MOI’s Food Waste Segregation for Climate Action: National Food Waste Management for Local Administrative Organizations, Thailand Department of Local Administration, Ministry of Interior Waste Segregation for Climate Action
Chapter 1 Background and Significance of the Project - Background Information of Waste Management for Climate Action Project - Waste Management Policy of the Ministry of Interior - The Memorandum of Understanding on Greenhouse Gas Emission Reduction from the Compost bins for Climate Action of Local Administrative Organization - Guidelines on Making Compost Bin 1 3 4 6 Chapter 2 Research Methodology and Project Development - Principle of Greenhouse Gas Reduction from Food Waste - Data Collection Methods - Summary of Food Waste Generation Rate Represented the Whole Country - Provinces and Local Administrative Organization Participating in the Scheme - The Registration of the Project Under T-VER 8 9 11 12 15 Chapter 3 Data Collection of Compost Bin for Climate Action for Greenhouse Gas Verification - Data Collection of the Compost Bin 17 Chapter 4 The first Tranche of Greenhouse Gas Validation and Verification - Validation and Verification Process by VVB - MOI’s Internal Audit for Validation and Verification Process - Guidelines on Validation and Verification Process - Outcome of Validation and Verification Process in 4 Pilot Provinces - Thailand Greenhouse Gas Management Organization certified Greenhouse Gas Emission Reduction to Carbon Credit Markets 19 20 21 27 28 Table of Content
Chapter 5 Carbon Credits Trading Guidelines by MOI - Carbon Credits Trading Guidelines from Waste Management for Climate Action 30 Chapter 6 The First Waste-to-Carbon Credit Trading for Local Benefits - MOI's Success on Food Waste Management for Climate Action and a Commitment to Sustainable Thailand - The First Waste-to-Carbon Credit Trading between Local Administrative Organizations and Kasikorn Bank Thailand 38 42 Chapter 7 The Second Tranche of Greenhouse Gas Validation and Verification - The Second Tranche of Validation and Verification Process by VVB - Thailand Greenhouse Gas Management Committee Certified the Second Tranche of Greenhouse Gas Emission Reduction from the Project 48 63 Chapter 8 Prospective Greenhouse Gas Emission Reduction from the Project - Greenhouse Gas Emission Reduction (2022 – 2026) 68 Chapter 9 Critical Success Factors in Project Implementation by MOI - MOI’s Development Partnership for Climate Action Acceleration 71 Chapter 10 Critical Success Factors in Project Implementation by MOI - Critical Success Factors of the Compost Bin for Climate Action Project 77 Table of Content
Chapter 1 Background and Significance of the Project
Background Information of Waste Segregation for Climate Action Project 1 Global warming, caused by climate change, climate variability, and greenhouse gas emission, is an environmental problem that adversely affects the ecosystem and people’s livelihood of the present days. The development of human innovation, especially industrial development, has produced carbon dioxide (CO2 ) emissions into the atmosphere, which produces anthropogenic greenhouse gases. Industrial activities such as coal combustion, electricity generation as well as agricultural activities comprising of livestock farming and farming, also produce methane (CH4 ), one of the main contributors that causes greenhouse gas emission. Thailand, as a member of the United Nations, has strongly recognized the impacts of global warming. Thailand has enacted policy on climate change mitigation to address the problem of climate change. During the 26th United Nations Climate Change Conference 26th (COP26) in Glasgow, United Kingdom on November 1, 2021, General Prayuth Chan-ocha, Prime Minister of Thailand, gave a remark underscoring the utmost importance that Thailand recognizes the problems of climate change. Thailand’s prime minister expressed Thailand’s willingness to be more aggressive in addressing the climate change challenges in every way and every means possible, by “aiming at reaching carbon neutrality by 2050 and Net Zero GHG Emissions in or before 2065”.
