CDM Module 1. Introduction to Programmatic CDM (PoA) Lesson 2. How does the Programmatic CDM Work? Select Next to begin. Menu November 2011.

Transcription

1 CDM Module 1 Introduction to Programmatic CDM (PoA) Lesson 2 How does the Programmatic CDM Work? November 2011 Select Next to begin Next>

2 Lesson Partners and Collaborators How does the Programmatic CDM Work? Overview In this presentation, you will review: 1. How does a PoA operate 2. Key Features of CPA s 3. Eligible PoA types 4. Steps in PoA development 5. How PoA types compare 6. Relevant Rules and Links Print Transcript of this lesson Click on a link to go to that topic, or click Next to review the topics in the recommended sequence.

3 How does a PoA Operate Screen 1 of 43 The Key Elements of the PoA Definition a voluntary coordinated action by a private or public entity which coordinates and implements a policy/measure or stated goal which leads to additional GHG emission reductions that occur via an unlimited number of CDM program activities (CPAs)

4 How does a PoA Operate Screen 2 of 43 What about mandatory policies? PoAs that support implementation of Mandatory Policies or Regulations are eligible only in two cases: When the policy or regulation is not being enforced Where the PoA increases enforcement beyond the mandatory level required. Programmes that stem from voluntary initiatives must demonstrate additionality in the standard way Must demonstrate that the proposed voluntary measure would not be implemented by the coordinating entity in the absence of the CDM. The additionality of the PoA can be shown using the approved EB additionality tool.

5 How does a PoA Operate Screen 3 of 43 PoA can support and accelerate the implementation of Policies, Regulations and Standards The adoption of a policy, regulation or standard in and of itself cannot be submitted as a CDM project Policies, regulations and/or standards are frequently adopted but not implemented due to lack of enforcement of capabilities, lack of access to financing, etc. Even cases that policies are enacted, there are difficulties in attributing an observed emissions reduction to a particular policy, as well as in measuring and verifying the corresponding GHG impacts. If a policy is implemented by a concrete PoA, which directly achieves emission reductions that can be measured and are verifiable, the PoA is eligible under the CDM and can be submitted as a PoA.

6 How does a PoA Operate Screen 4 of 43 Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Click on each issue to learn more. Select next when you are ready to continue.

7 How does a PoA Operate Screen 5 of 43 Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Key Actors: Coordinating /Managing Entity (CME), the Designated Operational Entity (DOE), the Designated National Authority (DNA), the Executive Board (EB) as well as all CPA Implementing Partners. Click on each issue to learn more. Select next when you are ready to continue.

8 How does a PoA Operate Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Screen 6 of 43 Additionality: The additionality of a POA is the demonstration that in the absence of CDM the PoA or one of its constituent CPAs would not have been implemented. The challenge surrounding PoA additionality derives from the fact that a PoA can be structured in many different ways or support measures as different as GHG reductions systems as well as policies. At the PoA level, the PoA itself is additional if it is shown that in the absence of the CDM: 1) The proposed voluntary measure would not have been implemented, 2) The mandatory policy/ regulation would not be enforced as envisaged but rather depends on the CDM to enforce it, or 3) That the PoA will lead to a greater level of enforcement of the existing mandatory policy/regulation. The PoA must define and include eligibility criteria, including criteria for the demonstration of additionality of CPAs, for the inclusion of a CPA under the PoA. Click on each issue to learn more. Select next when you are ready to continue.

9 How does a PoA Operate Screen 7 of 43 Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Starting Date: A PoA starts with the beginning of the public comment period of validation. Click on each issue to learn more. Select next when you are ready to continue.

10 How does a PoA Operate Screen 8 of 43 Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Duration: The duration of a PoA cannot exceed 28 years, and 60 years for Afforestation/Reforestation project activities. Click on each issue to learn more. Select next when you are ready to continue.

11 How does a PoA Operate Screen 9 of 43 Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Boundary: Programmatic CDM can be national (within the boundary of one host country) or regional (including various countries). The boundary must also be defined in terms of which greenhouse gases to include or exclude. The Executive Board has explicitly allowed international PoAs and specified that the physical boundary of a PoA can be extended to more than one country as long as a letter of approval is provided for each Host Party. So far, no international PoAs have been submitted for registration. Click on each issue to learn more. Select next when you are ready to continue.

