio de Janeiro, the State of Rio de Janeiro and Brazil between 2002 and 2005 (in million R$). 2002 2003 2004 2005 City of Rio de Janeiro 90,940 95,681 112,587 118,980 State of Rio de Janeiro 171,372 188,015 222,945 246,936 Brazil 1,447,822 1,699,948 2,217,963 2,147,239 Source: IBGE, Research, Coordination of National Accounts. Table 2: Share of value added by the service, industry and agriculture sectors in the City of Rio de Janeiro from 2002 to 2005 (%). 2002 2003 2004 2005 Service 84.27 84.39 82.54 84.99 Industry 15.7 15.57 17.42 14.97 Agriculture 0.04 0.04 0.05 0.04 Source: IBGE, Research, Coordination of National Accounts. 1.2 RIO’S 2016 STRATEGIC PLAN Mayor Eduardo Paes, the current mayor of the and high costs of debt. There were complaints of City of Rio, faced a number of challenges when he distance between the citizens and the Prefeitura took office in 2009. For the previous two decades, and inefficient channels of communication. Rio had experienced a declining economy, a crisis The structure of the Prefeitura did not align with in public health, and a decrease in the quality of services; there were poor management practices education. Disorder and informality were on the rise, and excessive “red tape.� In addition, there was and an insufficient supply of low-income housing low motivation among municipal staff, and lack of led to increased illegal occupation and poverty. The incentives and goals oriented to service delivery. urban infrastructure was degraded, environmental To address the many issues facing the City and its quality was deteriorating, and public transport was effective governance, one of the first actions Mayor slow, expensive and poorly distributed. Paes took while in office was to develop a new Compounded onto these challenges were strategic plan for the city. Working with McKinsey issues related to municipal governance. The City and consulting with citizens and stakeholders, Government had limited investment capacity the Prefeitura developed the city’s 2016 Strategic 4 The Rio de Janeiro Low Carbon City Development Program Plan. The initial plan, for the period between 2009 staff working in the various secretariats receives and 2012, consisted of 47 strategic initiatives in bonuses for achieving their targets. 10 sectors (Table 3). Every four years, the strategic plan is evaluated and The Prefeitura also developed a new management revised based on the priorities of the Prefeitura and and incentive structure to help reach the targets. its constituency. The latest evaluation concluded Targets are tracked in a software tool, called PAMPE, that more than 80% of the 2009-2012 targets which provides a platform for municipal secretariats were reached. Accordingly, the 2013-2016 version to report on their progress. The Mayor meets with of the plan will contain even more initiatives and the management team on a weekly basis to track goals for the city. the progress of the strategic goals, and municipal Table 3: The 47 strategic initiative in the 2009-2012 version of the Strategic Plan. Each initiative has its own sub-targets that are tracked and monitored by the Mayor. Sector Strategic Initiatives • Present health • Home care program for the elderly Health • Restructuring of emergency care • Creation of emergency units • Schools of tomorrow • Health in schools Education • Infant development spaces • Rio Global Child • Strengthening schools • Planning actions • Surveillance cameras Public Order • Modernization of the police force • Tourist safety corridors • Rio Environment for Business • Rio Capital of Tourism Employment and • Rio Office for Business • Rio Global City Income • Rio Capital of Energy • Rio Capital of Fashion and Design • Rio Capital of Audiovisual Urban • City conservation • Neighborhood revitalization (3 programs) Infrastructure • Port revitalization • Drainage of the West Zone • Rio Bicycle Capital • Macro-drainage of Jacarepaguá Environment • Rio Green Capital • Sanitary landfills • Squares and parks in the North Zone • Climate change policy • Tariff integration • BRT – TransOeste Transport • BRT – TransCarioca • BRT – TransOlímpica • Legal Lapa Culture, Sports and • Arenas • Rio in Olympic Form Leisure • Expansion of courts and Olympic villages • Culture in the street Social Assistance • Carioca family allowance Management and • Measuring impact of results • Service University Public Finances • Present Prefeitura – Rio Citizen • Electronic invoices Source: Rio Prefeitura, 2009. “2016 Strategic Plan: 2009-2012.� 5 1.3 PLANNING FOR SUSTAINABILITY Many of the initiatives in the 2016 Strategic Plan Secretary, Carlos Muniz. directly contribute to the sustainability of the city, Sustainable development requires careful such as the bus rapid transit (BRT) lines or the climate planning, policy action and analysis. In January change legislation. For other initiatives, the primary 2011, Rio passed its Municipal Law on Climate objective may not be environmental sustainability, Change and Sustainable Development. The policy but there is potential for implementation in a was shortly followed by the completion of Rio’s sustainable manner. As will be described later, greenhouse gas (GHG) inventory. The research the Rio de Janeiro LCCDP acts as a channel for group that conducted the inventory, the Instituto all the plans in the city. The Program will quantify Alberto Luiz Coimbra de Pós-Graduação e Pesquisa the carbon component of the various initiatives, de Engenharia (COPPE) at the Federal University which in turn will help to maximize the potential for of Rio de Janeiro (Universidade Federal do Rio de sustainable development. In Rio, sustainability is Janeiro (UFRJ)), also modeled scenarios for future inherently related to other priorities of the city, such levels of city-wide GHG emissions based on sets as social inclusion, cultural heritage and economic of actions planned by the city government. This growth. This holistic vision, as well as Rio’s progress research forms an essential basis towards planning on climate change issues, is described in Box 1 for sustainability in Rio. by Rio’s Vice-Mayor and Municipal Environmental Box 1: Rio de Janeiro’s Vision for Sustainability “The world is anticipating the events and achievements that will take place in Rio de Janeiro in the next few years. The combination of the economic, social and historical factors brings together elements for a period of great changes. This opportunity must be used to build a future that is sustainable, a priority for the planet and for our civilization. The history of Rio is closely linked with the environment. In this City, international awareness was focused on environmental preservation when, in 1992, the main political leaders of the world gathered in Rio to discuss sustainable development. The recent climate phenomena occurring on the planet reinforce the importance of environmental preservation as a condition for our evolution, and call on us to rethink the development model to be adopted. During the last two years, the City of Rio de Janeiro, by means of firm actions practiced by the City Government, has been outstanding in tackling climate change, taking into consideration the cultural and political dimensions, in addition to the environmental, technological and economic dimensions. Facing climate change will demand the participation of all segments of society in Rio de Janeiro. Rio was one of the first cities in the country to define a Municipal Climate Change and Sustainable Development Policy (Law no. 5248/2011), an initiative that stood out as a joint effort between the Government and the City Council of Rio de Janeiro. The Rio de Janeiro Climate Change and Sustainable Development Forum was created, formed by people representing the public sector, private entities and civil society. It aims to 6 The Rio de Janeiro Low Carbon City Development Program contribute to the search for feasible solutions for the adoption of public policies in this area. The climate policy of the City is executed by the Climate Change Management Office of the Municipal Secretary for the Environment. Once again, Rio is a pioneer in environmental matters. Rio became the first city in Latin America to update its Greenhouse Gas Emissions Inventory, published by the City Government of Rio de Janeiro in partnership with COPPE/UFRJ, an important environment research center. The study is more than a compilation of the carbon dioxide emissions in the City; it represents invaluable material to guide city policies and development. In addition to the Greenhouse Gas Emissions Inventory, the path to achieving sustainable development became clearer. The City Government and COPPE/UFRJ developed distinct greenhouse gas emissions scenarios indicating potential directions to be taken. The prognoses were developed based on ongoing changes in the City, such as the installation of a new waste treatment plant and the implementation of TransCarioca, TransOlímpica and TransOeste bus rapid transit (BRT) corridors. This information is fundamental to achieve the greenhouse gas reduction targets in the coming years, which have been incorporated into the municipal environmental legislation. The studies also resulted in the development, by the City Government and COPPE/UFRJ, of an Action Plan contemplating the measures to be taken by the City Government to reach its GHG reduction targets. For example, measures in the Action Plan include doubling the length of bicycle pathways, expanding the reforesting program, the installation of waste treatment plants, and improvements to public transportation, among others. Developments ahead will have significant environmental impacts, such as the operation of the industrial facility Complexo Siderúrgico da Zona Oeste. We must not fear such challenges, which will generate jobs and income in areas of the City that need them most. We must manage these challenges with clear minds and transparency, in the name of our collective interests. The important issue is to internalize and spread sustainability awareness, so that it becomes a central part of our way of life and aggregates value to the legacy of future generations.