MOI’s Commitment on Greenhouse Gas Emission Reduction MOI, accompanied by the governors of 76 provinces, has signed the Joint Statement of Commitment with the United Nations in Thailand on June 6, 2022, with the concept of "76 provinces, 76 commitments, This world for Us”. The commitments stress MOI’s commitment that we will strive to achieve the goal of greenhouse gas emission reduction, one of the sustainable development goals for all Thai people, our country and our one and only planet.The heart of our commitment is to ensure that we leave no one behind through the participation of all stakeholders to achievethe Sustainable Development Goals (SDGs) of the United Nations. “The governors of all provinces and all of the district chiefs of 878 districts have the same determination as good civil servants under His Majesty the King to help each other drive, push and respond to His Majesty's royal policy”. The governor, in other words, is the prime minister of their provinces. They can potentially act as the leaders to develop action plan and integrate all stakeholders to implement greenhouse gas emission reduction projects to save our planet. 2
3 Waste Segregation Policy of Ministry of Interior The Minister of Interior has formulated the "Separation Prior to Disposal" campaign to encourage every relevant sector; public, private and civil sectors to participate in the waste management at the origin, midway and destination aligning with academic principles. Those plans are implemented by provinces, districts, LAOs, villages/ communities and people in every household. Therefore, MOI has formulated "Clean Province“ action plan 2019 in accordance with the civil state approach in order to mobilize and solve municipal waste issues continuously and in line with the National Waste Management Maser Plan (2016 – 2021). MOI provided implementation guidelines to provinces, districts, local administrative organizations, villages , communities and all households. The implementation of the Compost Bin for climate action was kicked off from the governors’ houses, then expanded to all government facilities. Department of Local Administration (DLA) carries on this approach to academic institutes, schools, early childhood centers, community learning centers, as well as the residences of LAOs’ executives, councilors and officials, subdistrict and village headmen, community leaders, and people. Hence, organic waste or household waste is separated and used to produce the fertilizer for plantation. The goal is set for having compost bins installed in every household in all provinces.
4 The Memorandum of Understanding on greenhouse gas emission reduction from the compost bins for climate action of Local Administrative Organization In order to efficiently push forward the reduction of GHG emission through the household waste management, mobilize the LAOs implementation on waste management, and enhance the “Compost bin project, Global Warming Reduction”, the Memorandum of Understanding on driving the food waste separation to household compost bin among 4 organizations has been signed on January 29, 2019 by Mr. Suttipong Juljarern, General-Director of DLA, Professor Bundhit Eua-arporn, Ph.D., the President of Chulalongkorn University, Mrs. Prasertsuk Patoonsittichai, Executive Director of Greenhouse Gas Management Organization, Dr. Wandee Khunchornyakong Juljarern, President of the National Council of Women of Thailand under the Royal Patronage of Her Majesty the Queen.
5 During the initial project implementation, MOI has empower woman through DLA Women Club and NCWT as key component to drive the project. Dr. Wandee Khunchornyakong Juljarern, President of DLA Women Club; on behalf of volunteer network and the President of Provincial Thai Local Women Club, has emphasized on promoting the roles of women who are typically the responsible person in household’s waste management. The promotion on women roles consists of (1) separating waste- leftover or food waste from general waste, (2) being behavior change agents in the family, (3) raising awareness, (4) empowering local people to have recognition, understanding, and consciousness about waste reduction, and, (5) providing good healthiness and environment for themselves and their communities.
6 Guidelines on Making Compost Bin Waste Management for Climate Action Project is initiated by the Department of Local Administration, MOI, to encourage all households (except Bangkok) to install the compost bin to incentivize people to practice waste segregation at source, by separating compostable waste from other waste to prevent contamination. The project introduces new method by putting food waste that is left from meal preparation into the compost bins. Food waste will turn into fertilizer which can be used for growing vegetables in households. The compost bin for climate action can also contribute to greenhouse gas emission reduction. Waste Management for Climate Action Project has been implanted in household, child development centers and schools affiliated with local administrative organizations to encourage people to participate in waste segregation at source to reduce the amount of waste more effectively.
