MINUTES

To: I-REC Standard Advisory Group

From: I-REC Standard secretariat
Date: March 22, 2017
Subject: Minutes Advisory Group Meeting from 22 March 2017, Amsterdam

List of participants
In order to participate an online registration was requested. All participants officially registered can
be found in the annex. Participants that are not registered and that would like to receive the minutes
of the meeting were requested to contact the secretariat in order to give contact details.

1. Opening and Agenda

The Chairman of the I-REC Standard board, Peter Niermeijer, opened the meeting and welcomed all
participants. It was explained that the I-REC Standard board has requested RECS International, as
the representative of all market players, to prepare and chair the Advisory Group meeting. It was
explained that the I-REC Standard board believes the input from all stakeholders, and especially that
of market players, is critical to bring the standard development to the next phase. It is the belief of
the I-REC Standard board that the Advisory Group will be the location for market players to express
their opinions and suggestions to improve the operation of the I-REC Standard attribute tracking
system. The chairman of the I-REC Standard board requested that Jared Braslawsky takeover as
chairman of the Advisory Group.

2. Terms of reference (TOR) I-REC Advisory Group

The chairman of the Advisory Group gave a more detailed explanation how the TOR may be
structured. It was suggested that in the coming Advisory Group meeting these details be finalized
and agreed upon by the participants.
2.1.1 Group details
Name: I-REC Standard Advisory Group
Chairman of Advisory Group: Jared Braslawsky
Reporting to: I-REC Standard board
2.1.2 Background
The I-REC Standard board recognizes the need to be independent. However, it recognizes the
importance of consulting stakeholders on the development and possible changes to the I-REC code,
legal document. As a result, a mechanism is needed by which to seek input and filter information to
the board through stakeholders so that a broad range of opinions could be gained prior to the
board’s discussion and decision. The best instrument to conduct this stakeholder outreach was
determined to be an open Advisory Group. It was recognized however that while the Advisory Group
is public there still may need to be public consultation of the code. This could be seen as three-levels
of consultation: 1. the executive level via the I-REC Standard board, 2. the stakeholder level via the
open I-REC Standard Advisory Group and 3. the public level via an open consultation. The purpose of
the Advisory Group is to serve this second level of consultation.

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2.1.3 Role of the Advisory Group
It is the role of the Advisory Group to provide stakeholder input in furthering the development of the
I-REC Standard. Advisory Group members can suggest or request discussion topics for future
meetings and may make recommendations on these topics which will be shared publically and with
the I-REC Standard board. Advisory Group members can suggest or request a topic for discussion by
contacting the I-REC Standard secretariat.
2.1.4 Participants
The Advisory Group is open to all parties involved in the development of the I-REC Standard.
Members are likely to be primarily commercial market players but NGOs, various national authorities,
related associations as well as other involved parties are encouraged to participate as well.
Rules for membership were discussed but there was agreement that this should be quite open and
flexible. Ideally there would be broad participation from different geographic regions and
backgrounds, but this will take time to develop.
It was suggested that attendees that officially registered for the meeting (listed in the appendix to
these minutes) are considered as being part of the I-REC Standard Advisory Group. Anyone not listed
in the appendix who wishes to join the Advisory Group should inform the secretariat at
secretariat@irecstandard.org.
2.1.5 Deliverables
The Advisory Group will have meetings and all issues discussed will be reflected in minutes. If needed
the Advisory Group is free to draft memos covering issues of their concern.
2.1.6 Organizational setup / working process
The Advisory Group will have a meeting twice a year (most of the time in combination with the RECs
Market Meeting, or RMM, in Europe and the Renewable Energy Markets, or REM, conference in the
U.S.). Calls may be organized between these meetings as necessary.
Agendas for these meetings will be prepared and distributed prior to the meeting.
2.1.7 Planning
2 to a maximum of 4 conference calls per year are foreseen. 1-2 physical meetings (one during RMM
and one during REM ) are planned.