12 How does a PoA Operate Screen 10 of 43 Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification Monitoring and Verification: The total volume of emission reductions to be achieved by a PoA may not be known at the time of registration. Each CPA could be monitored according to the methodology(ies) used in PoA. For small GHG reductions, statistically sound sampling can be used. For verification, the DOE may use statistically sound sampling methods. Click on each issue to learn more. Select next when you are ready to continue.

13 How does a PoA Operate Main Elements Key Actors Additionality Starting Date Duration PoA Boundary Monitoring and Verification : Methodologies can involve one type of technology or a set of interrelated measures, as long as they are all applied in the same type of facility (e.g., all are households, all are similar industrial processing plants, etc.). The combination must be applied to all CPAs in a consistent manner. A PoA can apply a combination of approved baseline and monitoring methodologies to the respective CPAs under it. The choice of the methodological approach has important implications for the PoA design, especially for the monitoring requirements. Screen 11 of 43 However, if more than one approved methodology is used, a case-by-case decision is to be made by the EB before submitting a request for registration for the PoA in question. Click on each issue to learn more. Select next when you are ready to continue.

14 Key Features of CPAs How does a CPA work PoA Screen 12 of 43 A CPA is a project activity under the PoA. The CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic GHG removals by sinks, applied in either a single or many locations of the same type, within an area that is defined in the baseline methodology(ies). Each CDM Programme Activity: Must comply with all the procedures and modalities of the CDM. Must follow in principle the CDM project cycle CPA CPA CPA CPA CPA CPA Must comply with the inclusion criteria of the PoA Must include activity that has a direct, real, and measurable impact on emission reductions. Each CDM Programme Activity (CPA) is the specific measure where the emission reductions are actually achieved by those that participate in the program. The CPA is identical to a regular stand-alone CDM project activity in the sense that it must lead to direct, real, and measureable emission reductions, and that it must comply with all the procedures and modalities of the CDM.

15 Key Features of CPAs Screen 13 of 43 Main Elements Inclusion Criteria Additionality Crediting Period of the CPA These are some characteristics that define the CPA. Select your choice to learn more. Select next when you are ready to continue. Starting date of a CPA

16 Key Features of CPAs Screen 14 of 43 Main Elements These are some characteristics that define the CPA. Select your choice to learn more. Select next when you are ready to continue. Inclusion Criteria Additionality Crediting Period of the CPA Starting date of a CPA Inclusion Criteria: The decision of what constitutes a CPA is one of the most important decisions in the design of a PoA. All CPAs in a PoA must be similar to each other. The project proponent must define what constitutes the CPA. The key features of the typical CPA and by extension the eligibility criteria of each further CPA must be clearly (unambiguously) defined in the PoA design document (CDM PoA-DD) at the time of request for registration. Once the CPA has been defined in the baseline and monitoring methodology, all further CPAs must apply the same baseline and monitoring methodology in the same type of facility/ installation/ land, and must meet the eligibility criteria established for CPAs under that program.

17 Key Features of CPAs Screen 15 of 43 Main Elements These are some characteristics that define the CPA. Select your choice to learn more. Select next when you are ready to continue. Inclusion Criteria Additionality Crediting Period of the CPA Starting date of a CPA Additionality: At CPA level, the demonstration of additionality could be demonstrated: 1. through the eligibility criteria for inclusion of CPAs, or 2. at the CPA level: demonstration that each CPA cannot be implemented without the CDM. In this case, it is the additionality of each CPA that is tested individually. The additionality at the CPA level is currently being discussed and defined by the Executive Board. For updated information of the current status of the additionality of CPAs you should visit the UNFCCC/CDM official website

18 Key Features of CPAs Screen 16 of 43 Main Elements These are some characteristics that define the CPA. Select your choice to learn more. Select next when you are ready to continue. Inclusion Criteria Additionality Crediting Period of the CPA Starting date of a CPA Crediting Period of the CPA: Is either 7- years (renewable twice) or a maximum of 10-years, with no renewal. The Managing Entity can add to a registered PoA at any time through the submission of a completed CPA design document (CDM CPA-DD). All CPAs end when the PoA ends, regardless of when they have been added to the PoA. No CPA can extend beyond the maximum duration of the program as a whole. In submitting the PoA, the project proponent must be careful about establishing the duration of the PoA, so as to avoid cutting off CPAs before they are completed. Although the EB regulation does not forbid choosing both 10-year fixed and 7- year renewable crediting period under a PoA, as the CPAs are very similar to each other and have similar technology operation life, choosing only one type of crediting period will make issues much simpler.

