National Climate Change (Climate Change Mechanisms) Regulations

These Regulations may be cited as the National Climate Change (Climate Change Mechanisms) Regulations 2025.

In these Regulations, unless the context otherwise requires- "Act" means the National Climate Change Act; "Agreement" means the Paris Agreement, 2015 set out in Schedule 4 to the Act; "certified emissions reduction units" means quantified greenhouse gas emission reduction or removal from the atmosphere arising from implementing a climate change mechanism project certified by the following Standards- (a) the United Nations Framework Convention on Climate Change Carbon Markets Certification Standards; (b) Gold Standard;

A certificate of registration of a verifier issued under these Regulations shall be valid for the period specified in the proof of accreditation referred to in regulation 4(2) (a).

A verifier seeking to renew a certificate of registration shall apply to the Commissioner in Form 1 set out in Schedule 2 to these Regulations.

mechanisms (1) The Minister shall consider a request to participate in a climate change mechanism within twenty-one working days from the date of receipt of the request.

Where the Minister refuses to grant a letter of no objection, he or she shall inform the applicant in writing, stating the reasons for the refusal

these Regulations is valid for a period of twenty-four months from the date of issue

The Minister may cancel a letter of no objection where a project proponent (a) submitted false information under regulation 9; or (b) uses the letter of no objection for purposes other than the carrying out of feasibility studies.

mechanism project (1) The Minister shall, upon receipt of an application for approval of a climate change mechanism project, consider the application within twenty-one working days from receipt.

a climate change mechanism project granted under regulation 19 shall be valid for the crediting period of the climate change mechanism

mechanism (1) A project proponent shall submit a progress report on the project to the Commissioner in accordance with the reporting cycle specified in the project design document.

The Minister may cancel the approval for a climate change mechanism project for the following reasons (a) failure to commence the project activities within twelve months; (b) non-compliance with the conditions of the approval; (c) obtaining approval through misrepresentation or fraud;

these Regulations shall not be transferable

The project proponent shall, upon receipt of the certificate of certified emissions reduction units referred to in regulation 31, lodge the certificate with the Ministry for purposes of entry into the register

The project proponent shall use the certified emissions reduction units for the purpose stated in the project design document referred to in regulation 17 and for the approval of a climate change mechanism

reduction units (1) A project proponent who wishes to transfer certified emissions reduction units shall within thirty working days before the transfer, notify the Minister in writing- (a) stating whether the transfer is a domestic or international transaction; (b) attaching proof of registration of the certified emission reductions; (c) indicating the particulars of the person or country to whom the transfer is being made; (d) stating the intended use of the verified emissions reduction units by the transferee; and (e) indicating the amount of verified emissions reduction units being transferred.

reduction units (1) A project proponent who transfers certified emissions reduction units to another person within Uganda shall, within fourteen working days of the transfer, submit a report to the Minister in Form 14 set out in Schedule 2 to these Regulations.

emissions reduction units (1) A project proponent who wishes to carry out an international transfer of verified emissions reduction units shall apply for authorisation from the Minister in Form 15 set out in Schedule 2 to these Regulations. (2) The application referred to in subregulation (1) shall state- (a) proof of ownership of the emissions reduction units; (b) proof of registration of the verified emissions reduction units; (c) the particulars of the person or country to whom the transfer is being made; (d) the intended use of the verified emissions reduction units of the transferee; (e) the amount of verified emissions reduction units being transferred; and (f) evidence of payment of the prescribed fee. (3) The Minister shall consider the application within thirty working days from the date of receipt. (4) Where the Minister is satisfied with the information in the application he or she shall issue a letter of authorisation in Form 16 set out in Schedule 2 to these Regulations.

under regulation 35 shall be valid only for the transfer for which it was sought

The Minister may cancel an authorisation before the use of the verified emissions reduction units where (a) the holder of the authorisation contravenes any provision of the Act; (b) the holder of the authorisation fails to comply with the conditions stipulated under the Authorisation; (c) the Minister considers it to be in the interest of the environment or in the public interest to cancel the Authorisation; or (d) the holder submitted false information or misrepresentation in the application.

for the purpose of meeting National Determined Contributions commitments of another country and other international mitigation purposes, including Carbon Offsetting and Reduction Schemes for International Aviation shall attract a corresponding adjustment fee specified in Schedule 3 to these Regulations

A project proponent shall, before making any planned changes to a climate change mechanism project, notify the Minister in Form 17 set out in schedule 2 to these Regulations of the intended change, not less than sixty working days before the effective date of the change

Every person shall have a right to access any information in the register, subject to the Constitution and the Access to Information Act

these Regulations shall remain valid until the 31st day of December, SCHEDULE 1 Regulation 2

CURRENCY POINT

A currency point is equivalent to twenty thousand shillings.