7 Steps for Making Compost Bin Close the lid to prevent animals from digging food waste and avoid unpleasant smell Recommendation After adding food waste, stir food waste by using spatula or stick every time to increase air for microbe to decompose. Prepare bins with lids and cut open the bottom of the bin Dig a hole that is 2/3 deep of the height of bin, put in the bin and then secure the side of the bin. The bottom of the bin should be approximately 30 cms. higher than bottom soil level. Take food waste that is left from the meal preparation to the installed compost bin, and close the lid. 1 3 4 2 When the quantity of food waste reaches the level of top soil, pull out the bin. Then, cover up with soil or sand for food waste to decompose into fertilizer. Dig another hole and place the same bin into this hole to create another food waste bin. 5
Chapter 2 Research Methodology and Project Development
8 Principle of Greenhouse Gas Reduction from Food Waste The solid waste landfill is a common methodology used for solid waste management. The method, however, inevitably produces methane, a greenhouse gas with a global warming potential (GWP) up to 25 times greater than carbon dioxide. Moreover, the potential of methane emission is based on soil acidification. The use of compactors and crushers emits carbon dioxide from fuel combustion. Thus, the process of making the compost bin for climate action generates fertilizer from food waste and can reduce greenhouse gas emissions. This method represents waste management at source which significantly reduces the amount of waste that goes into the system for landfill management. The Department of Local Administration has implemented The Compost Bin for Climate Action Project to reduce greenhouse gas emissions and incentivize people to practice waste segregation at source. The benefits of the project include (1) reducing contamination and unpleasant smell (2) reducing greenhouse gas emissions. Therefore, food waste management by the compost bin can reduce global warming by changing from airless decomposition to airless decomposing which potentially avoids methane emission, a greenhouse gas that contributes to global warming. Food Waste is managed by landfills Food Waste is managed By the compost bin
9 Data Collection Methods Department of Local Administration has considered the criteria for selecting LAOs as a sample to be the main target group by selecting from the LAOs that received the award from the Community waste management contest "Clean Province" in 2018. There are five provinces with outstanding achievements that participate in the organic waste data collection scheme, which are Lamphun Province, Lop Buri Province, Loei Province, Songkhla Province and, Yasothon Province. Overall , there are 3,592 households, 40 schools and, 80 child development centers that participate in the data collection scheme which could be summarized as follows: DLA has established Guidelines for community leaders / Subdistrict and village leaders with specification that there should be 30 households per village. It is advised that community leaders coordinate with the data collector (Local Environment Volunteers) to assign up the work in which one designated collector is responsible for collecting waste data from 30 households. DLA has also established Guidelines for data collectors before waste data collection by coordinating with community leaders / Subdistrict and village leaders to divide up the responsibilities in which one collector is responsible for collecting waste from 30 households.
10 Data collected for each household consists of the number of residents, names, average income, and consumption habits including meal consumption in each household, and the number of the compost bin. The LEV in each area that is responsible for researching the route, planning the direction to collect data from households in their responsible areas and making an agreement in daily data collection period with each household. During the collection process, LAV collect data form household in his or her area. LAV used needle scale to weigh a 20-liter tank without its lid to deduct the weight of the empty tank (first weighing) from the weight of the tank containing food waste (second weighing). Only do this in the first time so the weight of the 20-liter tank is known. Use a plastic basket to filter liquid from food scraps. Then take the food scraps that the household stored in their compost bin to weigh on the scales. Write down the collected information in the form provided by DLA as shown below.