19 Key Features of CPAs Screen 17 of 43 Main Elements These are some characteristics that define the CPA. Select your choice to learn more. Select next when you are ready to continue. Inclusion Criteria Additionality Crediting Period of the CPA Starting date of a CPA Starting date of a CPA: The starting date of a CPA is the date of its inclusion in the registered PoA or any date thereafter. However, the start date of any CPA cannot be prior to the commencement of validation of the programme of activities, i.e. the date on which the CDM-POA-DD is first published for global stakeholder consultation. CPAs can start simultaneously or they can be included on an individual basis at any time during the duration of the PoA.

20 Key Features of CPAs Screen 18 of 43 Main Elements These are some characteristics that define the CPA. Select your choice to learn more. Select next when you are ready to continue. Inclusion Criteria Additionality Crediting Period of the CPA Starting date of a CPA : All CPAs in a program must apply one or a combination of approved baseline and monitoring methodologies. It is necessary to ensure the combinations of methodologies have been approved by the Executive Board. It is not possible to combine any methodologies that the Project Participant would like to. Some combinations have not been approved and then a request for approval of a combination for a PoA must be submitted to the EB prior registration. For more information on, visit the following links: Procedures for registration of a PoA as a single CDM project activity Procedures for Approval of the Application of Multiple Methodologies to a PoA Procedures for review of erroneous inclusion of a CPA

21 Eligible PoA Types Screen 19 of 43 A PoA is characterized by the CPAs A CPA is a project activity under the PoA. The CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic GHG removals by sinks, applied in either a single or many locations of the same type, within an area that is defined in the baseline methodology(ies). Single Measure Single location e.g., Solar Home System Single Measure, Many Locations Several Measures, Single Location One Measure or Several Measures One Location or Many Locations e.g., Light bulb substitution in apartment buildings e.g., Several EE measures in a pump system Several Measures, Many Locations e.g., Combination of renewable energy technologies

22 Eligible PoA Types Screen 20 of 43 A PoA is characterized by the CPAs Single Measure, Single Location For example, improved insulation in buildings, where each building is a CPA in which an EE measure is applied. The CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic GHG removals by sinks, applied in either a single or One Location Many Locations Single Measure single Location e.g.one EE measure in a building Single Measure, many locations of the same type, Many Locations within CPA an = area Single that is defined in the technology baseline methodology(ies). and E.g., One EE measure e.g., in Light bulb substitution single location a building in apartment buildings Several Measures, Single Location e.g., Several EE measures in a pump system Several Measures, Many Locations e.g., Combination of renewable energy technologies

23 Eligible PoA Types Screen 21 of 43 A PoA is characterized by the CPAs Several Measures, Single Location For example, as a set of energy efficiency measures applied to multiple boilers in the same industrial facility. Each boiler is a CPA applying a set of efficiency measures to one industrial facility as long as the set of Energy Efficiency measures are covered by one approved CDM methodology. The CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic GHG removals by sinks, applied in either a single or One Location Many Locations Single Measure single Location e.g., Solar Home System Single Measure, many locations of the same type, Many Locations within CPA an = Several area that is defined in the measures baseline at one methodology(ies). e.g., Light bulb substitution E.g., Several EE measures in apartment buildings site in a pump system Several Measures, Single Location e.g., Several EE measures in a pump system Several Measures, Many Locations e.g., Combination of renewable energy technologies

24 Eligible PoA Types Screen 22 of 43 A PoA is characterized by the CPAs Single Measure, Many Locations These are activities that apply one measure, such as replacement of inefficient light bulbs, to many locations within a single CPA defined area. The single measure is the replacement of any/all e.g., Solar incandescent light bulbs in each location. Each CPA will Home System cover many locations (e.g. apartment buildings or household blocks) One Location The CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic GHG removals by sinks, applied in either a single or many locations of the same type, within CPA an area = One that is defined in the technology baseline methodology(ies). at several sites Many Locations E.g., Light bulb substitution Single Measure single Location Single Measure, Many Locations e.g., Light bulb substitution in apartment buildings Several Measures, Single Location e.g., Several EE measures in a pump system Several Measures, Many Locations e.g., Combination of renewable energy technologies

