What is the Standardized Crediting Framework (SCF)

The Standardized Crediting Framework (SCF) provides an opportunity for developing country governments to set-up the structures and processes for engaging in Article 6 cooperative approaches and to test these through real projects and investments. Article 6 offers potential host countries the opportunity to unlock financial and technical support to raise ambition on climate change mitigation, reduce the costs of implementing their Nationally Determined Contributions (NDCs), and make progress towards the Sustainable Development Goals (SDGs). To access these opportunities, countries must operationalize Article 6 at the national level by setting up domestic policy and regulatory frameworks under which transfers of internationally transferred mitigation outcomes (ITMOs) can take place and build the capacity for tracking and reporting on such transfers. .  

SCF

1. OBJECTIVES

The main objectives of the SCF are to:

  • Enhance capacity to access carbon finance through Article 6 cooperative approaches,
  • Speed-up the establishment and testing of rules and procedures,
  • Simplify the carbon project activity cycle (for certain type of activities) to reduce transaction costs, and
  • Test simplified and robust cooperative approaches through real projects and investments[1].
2. BENEFITS OF THE SCF

The SCF offers potential host countries the opportunity to shape and test national eligibility rules, procedures, and governance schemes to be established for Article 6 cooperative approaches. The SCF does this while building capacity, reducing transaction costs, increasing access to sustainable energy, and informing the international negotiations through practical knowledge and expertise.

[1] Ci-Dev activities meet the conditions for Article 6 markets as they align with NDC targets, contribute to Sustainable Development Goals, and prioritize environmental integrity.

 

 

 

 

SCF

3. ABOUT CI-DEV

The Carbon Initiative for Development (Ci-Dev) is a fund that mobilizes resources for clean energy access programs in low-income countries and which uses the activity cycle of carbon market crediting for disbursement of results-based climate finance. Ci-Dev has developed the SCF as a simplified crediting framework for host countries to access carbon finance through Article 6 cooperative approaches. Through the World Bank, Ci-Dev is providing technical assistance to engage in the SCF and to test the approach through the payment of verified emission reductions under Ci-Dev-funded activities[2].

4. GOVERNANCE STRUCTURE OF THE SCF

The governance of the SCF in Rwanda has a structure composed of Governing Board (GB), Technical Committee (TC) and Administrator (Admin).

The SCF Project streamlined cycle has only 5 steps[3] namely: activity preparation, completeness check /listing, Monitoring, Verification and Issuance. Each step has a guiding document and templates to facilitate the process. For more details, see below the SCF Program Protocol and a template for each step. Guiding documents can be obtained from the administrator.

[2] Ci-Dev activities meet the conditions for Article 6 markets as they align with NDC targets, contribute to Sustainable Development Goals, and prioritize environmental integrity.

[3] Simplified compared to the classic Clean Development Mechanism. All approval happen at national level and some steps have been skipped.

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