SCHEDULE 2 FORMS Regulations 4(1) and 8 APPLICATION FOR REGISTRATION OF VERIFIER New application Renewal of certificate

1.1 Name of entity

1.2 Country of operation

1.3 Business areas

1.4 Business address

2.1 Business registration number 2.2 Business Certification of registration/incorporation Documentation Attachments Tax clearance certificate

3.1 Name of key contact person

3.2 Position of key contact person 3.3 Phone number of key contact person 3.4 Email address of key contact person

I declare that the information provided in this form represents the formal application to the Commissioner for consideration for registration as a Climate Change Mechanism Project Verifier in Uganda and that the information I have provided is true and complete to the best of my knowledge.

Submitted by:

Full name: ______________________________________________

Signature: _______________________________________________

Designation: _____________________________________________

Submission date: _________________________________________

Regulation 5(1) CERTIFICATE OF REGISTRATION OF VERIFIER

Name of verification entity: ……………………….……………....…

Contact person of verification entity …………………………………

Accreditation body of verification entity ………………………….…

Sector/sub-sector/technology of accredited verification entity………. ………………………….……………………….…….…….……...…

Sector/sub-sector/technology certified to validate or verify climate change mechanism project in Uganda Renewable energy Transport Forestry Sustainable cooking Waste management Industry Electricity and heat production Others [Specify…………………………………………..…]

Validity period: Issued from …………………. to…………...………

Issued by: Commissioner……………………………………………

Signature of Commissioner………………………………………….

Date of issue ………………………………………………………

Seal or stamp

Regulation 9(1) REQUEST TO PARTICIPATE IN CLIMATE CHANGE MECHANISM

Submitted by ………....................……………………………………

Regulation 9(3) (a) PROJECT IDEA NOTE

Section A (For official use only)

A1 Date of submission …………………………................................…

A2 Project Idea Note file number…………………………….............… Section B (To be completed by the Project Proponent)

B1 Name of project proponent Sector(s) in Agriculture, Forestry and other land use which mitigation (AFOLU) activity is to be undertaken: Energy

Transport Waste

Industrial processes and products use Targeted Article 6.2 Climate Change Mechanism Article 6.4 Voluntary Carbon Market

Location of interest (District, subcounty)

B2 Summary of proposed mitigation activity

B3 Introduction (Provide information on the following: Brief description on the project proponent; proponent's legal status including country of registration; proponent's expertise and experience in the subject area; also provide information related to the project developer. Provide information on work already undertaken in relation to the project outlined in this PIN document including interactions with government agencies or local authorities.) (Max 500 words) B4 Objectives (Outline the objective(s) of the proposed project) (Max 300 words)

B5 Description of mitigation activity, technology and approximate greenhouse gas emissions reduction or removal (Outline the mitigation activity and the proposed approach to activity implementation. Include lifespan of the project, estimated crediting period and permanence period. Provide a description of the proposed mitigation technology including how it abates greenhouse gas emissions and why it is most appropriate for the proposed area, entity or activity. Provide an estimate of the greenhouse gas abatement potential in tonnes of CO2eq.) (Max 1500 words)

B6 Linkage with Uganda's Nationally Determined Contribution, Low Emission Development Strategy, National Climate Policy and relevant sector policies (Provide a description of how the intended project supports the implementation of Uganda's Nationally Determined Contribution, the Low Emission Development Strategy. (Max 500 words)

B7 Contribution to Sustainable Development (Indicate the proposed project's envisaged contribution to social, environmental and economic sustainability using the sustainable development. (Max 500 words)

B8 Proposed project governance and financial arrangements

(Provide information on the proposed governance structure for the project and how it links with existing structures in the sector, shareholding structure, partnerships, and financial arrangements) (Max 500 words)

B9 Work plan towards the submission of the Project Design Document

(Briefly outline the proposed activities, timeframe and milestones towards the submission of a Project Design Document to the Authority. (Max 1000 words)

B10 Measures to ensure stakeholder engagement, public participation, awareness and prior informed consent. (Outline proposed engagement and feedback methods. Also state the proposed principal government department or agency that will be part of the stakeholder engagement, public participation, awareness and prior informed consent activities) (Max 500 words) B11 Documentation indicating adherence to Registration registration. information (Tick the boxes for documents provided and attach relevant documents as evidence) Tax Clearance Agreement between local and international partner Other (Please specify) Information on project proponent Name of project proponent: Name of project proponent representative: Date: Signature: Email address: Telephone number:

Note: For sections B 3 - B11 attach the requirements and mark them as annexures.