11 Summary of Food Waste Generation Rate Represented the Whole Country The analysis and the discussion demonstrates the food waste generation rate which represents the entire population of the country from a variety of groups as follows. The food waste generation average rate before liquid separation at households is 0.382 kilogram/ person/ day, after liquid separation 0.252 kilogram/ person/ day. The food waste generation average rate before liquid separation at child development centers is 0.075 kilogram/person/day, after liquid separation is 0.052 kilogram/person/day. The food waste generation average rate before liquid separation at schools is 0.044 kilogram/person/day after liquid separation is 0.030 kilogram/person/day as shown in the table below. Data The waste generation rate before and after water separation (kilogram/person/day ) Before After Household 0.382 0.252 Child Development Center 0.075 0.052 School 0.044 0.030
12 Provinces and Local Administrative Organization participating in the scheme Site Visit for Project Monitoring, Lamphun Province ➢ Northern Region : Lamphun Province consists of U Mong Subdistrict Municipality, Mae Rang Municipality, and Ban Puang Subdistrict Administrative Organization. ➢ Northeastern Region : Loei Province consists of Chiang Klom Subdistrict Municipality, Pasamyod Subdistrict Administrative Organization. Yasothorn Province consists of Yasothorn Central Municipality ➢ Central Region : Lopburi Province consists of Potaladkeaw Subdistrict Municipality and Kongtanu Subdistrict Administrative Organization. ➢ Southern Region : Songkhla Province consists of Pawong Subdistrict Municipality and Rattapom Subdistrict Administrative Organization.
13 Site Visit for Project Monitoring, Loei Province Site Visit for Project Monitoring, Lop Buri Province
14 Site Visit for Project Monitoring, Songkhla Province Validation of the Project Department of Local Administration assigned Chiang Mai University to conduct the validation process of the project which includes 3 site visits as follows: 1) 8 th July 2019 : Lamphun Province consists of U Mong Subdistrict Municipality and Mae Rang Subdistrict Municipality 2) 9 th July 2019 : Department of Local Administration 3) 10th July 2019 : Lop Buri Province consists of Potaladkeaw Subdistrict Municipality and KongtanuSubdistrict Administrative Organization. Chiang Mai University has developed Validation Report in order to present to the subcommittee and the committee of TGO for project registration under Thailand Voluntary Emission Reduction Program (T-VER).
15 The Registration of the Project Under T-VER The project is registered under the Voluntary Greenhouse Gas Reduction Program in accordance with Thai Standard (Thailand Voluntary Emission Reduction Program – T-VER). On June 24, 2019, the subcommittee of TGO, approved the benchmark of waste generation collected by Department of Local Administration for further process of developing project development design document as follows. Development of Project Design Document: PDD DLA developed Project Design Document in accordance with TGO’s criteria, by using the certified number of waste generation (benchmark) for the calculation of greenhouse gas emissions. The Waste Management for Climate Action under the Department of Local Administration has been registered to participate in T-VER, by calculating the amount of carbon reduction of greenhouse gases according to T-VER-METH-WM-03 (Production of compost or soil amendments from organic waste) Version 06, and T-VER-TOOL-WASTE-01 (Calculation for Emissions from Solid Waste Disposal Sites): On August 5, 2019, the subcommittee of TGO approved the registration of The Compost Bin for Climate Action Project under T-VER with required documents as follows. (1) Project Design Document which indicates information of The Compost Bin for Climate Action Project, with the entire scope of the project, is expected to reduce greenhouse gas up to 492,212 tCO2 e per year, valid consecutively 7 years until 2026. (2) Validation Report (3) Co-benefits report Data The waste generation rate before and after water separation (kilogram/person/day ) Before After Household 0.382 0.252 Child Development Center 0.075 0.052 School 0.044 0.030
16 Developmental stages of organic waste
Chapter 3 Data Collection of Compost Bin to Climate Action for Greenhouse Gas Verification
