1. Preparation and review of the Project 1. Project ideas reviewed by PCF 2. PCN prepared by project sponsor 3. Host country endorsement sought 4. Further work authorized by FMC and Participants 5. PCF signals intention to purchase ERs Baseline Study and Monitoring and Verification Plan (MVP) Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Project Preparation

2. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) 1. Baseline study and MVP prepared 2. PCF quality control of results 3. Documents for Validation prepared by PCF and sponsor Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Baselines and Monitoring and Verification Protocol

3. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) Validation process 1. PCF contracts the validator and submits documents 2. Validator studies project design, baseline and MVP and consults with PCF and project participants 3. Validator issues a report and opinion Negotiation of Project Agreements Periodic verification & certification Construction and start up Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Validation Process

4. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up 1. PCF prepares terms sheets and draft legal documents. 2. Pre-negotiations workshop for project participants (optional) 3. Negotiations completed and project agreement initialed 4. Project participants achieve financial closure and formal approval 5. Signing of project agreements Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Negotiation of Project Agreements

5. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up 1. At construction completion, verifier contracted by PCF 2. Verifier checks that specifications of the MVP are met (“initial verification”) 3. Project implementation starts 4. Project entity monitors in accordance to the MVP Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Construction and Start Up

6. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up 1. Verifier periodic verification report 2. PCF pays project sponsor for ERs certified 3. Certified ERs issued as per distribution agreement 4. Verification undertaken annually or as deemed appropriate Project completion 3 months 2 months 3 months Up to 21 years Verification and Certification

7. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Crediting period either 10 years fixed or 7 year renewable (maximum 21 years) Project Completion

8. Preparation and review of the Project Baseline Study and Monitoring and Verification Plan (MVP) Validation process Negotiation of Project Agreements Periodic verification & certification Construction and start up Project completion 3 months 2 months 3 months 1-3 years Up to 21 years Project Idea Note Project Concept Note Project Concept Document (or equivalent) Project Design Document Baseline study and ER projections Monitoring and Verification Plan Validation protocol and report Project Appraisal and related documentation Term sheet Emission Reduction Purchase Initial verification report Verification report Supervision report PCF Project Documentation