Regulation 11 LETTER OF NO OBJECTION

The Ministry acknowledges receipt of Project Idea Note on ___________________ [name of project] being developed by __________________________ [name of project proponent] and located at _______________in Uganda for the period ________________.

The ______________ [name of project] seeks to create emission reduction units under these Regulations from ____________________.

This Letter of No Objection is NOT the same as an approval of the Climate Change Mechanism Project for the ___________________ [name of project] and thus ____________________[name of project proponent] may proceed to prepare the Project Design Document (PDD) for the ___________________ [name of project] accordance with the project development steps prescribed in the Regulations.

Note that in developing the PDD for the __________________ [name of the project], you will be required to show evidence of your engagement with key stakeholders.

You may contact the Ministry on _____________________ [email and phone number] for any further explanations.

_______________________________________________________ Minister, Ministry of Water and Environment

Regulation 15(1) NOTIFICATION OF PROGRESS FORM

1.1 Name of Project Proponent

1.2 Contact of Proponent

1.3 Business address

1.4 Letter of No Objection Reference Number

2.1 Title of Project

2.2 Description of Project

2.2 Location of Project

2.3 Project category

3.1 Activities Status (Initiated, carried out or completed)

I hereby declare that the information provided for notification of progress to the Minister is true and complete to the best of my knowledge.

Submitted by;

Full aame:…………………………………………….

Designation:……………………………………………

Signature:………………………………………………

Submission date:………………………………………

Regulation 17 APPLICATION FOR APPROVAL CLIMATE CHANGE MECHANISMS PROJECT APPROVAL

B. Methodology Discuss against the scenario the emissions reduction of the project will be credited. Baseline for determination of emissions reduction (a) Autonomous development ("business as usual"): Describe the emissions scenario in the absence of the project under autonomous development. Use conservative assumptions to project technology diffusion. (b) Effect of existing and/or planned policies and measures in line with the National Determined Contributions: Complement the above considerations on autonomous development with the expected effect of existing and/or planned policies and measures for National Determined Contributions implementation. Consider the timeline for policy implementation and use conservative assumptions to not underestimate their effect.

D. Preventing Double Claiming of Finance (Declare the potential overlaps and interactions over time with climate finance, governmental support and other sources of finance attributed to emissions reduction).

(Describe how the activity is promoting sustainable development. The following aspects shall be addressed- (a) Consistency with the SDG priorities of the transferring country. (b) Compliance with environmental and social requirements and standards as framed in applicable policies and frameworks of the transferring country. (c) Respect for human rights. (d) Avoidance of corruption and bad governance. (e) Indicators of sustainable development.

E. Determination, monitoring, and reporting of mitigation outcomes Describe the detailed procedures for determining the mitigation outcomes for which ITMOs shall be created. Describe how the mitigation outcomes will be monitored and reported. (a) Quantification of mitigation outcomes: Describe how the emission reductions are determined relative to the crediting baseline. List the parameters defined ex-ante as well as those measured. Provide reference if a known methodology is used per international standards. (b) Carbon Leakage: Discuss, if appropriate, the avoidance of carbon leakage and the permanence of emissions reduction achieved. (c) Data acquisition: Describe the acquisition of data used to calculate emissions reduction units. F. Institutional Arrangement Project Implementation Arrangement (a) Describe the governance structure of the project, including roles and responsibilities, management structures, and operational processes. Describe the lead institutions and participants involved in the Project. (b) State names and roles of key participants and their designated representatives concerning the revision of this PDD, etc.

Regulation 18 BENEFITS-SHARING PLAN (1) Description of project ……………………………………………………………..………… ………………………………………………………………..………

Regulation 19(2) SUSTAINABLE DEVELOPMENT CRITERIA

The criterion comprises environmental, social, economic, and technological elements and monitoring indicators. The elements are subdivided into sub-elements. Project proponents are expected to provide baselines for each sub-element and a monitoring plan Aspect Criteria Maximum Score Certificate of approval of the Environmental Social Impact Assessment (ESIA) by the National Environment Management Authority Environmental (NEMA) where applicable (If not applicable present a letter of exemption from NEMA).

