JCM_PW_GL_TPE_ver012.0

Joint Crediting Mechanism Guidelines for Designation as a Third-Party Entity
CONTENTS
1.

Objectives ............................................................................................................................ 32

2.

Scope and applicability ....................................................................................................... 32

3.

Normative references .......................................................................................................... 32

4.

Terms and definitions .......................................................................................................... 32

5.

Designation as a TPE .......................................................................................................... 43

6.

5.1.

Requirements for designation as a TPE ....................................................................... 43

5.2.

Procedures for designation as a TPE............................................................................ 43

Suspension, withdrawal and reinstatement of the designation ............................................ 54
6.1.

Conditions for suspension or withdrawal of designation ............................................. 54

6.2.

Procedures for suspension or withdrawal .................................................................... 64

6.2.1.

Procedures for suspension or withdrawal following a review .............................. 64

6.2.2.

Procedures for suspension or withdrawal due to changes in the status of the TPE
regarding accreditation under ISO 14065 and/or accreditation/designation underthe CDM............................................................................................................... 64

6.2.3.

Procedures for voluntary withdrawal by a TPE.................................................... 75

6.3.

Procedures following suspension or withdrawal.......................................................... 76

6.4.

Procedures for reinstatement of designation ................................................................ 86

Annex 1: Sectoral Scopes for the JCM ..................................................................................... 107
Annex 2: Application form for designation as a TPE................................................................ 118
1.

Objectives .............................................................................................................................. 22.

Scope and applicability ......................................................................................................... 23.

Normative references ............................................................................................................ 24.

Terms and definitions ............................................................................................................ 2

5.

Requirements for designation as a TPE ................................................................................ 2
5.1.

General ........................................................................................................................... 3

5.2.

Competence.................................................................................................................... 3

6.

Procedure for designation as a TPE ...................................................................................... 3

7.

Suspension or withdrawal the designation as a TPE ............................................................. 4
7.1.

Conditions for suspension or withdrawal of designation as TPE................................... 4

7.2.

Procedures for suspension or withdrawal ...................................................................... 4

7.2.1.

Procedures for suspension or withdrawal following a review ................................ 4

7.2.2.

Procedures for suspension or withdrawal due to ceasing to meet the conditions

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described in paragraph 10 ..................................................................................................... 4
7.2.3.

Procedures following suspension or withdrawal .................................................... 5

7.3.

Voluntary withdrawal of a TPE ...................................................................................... 5

7.4.

Procedures for reinstatement for suspended or withdrawn TPE .................................... 6

Annex 1: Sectoral Scopes for the JCM ..................................................................................... 7
Annex 2: Application form for designation as a TPE................................................................ 82JCM_PW_GL_TPE_ver012.0

1. Objectives
1.

The objectives of the “Joint Crediting Mechanism Guidelines for designation as a
Third-Party Entity” (hereinafter referred to as “these Guidelines”) are as follows:(a) To establish the criteria and procedures for designation of third-party entities(hereinafter referred to as the “TPEs”), to perform validation and verification
activities under the Joint Crediting Mechanism (hereinafter referred to as “JCM”);
and(b) To establish the criteria and procedures for suspension and withdrawal of TPE
designation, and procedures for reinstatement of designation of a TPEs.

2. Scope and applicability2.

These Guidelines are applicable to candidate entities, TPEs, the Joint Committee and thesecretariat with respect to designation, suspension and withdrawal of TPEs.

3.

These Guidelines describe standards which are requirements to be met, except guidanceindicated with terms “should” and “may” as defined in paragraph 7 below.

3. Normative references
4.

The following referenced documents are indispensable for the application of theseGuidelines:(a) ISO 14065:200713

Greenhouse gases — Requirements for greenhouse gas

validation and verification bodies for use in accreditation or other forms ofrecognition; and(b) Clean Development Mechanism Accreditation Standard for Operational Entities.

4. Terms and definitions
5.

TPEs are entities designated by the Joint Committee as qualified to validate proposed JCM
projects as well asand/or verify GHG emission reductions or removals as a result ofregistered JCM projects.

6.

Candidate entities are entities which have applied to be designated by the Joint Committeeas TPEs.

7.

The following terms apply in these Guidelines:(a) “Should” is used to indicate that among several possibilities, one course of action isrecommended as particularly suitable; and(b) “May” is used to indicate what is permitted.

8.

Terms in these Guidelines are defined in JCM Glossary of Terms available on the JCM
website.

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5. Designation as a TPE
4.1.5.1. Requirements for designation as a TPE
9.

