Community guidelines for accessing forestry voluntary carbon ... - FAO

Chapter 3: Getting started
ahead with a forestry VCM project without a reliable and accessible
source of guidance.)
3.2.2 2 nd step: assemble financial resources
As with any forestry project, financial resources will be needed upfront.
Project developers must be fully aware of all the transaction costs and
ensure that they will not run out of funds before the project gets off the
ground.
Types of transaction costs
Although some initial tasks may be undertaken by the project developers
themselves, it is likely that smallholders and local communities will need
to bring in outside experts for some or all of the jobs listed below, all of
which will incur costs in terms of time and money:
1. Feasibility assessment;
2. Legal advice;
3. Development of a Business Plan (including projected income
and expenditure);
4. Development of a methodology (when no relevant approved
methodology for the planned activities exists);
5. Elaboration of the project design document (PDD) or project
description (PD);
6. Hiring and supervising local staff;
7. Development of project emissions baseline scenario;
8. Baseline biodiversity survey;
9. Environmental and Socio-Economic Impact Assessments;
10. Consultation process, including participatory rural appraisal and FPIC;
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