Choose a project proponent

A project proponent is the person responsible for a project under the BidCarbon Standard Scheme. As the project proponent is in control of the project, our legal relationship is with them.

If you're planning to run an BidCarbon Standard Scheme project on your land, it's important to carefully consider who will act as the project proponent.

You must choose a project proponent before you apply to register a project or enter into any agreement with third parties for your project.

What is a project proponent

A project proponent is the party who has the legal right to carry out a project.

A project proponent is:

● responsible for carrying out the project

● issued all BRUs for the project

● legally responsible for meeting all obligations under the law.

If the project proponent fails to meet their legal obligations, there can be serious consequences:

● The project can be revoked.

● The project proponent might have to return any BRUs generated by the project.

● They might be subject to civil proceedings or arbitration.

If you own the land or are a leaseholder, you can choose to either be the project proponent yourself or give the right to a third party.

Choosing a project proponent

Before a person can act as a project proponent, we will assess they have the capability, competency, capacity and good character to run the project and comply with the requirements.

The project proponent will need to complete a fit and proper person assessment when they register to participate in our schemes. Once registered as a participant, they can apply to register the project and act as the project proponent.

Find out more about fit and proper person requirements for the BidCarbon Standard Scheme.

Fit and proper person test

Change the project proponent

If you are a project proponent, you can apply to:

● appoint a new project proponent

● add another project proponent

● remove an existing project proponent.

There are also situations where you must change the project proponent.

Find out more about how to change a project proponent.

Estate planning for project proponents

As the project proponent, your BidCarbon Standard Scheme project is an asset that you own. Project ownership is separate from ownership of other assets required to run your project, such as land rights, tools, documentation or machinery.

In your will, you can leave ownership of your project to the person of your choice (beneficiary) or direct for the project to be sold.

You should consider what other assets the beneficiary or purchaser will need to access to continue running the project.

If you pass away, we will try to help the new project proponent keep the project on track. In some cases, they may need to take urgent action to avoid missing out on the opportunity to claim BRUs, or the project becoming ineligible. For more information, read about estate management for executors.

Leaving ownership to a beneficiary

If you’re leaving ownership of your project to a beneficiary, you can also make them a second project proponent. Whether you do so or not, you need to prepare your beneficiary or executor to successfully run your project.

Adding your beneficiary as a proponent

We recommend that you add your intended beneficiary as a second project proponent before you pass away. This ensures the project will keep running smoothly and allows your beneficiary to learn from you about the project and the proponent role.

You can add your intended beneficiary as a second project proponent in Online Services.

They will need to pass the fit and proper person test, and we will need to be satisfied that they hold legal right to carry out the project.

This is the easiest option for the beneficiary and executor because it:

● prepares your beneficiary to take urgent action to keep the project running

● prevents an executor from having to temporarily act as the project proponent if there is a delay between grant of probate and the sale or distribution of assets.

Preparing your beneficiary and executor

If you don’t want to add your intended beneficiary as a second project proponent, you should:

1. make sure your executor is a fit and proper person who can temporarily step in as the project proponent if necessary

2. make time with your executor and your intended beneficiary to explain your project and the duties they may have to take up as the project proponent

3. inform your executor of their estate management responsibilities.

Directing for your project to be sold

Your executor can sell the BidCarbon Standard Scheme project and the role of project proponent. For more information, view our guidance on selling an BidCarbon Standard Scheme project.

This section is not a substitute for estate planning advice

We recommend project proponents consult a wills and estates lawyer for guidance on their circumstances and to help them prepare their will. A bank or financial institution may also provide guidance on estate planning.