2.1.8 Discussion
Some participants expressed concern related to the fact that market players were in the board. This
was discussed at length by the participants and a number of points were made:
• The board as well as the secretariat recognize that some stakeholders are concerned that
market players serve on the I-REC Standard board. The belief is that these market players
have extra influence over the development of the Standard which could provide an unfair
advantage. The secretariat assured the Advisory Group that the board generally does not
have access to information that is not available to market players who specifically request this
information. The only area where certain board members may have a market advantage due
to early insights is in the review of country reports where certificate issuance is requested for
the first time.
• The secretariat acknowledged the concerns of stakeholders who have raised this issue, but
stated that the secretariat and the board are willing to consider different members for the
board only if additional well qualified individuals can be found to replace the market players.
The secretariat and the board are not willing to sacrifice good discussions in the board for the
sole purpose of removing market players from the board.

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 • It was suggested that local issuers could be part of the board but this must be considered in
more detail. While the chairman of the Advisory Group expressed support for local issuers
having an influential role in the market it could be against the interest of market players to
have them represented in the board. It could be imagined that a local issuer delivering poor
services would be able to protect their position as local issuer due to their role in the board.
• Some Advisory Group members said they would suggest individuals that could be vetted for a
board position.

There was general agreement on the TOR for the Advisory Group. It was suggested that the TOR be
defined clearly in a memo and shared with the Advisory Group at a coming meeting.

3. Review of the I-REC Code

The following elements related to the structure of I-REC were reviewed in detail:
• The I-REC Standard, a Dutch Foundation, is in control of the I-REC Code and associated
documents. The I-REC Standard also authorizes local issuers to conduct work in a specific
country or region.
• I-REC Services is a limited company that is under contract to the I-REC Standard. I-REC
Services handles all legal and contractual relations related to the use of the I-REC Standard
attribute tracking system. I-REC Services has a legal relation with I-REC Standard, issuers and
participants. I-REC Services outsources for a global Registry (to save costs) that is operated
under the responsibility of I-REC Standard.
• The issuer operates in a specific country and devices are registered with the issuer at the
request of a registrant. Following device registration the registrant can request certificate
issuance which is also authorized by the issuer.
• More detailed information is to be found on the I-REC website and particularly the I-REC
Guide.

3.1 Market Player roles within the I-REC Standard

The I-REC Standard links producers of electricity to consumers of electricity. This link is seen in the
structure of the system and the types of positions or roles market players can assume. Device owners
frequently work through a third-party when interacting with the I-REC Standard. The party
representing the device owner is known as the registrant. Consumers also generally interact with
the I-REC market and redeem I-REC certificates through a third-party. The party representing the
consumer is known as the participant. These two roles were described in detail during the meeting.

Role of the registrant:

A registrant is the only entity that is able to request device registration or certificate issuance.
They can do this on behalf of a device owner or on their own behalf (if they themselves are device
owners). The registrant has direct contact with the issuer authorized to conduct issuance in a specific
country/region. When/if the issuer approves the device registration, the registrant can request
certificate issuance. To request certificate issuance the registrant will choose their device and request
issuance for a specific period. The registrant must always request I-RECs be issued into the account
(trade account) of a participant. The registrant can also be a participant but this could also be a
third-party. Registration as a registrant is free.

Role of the participant:

The participant is the market player, trader or potentially a consumer with an account in the I-REC
Standard attribute tracking system. They work to redeem certificates on behalf of their clients and
can trade certificates from their primary account to the primary account of another market player.

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 The participant has three main account types, 1. Primary account, 2. Sub-account and 3. Redemption
accounts. In general participants have one Primary account and an unlimited number of sub accounts
and redemption accounts. Registration as a participant has associated fees.