25 Eligible PoA Types Screen 23 of 43 A PoA is characterized by the CPAs Several Measures, Many Locations These are activities that apply a set of interrelated measures (such as various energy efficiency measures in homes), to many locations within a single CPA defined area. e.g., Solar The CPA could be a city, or a section of the city, in which a Home System group of efficiency measures (such as efficient lamps, ballasts, air conditioners, and fans) are applied to many homes within the area. The CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic GHG removals by sinks, applied in either a single or One Location Many Locations Single Measure single Location Single Measure, many locations of the same type, Many Locations within CPA an area = One that is defined in the baseline methodology(ies). e.g., Light bulb substitution technology and E.g., One EE measure in apartment buildings one site in a building Several Measures, Single Location e.g., Thermal insulation in a building Several Measures, Many Locations e.g., Combination of renewable energy technologies

26 Eligible PoA Types Screen 24 of 43 Small Scale PoAs (SSC-PoAs) Requirements for Small Scale PoAs (SSC-PoAs) Similar to standard CDM, Small Scale PoAs are also a possibility. The entire PoA does not have to be small, but its constituent parts (CPAs) should comply with the Small Scale definition of CDM. In this case, the PoA must use an approved CDM Small Scale baseline methodology. Using more than one SSC approved baseline and monitoring methodology must be approved by the EB prior to submission for registration. The EB agreed at its 56th meeting that several standard combinations of small scale methodologies related to methane generation (Type III) and energy production (Type I) do not require the process of previous approval. Documents: At EB 33, the Executive Board approved a Small-Scale CDM Programme of Activities Design Document form (SSC-PoA-DD) and Small- Scale CDM Programme Activity Design Document form (PoA-CPA-SSC-DD).

27 Eligible PoA Types Screen 25 of 43 Practical Considerations for Small Scale PoAs (SSC-PoAs) Debundling determination for applying small scale methodology No de-bundling check has to be conducted anymore for small-scale CPAs in which each independent subsystem/measures (e.g. biogas digester, Solar Home System) included in the CPA of a PoA does not exceed 1% of the small-scale threshold, i.e.. Less than 15 kw installed capacity or 0.6 GWh annual energy savings or 0.6 ktco2e annual emission reductions. If the individual measures included in a CPA go beyond the 1% threshold (i.e. 15 kw installed capacity or 0.6 GWh annual energy savings or 0.6 ktco2e annual emission reductions) then the CPAs should pass the de-bundling test. This requires that there should not be any other activity (registered or to be registered CPA or a registered CDM project) with: a) The same activity implemented as the proposed small-scale CPA or with the same Managing Entity, which also manages a largescale PoA of the same technology/measure, AND; b) Its boundary is within 1 km of the boundary of the proposed small scale CPA, at the closest point. More on Thresholds

28 Eligible PoA Types Screen 26 of 43 Requirements for Small Scale PoAs (SSC-PoAs) At COP 8 the Parties adopted the Simplified Modalities and Procedures for Small-Scale CDM Project Activities in order to reduce the proportionally higher transaction costs associated with the development and implementation of small scale CDM project activities. The modalities include a simplified PDD, baseline methodologies by project category, the possibility of bundling small scale project activities, a shortened period of time for registration and the same DOE is allowed to undertake validation, verification and certification. There are three types of project activities: Type I - for renewable energy project activities that have a maximum output capacity of 15 MW (or an appropriate equivalent). Examples would be micro hydro, small wind turbines and all solar equipment. Type II for project activities which reduce energy consumption, on the supply and/or demand side, limited to a maximum output of 60 GWh per year (or an appropriate equivalent). Examples would be improved cooking stoves or higher efficiency boilers in small enterprises. Type III for other project activities, limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annually. Examples are the installation of biogas digesters in households or small farms Back More

29 Eligible PoA Types Screen 27 of 43 Requirements for Small Scale PoAs (SSC-PoAs) The At COP 60GWh 8 the threshold Parties for adopted small-scale the CDM Simplified projects Modalities applies to each and CPA Procedures in a PoA, for not Small-Scale to the PoA as CDM a whole, independently of how many times the CPA is repeated in a programme. In fact, this means that Project Activities in order to reduce the proportionally higher transaction costs associated the PoA could go, in aggregate, well beyond the 60GWh of energy savings, as long as each individual CPA does with not the exceed development the threshold and and implementation is identical to every of small other scale CPA in CDM the program. project activities. Since the project The proponent modalities can include define the a simplified CPA such that PDD, each baseline CPA does methodologies not exceed 60GWh/year by project of category, savings, an the important portion possibility of the of potential bundling energy small saved scale by project dispersed activities, end-use a efficiency shortened measures period can of be time attained for by applying registration one of and the the three same above DOE small-scale is allowed methodologies to undertake which validation, already cover verification a wide array and of Energy Efficiency certification. possibilities. In There September are three 2010 types the EB of agreed project at its activities: 56th meeting that several standard combinations of small scale methodologies Type I - for renewable related to methane energy generation project activities (Type III) that and energy have a production maximum (Type output I) do capacity not require of 15 the process MW (or of an a previous appropriate approval. equivalent). Prior to that, Examples at the 53rd would meeting be micro of the hydro, Board, the small combination wind turbines of a biogas methodology and thermal energy was already approved (AMS-III.R / AMS-I.C). and all solar equipment. Type II for project activities which reduce energy consumption, on the supply and/or demand side, limited to a maximum output of 60 GWh per year (or an appropriate equivalent). Examples would be improved cooking stoves or higher efficiency boilers in small enterprises. Type III for other project activities, limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annually. Examples are the installation of biogas digesters in households or small farms Back Next