� Carlos Alberto Vieira Muniz Vice-Mayor and Municipal Environmental Secretary of City of Rio de Janeiro MUNICIPAL LAW ON CLIMATE CHANGE AND as a reference point for emission reductions (ERs) SUSTAINABLE DEVELOPMENT to be cumulatively achieved at the end of the The City of Rio de Janeiro passed its Municipal Law respective reporting periods in 2012, 2016 and on Climate Change and Sustainable Development 2020. This corresponds to cumulative reduction (Law No. 5.248) on January 27, 2011. Article 6 of goals of 908 ktCO2e in 2012, 1,816 ktCO2e in 2016, the law set Rio’s voluntary GHG reduction targets and 2,270 ktCO2e in 2020. For more information of 8%, 16% and 20% for the years 2012, 2016 and on Rio’s GHG reduction targets, see Box 2. 2020, respectively, compared to 2005 emission This law creates the legal framework that allows levels. In other words, 2005 emissions are taken the municipality to establish climate change 7 mitigation strategies and promote effective actions • Stimulate cooperation with other levels of necessary to achieve its self-set, voluntary targets. government, non-governmental organizations, To assist with planning for sustainability, one of the private sector, academia and multilateral the directives of the law is to encourage emissions organizations to implement climate change inventory updates every four years. This will help policies and encourage the implementation of assess the city’s overall GHG emissions profile sustainable development strategies and encourage actions that contribute to reducing A series of strategies will ensure the achievement overall emissions. of the above-mentioned targets with activities in In general terms, the municipal climate change the waste management, transport and energy policies laid out in the law are as follows: sectors. However, the following is important to • Establish a strategy to reduce GHG emissions note: overall city-level emissions will continue to increase due to the massive influx of investment • Promote effective actions to protect the climate and increased economic activity prior to the mega system events in 2014 and 2016. In addition to promoting • Ensure environmental and climate protection sustainable development in general, the LCCDP will while pursuing socioeconomic development enable the City of Rio to transparently demonstrate • Promote Clean Development Mechanism (CDM) the achievement of its self-set mitigation goals projects, as well as other instruments and (Box 2). Rio’s municipal climate change law makes mechanisms to reduce GHG emissions while reference to an absolute number of ERs (expressed increasing GHG sinks as a percentage of 2005 emissions) to be achieved in the respective reporting year (2012, 2016, • Raise awareness about climate change issues 2020). Hence, while overall city-level emissions will • Establish mechanisms to encourage changing continue to grow, the monitoring of and accounting patterns of production and consumption, for the ERs generated by various mitigation activities economic activities, and transportation that implemented across different municipal sectors focus on environmental sustainability and GHG will enable the city government to comply with its reductions climate change law. In other words, compliance • Increase the use of renewable energy cannot solely be measured by periodically updating the city’s top-down GHG inventory. The City of • Identify vulnerabilities and promote effective Rio needs to engage in bottom-up monitoring of actions to adapt to the impacts of climate change mitigation actions across sectors, which is one • Ensure the participation of civil society in the of the features of the Program. Accordingly, this consultative and deliberative processes related feature may be considered a prototype model for to climate change assessing mitigation compliance. • Promote the disclosure of climate change issues • Stimulate research and development related to the climate system • Encourage the use and exchange of technologies and environmentally responsible practices for mitigation and adaptation to climate change 8 The Rio de Janeiro Low Carbon City Development Program Box 2: Rio de Janeiro’s Voluntary GHG Reduction Targets Article 6 of Rio’s climate change law sets voluntary GHG reduction targets of 8%, 16% and 20% for the years 2012, 2016 and 2020, respectively, compared to 2005 emissions levels. These goals are interpreted to correspond to absolute volumes of ERs to be cumulatively achieved by the end of the respective reporting year. Since Rio’s 2005 emissions were 11,351.7 ktCO2e, the targets correspond to cumulative reduction goals of 908 ktCO2e in 2012, 1,816 ktCO2e in 2016, and 2,270 ktCO2e in 2020. Rio will implement a series of strategies to achieve its targets. However, the following is important to note: while strategies are put in place to reduce emissions, overall city-level emissions will continue to increase due to the massive influx of investment and increased economic activity prior to the mega events in 2014 and 2016. The only way to demonstrate compliance with the climate change law is to monitor and account for the ERs generated by the individual mitigation activities: a bottom-up accounting approach. By counting the ERs produced from each mitigation intervention, the city will be able to show that the cumulative total from all activities has reached the targets: 908 ktCO2e in 2012, 1,816 ktCO2e in 2016, and 2,270 ktCO2e in 2020. In addition to promoting sustainable development in general, the Low Carbon City Development Program will enable the City of Rio to transparently demonstrate the achievement of its self-set mitigation goals by providing a framework for bottom-up mitigation action accounting. 20,000 Citywide GHG Emissions Business-as-Usual Scenario 16,000 Top-down Inventory Monitoring 12,000 Low Carbon Development Scenario 8,000 4,000 Cumulative ERs Target: at least 2,270 ktCO2e Bottom-up Mitigation 0 Action Accounting -4,000 1996 1998 2005 2012 2016 2020 2025 9 THE GREENHOUSE GAS INVENTORY FOR THE solid waste (16%) and industry (12%). Elements of CITY OF RIO DE JANEIRO the Intergovernmental Panel on Climate Change The GHG emissions inventory for the City of Rio (IPPC) methodology for calculating national-level de Janeiro, conducted by COPPE/UFRJ, found that inventories were used; however, some adjustments the city emitted 11,351.7 ktCO2e in the year 2005 were made to reflect the emissions related to (Figure 4). Sectors with the highest percentage consumer decisions and socioeconomic activities of emissions were road transport (37%), urban for which the city is responsible. Road Transport, 37% Rail/Water Transport, 0% Household/Commercial Public Sector, 2% Solid Waste, 6% Fugitive Emissions/ Re�nery, 1% AFOLU, 2% Industrial Waste, 0% Urban Solid Waste, 16% Industrial Wastewater, Air Transport, 9% 1% Industrial Processes and Household/Commercial, Product Use, 4% 10% Industry, 12% Figure 4: GHG emissions in the City of Rio de Janeiro, percentage by sector. Source: COPPE/UFRJ, 2011. “Inventário e Cenário de Emissões dos Gases de Efeito Estufa da Cidade do Rio de Janeiro.� MODELING SCENARIOS TO 20,000 REACH RIO’S GREENHOUSE 18,000 GAS REDUCTION TARGETS 16,000 (ktCO2e) Emissions (tCO2e) 14,000 With the projected increases GHG Emissions 12,000 in economic and population 10,000 Scenario A (BAU) growth, the GHG emissions for City-Wide GHG Scenario B 8,000 City-Wide Scenario C the city are expected to rise 6,000 in the future. Figure 5 shows 4,000 three possible scenarios for 2,000 the future emissions profile of 0 1996 1998 2005 2012 2016 2020 2025 the city. Year Figure 5: Three scenarios for growth of citywide GHG emissions. Source: COPPE/UFRJ, 2011. “Inventário e Cenário de Emissões dos Gases de Efeito Estufa da Cidade do Rio de Janeiro.