POAs A DOE perspective Asia and Pacific Regional Workshop, Bangkok October Nick Stantzos, Head of DOE, TUV Rheinland China

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1 POAs A DOE perspective Asia and Pacific Regional Workshop, Bangkok October 2014 Nick Stantzos, Head of DOE, TUV Rheinland China

2 Overview of the PoA Concept CPA = CDM Program Activity CDM PoA DD = CDM Programme of Activities Design Document CDM CPA DD = CDM Program Activity Design Document CME = Coordinating Managing Entity Corporate Communicati on

3 PoAs Project cycles Source: 3

4 PoAs Overview October POAs at validation and 265 registered ( but only 9 issued 871k CERs) Carbon prices have major impact on incentives for project developers Large scale PoAs in non-ldc: Was this just a way to get past the Dec 2012 deadline? Will subsequent CPAs still be bankable for CERs? Programs being developed in areas and technologies that were excluded from CDM previously (Household scale renewable energy & energy efficiency) Much improved tools eg PoA template, sampling guidance Learning by doing approach made us rethink some of our auditing approaches 4

5 PoAs Validation requirements Additionallity and baseline of the PoA Eligibility requirements for PoAs and CPAs DOE is liable for the CERs issued for CPAs that have been included erroneously Boundary for the PoA and CPAs: - The geographical boundary of the CPA consistent with the geographical boundary set in the PoA Application of multiple methodologies - List in the PoA-DD and the generic CPA-DDs various combinations of technologies/measures and/or approved methodologies that will be implemented in the PoA. 5

6 PoAs Validating the CME s Management system CMEs have to develop a management system outlined in a CME Manual No requirements for a fully fledged Quality Management System (QMS) restricted to clear procedures for a number of specified tasks. Should include: - Relevance consistency - completeness - A clear definition of the roles and responsibilities and competencies - Procedures for technical review of inclusion of CPAs - Procedures to avoid double counting - Records and documentation control process for each CPA DOE to audit to verify that the management system is well designed and well implemented for now and the future of the POA Capable CMEs are crucial for managing PoAs 6

7 PoAs Monitoring and Verification Methodologies PoA - specific monitoring requirements of methodologies and combination of methodologies (large/small scale, large + small scale) Monitoring plan - Generic monitoring plan for a generic CPA in the PoA-DD - Specific CPA monitoring plan in the CPA-DD Monitoring report - PoA applies standardised monitoring plans across all CPAs - Monitoring periods: Different CPAs included in the PoA at different time CME status - If the CME has changed, new letters of authorisation are needed and a confirmation that the new CME will implement the PoA as originally described in the CDM-PoA-DD 7

8 PoAs Sampling Standard for sampling and surveys for CDM project activities and programme of activities Typical projects: Compact fluorescent lamps; Improved cook stoves; Small domestic biogas plants; Solar water heating systems; Building refurbishment The sampling plan will be checked during the validation phase and then the correct implementation and execution of the sampling plan within each verification will be assessed A DOE will sample in such way to achieve a good spatial and temporal representation in the sample (simple random sampling, cluster sampling) and it would expect that all other CPAs are monitored and documented in the exact same way Also check all past monitoring reports since the last verification of a CPA, and not just the one referring to the most recent monitoring period A good sampling system should reassure the DOE that even if an isolated error is found in a CPA this would not undermine the integrity of the whole POA because the CME has developed a robust internal procedure at CPA level which could demonstrate that such mistakes are found and the source for the error had been eliminated 8

9 PoAs Sampling pitfalls No specific or insufficient description of sampling in the projet design documents Wrong determination of the sampling size No critical evaluation of the selected sampling approach Improper monitoring frequency Single sampling appoach for various parameters 9

10 PoAs Resouces Thank you for your attention! Contact: Nick Stantzos / TUV Rheinland China (Beijing) Nick.stantzos@tuv.com 10