To be designated as a TPEs, a candidate entityies fulfills all requirements as listed
paragraphs 10 to and 111113 below.

10.9.
11. General
12.10.

To be eligible to become a TPE under the JCM, the cCandidate entities y isare either:(a)An eEntityies accredited under ISO 14065 by an accreditation body that is amember of the International Accreditation Forum (hereinafter referred to as “IAF”)
based on ISO 14064-2; or(b)A Designated Operational Entityies (hereinafter referred to as “DOEs”) designatedby the Conference of the Parties serving as the meeting of the Parties to the Kyoto
Protocol or operational entities accredited by the Executive Board under of theClean Development Mechanism (hereinafter referred to as “CDM”).

13. Candidate entities are designated to perform JCM validation or verification activities forwhich they are accredited or designated in line with paragraph 10, for the sectoral scopes
determined by the Joint Committee in line with paragraph 12. The sectoral scopes for theJCM are identical to those of the CDM, and are listed in Annex 1.
14. The sectoral scopes eligible for the candidate entities are determined as follows:(a)

Candidate entities which are accredited under ISO 14065 are eligible for the sectoral
scopes as determined by the Joint Committee taking into consideration their sectoralcompetence as described in their application.

(b)

Candidate entities which are DOEs are eligible for the sectoral scopes for which
they are designated as DOEs.

Competence
15. A TPECandidate entities have has sufficient knowledge of the JCM between the Republicof Palau and Japan by reading and knowing all applicable rules and guidelines of the JCM.
11.

4.2.5.2. Procedures for designation as a TPE
16.12.

Sectoral scopes under the JCM are described in Annex 1.

13. A Ccandidate entityies submits an the application form as shown in Annex 2 in these
Guidelines to the Joint Committee.
17.

The application form is as shown in Annex 2.

18.14.

The candidate entity clearly indicates all sectoral scopes it wishes to be designated in

the application form.When a TPE wishes to be designated under the JCM for additional
sectoral scopes in line with paragraph 12, the TPE submits an the application form and4

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seeks its designation for those sectoral scopes.
19.15.

The secretariat checks whether the application form is complete, and communicatesnotifies the result to the result to the candidate entity within seven (7) days after the receiptof the submission. If the submission is deemed incomplete, the secretariat notifies thecandidate entity of the reason.
20. When the application has beenis deemed completed, the Joint Committee determines
decides whether to designate the candidate entity as a TPE or reject the application.
16.
21.17.

When the Joint Committee designates the candidate entity, applicable sectoral scopes

under the JCM for such entity are decided on the basis of:(c)(a)

accreditation under ISO 14065, considering sectoral competence of thecandidate entities as described in their application; and(d)(b)designation/accreditation under the CDM, considering the sectoral scopes

identical to those under the CDM unless otherwise decided by the Joint Committee.
22. The secretariat notifies the result of the above decision to the candidate entity and makes
the relevant information of the designated TPE and the sectoral scopes publicly available
through the JCM website.
18.
23.19.

When the TPE changes its contact details, the TPE notifies the secretariat of suchchanges by electronic means immediately.

5.6. Suspension1, or withdrawal2 and reinstatement of the designation as a TPE
5.1.6.1. Conditions for suspension or withdrawal of designation as TPE
24.20.

The Joint Committee may suspend or withdraw the designation of a TPEis suspended

or withdrawn under the following conditions:(a) When the Joint Committee decides that performance of the TPE no longer complies
with under the applicable JCM is found to be not appropriate by rules and guidelines
following the review conducted by the Joint Committee;(b) When the status of the TPE has ceased to meet the conditions described in paragraph10changesregardingaccreditation

underISO

14065

and/oraccreditation/designation under the CDM; or(c) When the TPE voluntarily withdraws its designation status under the JCM.
1An act of temporarily making the designation of TPE invalid for some or all sectoral scopes
under the JCM. A suspended TPE is no longer qualified to perform validation and/orverification activities for some or all sectoral scopes under the JCM.
2
A cancellation of designation of TPE for some or all sectoral scopes under the JCM. A
withdrawn TPE is no longer qualified to perform validation and/or verification activities for thecorresponding sectoral scopes under the JCM.

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25. When the Joint Committee suspends the designation of a TPE, the Joint Committee decides
on whether to totally or partially suspend the TPE.

5.2.6.2. Procedures for suspension or withdrawal
5.2.1.6.2.1.
Procedures for suspension or withdrawal following a review
26.21.