� 10 The Rio de Janeiro Low Carbon City Development Program SCENARIO A Waste The business-as-usual (BAU) scenario considers • 100% garbage collection that no mitigation action will be implemented by • 5% selective collection the municipality. • Waste to diesel pilot plant – 300 metric tons SCENARIO B of waste/day This scenario incorporates action and policy options • Biogas collection from Gramacho Landfill for that are planned by the municipality alone or jointly industrial use with other levels of government (state or federal). It • New Seropedica Landfill – 9,000 metric tons shows the potential GHG emission reductions that of waste/day could be achieved with these measures. Examples of actions and policies included in this scenario are • Biogas collection from Seropedica Landfill for as follows: industrial and energy use Energy • Waste to energy power plant – 30 MW; 1,000 metric tons of waste/day • Efficiency of public lighting (LED) – 20% • LED traffic lights – 1,000 units replaced SCENARIO C • Solar thermal water heaters in new “Minha Casa, Minha Vida� construction – 1,000 This scenario includes bolder actions that could be households adopted by the municipality and projects that can be feasible in the medium and long term. Examples • Replacement of cast iron piping with of the bolder actions and policies included in this polyethylene for the natural gas distribution scenario are as follows: network Energy Transport • Efficiency of public lighting (LED) – 100% • BRT TransCarioca – 380,000 passengers/ • LED traffic lights – 50,000 units replaced day • Solar thermal water heaters in new “Minha • BRT TransOeste – 220,000 passengers/day Casa, Minha Vida� construction – 10,000 • BRT TransOlímpica – 100,000 passengers/ households day • Increasing load capacity of the Metro – Transport 550,000 passengers/day • Increasing load capacity of the Metro • Expansion of Jardim Oceanico Metro line – from 2012 onwards, reaching 665,000 230,000 passengers/day passengers/day in 2025 • Expansion of bicycle lanes – 280 km • Expansion of bicycle lanes – 420 km • Program for inspection and maintenance of • Program for inspection and maintenance of light vehicles light vehicles • Biodiesel fuel share of 5% • Biodiesel fuel share gradually increasing from 5% in 2010 to 10% in 2020 11 Waste by the city, as well as provide an initial assessment • 9% selective collection as to whether they are sufficient to meet the targets. Scenario B, which is the scenario that assumed • New Seropedica Landfill – increasing capacity the implementation of planned municipal low- to 12,000 metric tons of waste/day carbon actions at the time of the assessment, had • Biogas collection from Seropedica Landfill for a reduction potential consistent with the 2012 and industrial energy use and vehicles 2016 goals. However, by 2020, the reduction (as compared to 2005 levels) would reach only 18.3% (Table 4). This demonstrated to lawmakers that Modeling the three scenarios helps to capture the further planning of actions was needed to reach GHG potential in various actions to be implemented the goals. Table 4: Rio’s reduction targets and the cumulative GHG emission reductions for Scenarios B and C.   2012 % 2016 % 2020 % Emission Reduction Targets 908.1 8.0% 1,816.3 16.0% 2,270.3 20% Emission Reductions for Scenario B 1,102.4 9.7% 1,972.0 17.4% 2,080.8 18.3% Emission Reductions for Scenario C 1,586.6 14.0% 2,647.8 23.3% 3,001.0 26.4% 2. The Rio de Janeiro Low Carbon City Development Program The Rio de Janeiro Low Carbon City Development methodologies permitted to quantify ERs. The Program, herein referred to simply as “the defined Program Roles (Section 2.1) and Program Program,� is a novel and ambitious cross-sectoral Process (Section 2.3) ensure the integrity of the climate change mitigation program implemented ERs generated under the Program. The ERs will by the City of Rio de Janeiro. There are many plans either be sold to external buyers, or they will be and initiatives on the horizon for Rio, as outlined counted towards Rio’s municipal reduction targets in Section 1, and the Program acts as a channel and hence “retired.� In the long term, the Program to help distill the carbon reduction potential from will expand horizontally to impact a vast array of if them. The Program will also enable the City of Rio not all urban sectors. The Program is also designed to transparently demonstrate the achievement to expand vertically in order to integrate with future of its self-set mitigation goals through bottom-up state-level and national-level climate mitigation mitigation action accounting. interventions. Sustainability in Rio is linked to the city’s other The Program is a city-led climate change mitigation priorities, such as social inclusion and economic initiative that is being implemented at a time growth. The upcoming investments in the city when sub-national entities have an increasingly ahead of the 2014 World Cup and the 2016 Olympic important role in the global landscape of climate Games make a low-carbon development program a change mitigation actors. Activities in cities particularly appealing business model to improve are responsible for the majority of global GHG Rio’s overall sustainability. By quantifying the emissions, and cities hold significant potential for potential carbon savings in different interventions, systemic climate change mitigation impacts. The the Program may help to remove existing barriers conclusion from COP17 in Durban in December to implementation. The Program helps to create 2011 was that action from an internationally agreed a low-carbon investment perspective, or “carbon climate agreement is expected only by 2020, at the lens,� through which future municipal investments earliest. This clearly emphasizes the importance of are evaluated, ensuring investments contribute to sub-national and local engagement in the area of a legacy of sustainability in Rio for many years to climate change. Voluntary concrete actions and come. leadership on the ground, particularly by cities, The Program will help the City Government of Rio will be critical for success in this “make or break� identify and finance climate change mitigation decade. For these reasons, the development of opportunities across a number of urban sectors. It city-wide climate change mitigation activities and provides the framework and processes to quantify carbon finance is rapidly emerging and strategically and mobilize ERs. The Program is designed to important. This in turn makes the Rio de Janeiro be flexible and allows for the inclusion of many Low Carbon City Development Program a pioneering municipally-driven activities, with methodologies business model that is important to disseminate to from different carbon standards or newly developed other cities throughout the world. 13 MWG will be reported back to the CME to inform 2.1 PROGRAM ROLES CME decisions. There are five Program Roles under the Program. 3. Technical Advisory Entity 1. Coordinating Management Entity The Technical Advisory Entity (TAE) will provide The Coordinating Management Entity (CME) technical input to help move interventions is the central body within the municipality that forward through the Program process. When oversees the coordination and management of an intervention has been selected for inclusion the Program. The CME is housed strategically in the Program by the CME, based on the at a sufficiently high level in the municipal recommendation of the MWG, the TAE will identify government to have coordinating authority across and recommend an appropriate methodology to all municipal departments. The multi-sectoral use to quantify the ERs and an appropriate asset nature of the Program means that it spans class to pursue (e.g., Verified Carbon Standard all urban sectors and will potentially include (VCS), CDM, Gold Standard, etc.). The TAE will interventions from all municipal departments. also conduct an initial estimate of the potential Therefore, it is essential that the CME has ERs to be generated by the intervention and authority within the municipal government to report this information back to the CME for input both make requests of all municipal departments into its decision-making process. and enforce and monitor compliance. The CME 4. Validation and Verification Entity is responsible for coordinating all aspects of the Program, including planning and evaluation. The Validation and Verification Entity (VVE) In addition, the CME will make decisions will validate and verify the ERs generated regarding the inclusion of new interventions by interventions under the Program, as well under the Program and the final destination of as evaluate the appropriateness of new the ERs (i.e., either retired internally against the methodologies to be used. The validation and municipality’s ER goal or sold externally). The verification process is an essential quality- CME will oversee the coordination of all carbon control measure to ensure that each ER sales and transactions with potential buyers, as generated under the Program exists and is well as coordinate with state- and national-level properly accounted for. The VVE must have the registries. necessary expertise and experience to conduct such an audit. To avoid conflicts of interest, the 2. Multi-Sector Municipal Working Group VVE must operate externally and independently A Multi-Sector Municipal Working Group of the CME. Based on an intervention-level (MWG) will be coordinated by the CME and evaluation and decision of the CME, the VVE will act as an advisory committee to the CME. The act as a Designated Operational Entity (DOE) or MWG deliberates decisions regarding eligibility Validation and