17 Data Collection of the Compost Bin for Climate Action 1. Data collection of the Compost Bin for Climate Action at households, schools and child development center Department of Local Administration has developed "Waste Management Information System of Local Administrative Organization (DLA Waste System)" to record the number of households, children in child development centers and the number of students in schools under the administration of local administrative organizations. There are 4 steps in Data Collection process as follows: (1) Data Collection at Household level by local administrative organizations (Station 1) Local administrative organization officials collect data on the number of household members that installs the compost bin. The executives of local administrative organization verifies the recorded information and report to the district level. Data collection at household level is highly crucial in monitoring the number of households participating in the project accurately. (2) Data Collection at District Level (sub-district level information) (Station 2) Officers of Provincial Office for Local Administration are responsible for compiling and monitoring data of Local Administrative Organizations and report to provincial level. Registration of Household making the Compost Bin for Climate Action No Province District Local Administrative Organization Village Housing Number Household members Notes 1 A 2 A : : : : Total Registration of Household making the Compost Bin for Climate Action No Province District LAO Household members Notes 1 A 2 A Total
18 Data Collection of the Compost Bin for Climate Action (3) Data Collection at Provincial Level (sub-district level information) (Station 3) Officers of Provincial Office for Local Administration verify information and documents submitted by district level to report to Department of Local Administration. Example of reporting document is as follows: (4) Data Collection at Department of Local Administration (Station 4) Department of Local Government Promotion officials compile information submitted from provinces. After data verification process, the Department of Local Administration summarizes the greenhouse gas reduction from the local administrative organizations for further steps. Registration of household making the Compost Bin for Climate Action No Province District LAO Household members Notes 1 A 2 A Total
Chapter 4 Processes of Greenhouse Gas Validation and Verification
19 Validation and Verification Process by External Verifier (VVB) What is Validation and Verification Process? Validation and Verification Body (VVB) is a juristic person who has been registered by the Greenhouse Gas Management Organization to conduct the validation and verification process for greenhouse gas reduction projects in accordance with the criteria of the Voluntary Greenhouse Gas Reduction Program in Thailand (T-VER). The Validation and Verification Process is a verification process conducted by an external verifier to review, monitor and calculate the reduction of greenhouse gases, as well as monitor the impacts of the implementation of the Waste Management for Climate Action project. After the completion of verification process, the external verifier summit the report to the Subcommittee on Greenhouse Gas Reduction Projects to certify the amount of greenhouse gas emission reduction. Prior to the validation and verification process, the Department of Local Administration coordinated with relevant agencies to compile and verify the collected data and submit to external verifier. During the validation and verification process, VVB is required to visit designated areas to conduct the verification process of greenhouse gas reduction from the project. An external verifier verified relevant documents including survey data by LEV, monthly report of data recorded in DLA Waste IT System. Moreover, VVB investigates the compost bin of the target households and interviews household members to verify the usage of compost bins. In order to enforce the validation and verification process effectively, MOI emphasizes the capacity building process for relevant officers including data collectors, officers of Local Administrative Organization, District and Provincial Office for Local Administration to provide information and support to VVB.