30 Steps in PoA Development Screen 28 of 43 Steps in a PoA Preparation Phase 1. Development of the PoA idea and a PIN 2. Development of a PoA Design Document and CPA Design Document, including the monitoring plan 3. Approval and authorization by Designated National Authority (ies)(dna) 4. Validation of the CDM-PoA-DD through a Designated Operational Entity (DOE) 5. Registration with the Executive Board (EB) 6. DOE checks whether the submitted CPAs fulfill the eligibility criteria. Submission of CPA Design Documents (CPA-DDs) to DOE. Implementation Phase 7. Operation of recording keeping system for each CPA 8. Implementation of each CPA. Implementation of monitoring plan for each CPA, as per monitoring methodology 9. Verification of emission reductions achieved by the CPAs, performed by the DOEs 10. Issuance of CERs, based on verification reports. Distribution of CERs to CME, CPA implementing partners and/or other POA participants

31 Steps in PoA Development Screen 29 of 43 The PoA Cycle Certification Monitoring PoA Registration Programme Design DNA Approval DNA Authorization CPA 1 CPA 2 CPA 3 CPA 4 PoA-DD CPA-DD General Information A completed CPA Process participants Coordinating Entity Project Participants Host Country (ies) Executive Board (EB)

32 Steps in PoA Development Screen 30 of 43 Key Documents Programme of Activities Design Document (CDM-PoA-DD): The Program Design Document (PDD) is used for submitting and registering a PoA project Programme Activity Design Document (CDM-CPA-DD): 1 Real case CPA-DD 1 generic CPA-DD that is used for the addition of further CPAs under the registered PoA For other FORMS on SSC-POA, CPA, and A/R, visit the UNFCCC website Programme of Activities Design Document form (CDM-PoA-DD) from UNFCCC

33 Steps in PoA Development Screen 31 of 43 Key Documents The PoA Design Document shall be developed by the Coordinating Managing/Entity and should have the following information: 1. Identification of the Coordinating/Managing Entity, host Party(ies) and Parties involved, Programme 2. Definition of Activities of boundary Design for the PoA, Document 3. Description (CDM-PoA-DD): of the Policy/measure The or stated goal that the PoA seeks to promote, 4. Confirmation that the PoA is a voluntary action by the Coordinating/Managing Entity, Program Design Document (PDD) is 5. Demonstration of Additionality: Demonstration that in the absence of the CDM either: used for submitting and registering i) the proposed voluntary measure would not be implemented, or a PoA project ii) the mandatory policy/regulation would be systematically not enforced, or iii) that the PoA will lead to a greater level of enforcement of the existing mandatory policy/regulation, 6. Description of a typical CPA that will be included in the PoA, and justification of an approved baseline and monitoring methodology(ies), Programme Activity Design Document 7. Eligibility criteria, including criteria for the demonstration of additionality of CPAs and for the (CDM-CPA-DD): inclusion of a CPA under a PoA, 1 Real 8. case Starting CPA-DD date and length, 9. Description of the operational and management arrangements, 1 generic 10. Monitoring CPA-DD that plan for is used a CPA for and the monitoring provisions and data parameters a CPA has to addition of apply/monitor. further CPAs under the 11. If Coordinating/Managing Entity decides not to have all CPAs verified, then a description of registered PoA the proposed statistically sound sampling method, 12. Environmental analysis of the PoA, Programme of Activities Design Document For other 13. FORMS Summary on of SSC-POA, comments CPA, by and local stakeholders, form (CDM-PoA-DD) from UNFCCC A/R, 14. visit Confirmation the UNFCCC that website official development assistance is not being diverted to the implementation of the PoA.