The Joint Committee may conduct a review ofn whether a TPE’s compliance

continues to comply with the applicable JCM rules and guidelines. Such review may
include on-site visits to evaluate the performance of a TPE. The Joint Committee may ask
decide to appoint external experts or organizations to conduct such activitieswhich assist
part of its work regarding the review.
27.22.

If the Joint Committee has carried out a review and found that the TPE no longer

complies with the applicable JCM rules and guidelines, the Joint Committee may decides
on whether to suspend or withdraw the designation of the TPE for some or all sectoral
scopes, but only after the TPE has had the opportunity of a hearing. The suspension and orwithdrawal takes immediately commences effect after on the date when the decision istaken by the Joint Committee.

5.2.2.6.2.2.
Procedures for suspension or withdrawal due to ceasing to meetthe conditions described in paragraph 10changes in the status of the TPE
regarding accreditation under ISO 14065 and/or accreditation/designation
under the CDM
28.23.

For a TPE accredited only under ISO 14065, when its accreditation under ISO 14065

is suspended or withdrawn for some or all sectoral scopes3, the designation of the TPE forthe corresponding sectoral scopes under the JCM is suspended or withdrawn withimmediate effecton the date such suspension or withdrawal commences.
29.24.

For a TPE designated only under the CDM, when the accreditation/designation issuspended or withdrawn for some or all sectoral scopes, the designation of the TPE for thecorresponding sectoral scopes under the JCM is suspended or withdrawn with immediate
effecton the date such suspension or withdrawal commences.
30.25.

For a TPE accredited or designated both under ISO14065 and designated under theCDM:(a) When the accreditation or designation for either programme accreditation under ISO
14065 or accreditation/designation under the CDM is suspended or withdrawn forsome or all sectoral scopes, the designation of the TPE for the corresponding
sectoral scopes under the JCM is suspended or withdrawn with immediate effect on
3"Withdrawal for some sectoral scopes" is described as "reducing scopes" under ISO 14065.

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the date such suspension or withdrawal commences unless otherwise except for thecases described in subparagraphs (b) and (c) below;(b) When either the TPE voluntarily withdraws the accreditation or designation for
either programme for some or all sectoral scopes under ISO 14065 or the TPE
voluntarily withdraws the accreditation for some or all sectoral scopes under theCDM, without having been being suspended, the designation of the TPE under theJCM is maintainsed for the corresponding sectoral scopes for which the TPE
continues its accreditation or designation under the JCMother programme; orand(c) When the accreditation or designation for either the TPE programme is voluntarilywithdrawns the accreditation for some or all sectoral scopes under ISO 14065 or theTPE voluntarily withdraws the accreditation for some or all sectoral scopes underthe CDM, following its which is currently under suspension, the designation of theTPE for the corresponding sectoral scopes under the JCM is suspended until theJoint Committee decides on whether to withdrawal or continued reinstate thedesignation of such TPE.
31.26.

In case when the status of the TPE falls under the conditions described in paragraphs

232322 to 252524 above, the TPE notifies the Joint Committee of such suspension orwithdrawalstatus

without delay.

6.2.3. Procedures for voluntary withdrawal by a TPE
27. A TPE may withdraw its designation status for some or all sectoral scopes by submitting
the letter through electric means specified on the JCM website, to the Joint Committee
indicating the following:(a) Name of the TPE with the signature of its authorized representative;(b) Sectoral scopes that the TPE wishes to withdraw;(c) Date when the TPE wishes to withdraw its designation; and(d) Reasons for voluntary withdrawal.
28. Voluntary withdrawal of the designation by a TPE for some or all sectoral scopes iseffective on the same date indicated in line with paragraph 6.2.327(c) above.
29. Voluntary withdrawal of the designation by a TPE does not free the TPE from its
contractual arrangement, including costs related to assessment conducted before
withdrawal of designation of the TPE.

5.3.6.3. Procedures following suspension or withdrawal
32.30.

When the Joint Committee decides to suspend or withdraw the designation of a TPE is7

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suspended or withdrawn for some or all sectoral scopes, the Joint Committee makes thename of the TPE, its status regarding sectoral scopes suspended or withdrawn TPE and thereasons for its the suspension or withdrawal publicly available through the JCM website
within three (3) daysout delay.
33. When the designation of a TPE is suspended or withdrawn for some or all sectoral scopes,
the TPE notifies all affected organizations including project participants which the TPE isunder contract to perform JCM validation and/or verification activities at by the time ofsuspension or withdrawal.
34.31.

When a TPE is suspended, the TPE may continue its ongoing JCM validation and/orverification activities for which the contract was in force at the time of its suspension.
35.32.