20 MOI’s Internal Audit for Validation and Verification Process MOI has established an internal audit mechanism by requiring all districts to set up an operational team for the preparation of validation and verification process. Operational team, headed by Deputy District Chief, is responsible for an inspection of households installing the compost bins including monitoring the recording of household data by local administrative organization. The team is required to provide information and recommendation about the project as well as coordinate with local administrative organizations for the preparation of validation and verification process. The operational team can employ area-based mechanism by appointing village chief to encourage people to participate in the project together with publicized information through social media and public media in the district area. Provincial level Governors Provincial Sewage and Solid Waste Management Committee District level Chief District Officer District Sewage and Solid Waste Management Committee Operational Team Deputy District Chief Subdistrict level Chief of LAO LAO A Sewage and Solid Waste Management Committee LAO B LAO C LAO D Prepare a provincial action plan and inspect data of all districts and report to MOI. Prepare a district-level action plan and inspect data and report to province. Prepare an action plan at the subdistrict , survey the data, prepare the compost bin and fill in data into the DLA Waste system. Inspect households that installs the compost bins and report to district. Operational Team Deputy District Chief
21 Guidelines on Validation and Verification Process The timeline for validation and verification process in the 4 pilot provinces (Samut Kongkhram, Loei, Lamphun,Amnat Charoen) from the data collecting during July to September 2022 (three-month period) by an external verifier, "the Bureau Veritas Certification (Thailand)" is set as follows. The targeted household number for validation and verification process is 400 households. No Province Site visit for validation and Verification process Number of Households Local Administrative Organization Number of household for inspection 1 Samut Songkhram 19 Dec 2022 44,487 Kra Dan Nga SM 39 20 Dec 2022 Kwae Om SAO 2 Loei 21 Dec 2022 192,004 Tha Li SM 168 22 Dec 2022 Erawan Sm 22 Dec 2022 Phasamyod SM 23 Dec 2022 Nong Ya Plong SAO 23 Dec 2022 Na Pong SM 24 Dec 2022 Nam Suay SAO 3 Lamphun 25 Dec 2022 134,629 Ban Hong SM 118 26 Dec 2022 Mae Rang SM 26 Dec 2022 Vieng Nong Long SM 27 Dec 2022 Rimping SM 28 Dec 2022 Ta Pla Duk SM 28 Dec 2022 Sob Sao SAO 4 Amnat Charoen 28 Dec 2022 85,527 Puay SM 75 29 Dec 2022 Kam Phra SAO Total 456,647 400
22 An external verifier (VVB) is assigned to visit designated areas in pilot provinces to conduct the verification process of greenhouse gas reduction from the project. VVB verifies data recorded in DLA Waste and investigates the compost bins of the target households. VVB also interviews household member to verify the usage of the compost bins. LAOs DISTRICT PROVINCE VVB’s implementation 1. Investigates the compost bins of the target households 2. Interview household members to verify the usage of the compost bins 3. Verify required documents such as (1) DLA Waste Data and (2) Data Survey Report 4. Interview officers such as LEV, LAO’s officers and executives Interview relevant officers at district level - Verification process of recorded data such as number of population, households Interview relevant officers and executives at provincial level - Verification process of recorded data such as number of population, households Preparation for validation and verification process 1. Data Survey Report by LEV (Monthly Report) 2. DLA Waste Data (Monthly Report) 3. Application Form Report data verification process for VVB 1. Report data verification process for VVB 2. Application Form
23 The Validation and Verification Process in Samut Songkhram Province
24 The Validation and Verification Process in Lamphun Province
25 The Validation and Verification Process in Loei Province
26 The Validation and Verification Process in Amnat Charoen Province
27 Outcome of Validation and Verification Process in 4 Pilot Provinces The external verifier conducted the verification report demonstrating the finding of the site visit. Of 456,647 households, the verifier used “Taro Yamane” method to scope down the sampling size to 400 samplings. Overall, the external verifier inspected 538 households (166 households in Lamphun, 211 Households in Loei, 59 households in Samut Songkhram, 102 households in Amnat Charoen). The finding concludes that every household has installed the compost bin for climate action and used them regularly. (1) All households install and use the compost binregularly as indicated in Monitoring Report. The data of households installing the compost bin is correlated with household data recorded in Waste Management IT System (DLA Waste) without significant deviation data. (2) Project information and monitoring methodology carried out during project implementation period (1 July 2019 –30 September 2022) are relevant to information in Project Design Document. (3) The calculation of greenhouse gas reduction is correlated with research methodology and parameters indicated in Project Design Document. Summary of Greenhouse Gas Reduction in 4 pilot Provinces Baseline Sequestration Emission 5,485.78 tonco2 eq Project Sequestration Emission 2,344.90 tonco2 eq Leakage Emission - Carbon Emission Reduction 3,140 tonco2 eq Project Implementation period, prior to greenhouse gas verification 3 Years Greenhouse Gas Verification Period 3 Months