34 Comparison between PoAs Screen 32 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Verification

35 Comparison between PoAs Screen 33 of 43 Implementation of an EE lighting program Replace incandescent bulbs with CFLs in all households in a city Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities Switch industrial facilities from residual fuel oil or diesel to natural gas One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Verification

36 Comparison between PoAs Screen 34 of 43 Implementation of an EE lighting program No mandatory policy to replace incandescent bulbs Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities No mandatory policy for fuel-switching One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Verification

37 Comparison between PoAs Screen 35 of 43 Implementation of an EE lighting program Coordinator could be a utility, energy efficiency agency, or a NGO Implemented by owner of households in program area Deliberate program Voluntary One CME: Many implementers One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Implementation of a fuel-switching program in industrial facilities Coordinator could be NG provider, an NGO, or a private company Implemented by owners of industrial facilities Verification

38 Comparison between PoAs Screen 36 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities All households One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring All industrial facilities that currently use fuel oil or diesel Verification

39 Comparison between PoAs Screen 37of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities The Coordinating/Managing Entity (CME) could divide the city into specific areas,, making each area one CPA. Each CPA would have many locations (homes) where the bulbs are replaced One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Fossil fuel burning furnaces, boilers, and roasters would be included in the PoA Each individual furnace/boiler is a CPA Verification

40 Comparison between PoAs Screen 38 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities New efficient bulbs may be purchased or installed by individuals at different points over the crediting period of the PoA One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Facility owners would be able to switch fuels only once they are connected to the gas pipeline Verification

41 Comparison between PoAs Screen 39 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities Each CPA (city area) applies the same set of approved CDM baseline and monitoring methodologies One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Each CPA (furnace/roaster) applies the same set of approved CDM baseline and monitoring methodologies Verification

42 Comparison between PoAs Screen 40 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities One type of facility Multiple sites Cannot predict ex-ante exactly which and how many households would join the PoA. The level of GHG reductions would only be known once the bulbs are installed and functioning CERs are not issued until verification has occurred Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Verification Cannot predict ex-ante exactly how many industrial facilities would switch to natural gas. The level of GHG reductions would only be known once the burners/furnaces are switched to natural gas and functioning CERs are not issued until verification has occurred

43 Comparison between PoAs Screen 41 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities One type of facility Multiple sites Not necessarily simultaneous Each CPA (city area) is monitored. The monitoring methodology would likely be based on sampling of homes within the CPA area Volume of GHG reductions not known at registration Monitoring Verification Each CPA (furnace/boiler) is monitored. The monitoring methodology would be applied to each furnace

44 Comparison between PoAs Screen 42 of 43 Implementation of an EE lighting program Deliberate program Voluntary One CME: Many implementers Implementation of a fuel-switching program in industrial facilities Can include sampling One type of facility Multiple sites Not necessarily simultaneous Volume of GHG reductions not known at registration Monitoring Can include sampling Verification

45 Links to Relevant Rules and Decisions Screen 43 of 43 Relevant Rules and Decisions EB 55, Annex 38 provides the procedures for Registration of a Programme of Activities as a Single CDM Project Activity and Issuance of Certified Emission Reductions for a Programme of Activities (Version 4.1) Note: Despite the fact that EB 55, Annex 38 replaced EB 32, Annexes 38, the latter nonetheless provides a good source of information and context in relation to PoAs. EB 55, Annex 38, paragraph 4 defines the concept of a Programme of Activities (PoA). EB 55, Annex 38, Paragraph 6(b) and 9 contemplate that a PoA can involve CPAs being run in multiple countries, in which case a separate letter of approval would be required from each Party involved. EB 55, Annex 37 provides the procedures Procedures For Review of Erroneous Inclusion of CPA by which members of the CDM Executive Board and the DNAs of Parties involved in a PoA may request a review of the (erroneous) inclusion of a CPA into a registered programme of activities. EB 32, Annex 38, page 1 defines CDM Programme Activities (CPAs). EB 32, Annex 38 provides guidance on the registration of project activities under a programme of activities as a single CDM project activity. 7/CMP.1, paragraph 20 provides that the PoA has its origins in a decision of the COP/MOP that local/regional/national policies or standards cannot be considered as CDM project activities, but project activities under a PoA can be registered as a single CDM project activity. 7/CMP.1, paragraph 20 clarifies the development of the Programme of Activities. Visit the UNFCCC CDM/PoA Site for the latest information End of Presentation <Back

46