A. Social 40

to essential social services for example; energy, safe water 10 and hygiene, communication, health, education, and clean air, among others. Social 2. Community engagement and participation in project 7 implementation, monitoring, and evaluation

5 of disadvantaged groups.

applicable. 3

B. Economic 35

generation 8

generation of foreign exchange. 7

production of marketable goods 6 Economic and services

accruing from project activities 5

demand for services 5

of development to address area 4 imbalances in development. C. Technology 25

technologies 10

Technology software) 7

local community. 4

Total Score 100

Regulation 20(1) APPROVAL OF CLIMATE CHANGE MECHANISM PROJECT

Date of issue: ……………. Approval No: ……………. Name of project proponent: ………………………………………… Name of project: …………………………………….……………… Address: …………………………………………….......……………

You are hereby approved to carry out ……………………… [name of project] in …………………… [location], Uganda.

This approval is valid from …………20…………to…………20…… Conditions: (a) This Approval is NOT THE SAME as the Letter of Authorisation, which is required before the international transfer of emissions reduction units for use towards the nationally determined contribution of an acquiring entity or for international mitigation purposes or overall mitigation of global emissions or mitigation contribution claims. (b) All emissions reduction units generated from the project implementation that will be authorised for international transfer shall be used within the implementation period of Uganda's nationally determined contribution. (c) The implementation of the project shall comply with the required environmental integrity, sustainable development, monitoring and safeguarding (safety, social and environmental) requirements in the PDD and validation report. (d) Submission of annual monitoring reports to the Department on the progress of implementation and achievement of the project.

__________________________ MINISTER OF WATER AND ENVIRONMENT

Regulation 24 PROJECT PROGRESS REPORT

number of Project

PDD is applicable to this monitoring report.

monitoring report

monitoring report

period

party

party

emissions reduction or achieved achieved achieved net anthropogenic GHG before from from removals achieved by the period 1 period 1 period 2 mitigation activity in this monitoring period.

emissions reduction or net anthropogenic GHG removals estimated for this monitoring period in the PDD.

Date:……………………………………..

Contact person:…………………………

Signature:………………………………

Regulation 26 NOTIFICATION OF VOLUNTARY CANCELLATION OF PROJECT

………………………………………………………………………

Submitted by ……………………………………… Regulation 36(1) REPORT OF DOMESTIC TRANSFER OF VERIFIED EMISSIONS REDUCTION UNITS

Regulation 37(1) REQUEST FOR AUTHORISATION OF INTERNATIONAL TRANSFER OF VERIFIED EMISSIONS REDUCTION UNITS

Attachments Proof of ownership; Proof of registration of the verified emissions reduction units; To whom the transfer is being made; Intended use of the verified emissions reduction units by the transferee; Amount of verified emissions reduction units being transferred; Evidence of payment of prescribed fee.

Submitted by ………………………………………………………….

Regulation 37(4) AUTHORISATION FOR TRANSFER OF CERTIFIED EMISSIONS REDUCTION UNITS FOR INTERNATIONAL TRANSFER

Date of issue of authorisation……… Authorisation No. ………………….. Name of project proponent :…………………………………………… Name of project: ……………………………………………………… Address: ……………………………………………………………… You are hereby authorised to transfer ………………. (amount of emissions reduction units) to ……………………. I wish to confirm the following:

21st September 2016 and submitted its latest National Determined Contributions to the National Determined Contributions registry in accordance with Article 4, paragraph 12 of the Paris Agreement on 12th September, 2022

is referred to in Article 6, paragraph 2, of the Paris Agreement on a voluntary basis

defined per the guidance on cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement (Decision 2/CMA.3) with the following

the Government of Uganda commits to apply corresponding adjustments consistently with the guidance on cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement (Decision 2/CMA.3) and relevant future decisions of the CMA, in a transparent, accurate, complete, comparable and consistent manner

there are an unforeseeable circumstance that prevents Uganda or the project proponent or participating acquiring Party from fulfilling the terms and condition of the letter

the crediting period, this letter may be modified through an addendum to the original letter to allow upscaling the scope and target of the project _______________________________________________ MINISTER OF WATER AND ENVIRONMENT

Regulation 41 NOTIFICATION OF CHANGE IN PROJECT INFORMATION

Indicate change in the following project information.

Type of project Existing details New or updated information details

Submitted by: ……………………………. Name of project proponent:……………………………………….

SCHEDULE 3 Regulations 4(2)(b),9(3) and 37(5) FEES

Fee Type Category Fees (UGX)

approval of climate change mechanism

Adjustment (CA) fee ITMO (CA fee/ ITMO)

verifier

Register

SAM MANGUSHO CHEPTORIS, Minister of Water and Environment.