Verification Body (VVB) to certify of interventions to enter the Program. The MWG the carbon credits as per the regulatory standard will assess interventions proposed by each of of the chosen asset class. the departments and provide opinions based on 5. Information Management Entity sector expertise, knowledge of existing municipal activities and institutional arrangements, and The Information Management Entity (IME) is an understanding of the specific situation on the central body that coordinates and manages the ground. The opinions and conclusions of the all information and data related to the Program. It houses the Program Monitoring, Reporting 14 The Rio de Janeiro Low Carbon City Development Program and Verification (MRV) System. The data from interventions used to quantify and monitor ERs 2.2 PROGRAM PLANNING will be provided by the respective municipal As with all municipal activities, the Program should departments. Therefore, the IME must have undergo a process of planning. The CME should both coordinating capabilities with all municipal coordinate this process. departments and experience collecting and As part of the planning process, it is good practice managing large quantities of data. The IME is to define the following: best suited to be located strategically within • the scope of the Program the municipality’s existing data collection structure, but it may also be an external entity • the objectives of the Program with a mandate to collect data from municipal • the targets of the Program, as well as a plan to departments and report to the CME. As required achieve them by the specific methodology and regulatory • the implementation plan for the Program systems of the chosen asset class, the IME will generate annual monitoring reports that a VVE The planning procedures for the Program are can use to verify ERs. The IME reports to the described in Annex A.2. CME on data results and data input compliance from the respective municipal departments. 2.3 PROGRAM PROCESS Every new intervention must follow the Program The assignment of each role will be subject to the Process, which dictates the procedures and criteria following guidelines: against which interventions are assessed to be • The responsibilities and requirements of each registered in the Program, as well as the process role are fixed. of monitoring, reporting and verifying the ERs 2.3 PROGRAM PROCESS • The assignments of the CME and IME are fixed generated Every new interventionby mustinterventions. Figure follow the Program Process. The 6 shows Program Process the dictates the procedures in the short-term, though they may change in Program Process general inverifying terms. and criteria against which interventions are assessed to be registered in the Program, as well as the process of monitoring, reporting, and the ERs generated by interventions. Figure 6 shows the Program Process in general terms. the long-term to reflect changing municipal administrations and structures. IDENTIFY INTERVENTIONS MONITOR, REPORT, 1 QUALITY CONTROL • The composition and attendance of the MWG 5 CME MWG IME may vary from intervention to intervention, but it 2 QUANTIFY ERs will always be coordinated by the CME. TAE VALIDATE/VERIFY 4 • The assignments of the TAE and VVE may change VVE from intervention to intervention and will be 3 DECISION MAKING clearly stated every time a new intervention INTERVENTION REGISTERED (RETIRE OR SELL) UNDER PROGRAM goes through the Program Process. For any CME MWG intervention, the TAE and the VVE must not be Figure 6: The Program Process Figure 6: The Program Process. the same entity to insure integrity in the audit process and avoid conflict of interest. Accordingly, the Program Process consists of two sub-processes: 1) the Intervention Registration Process (Section 2.4); and 2) the the Accordingly, Program Interventio Process n MRV Process (S ection 2.5). consists of two sub-processes: 1) the Intervention Registration A list of entities assuming each Program Role is Process (Section 2.4); and 2) the Intervention MRV provided in Annex A.1. Process (Section 2.5). 15 22 to retire or sell ERs; and 4) validation/verification 2.4 INTERVENTION REGISTRATION PROCESS (Figure 7). Following registration, interventions The Intervention Registration Process consists of and their ERs are monitored according to the four stages between identification and registration: Intervention MRV Process (Section 2.5). 1) establish eligibility; 2) assess ERs; 3) decide 1. Establish 1. Establish 2. ERs AssessERs 2. Assess 3. Decideto 3. Decide to 4. Validation/ 4. Validation/ Eligibility Eligibility ERs Retire/Sell ERs Retire/Sell Veri�cation Verification INTERVENTION ER RETIRE/SELL VALIDATION/ ELIGIBILITY ASSESSMENT DECISION VERIFICATION CRITERIA CRITERIA CRITERIA CRITERIA CME TAE CME VVE MWG MWG IME MRV System Figure 7: The Intervention Registration Process stages and associated responsibilities. A figure customized with assigned Program Roles is provided in Annex A.4. 1. Establish Eligibility The TAE conducts the assessment of an To embark on the Intervention Registration intervention’s ERs according to the EMISSION Process, an identified intervention must be REDUCTION ASSESSMENT CRITERIA. eligible to be included in the Program. Eligibility 3. Decide to Retire of Sell ERs is established by the CME based on input by the Following an initial assessment of the expected MWG, which assesses eligibility based on the amount and asset class of intervention ERs, the INTERVENTION ELIGIBILITY CRITERIA. decision must be made to either retire the ERs 2. Assess ERs towards the municipality’s self-set ER reduction Once included in the Program, each intervention target or sell the ERs to an outside buyer. The must undergo an assessment of the ERs it will decision to retire or sell project ERs is made generate. An appropriate methodology must be by the CME on behalf of the municipality, with chosen for the intervention and its procedures the option for opinions and input by the MWG followed. All methodologies permitted for or other stakeholders. The decision to retire use under the Program must follow the or sell follows the RETIRE OR SELL DECISION METHODOLOGY ASSESSMENT CRITERIA. CRITERIA. 16 The Rio de Janeiro Low Carbon City Development Program 4. Validation/Verification the respective stage and approval by the CME. The The intervention must undergo validation to ensure Process Checklists to be completed during each quality and integrity. A VVE conducts the validation stage of the Intervention Registration Process are according to the VALIDATION/VERIFICATION provided in Annex A.4. Descriptions, responsible CRITERIA. The validation/verification process may entities, criteria and process checklists for each be conducted at a frequency determined by the stage of the Intervention Registration Process are CME or the relevant carbon asset regulatory body summarized in Table 5. (if applicable). Advancing from one stage to the next requires satisfactory completion of the Process Checklist for Table 5: Summary and references for each stage of the Intervention Registration Process. 1. Establish 2. Assess ERs 3. Decide to 4. Validation/ Eligibility Retire or Sell Verification ERs Assessment of in- Validation to Determination of tervention against Decision to retire ensure quality and the methodology Description eligibility criteria or sell intervention integrity of the and assessment of for inclusion in the ERs intervention and ERs Program ERs Validation and Verification Entity Coordinating with frequency of Coordinating Management subsequent valida- Management Entity with the tions/verifications Entity based on Technical option for opinions determined by Responsible Entities input by the Multi- Advisory Entity and input by the the Coordinating Sector Municipal Multi-Sector Mu- Management Working Group nicipal Working Entity or the rel- Group evant carbon asset regulatory body (if applicable) EMISSION REDUC- TION ASSESSMENT INTERVENTION RETIRE OR SELL VALIDATION/VERI- CRITERIA (2.4.2) Process Criteria ELIGIBILITY DECISION CRITERIA FICATION CRITERIA and METHODOL- CRITERIA (2.4.1) (2.4.4) (2.4.5) OGY ASSESSMENT CRITERIA (2.4.3) ER Assessment Checklist (A.4.2) Retire or Sell Validation/Veri- Eligibility Checklist Process Checklist and Methodology Decision Checklist fication Checklist (A.4.1) Assessment Check- (A.4.4) (A.4.5) list (A.4.3) 17 4. Under the Ownership and/or Control of the 2.4.1 INTERVENTION ELIGIBILITY CRITERIA Municipality The INTERVENTION ELIGIBILITY CRITERIA ensure The intervention must be under the ownership that each intervention and its associated ERs or control, even if partially, of the municipality comply with the principles of integrity held by through either direct implementation or the Program. By adhering to the INTERVENTION agreement. For example, the intervention could ELIGIBILITY CRITERIA and the Intervention be implemented: Registration Process, it will be ensured that ERs produced by interventions under the Program do (i) directly by a municipal department; not have dual ownership and are not being double (ii) by a municipal department through a sub- counted. Each intervention must be: contractor; 1. Within the Intervention Inclusion