When the designation of a TPE has been is suspended or withdrawn for some or allsectoral scopes, the TPE does not continue any JCM validation and/or verification activities
for the sectoral scopes suspended or withdrawn.
36.33.

Projects which had been already validated or verified by the TPE at the time of are notaffected by its suspension or withdrawal are not affected by the suspension or withdrawalof the TPE. H, however, the Joint Committee may conduct any actions to these projects.

5.4. Voluntary withdrawal of a TPE
37. A TPE may withdraw its application for designation or its designation status by submittinga request to the Joint Committee.
38. The TPE informs, if applicable, any affected organizations of the withdrawal of its
application for designation or its designation status.
39. Voluntary withdrawal of designation by a TPE does not free the TPE from its contractual
arrangement with its clients or with the secretariat, including costs related to assessment
conducted before withdrawal of designation of the TPE.
40. When a TPE has withdrawn, the TPE does not continue any JCM validation and/or
verification activities.

5.5.6.4. Procedures for reinstatement for suspended or withdrawn TPE ofdesignation
41. The procedure for reinstatement for suspended TPE is as follows.
42.34.

When a TPE whose designation is suspended or withdrawn for some or all sectoral

scopes in line with paragraph 20(a) above following the review of the Joint Committee
wishes its designation to be reinstated under the JCM, the TPE submits an the application
form and, documents which explain corrective actions for to address the causes of its
suspension or withdrawal, and a plan of corrective actions to the Joint Committee. The
Joint Committee decides whether to reinstate the TPE based on the submitted documents.
35. When a TPE whose designation is suspended or withdrawn for some or all sectoral scopes8

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in line with paragraph 20(b) abovesince it ceased to meet the conditions described inparagraph 10 has once again met the conditions, the TPE wishinges its designation

to bereinstated after the suspension is lifted or the accreditation is reinstated under ISO 14065
and/or the CDM, under the JCM the TPE submits an the application form.
36. When a TPE whose designation is voluntarily withdrawn in line with paragraph 20(c)above wishes its designation to be reinstated, the entity submits the application form.
43.37.

The Joint Committee decides on whether to reinstate the designation of the suspended

or withdrawn TPE based on the submitted documents, as well as other methods offact-finding, site visits, and/or the findings of experts, as appropriate in the discretion of theJoint Committee.
44.38.

When the designation a suspension of a TPE is removed reinstated, the secretariat

makes the name of the reinstated TPE and its reinstated sectoral scopes publicly available
through the JCM website without delay.
45. A TPE which has been withdrawn may re-apply in line with the procedure described inparagraphs 14 to 16.

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Annex 1: Sectoral Scopes for the JCM*The prioritized sectoral scopes for Palau are underlined
1.

Energy industries (renewable - / non-renewable sources)2.

Energy distribution

3.

Energy demand

4.

Manufacturing industries

5.

Chemical industry

6.

Construction

7.

Transport

8.

Mining/Mineral production

9.

Metal production

10. Fugitive emissions from fuels (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. Agriculture10

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Annex 2: Application form for designation as a TPE
Name of entity
Central officePhysical address
Postaladdress(ifdifferent from above)
Contact details
Telephone:
Mobile:Email:
Office in Japan, if applicable
Physical address
Postaladdress(ifdifferent from above)
Contact details
Telephone:
Mobile:Email:
Office in the host country, if applicable
Physical address
Postaladdress(ifdifferent from above)
Contact details
Telephone:
Mobile:Email:
Application Check as appropriate
condition
Accredited under ISO 14065 by an accreditation body that is a member of theInternational Accreditation Forum based on ISO 14064-2.
Sectoral scope(s)for validation
Sectoral scope(s)for verification
A Designated Operational Entity (DOE) or an operational entity accredited by theExecutive Board underof the Clean Development Mechanism (CDM).
Sectoral scope(s)for validation
Sectoral scope(s)for verification
Validation

Sectoralscope(s)forapplied for (Explanation
selecting the scope(s))
Verification(Explanationfor
selecting the scope(s))

Typeof Check as appropriate
application
Initial designation
Extension Addition of sectoral scopes11

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Reinstatement of designation
Voluntary withdrawal
I declare that the information given in this application is correct to the best of my knowledge and belief.
I conduct to inform the JCM secretariat immediately of any changes with respect to the application andaccept full responsibility for any costs incurred as a result of any changes not reported to the JCM
secretariat in accordance line with the procedures for accreditationdesignation.
On behalf of the entity, I declare that the all applicable JCM rules and guidelines are understood.
NamePosition (state position if other than CEO)
Date
Signature12