•• Verifying market faciltators’ adherence to the International Attribute Tracking Standard
To ensure a level playing field
Accreditation is only for market facilitators. Market facilitators are organizations that have recognized a need for attribute tracking systems and have taken the steps to coordinate the development of a Product market under the guidance of the International Attribute Tracking Standard (Standard). Market facilitators can be a government, private enterprise, or non-profit organization. In the Standard, market facilitators are mandated to have a clear separation from Market Participants who are engaged in buying, selling, and trading the facilitated Product Certificates. This is done to ensure fair market implementation and independence in the facilitation.
Accreditation through the I-REC Standard Foundation (I-REC Standard) allows market facilitators a means of demonstrating adherence to the Standard and global, best practices.
The following roles are examples of market facilitators:
- Code Manager: An organization that facilitates the roles of the Product and ensures reliable implementation through clearly defined rules.
- Issuer: An organization that follows the rules of the Standard and ensures that the Issuance of Product Certificates meets the requirements of the Code Manager, the Standard, and national regulations.
- Registry Operator: An organization that maintains the records and technical infrastructure required for Product implementation.
- Platform Operator: An optional organization that enables visualization, trading, market, or other facilitation infrastructure to market players.
- Labelling Authority: An optional organization that has independent third-party criteria with respect to Production Facilities or Product Certificates
Market Participants interested in making use of a Product should contact the individual Code Manager for more information.
The Accreditation process for market facilitators is generally arranged by the I-REC Standard but may also be organized with third-party support or input, subject to the approval by the I-REC Standard Foundation Board (Board). The Board is the only authority that can assess and decide whether market facilitators applying for Accreditation adhere to the Standard and should be granted Accreditation. For instance, when a market facilitator is applying for Accreditation as an Issuer, the I-REC Standard may grant conditional or limited Accreditation where there are concerns related to competition, legislative implementation, or other requirements related to adherence to best practice. Overall, while the process of Accreditation is both upfront and ongoing, each market facilitator, for each Product, has a slightly different Accreditation process for which the core Principles are described in the Standard and associated documentation.
Accreditation for Product Codes
The Standard is not rigid about the structure of Product Codes, which permits Code Managers flexibility in constructing their own processes and regulations to suit the purpose of their Product and any relevant legal and commercial considerations. But the process of developing and gaining Accreditation for a Product Code is stringent and time-consuming. Each Product Code must be prepared for and reviewed by the I-REC Standard Foundation Board (Board), in collaboration with or independently of the I-REC Standard Foundation, and be found to be distinctly unique in purpose and function from any other Product Code. However, this distinction can be in relation to a Product definition or to a geographical restriction.
Formalization of an Accreditation Agreement for a Product Code
Following the submission of a ‘Preliminary Report for Preparing a Product Code for Accreditation’ and approval of a Product Code by the Board, an Accreditation Agreement will be formalized between the I-REC Standard Foundation and the Code Manager.
Based on the requirements of the I-REC Standard, adherence to the Principles stipulated in the Standard may require additional agreements that have not been included in the Product Code. Critical aspects will include defining supplementary rules that are relevant for the Entity based on their legal status in the country or countries of operation.