Parameters (iii) by a municipal department through a public- The Program must define the Intervention private partnership with a private sector Inclusion Date for including interventions in the company; Program, as well as the parameters for inclusion (iv) by a civil society organization in cooperation (e.g., financial commitment to the intervention, with a municipal department; or intervention inclusion in municipal plan, etc.). (v) by financial or other incentives introduced This should be based on conditions in the city by the municipality to encourage behavior and existing municipal processes. change (the intervention does not include a 2. Transparent about Registration with Other physical activity). Programs The agreement will be required to include a clause It must be fully disclosed if the intervention is specifying the transfer of ER ownership to the registered or seeking registration with the CDM, municipality or the terms of shared ownership, VCS, Gold Standard or any other carbon finance including any revenue-sharing arrangement. program. Registration with other programs may The terms must reflect that, while ERs from an impact the ownership of the ERs generated by intervention may be owned by multiple parties the intervention. Disclosure of an intervention’s in various shares, each individual ER is owned registration or intention to register with other exclusively by only one party. programs will inform Intervention Eligibility 5. In a Sector Governed by the Municipality Criteria #4 and the Retire or Sell Decision Criteria. This proactively prevents double ownership and The intervention must be in a sector that is double counting of ERs by disclosing if ERs governed and/or influenced by municipal produced by interventions under the Program decisions. The intervention implements a are already allocated to another program or technology or measure under the sectoral reach entity. of the municipality. For example, sectoral scopes defined by the UN Framework Convention on Located within 3. the City’s Geographical Climate Change (UNFCCC) for the CDM include: Boundaries 1. Energy industries (renewable/non- The intervention must be located within the renewable) geographical boundaries of the city. This ensures the laws and regulations of the municipality 2. Energy distribution apply to the intervention. 3. Energy demand 18 The Rio de Janeiro Low Carbon City Development Program 4. Manufacturing industries The Eligibility Checklist to be completed by the 5. Chemical industries MWG is provided in Annex A.4.1. 6. Construction 7. Transport 2.4.2 EMISSION REDUCTION (ER) 8. Mining/Mineral production ASSESSMENT CRITERIA 9. Metal production The EMISSION REDUCTION ASSESSMENT CRITERIA 10. Fugitive emissions from fuel (solid, oil ensure that ERs generated by interventions under and gas) the Program are assessed and monitored with integrity. The ER Assessment also helps inform the 11. Fugitive emissions from production decision to retire or sell ERs and will be conducted and consumption of halocarbons and by the TAE. It will include the following requirements: sulphur hexafluoride 1. An Approved Methodology to Quantify ERs 12. Solvents use The methodology used to quantify ERs 13. Waste handling and disposal generated by the intervention must be approved 14. Afforestation and reforestation for use by the Program. To be approved, it 15. Agriculture must have undergone an assessment and received a recommendation by the MWG and 6. Not Legally Mandated by Higher Levels of a VVE in accordance with the METHODOLOGY Government ASSESSMENT CRITERIA. The technology or measure implemented by the 2. Confirmation of Compliance with Methodology intervention must not be a legally mandated Applicability Conditions requirement by higher levels of government, such as state- or federal-level governments. The intervention must comply with the applicability conditions of the chosen 7. One that Results in Emission Reductions methodology. The intervention must result in ERs, of any 3. An Initial Estimate of ERs Relative to a quantity, that are beyond what would occur in a Baseline Scenario baseline scenario. Note: Interventions that seek to generate carbon assets, such as certified The initial estimate of ERs generated by the emission reductions (CERs) or verified carbon intervention relative to a baseline scenario units (VCUs), will be required to fulfill all the must be conducted using equations provided in criteria imposed by the relevant regulatory body. the methodology. 8. In Compliance with Environmental and Legal 4. Parameters Required at Validation Requirements Parameters required at validation that are The intervention must fulfill all environmental and specified in the methodology must be provided. other legal requirements of the city, state and 5. A Monitoring Plan national governments. This ensures the intervention A monitoring plan that complies with the embodies environmental and legal diligence. requirements in the methodology must be provided. 19 6. A Recommendation of Asset Class to Pursue 6) Adequacy of the monitoring methodology, data for the ERs and parameters A recommendation must be provided regarding 7) Relationship to methodologies already in use the asset class to pursue for the ERs. If the by interventions under the Program intervention seeks to generate carbon assets, such as CERs or VCUs, it must fulfill all the The Methodology Assessment Checklist is criteria imposed by the relevant regulatory provided in Annex A.4.3. body. If the recommendation already includes a carbon asset, an assessment of the feasibility and fulfillment of criteria imposed by the relevant carbon asset regulatory body should 2.4.4 RETIRE OR SELL DECISION CRITERIA be provided. The RETIRE OR SELL DECISION CRITERIA ensure that each unit of ERs generated by interventions will have only ONE final destination: it will be retired The ER Assessment Checklist to be completed by and counted towards the municipality’s self-set ER the TAE is provided in Annex A.4.2. reduction target OR it will be sold. This prevents double ownership and double counting of ERs. The 2.4.3 METHODOLOGY ASSESSMENT CRITERIA Retire or Sell Decision must include: To be approved for use by the Program, 1. The Amount of ERs to be Retired methodologies must have undergone an The amount of ERs that will be retired against assessment and received a recommendation by the the municipality’s self-set target must be clearly MWG and a VVE. Should an approved methodology stated. not exist for a particular intervention, the TAE may 2. The Amount of ERs to be Sold work with the MWG and the VVE to identify or develop the best available alternate methodology The amount of ERs that will be sold must be based on global best practices. The scope of clearly stated. assessment of a new methodology will be based 3. Confirmation that Each Unit of ERs has Only on the following set of principles and elements: One Final Destination 1) Principle of integrity and avoidance of politically The sum of the amount of ERs that will be retired and ethically contentious issues and the amount of ERs that will be sold must 2) Applicability of methodology for the specific equal 100%. This provides confirmation that intervention type each unit of ERs has only one final destination and is not subject to double ownership and 3) Appropriate definition of the intervention’s double counting. physical boundary The Retire or Sell Decision Checklist to be 4) Procedure for determining the baseline completed by the CME is provided in Annex A.4.4. scenario 5) Method for calculating the baseline and intervention emissions 20 The Rio de Janeiro Low Carbon City Development Program The Validation/Verification Checklist to be 2.4.5 VALIDATION/VERIFICATION CRITERIA completed by the VVE is provided in Annex A.4.5. The VALIDATION/VERIFICATION CRITERIA accompanies an essential quality-control process to ensure that each ER generated under the Program 2.5 INTERVENTION MONITORING, REPORTING exists, has integrity and is properly accounted for. It ensures all aspects of the Program Process are AND VERIFICATION (MRV) PROCESS checked and approved by an external and neutral The Program’s MRV System stores and analyzes party. Upon review by the VVE, the intervention data that is used to quantify and monitor ERs must be found to: generated by interventions under the Program. It is managed by the IME and is used by the CME for 1. Comply with the INTERVENTION ELIGIBILITY three core functions: 1) to track the implementation CRITERIA of interventions; 2) to monitor ERs produced by the The intervention must comply with the interventions; and 3) to assess and issue carbon INTERVENTION ELIGIBILITY CRITERIA to confirm assets. As ERs are generated by interventions, the proper inclusion in the Program. MRV System will clearly indicate the asset class of 2. Comply with the EMISSION REDUCTION each asset issued. ASSESSMENT CRITERIA The Intervention MRV Process has five stages: 1) The intervention must comply with the EMISSION top-down regulatory mandate to deliver data; 2) REDUCTION ASSESSMENT CRITERIA to confirm data delivery; 3) data analysis; 4) reporting; and 5) appropriate assessment and monitoring of ERs. verification of ERs (Figure 8). The Intervention MRV Process ends with the issuance of carbon assets to 3. Comply with the RETIRE OR SELL DECISION the Registry. CRITERIA The intervention must comply with the RETIRE OR SELL DECISION CRITERIA to confirm there 1. Top-Down Mandate to Deliver Data are no instances of double ownership and The CME provides a top-down regulatory double counting of ERs. mandate to the municipal departments to 4. Be on Track to Produce/Be Producing ERs as deliver requested data to the IME. It also Planned monitors and enforces compliance. The intervention must comply with all 2. Data Delivery requirements of the chosen methodology and The IME works with the municipal departments be confirmed to be on track to produce/be to ensure the necessary data is delivered to producing ERs as planned. quantify ERs and fulfill intervention monitoring 5. Fulfill all criteria imposed by the relevant plans. carbon asset regulatory body (if applicable) 3. Data Analysis If the intervention seeks to generate carbon The IME conducts analyses according to the assets, such as CERs or VCUs, it must fulfill all chosen methodology to quantify the ERs the criteria imposed by the relevant regulatory generated by the interventions. body. 21 CME 4. Results and Compliance CME Reporting 1. Mandate to (intra-agency) Deliver Data Registry MUNICIPAL DEPARTMENTS … Issuance of Carbon Assets to the Registry 2. Data Delivery IME VALIDATION/ VERIFICATION CRITERIA MRV System VVE 5. Veri�cation of ERs 3. Data Analysis Figure 8: The Intervention MRV Process stages and associated responsibilities. A figure customized with assigned Program Roles is provided in Annex A.5. 4. Results and Compliance Reporting the verification according to the VALIDATION/ Once data has been delivered and analyzed, VERIFICATION CRITERIA. The validation/ the IME reports back to the CME on results verification process may be conducted at a and compliance. This intra-agency results frequency determined by the CME or the relevant and compliance reporting takes place at pre- carbon asset regulatory body (if applicable). defined, regular intervals. Upon completion of the Intervention MRV Process, 5. Verification of ERs carbon assets may be issued to the Registry. More details about the Intervention MRV Process and Prior to credit issuance, the ERs must undergo the Registry are provided in Annex A.5. verification to ensure quality and integrity. Upon initiation by the CME, a VVE conducts 22 The Rio de Janeiro Low Carbon City Development Program • the scope of the Program 2.6 PROGRAM EVALUATION • the objectives of the Program To complement the planning process, the Program should undergo a process of periodic evaluation. • the targets of the Program, as well as the The CME should coordinate this process. plan to achieve them As part of the evaluation process, it is good practice • the implementation plan for the Program to reflect on the following: The periodic evaluation procedures for the Program are described in Annex A.6. ANNEX. Implementation of the Rio de Janeiro Low Carbon City Development Program A.1 PROGRAM ROLES While the responsibilities and requirements of integrating the actions of the government across each role are fixed, the specific assignment of sectors, while assessing and monitoring the actions each Program Role may change over time to of other agencies and public entities. reflect changing municipal administrations and Multi-Sector Municipal Working Group municipal structures (i.e., CME and IME) or on an intervention-by-intervention basis (i.e., TAE and The MWG is coordinated by Casa Civil and may VVE). The current assignment of each role as of the consist of representatives from various municipal date of this document is outlined below. departments (Box A1). Coordinating Management Entity Technical Advisory Entity The Secretariat of Casa Civil serves as Rio The TAE must have sufficient technical expertise to Prefeitura’s coordinating agency, responsible for the fulfill its role and duties. For example, two entities planning and execution of strategic interventions in the City of Rio de Janeiro that may fulfill this and management of the municipal administration. role include: 1) the Bolsa Verde do Rio de Janeiro Casa Civil also plays a role in the political, (BVRio) Environmental Assets Division, a private institutional and administrative coordination, sector working group of subject-matter experts; Contact Position Information Rodrigo Rosa Special Advisor of the Mayor, Prefeitura da Cidade do Rio de Janeiro Rio+20 Municipality Executive Rua Afonso Cavalcanti 455, Cidade Nova Coordinator Rio de Janeiro-RJ, 20211-110 Email: realrodrosa@gmail.com 25 and 2) COPPE/UFRJ, a research center with Information Management Entity expertise in climate change and quantification of Pereira Passos Institute (IPP) is responsible for GHG emissions. urban planning in the City of Rio. It provides support Validation and Verification Entity for the continuous improvement of public policies implemented in the city, focusing in three main The VVE must be either a VVB accredited under areas: 1) production of map information, geography the VCS, a DOE accredited under the CDM, another and statistics; 2) fostering economic activities and validation/verification entity accredited under an strategic development of a favorable business ISO-certified carbon finance program (such as Gold environment, especially in the sectors of energy, Standard or Climate Action Reserve), or an ISO- creative industry, and information technology and accredited environmental auditor. communication; and 3) development of strategic programs and projects for social integration. Box A1: Municipal Departments in Rio Prefeitura MAYOR’S CABINET Coordination of International Relations (CRI): municipal agency that assists the Mayor in the preparation and execution of projects and international agendas. Coordination of the Youth Citizenship (CJC): formulates and manages policies for citizens of 15-29 years of age. Coordination of Sexual Diversity (CEDS): proposes public policies for promoting a culture of respect for sexual orientation and gender identity, as well as guard duties to promote the visibility and social recognition of the national LGBT - lesbian, gay, bisexual and transgender people. Special Coordination of Policy for the Promotion of Gender Equality (CEPIG): fosters, formulates, articulates and discusses gender policies in Rio de Janeiro, ensuring the conditions that lead to freedom and equal rights, with a focus on gender issues. Special Coordination of Promotion Policy for the Prevention of Addictions (CEPPDQ): defines, plans and coordinates the prevention of misusing narcotics and addictive drugs. SECRETARIATS Municipal Secretariat of Environment (SMAC): central unit of the Municipal Environmental Management System. It issues environmental licenses and monitors potentially polluting activities. SMAC’s main priorities are to: promote the defense and ensure the maintenance, restoration and protection of the environment; identify potentially polluting activities to safeguard the environment; coordinate the environmental management system for implementing environmental policy; provide environmental restoration and reforestation of degraded areas; and implement the policy of reducing greenhouse gas emissions within the municipality. Parks and Gardens Foundation (FPJ): responsible for city landscaping projects, including planting trees in public spaces. It was integrated into SMAC in 1993, assuming new responsibilities concerning the conservation of environmental heritage in the city of Rio de Janeiro, with about 2,000 squares, parks and landscaped areas under its responsibility. Municipal Secretariat of Planning Department (SMU): establishes guidelines for planning, monitoring and control policies. Municipal Secretariat Transport (SMTR): regulates and monitors conventional and special buses, taxis, the bidding phase of the local public transport system, supplementary special transportation and school transportation. 