Concepts of Clean Development Mechanism. Confederation of Indian Industry

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Laureen Price
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1 Concepts of Clean Development Mechanism

2 Kyoto Protocol UNFCCC & Kyoto Protocol Kyoto Treaty was drawn up in Kyoto, Japan, on 11 th December, 1997 to implement United Nations Framework Convention for Climate Change. Industrialized nations need to reduce worldwide emissions of six Green House Gases (GHG), collectively, by an average of 5% below their 1990 levels by the period

3 Green House Gases UNFCCC & Kyoto Protocol The six greenhouse gases covered by the Kyoto Protocol Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide(n 2 O) Hydro fluorocarbons (HFCs) Per fluorocarbons (PFCs) Sulfur hexafluoride (SF 6 )

4 UNFCCC & Kyoto Protocol Green House Gases Gas GWP 1. Carbon dioxide (CO 2 ) : 1 2. Methane (CH 4 ) : Nitrous Oxide (N 2 O) : HFC : 1, PFC : 3, Sulfur Hexafluoride (SF 6 ) : 23,900 GWP: Global Warming Potential

5 Glossary CDM Validation & Verification ADDITIONALITY PROJECT EMISSIONS < THOSE IN THE ABSENCE OF PROJECT ACTIVITY BASELINE REASONABLE EMISSIONS IN THE ABSENCE OF PROJECT ACTIVITY CREDITING PERIOD AFTER REGISTRATION DATE, FIXED 10 YRS OR 7 YRS RENEWABLE TWICE.

6 Glossary LEAKAGE CDM Validation & Verification EMMISSIONS OUTSIDE BOUNDARY ACCOUNTABLE TO PROJECT ACTIVITY PROJECT BOUNDARY SOURCES OF GHG FROM PROJECT ACTIVITY AND BASELINE PROJECT EMISSIONS EMISSIONS WITHIN PROJECT BOUNDARY ACCOUNTABLE TO PROJECT ACTIVITY.

7 Tool for Additionality Definition: The proposed CDM project activity is not a Business as usual Scenario. There exist some barrier (s) to implement this Project. Essentially, Project Emissions are less then those in absence of Project Activity.

8 Tool for Additionality Scope and Applicability The tool for Additionality provides a step-wise approach to demonstrate & asses Additionality as: Identification of alternatives to the project activity. Investment analysis. Barrier analysis. Common practice analysis.

9 Tool for Additionality Typical way of demonstration Additionality: Step 1. Identification of alternatives to the project activity consistent with mandatory laws & regulations. Step 2. Investment analysis. Step 3. Barrier analysis. Does sensitivity analysis conclude that the proposed CDM project activity is unlikely to be the most financially attractive or is unlikely to be financially attractive? N 1. Is there at least one barrier preventing the implementation of the proposed project activity without CDM; and N Y Optional 2. Is at least one alternative scenario, other than proposed CDM project activity, mot prevented by any of the identified barriers? Step 4. Common Practice analysis. 1. No similar activities can be observed? 2. If similar activities are observed, are they essential distinctions between the proposed CDM project activity and similar activities that can reasonable be explained? Y N Project is not Additional Project is Additional

10 Sustainable Development As per CDM Sustainable Development contribution of CDM project activity: Environmental Development Social Development Economic Development Technological Development

11 CDM Project Cycle STEP 1. Planning a CDM Project Activity. STEP 2. Preparing Project Design Document. STEP 3. Getting approval from each Party involved. HCA (s) from DNA (s) STEP 4. Validation. STEP 5. Registration. Validation & Verification

12 CDM Project Cycle Validation & Verification STEP 6. Monitoring of a CDM Project activity. As per monitoring plan STEP 7. Verification and Certification. STEP 8. Issuance of CERs.

13 Verification Process Validation & Verification Issuance of CERs in accordance with distribution agreement, shall be effected only when share of proceeds to cover administrative expenses of CDM has been received Among issued CERs 2% will be deducted for share of proceeds to assist developing Parties that are particularly vulnerable to achieve adverse effects of climate change to meet the costs of adaptation.

14 Preparation Project Proponent Consultant CDM Project Cycle Develop Project information note DOE Selection Contract with DOE DOE constitutes a Validation Team Action EB Approval for Methodology Web hosting for public Comments PDD Completeness Check Get PDD from PP Baseline & Monitoring Meth Check Document Review Investigation & Site Visit Draft Validation Report Result Resolution of CAR s Final Validation Report with opinion Submission to EB Registration

15 CDM Project Cycle Project Proponent Consultant Develop Project information note DOE Selection Contract with DOE PDD preparation Submit PDD to DOE PP inform Local Stakeholders through appropriate Media PP Submits these supporting to DOE during Site visit DOE Meets some of the stakeholders during site visit Conduct a Stakeholders meeting and record minutes DNA accepts the project and issue HCA PP Submits HCA to DOE before final submission of Validation Report DOE Collates all these evidences and attach in their Final Validation Report Submit all the documents and give presentation to DNA Submit Final Validation Report to EB for Registration

16 Potential Projects Methodologies available Water pumping efficiency improvement (AM ) Supply side Energy efficiency improvement (AMS II.A & AMS II.B) Demand side energy efficiency activities (AMS II.C) Energy efficiency and Fuel Switch measures (AMS II.D)

17 Thank you For more information. Visit website: Can contact: P Srinivas p.srinivas@cii.in

Clean Development Mechanism (CDM)

566 S 8QLW Clean Development Mechanism (CDM) 1 st Arab CP Workshop, Amman - Jordan 4-6 / 4 / 2006 www.cp.org.jo The Greenhouse Gases (GHGs) The atmospheric gases responsible for causing global warming