Carbon credits are measurable and verifiable results of certified GHG reduction or removal projects under the national or international carbon program such as Mongolian Forest Carbon Program, Verified Carbon Standard by Verra, and Gold Standard etc.

GHG reduction or removal projects must follow a robust set of criteria, requirements, and science-based emissions calculation methodologies to pass the third-party validation and verification for generating high quality carbon credits.

Project types are dependent on the specific carbon program/standard. For instance, Mongolian Forest Carbon Program only accepts afforestation, reforestation and agroforestry projects.

In general, the international carbon standards enable projects to reduce or remove greenhouse gas (GHG emissions) from the atmosphere to generate carbon credits.

Examples of projects include renewable energy, energy efficiency technology, waste-to-energy, and nature-based solutions including reforestation, land restoration, sustainable land management etc.

There is no single price for carbon credits, but there are factors influence the price including:

• supply and demand
• size and location of a project
• technology used, and technology costs
• Impacts beyond GHG reduction, for example whether a project contributes to the SDGs, having impacts on livelihood of communities, empowering women etc.
• host country regulation

During this urgent time to mitigate global greenhouse gas (GHG) emissions and safeguard our planet and its most vulnerable ecosystems and communities, collective actions are called internationally. Thus, governments, private companies, and citizens all shall play significant roles in mitigating GHG emissions by buying carbon credits.

It is becoming unavoidable or almost natural for companies to address their GHG emissions while developing their climate strategies and net-zero transformation. Yet, it is commonly expected that no company could decarbonize their operations to zero emissions. That said, companies buy and use carbon credits to accelerate and achieve their decarbonization efforts.

There are three ways OLOLT Center involved in the carbon market.

• Advising on accessing the international carbon market, preparing project design documentations under the leading international carbon standards - such as Verra and Gold Standard.
• Enabling afforestation, reforestation and agroforestry activities to generate national carbon credits via Mongolian Forest Carbon Program. For more information visit here.
• Through our networks, we connect carbon projects with organizations, individuals seeking to reduce their carbon footprint.

Effective governance to ensure professionalism, accountability, continuous improvement, and the quality of carbon credits.

The greenhouse gas (GHG) emission reductions or removals from the projects shall be additional, i.e., they would not have occurred in the absence of the forest carbon projects.

Ensure long-term impact of GHG reduction and removals by addressing risks.

Provide equal opportunity for stakeholders.

Ensure that the activities do not cause environmental and social harm.

Enable transparent and robust registration, issuance, and tracking system for project activities and carbon credits.

Employ scientifically-sound, based on conservative approaches, forest carbon measurement methodologies that enable consistent measurement of carbon uptake in trees and forest area.

Enable robust independent third-party validation and verification of project activities, and emissions reduction/removal.

Ensure there is no double issuance and double use of issued carbon credits, and no double claiming by users, as well ensure no double registering a project in any other voluntary or compliance carbon standard's program.

• Planting shall not started yet
• Planting area shall not meet the definition of forest in last 10 years before the project start date
• Planting area shall not be an organic soil
• Shall demonstrate the ownership of forest carbon credits
• Shall demonstrate the project is additional:
  • the project goes beyond legal obligations and current practices.
  • there are no financial double/benefits associated with the project.

A project shall consult and integrate feedback from stakeholders or individuals, groups, or institutions that have a stake or an interest in the project activity – that may be affected by it, or they may have an interest in it and be in a position to influence its outcomes – such as local people, communities, civil society organizations, private businesses, NGOs etc.

A project shall indicate clear roles and responsibilities of parties as well as describe the dispute resolution and stakeholder engagement mechanisms.

A project shall indicate clear roles and responsibilities of parties as well as describe the dispute resolution and stakeholder engagement mechanisms.

A project shall briefly analyze the long-term risks, and commit to buffer credit agreements.

A project shall declare no environmental and social harms

In a case of early termination of a project, the compensation requirement shall be imposed on the carbon credit owners.

Ex-ante and ex-post calculations shall be conducted in accordance with the Methodology for Afforestation, Reforestation, Agroforestry (ARA) GHG emission reduction and sequestration in Mongolia (V.01).

Ex-ante assessment will be based on assumptions and project plans, whereas ex-post assessments will be based on the measured and monitored parameters of permanent sampling plots within the project area as per the methodology instructs.

Assessing the carbon sequestration of a project, experts from the OLOLT Center will support the project proponents.

Validation and verification are overseen by independent third-party auditors as endorsed by the Technical Committee of MFCP.

Third-party auditors ensure the ARA projects comply with MFCS requirements, including GHG removal estimates.

• Validation occurs post-submission of the PDT and supporting documentation, preceding project registration.
• Verification involves confirming project outcomes, including GHG removals, based on submitted monitoring reports.
  • Verification occurs within 5-8 years after the project start date and subsequently every 5 years before credit issuance.

One carbon credit represents the sequestration of one tonne of carbon dioxide equivalent (tCO2e).

Two types of carbon credits are issued upon the request of the project proponent:

· Pending Forest Carbon Credit and

· Verified Forest Carbon Credit.

• Forest professional enterprises
• Mining companies committed to Billion Tree Campaign
• Companies supporting sustainable development and climate actions,
• Individuals and forest user groups those planting trees
• Companies and organizations interested in claiming carbon neutrality of an activity, product, and service
• Investors and financing entities
• Developers of climate change and development projects
• State and local governmental institutions etc.

• If your project meets the eligibility criteria, then you should submit your registration request via contact@cccmdc.mn. Thereafter, our team will guide you throughout the process.
• Once agreed on our general terms and conditions , a registration account will be opened in the MFCP platform.
• Afterwards, project preparation starts as guidelines are provided in the platform.
• Fill out the project template in the platform.
• Submit the project template along with the supporting documents.