3.2 Overview of all relevant legal document

An overview of the most relevant legal documents was presented:
• I-REC Code self, includes the definitions
• Standard Terms & Conditions Participant
• Standard Terms & Conditions Registrant
• Owners declaration
• Local Issuer Agreement
3.3 Why is review needed?
The I-REC Code was for the first time published beginning 2015. In that year the I-REC Standard
authorized the Central Issuer for a couple of countries. Especially the first year the secretariat
encountered a number of issues that required some reformulation in the code. The procedures for
change requests were also tested.
Apart from that, the secretariat has determined that the whole structure of legal documents needs
some improvement. All the legal documents, including the code, should be using a single set of
definitions. In addition, the various documents should be more clearly connected. It is the view of the
secretariat that a proper legal framework in the code will help ensure reliable attribute transfers.
3.4 How is review organized?
The I-REC Standard has retained a legal advisor to work on a draft version. The secretariat will
provide comments on this draft. A revised draft will then be available for review, discussion and
comment in the Advisory Group. In the end it is up to the I-REC Standard board to make the changes
in the I-REC Code and associated documents.
3.5 Discussion
A few market players suggested that market boundaries should be regulated in the code. This was
not agreed upon by other Advisory Group members as they do not believe it is the role of the
standard to determine market boundaries. The Advisory Group suggested that this could be an
appropriate role for RECS International, as part of the planned Renewables Good Practice.

4. Country developments
The country developments will be a regular item on the agenda of the Advisory Group.
4.1 Authorization issuers
The board authorizes issuers to conduct device registration and issuance in a country. In general
there are three types of issuers: (1) governmental body, (2) local and non-governmental and (3)
non-local UK-based central issuer. Issuer authorization is always on the basis of a country report
prepared by market players and/or local stakeholders. Writing a country report is a joint effort of all
parties involved (reviewed by the secretariat and the board). All parties involved in the development
of a country or regional market can form a ‘national I-REC team’.

4.2 Chinese national team

As a test, the secretariat started the Chinese national team to coordinate information. The team was
created in response to a number of documents released by the Chinese government explaining the
details of the coming Chinese REC scheme. The national team was announced to market players
(participants and registrants) and was open for all individuals to join.

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4.3 Discussion
The Chinese national team started a discussion among Advisory Group participants:
 There was support for the development of the team but there was some concern about the
lack of structure in the team.
 It was suggested that national team members should be named on the website of the I-REC
Standard.
 While generally the national team is open, there should be some level of discretion on who
can join the group. For the time being it was suggested that the secretariat provide some
guidance on this aspect.
 In addition it was suggested that the national teams should have deliverables and/or a leader
pushing the group. The secretariat suggested that prior to the next Advisory Group, Advisory
Group members support the secretariat and come up with a plan of action for the national
teams.
 In general there was support for the Chinese national team and a suggestion that this model
could be replicated in other countries or regions.

4.4 Country developments

A list of authorized issuance countries can be seen online. There are a total of 17 countries where
issuers are authorized to conduct work at this point in time. A few of the relevant developments are
seen below:
4.4.1 UAE
The I-REC market is under development and a Dubai Carbon Centre of Excellence (DCCE) is
authorized by the I-REC board to become a local issuer. This is a special case since the national
authorities have written a letter saying that DCCE is the only organization that is allowed to issue
RECs and that it is their advise that the national I-REC Standard should be used.
4.4.2 Brazil
Market development led by Instituto Totum, local issuer. Some I-RECs are also eligible for the
sustainability label the REC-Brazil.
4.4.3 China
Currently limited to state-owned production devices. Clarifications related to the developments of the
Chinese REC system need to be determined.
4.4.4 Guatemala
Recently (20-3-2017) the I-REC Standard board authorized the central issuer to conduct issuer
services in the country.