28 Verification of Greenhouse Gas Emission Reduction The verification of Greenhouse Gas Emission Reduction from the Project (1) The verification of Greenhouse Gas Emission Reduction by TGO’s Subcommittee On February 8, 2023, the verification of greenhouse gas (GHG) emission reduction of the project was approved by the subcommittee of TGO. The approval indicated that within the 3-month-period (1 July – 30 September 2022) verification of 4 provinces for overall 456,647 households. The amount of GHG emission reduction accounts for 3,140 tco2 eq. The subcommittee concluded that (1) Project implementation is relevant to related laws and regulations and T-VER’s project implantation guidelines; (2) The monitoring and evaluation process on greenhouse gas emission reduction is in line with Project Design Document; (3) The calculation of greenhouse gas emission reduction is correlated to Greenhouse Gas Emission Reduction Methodology; and (4) The project, under T-VER, was verified by external verifier. (2) The verification of Greenhouse Gas Emission Reduction by TGO On February 28, 2023, the verification of greenhouse gas (GHG) emission reduction of the project was approved by the committee of TGO, chaired by the Permanent Secretary for the Ministry of Natural Resources and Environment. The committee approved greenhouse gas emission reduction for 4 projects registered under T-VER, the amount of GHG emission reduction accounts for 173,807 tco2 eq. The Committee approved Greenhouse Gas Emission Reduction of “Waste Management for Climate Action” Project, Department of Local Administration. The amount of greenhouse gas emission reduction accounts for 3,140 tco2 eq.
29 Verification of Greenhouse Gas Emission Reduction
Chapter 5 Carbon credits Trading Guidelines By MOI
30 Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 1. Definition Carbon credit is a permit which allows a country or organization to produce a certain amount of carbon emissions and which can be traded if the full allowance is not used. Carbon credits applicable to this project is the amount of greenhouse gas emission reduction which is certified and recorded in carbon credit registration system. 2. Law/Regulations MOI has enacted the Notification on Solid Waste Management (No. 2) 2022 (B.E. 2565), which indicates that local administrative organization is capable of merchandising carbon credits that are derived from projects of waste segregation or any other projects related to waste management. However, carbon credits’ prices and merchandise period under the project should abide by rules and regulations without causing undue obligations. The Department of Local Administration informed the guidelines on the implementation of the Notification of the Ministry of Interior on Solid Waste Management (No. 2) 2022 B.E. 2565 by setting guidelines for the sale of carbon credits as follows 1) For carbon credit offerings, local administrative organizations can publicize public announcement or invite prospective buyers to check information recorded in Carbon Credit System of the Greenhouse Gas Management Organization (Public Organization). An agreement of carbon credit trading should be mutual in accordance with civil and commercial law. 2) For Carbon Credits Merchandising, rules and procedures of specific purchasing may be applied with price negotiation in accordance with The Government Procurement and Inventory Management Act 2017 (B.E. 2560). However, carbon credits’ prices and merchandise period under the project should abide by rules and regulations without causing undue obligations.
Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 31 3) Revenue incurred from carbon credits merchandising is regarded as income of local administrative organization. Local administrative organizations should abide by Regulations of Ministry of Interior on budget collection, deposits and inspection of Local Administrative Organization B.E.2547 and amendments. 3. Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 3.1 Trading Transactions Local administrative organizations can conduct transactions directly with buyers. It is vital that all evidence of purchasing such as quotation, invoice, transaction receipts, are presented during the transaction process. 3.2 Payment After the transaction has completed and both parties have mutually signed a carbon credit purchase agreement, the buyer must pay the carbon credit to the local administrative organization by transferring money to the bank account of the local administrative organization as notified by the local administrative organization. Buyers need to submit proof of payment to the local administrative organization to issue a receipt for buyers later.