27 Municipal Secretariat of Works (SMO): coordinates all public works, which is greatly integrated with all municipal departments. SMO works with the General Project Coordinator, Coordinator General of Works, River-Waters, RioUrbe and Geo-Rio. Municipal Secretariat Administration (SMA): coordinates the municipal administration system in accordance with the city’s master plan, and acts as a central office of human resources, infrastructure, logistics and general services. Municipal Secretariat of Finance (SMF): oversees the economy, tax administration, budget and property of the municipality of Rio de Janeiro. Municipal Secretariat of Education (SME): supports the development of educational policy of the municipality of Rio de Janeiro, coordinates and evaluates the results. Municipal Secretariat of Social Services (SAMS): responsible for public welfare development through inclusion policies. Municipal Secretariat of Health and Civil Defense (SMSDC): formulates and executes the municipal health policy. Municipal Secretariat of Sports and Recreation (SMEL): promotes a sports action strategy with five pillars: social education, social technology, special policies, leisure, and participation and performance. Municipal Secretariat of Labor and Employment (SMTE): executes labor and employment policies through municipal and federal programs. Municipal Secretariat of Culture (SMC): encompasses 53 cultural facilities — including theaters, tarpaulins, libraries, museums, cinemas, theaters, planetariums and others — spread across the city, offering wide and rich programming and stimulating learning experiences. Municipal Secretariat of Housing (SMH): acts on urbanization and regularization of slums and settlements, while promoting the construction of housing for poor. Municipal Secretariat of Persons with Disabilities (SMPD): articulates and promotes public policies that guarantee the process of social inclusion of people with disabilities and their families. Municipal Secretariat of Conservation and Public Services (SECONSERVA): centralizes and coordinates the work of entities, municipalities and municipal companies, responsible for the city’s conservation. Special Secretariat of Tourism/Rio de Janeiro Municipal Tourism Enterprise (RIOTUR): is a mixed- capital company and the executive organ of the Special Secretariat of Tourism; implements tourism policy, in line with the guidelines and programs dictated by the Municipal Administration. Special Secretariat of Consumer Protection (SEDECON): acts as a liaison between businesses and consumers and promotes activities and services in defense of consumer rights in Rio. 28 The Rio de Janeiro Low Carbon City Development Program Special Secretariat of Public Order (SEOP): regulatory and supervisory body of economic activity, and the municipal ordinances regulating the use of public space. Special Secretariat for Healthy Aging and Quality of Life (SESQV): promotes actions, programs and projects that favor the maintenance of quality of life and autonomy in old age. Special Secretariat for Economic Outreach (SEATS): formulates and implements public policies designed to expand the market and democratize access to the city’s economy. Special Secretariat for the Promotion and Defense of Animals (SEPDA): works on behalf of animals, promoting a respectful coexistence with society. Special Secretariat of Science and Technology (SECT): implements the Municipal Science and Technology Policy, aimed at setting up Rio as a leader in the field of information, innovation and knowledge. Special Secretariat for Development (SEDE): plans and implements actions to promote development in the City, attracts new businesses that contribute to employment generation and income, promotes the improvement of the business environment of the City, and advises the Mayor on international contacts with governments and private and public entities. Comptroller General of the Municipality (CGM): exercises control of accounting, finance, budgeting, operation and property of entities of direct and indirect administration. Attorney General of the Municipality (PGM): is responsible for judicial and extrajudicial defense of the city of Rio de Janeiro and the legal advice of the municipality, as well as for the registration and collection of outstanding municipal debt. 29 • to transparently demonstrate Rio’s achievement A.2. PROGRAM PLANNING of its self-set GHG reduction target by providing As part of the planning process for the Program, a framework for bottom-up mitigation action the following criteria should be defined: accounting; and • to pilot a pioneering business model for climate SCOPE OF THE PROGRAM change mitigation action in cities that can be The scope of the Program is to develop a cross- disseminated throughout the world. sectoral, low-carbon, climate change mitigation program intensively over the next two to four years, TARGETS OF THE PROGRAM, AS WELL AS A PLAN with a longer-term implementation period expected TO ACHIEVE THEM (e.g., 20 years). The Program aims to achieve at least 2.3 MtCO2e The Program includes interventions with financial towards Rio’s self-set GHG reduction target; commitment confirmed on or after January 1, however, the Program’s target is to achieve many 2007, as this is the year in which the City of Rio more ERs as the Program Process becomes de Janeiro first started taking action in response to mainstreamed into municipal operations. global climate change, catalyzed by the publication The scenarios outlined in Section 1.3 describe of the IPCC Fourth Assessment Report. In 2007, a very preliminary plan for achieving the targets. the Mayor first became aware of the importance Scenario B describes a plan to achieve the city’s of planning for climate change and initiated the self-set GHG reduction target, and Scenario C is first climate change research studies in the city, a more aggressive scenario that produces even conducted by the municipal secretariats with more ERs. Going forward, the plan to achieve the local researchers. From this year onwards, climate Program Targets will be captured in the Intervention change was in the minds and hearts of the city Feasibility Assessment (provided in supplementary officials; therefore, ER-producing interventions information). committed to in or after 2007 may be included in the Program. The Intervention Feasibility Assessment is an ongoing assessment of the interventions to be OBJECTIVES OF THE PROGRAM included under the Program, their feasibility, and their contribution to the Program’s Objectives and The Program has the following objectives: Targets. Assessment criteria may vary with available • to promote sustainable development in Rio de information and priorities of the Prefeitura, and it Janeiro; may include items, such as: i) assessment of risk; • to channel the various municipal plans and ii) technology options; iii) financial considerations; initiatives in the city and distill the carbon iv) potential contribution to sustainable economic component; development; and v) stakeholder input. The Intervention Feasibility Assessment will be updated • to quantify the ERs produced by actions in the every six months at first, with the understanding city that began in or after 2007, and to create a that this is subject to change as required to meet carbon ‘lens’ through which all future municipal the planning needs of the Prefeitura. investments and interventions are evaluated; • to remove barriers to implementation of interventions by leveraging their ER potential; 30 The Rio de Janeiro Low Carbon City Development Program IMPLEMENTATION PLAN FOR THE PROGRAM every year at first, with the understanding that this The Program Implementation Plan is an ongoing is subject to change to meet the planning needs of plan associated with the implementation of the the Prefeitura. Rio LCCDP. The tasks are sorted by the expected Individual interventions will follow the planning timeframe of their implementation, and may vary procedures required by all municipal activities (e.g., according to the planning needs of the Prefeitura. a public consultation period to ensure involvement The Program Implementation Plan will be evaluated of local stakeholders, budgeting, timelines, etc.). and adjusted as part of the Program Evaluation: A.3. PROGRAM PROCESS MONITOR, REPORT, 1 IDENTIFY INTERVENTIONS QUALITY CONTROL CASA CIVIL MWG IPP 5 2 QUANTIFY ERs COPPE, VALIDATE/VERIFY 4 BVRio VVE 3 DECISION MAKING INTERVENTION REGISTERED (RETIRE OR SELL) UNDER PROGRAM CASA CIVIL MWG Figure A1: The Program Process and associated responsibilities, based on the assigned Program Roles described in Annex A.1. 31 reflect changing municipal administrations and A.4. INTERVENTION REGISTRATION PROCESS municipal structures (i.e., CME and IME) or on an While the responsibilities and requirements of intervention-by-intervention basis (i.e., TAE and each role are fixed, the specific assignment of VVE). The current assignment of each role as of the each Program Role may change over time to date of this document is described below. 1. Establish 2. Assess ERs 3. Decide to 4. Validation/ 1. Establish 2. Assess ERs 3. Decide to 4. Validation/ Eligibility Retire/Sell ERs Verification Eligibility Retire/Sell ERs Veri�cation INTERVENTION ER RETIRE/SELL VALIDATION/ ELIGIBILITY ASSESSMENT DECISION VERIFICATION CRITERIA CRITERIA CRITERIA CRITERIA COPPE, CASA CIVIL CASA CIVIL VVE BVRio MWG MWG Coordinated by MWG CASA CIVIL, representatives IPP MRV System from municipal departments Figure A2: The Intervention Registration Process stages and associated responsibilities, based on the assigned Program Roles described in Annex A.1. Each stage of the Intervention Registration Process requires satisfactory completion of the following A.4.1. ELIGIBILITY CHECKLIST checklists: The Eligibility Checklist is to be completed by the MWG during the “Establish Eligibility� stage. Eligibility Criteria Confirmation 1. Financial commitment to the intervention was confirmed on or after Yes/No the Intervention Inclusion Date: January 1, 2007. (Provide details) 2. The intervention is transparent about whether it is registered or Yes/No seeking registration with the CDM, VCS, Gold Standard or any other (Provide details) carbon finance program. 