4.5 Discussion
There was some discussion related to the country developments. The first question was whether I-
REC can provide a guarantee that they will issue I-RECs in the future for a certain country or region?
 The chairman of the Advisory Group responded that the I-REC Standard can only provide
guarantees as they are stated in the I-REC Code. For example, if a country outlawed all
voluntary REC certificates the I-REC Standard, as per the code, would be required to halt
issuance in the country.
 The Advisory Group agreed with this determination and suggested that market players
should include Force Majeure provisions in their contracts to ensure that they and their
clients are protected.

Another discussion topic was related to the authorization of new issuers in countries or regions. Some
stakeholders would like this information to be released in a way that all market players are informed

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 at the same time. The secretariat suggested that the best way to do this would be via the coming I-
REC Standard newsletter.

5. Transparency and publically available information

The I-REC Standard board is releasing public statistics for the 2016 calendar year. In that year there
was the following activity within the I-REC Standard market.

Volume issued
- 1.725.980 certificates were issued in 2016
Volume redeemed
- 1.188.327 certificates were redeemed in 2016
Number or Participants/Registrants
- There are 16 registered registrants
- There are 14 registered participants
Number of devices registered
- There are 47 registered devices in 2016
- There are 69 total registered devices on the system as of 1-1-2017

5.1 Transparency in public information

The Advisory Group was requested to consider what information should be made publically available.
The secretariat must balance the needs for private market information while also allowing sufficient
public information for market development.
5.1.1 Registrant connected to the production device
Some registrants have requested that their name be shown on the I-REC registry next to the public
list of devices. The Advisory Group agreed that registrants are free to advertise which devices they
have registered on the registry but it is not the role of the standard to release this information on
their behalf.
5.1.2 Future functionality
As part of the improvements being done to the registry the I-REC Standard will allow redemption
accounts to be made public. This function will allow participants to have the option to make RECs
redeemed in individual redemption accounts be seen publically. This will satisfy the needs of some
environmental labels and consumers wishing to have publically available information on the
redemption of certificates adhering to their standards.

6. General discussion
The chairman of the Advisory Group suggested that the secretariat prepare, together with the board,
specific information for the next Advisory Group meeting. This includes information related to the
Terms of Reference, national teams and publically available information. The secretariat also
suggested that Advisory Group members suggest topics for the coming meeting by contacting the
secretariat directly.

7. Closing
The Advisory Group thanked the I-REC Standard board and the secretariat for hard work and efforts
in developing the I-REC Standard market.

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Appendix – Members of the Advisory Group as of March 22, 2017

Below is a list of persons who pre-registered for the Advisory Group Meeting of March 22,
2017. It does not reflect the actual attendees of the meeting. The I-REC Standard considers
that anyone who has registered for a meeting of the Advisory Group is automatically a
member of the Advisory Group until further notice is given to the I-REC Standard secretariat.
Therefore, if your name is not on the list and you wish to be added, please inform the
secretariat at secretariat@irecstandard.org. If your name is on this list, you need not take
any further action.

Organisation Contact
ECOHZ Janne Svendsen Moe
ECOHZ Line Riise Jensen
ECOHZ Clement Buffard
CRX CarbonBank Pte Ltd Tames Rietdijk
(Non-member observer) Center for Resource
Solutions Alex Pennock
Fortum Joni Vuorela
Kyoto Energy Pte Ltd Michel Buron
ACT Commodities BV Aleksi Parkkila
ICAP Energy AS Jan Peder Kleppe
Gold China Consultancy International Co.
(GCCI) Zheng Zhaoning
Fortum Power & Heat Oy Juha Ruokonen
Agder Energi Vannkraft AS Sergio Cavallaro
First Climate Markets AG Nikunj Agarwal
South Pole Group Marie Christine Bluett
Statkraft Markets B.V. Aron Simon
Statkraft Markets B.V. Abderrahman Kasmi
Statkraft Markets B.V. Eric Boonman
Enovos Luxembourg S.A. Mr. Roger Ruttze
Statkraft Markets B.V. Saptarshi Pal
Agder Energi Jan Atle Liodden

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