32 Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 4. Carbon Credits Trading Guidelines (Bundle Purchase) 4.1 Trading Transactions In case of any local administrative organization has a small amount of carbon credits, or the buyer wishes to buy a large amount of carbon credits, it is recommended to adopt bundle carbon credits purchasing. The local administrative organization may assign one of the local administrative organizations or the Department of Local Government Promotion to conduct bundle carbon credit trading. The authorized local administrative organization should follow the transaction guideline (of single carbon credit trading) as per indicated in 3.1 4.2 Delegation of authorized local administrative organization for carbon credit transaction are categorized as follows: 1) All local administrative organizations mutually develop a memorandum of understanding to assign one of the local administrative organizations or the Department of Local Administration to conduct carbon credit transactions. 2) Each local administrative organization develops memorandum of understanding assigning one of the local administrative organizations or the Department of Local Government Promotion to conduct carbon credit trading transaction. In case of assigning the Department of Local Administration to conduct bundle purchasing, it is required that the local administrative organization sign the memorandum of agreement and submit to DLA for further procedures.
Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 33 4.3 Payment 4.3.1 In case of assigning one of the local administrative organizations to conduct carbon credit trading transactions, after receiving payment from buyers, the local administrative organization is required to issue a receipt to and remit income to authorized local administrative organization. Should there be any expenses incurred from the transaction, deduct income to be remitted to each local administrative organization. Each local administrative organization must then issue a transaction receipt to authorized local administrative organization. In this case, income paid to an authorized local administration is regarded as deposit. 4.3.2 In case of assigning Department of Local Administrative Organizations to conduct carbon credit trading transactions, the local administrative organization is required to appoint a committee to administer carbon credit purchasing. After receiving payment, DLA is required to issue a receipt and remit income to authorized local administrative organization. Should there be any expenses incurred from the transaction, deduct income to be remitted to each local administrative organization (carbon credits seller). After receiving income from merchandising carbon credits, local administrative organization must then issue a transaction receipt to DLA.
34 Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 5. Post-payment Procedure (Carbon Credit Transfer and Cancellation) 5.1 Local administrative governments conduct transactions directly with buyers After receiving payment from carbon credit buyers, the local administrative organization or authorized local administrative organization proceeds the submission of proof of carbon credit purchasing such as receipts or other relevant documents through the carbon credit trading information system. The Department of Local Administration is responsible for verification of purchasing documents and submit to the Greenhouse Gas Management Organization (Public Organization) for the transfer or cancellation of carbon credits. The Department of Local Administration will then deduct the credit that the local administrative organization has recorded in carbon credit trading information system.
35 Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 5.2 Carbon Credit Transaction (Bundle Purchase) 5.2.1 Local Administrative Organization authorizes other Local Administrative Organization to conduct transaction After an authorized local administrative organization receives payment from carbon credit buyers, the local administrative organization or authorized local administrative organization proceeds the submission of proof of carbon credit purchasing such as receipts or other relevant documents through the carbon credit trading information system. The Department of Local Administration is responsible for verification of purchasing documents and submit to the Greenhouse Gas Management Organization (Public Organization) for the transfer or cancellation of carbon credits. The Department of Local Administration will then deduct the credit that the local administrative organization has recorded in carbon credit trading information system.
36 Carbon Credits Trading Guidelines from Waste Management for Climate Action Project 5.2.2 Local Administrative Organization authorizes Department of Local Administration to conduct carbon credit transaction After an authorized local administrative organization receives payment from carbon credit buyers, the local administrative organization or authorized local administrative organization proceeds the submission of proof of carbon credit purchasing such as receipts or other relevant documents through the carbon credit trading information system. The Department of Local Administration is responsible for verification of purchasing documents and submit to the Greenhouse Gas Management Organization (Public Organization) for the transfer or cancellation of carbon credits. The Department of Local Administration will then deduct the credit that the local administrative organization has recorded in carbon credit trading information system.