3. The intervention is located within the geographical boundaries of the Yes/No City of Rio de Janeiro. (Provide location details) 32 The Rio de Janeiro Low Carbon City Development Program Eligibility Criteria Confirmation 4. The intervention is, at least partially, under the ownership and/ Yes/No or control of Rio Prefeitura through either direct implementation or (Describe how the agreement. The agreement includes a clause specifying the transfer intervention will be of ER ownership to the municipality or the terms of shared ownership, implemented and, including any revenue-sharing arrangement. The terms reflect that, if not implemented while ERs from an intervention may be owned by multiple parties in directly by the various shares, each individual ER is owned exclusively by only one Prefeitura, provide party. proof of transfer of For example, the intervention may be implemented: ER ownership to Rio Prefeitura) (i) directly by a Secretariat or entity in the Prefeitura; (ii) by a Secretariat or entity in the Prefeitura through a sub- contractor; (iii) by a Secretariat or entity in the Prefeitura through a public-private partnership with a private sector company; (iv) by a civil society organization in cooperation with a Secretariat or entity in the Prefeitura; or (v) by policy and/or financial incentives introduced by the Prefeitura to encourage behavior change (the intervention does not include a physical activity). 5. The intervention implements a technology or measure under the Yes/No sectoral reach of Rio Prefeitura. For example, sectoral scopes defined (Specify the by the UNFCCC for the CDM include: intervention’s 1. Energy industries (renewable/non-renewable) sector and justify its 2. Energy distribution governance by Rio 3. Energy demand Prefeitura) 4. Manufacturing industries 5. Chemical industries 6. Construction 7. Transport 8. Mining/Mineral production 9. Metal production 10. Fugitive emissions from fuel (solid, oil and gas) 11. Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride 12. Solvents use 13. Waste handling and disposal 14. Afforestation and reforestation 15. Agriculture 6. The technology or measure implemented by the intervention is not Yes/No a legally mandated requirement in the State of Rio de Janeiro or in Brazil. 33 Eligibility Criteria Confirmation 7. The intervention results in ERs, of any quantity, that are beyond what Yes/No would occur in a baseline scenario. (Broadly describe the Note: Interventions that seek to generate carbon assets, such as baseline scenario CERs or VCUs, will be required to fulfill all the criteria imposed by the which will be relevant regulatory body. elaborated in the ER Assessment Checklist.) 8. The intervention fulfills all environmental and other legal requirements Yes/No of Rio Prefeitura, the State of Rio and Brazil. A.4.2. ER ASSESSMENT CHECKLIST The ER Assessment Checklist to be completed by the TAE during the “Assess ERs� stage. ER Assessment Criteria Confirmation 1. The intervention uses a methodology that has undergone assessment Yes/No and received a recommendation by one of the following: (Specify the methodol- (i) a VVB; ogy to be used) (ii) a DOE; (iii) another VVE accredited under an ISO-certified carbon finance pro- gram (such as Gold Standard or Climate Action Reserve); or (iv) an ISO-accredited environmental auditor. 2. The intervention complies with the applicability conditions of the chosen Yes/No methodology. (Specify the applicability conditions and reasons for compliance) 3. The initial estimate of ERs to be generated by the intervention is pro- Yes/No vided. Calculations use the equations specified in the methodology and (Specify the ERs es- available data and/or reasonable estimates. timated, equations, baseline estimates and data sources) 4. The parameters required at validation specified in the methodology are Yes/No provided. (Specify parameters and data sources) 5. A monitoring plan is provided that complies with the methodology. Yes/No (Specify the monitoring plan) 6. A recommendation is provided as to which assets class to pursue for Yes/No the ERs. If the recommendation includes carbon assets, such as CERs or VCUs, an assessment of the feasibility and fulfillment of the criteria imposed by the relevant regulatory body is provided. 34 The Rio de Janeiro Low Carbon City Development Program A.4.3. METHODOLOGY ASSESSMENT CHECKLIST The Methodology Assessment Checklist to be completed by the TAE and/or the MWG, as well as the VVE, to approve new methodologies for use under the Program. Methodology Assessment Criteria Confirmation 1. The methodology upholds principles of integrity and avoids politically and Yes/No ethically contentious issues. 2. The methodology states applicability conditions specific to intervention type. Yes/No 3. The methodology has an appropriate definition of the intervention’s physical Yes/No boundary. 4. The methodology has an appropriate procedure for determining the baseline Yes/No scenario. 5. The methodology states an appropriate method for calculating the baseline and Yes/No intervention emissions. 6. The methodology has an adequate monitoring methodology, data and Yes/No parameters, as well as precision requirements. 7. The methodology specifies how to address relationships to methodologies Yes/No already in use by interventions under the Program. A.4.4. RETIRE OR SELL DECISION CHECKLIST The Retire or Sell Decision Checklist to be completed by the CME during the “Decide to Retire of Sell ERs� stage. Retire or Sell Decision Criteria Confirmation 1. The amount of ERs generated by the intervention that will be retired Yes/No and counted towards the City of Rio de Janeiro’s self-set ER target of (Specify the percentage 2,270 ktCO2e is specified. of ERs generated by the intervention that will be retired) 2. The amount of ERs generated by the intervention that will be sold is Yes/No specified. (Specify the percentage of ERs generated by the intervention that will be sold) 3. The sum of Criteria 1 and Criteria 2 is 100%, confirming that each unit Yes/No of ERs generated by the intervention has only ONE final destination: 1. It will be retired and counted towards the City of Rio de Janeiro’s self-set ER target of 2,270 ktCO2e; OR 2. It will be sold. 35 A.4.5. VALIDATION/VERIFICATION CHECKLIST The Validation/Verification Checklist to be completed by the VVE during the “Validation/Verification� stage. Validation/Verification Criteria Confirmation 1. The intervention complies with the PROGRAM ELIGIBILITY CRITERIA. Yes/No 2. The intervention complies with the EMISSION REDUCTION ASSESSMENT Yes/No CRITERIA. 3. The intervention complies with the RETIRE OR SELL DECISION CRITERIA. Yes/No 4. The intervention complies with all requirements of the chosen methodol- Yes/No ogy and will produce/is producing ERs as planned. 5. If the intervention seeks to generate carbon assets, such as CERs or VCUs, Yes/No it fulfills all the criteria imposed by the relevant regulatory body. A.5. INTERVENTION MRV PROCESS While the responsibilities and requirements of each role are fixed, the specific assignment of each Program Role may change over time. The current assignment of each role as of the date of this document is described in Figure A3. CASA CIVIL 4. Results and Compliance CASA CIVIL Reporting 1. Mandate to (intra-agency) Deliver Data Registry MUNICIPAL DEPARTMENTS … Issuance of Carbon Assets to the Registry 2. Data Delivery IPP VALIDATION/ VERIFICATION CRITERIA MRV System VVE 5. Veri�cation of ERs 3. Data Analysis Figure A3: The Intervention MRV Process stages and associated responsibilities, based on the assigned Program Roles described in Annex 1A. 36 The Rio de Janeiro Low Carbon City Development Program The MRV System, housed in IPP, will be the central 2) Periodic evaluation and adjustment of the data repository for the Program. The software Program, which will be assessed based on its system will be designed to include forms for performance and suitability to meet the needs documentation of each intervention in accordance of the Prefeitura. The Program may undergo with the documentation procedures. revision and adjustment, if needed. The criteria The registry will be the “bank account� of ERs to be assessed may include: produced by the Program. The registry helps • Scope ensure that no double counting of ERs. Each ER • Objectives will be uniquely tagged based on its asset class • Targets and have only one final destination: it will be retired or sold. The transactions of ERs will be tracked in • Relevance to evolving market conditions the Registry. and incentive instruments • Status of the Program Implementation Plan A.6. PROGRAM EVALUATION Program Evaluation will occur every year at To complement the planning process, the Program first, with the understanding that periodicity will undergo two tracks of periodic evaluation: and assessment criteria are subject to change 1) Ongoing evaluation of the Intervention as needed to meet the planning needs of the Feasibility Assessment, which will be updated Prefeitura. every 6 months at first, with the understanding Individual interventions will follow the evaluation that this is subject to change as needed to procedures required by all municipal activities meet the planning needs of the Prefeitura. (i.e., those applicable to the 2016 Strategic Plan, described in Section 1.2). 37