Reregistration of voluntarily deregistered CDM project activities
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- Delphia Warren
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1 Paragraph 4 f the anntated agenda, Annex 1 Reregistratin f vluntarily deregistered CDM prject activities CDM EB 87 Paris, France, Nvember 2015 UNFCCC Secretariat SDM prgramme
2 Prcedural backgrund The Bard, at EB 82, adpted a revised CDM prject cycle prcedure (PCP), which intrduced a prcess fr vluntary deregistratin f CDM prject activities, based n the endrsement by the CMP at its tenth sessin, f the develpment f such a prcess. At the same meeting, the Bard requested the secretariat t prepare a cncept nte n a pssible reregistratin prcess fr previusly deregistered prject activities. Paragraph 4 f the anntated agenda, Annex 1 2
3 Purpse The purpse f this cncept nte is t explre the range f issues arund reregistratin f vluntarily deregistered prject activities and the plausible criteria that culd be applied if and when such a prcess is intrduced. Paragraph 4 f the anntated agenda, Annex 1 3
4 Overview f issues Reregistratin, if allwed under the CDM, wuld present a future ptin available t prject participants (PPs) after deregistratin. Clarifying the pssibility f intrducing such a prcess and its mdalities wuld increase predictability f the utcme. The decisin t allw r prhibit reregistratin is based n the Bard s verall bjective t assist Parties t the Kyt Prtcl in achieving sustainable develpment r cmplying with their cmmitments. There are many envirnmental integrity and prcedural cnsideratins relevant t a pssible reregistratin prcess. Cnceivable appraches and ptins t address each f them are presented. Paragraph 4 f the anntated agenda, Annex 1 4
5 Envirnmental cnsideratins Aviding duble cunting A vluntarily deregistered prject activity may migrate t ther GHG mitigatin schemes (dmestic, reginal r vluntary) and generate emissin reductin credits under that scheme. It may als nt jin any market/nn-market mechanism. Switching t anther scheme is presumed t be the primary mtive fr deregistratin frm the CDM. Ensuring the absence f duble cunting at reregistratin wuld impart credibility t the emissin reductins and is pertinent frm a glbal envirnmental integrity perspective. Prpsal PPs submit a self-declaratin stating that the prject activity will nt participate in, r claim credits, under anther scheme after reregistratin. Publish the declaratin n the UNFCCC CDM website. Paragraph 4 f the anntated agenda, Annex 1 5
6 Envirnmental cnsideratins (cnt.) Crediting perid A deregistered prject activity may have CERs issued previusly. The starting date f its crediting perid after reregistratin wuld determine hw much lnger the prject activity culd generate CERs under the CDM. The CMP has cnfirmed that a registered prject activity, after the expiry f its crediting perid, may nt be reregistered as a new CDM prject activity. Prpsal Reregistratin is allwed as lng as the riginal crediting perid has nt expired (i.e. fixed perid f a maximum f 10 years, r a renewable perid f a maximum f 21 years). CERs cannt be claimed fr the part f the crediting perid when the prject activity was deregistered. Paragraph 4 f the anntated agenda, Annex 1 6
7 Envirnmental cnsideratins (cnt.) Additinality A prject activity demnstrated additinality at the time f initial registratin. Hence, at the time f reregistratin, the prject activity may still be cnsidered as additinal. Hwever, there is a pssibility that criteria used t determine additinality may nt be valid at the time f reregistratin (e.g. prject technlgy is n lnger in the psitive list, prject activity has nt been implemented). Prpsal Optin 1: cnsider prject activities requesting reregistratin t be still additinal fr the entire crediting perid(s) Reregistratin is in parity with prject activities that were registered at the same time Optin 2: cnsider prject activities requesting reregistratin additinal, nly if additinality is redemnstrated at the time f reregistratin. Reregistratin is in parity with new prject activities entering the CDM Paragraph 4 f the anntated agenda, Annex 1 7
8 Envirnmental cnsideratins (cnt.) Baseline The baseline f a prject activity can be either fixed r dynamic. Dynamic baseline are updated fr each mnitring perid. At the time f renewal f crediting perid, validity f the riginal baseline is demnstrated r the baseline is updated. Prpsal Optin 1: d nt require the baseline t be reassessed and updated if reregistratin ccurs during the same crediting perid as when deregistratin ccurred. Optin 2: always require the baseline t be reassessed and updated using the latest available versin f the methdlgy. In bth ptins, at the time f renewal f crediting perid, the baseline shuld be reassessed and updated as apprpriate in accrdance with the existing prvisins. Paragraph 4 f the anntated agenda, Annex 1 8
9 Envirnmental cnsideratins (cnt.) Mnitring Accrding t the CDM prject standard, a PP shall mnitr the prject activity and emissin reductins in accrdance with the registered mnitring plan. Implicitly, the CDM mdalities and prcedures require mnitring t cver the entire crediting perid. A prject activity can claim emissin reductins fr the perid prir t the effective date f deregistratin, prvided all mnitring requirements are met. It is arguable whether at the time f reregistratin, the requirement f cntinuus mnitring shuld be enfrced fr the entire part f the crediting perid fr which the prject activity did nt seek issuance f CERs, including the perid f deregistratin. Unreprted perids may undermine envirnmental integrity, especially where negative emissin reductins and leakage are f cncern. Paragraph 4 f the anntated agenda, Annex 1 9
10 Envirnmental cnsideratins (cnt.) Mnitring (cnt.) Prpsal Require prject activities applying methdlgies with ptential accrual f negative emissin reductins t cntinuusly mnitr and reprt emissin reductins since the last mnitring reprt published n the UNFCCC website until the end f the deregistratin perid. Net negative emissin reductins generated in the perid prir t reregistratin will be deducted frm the request(s) fr issuance after reregistratin. Nt require all ther prject activities nt falling under the categry f methdlgies with ptential accrual f negative emissin reductins t cntinuusly mnitr during the perid prir t reregistratin. Hwever, mnitring shuld resume in line with the registered mnitring plan. Paragraph 4 f the anntated agenda, Annex 1 10
11 Prcedural cnsideratins Authrizatin by Parties Prpsal A written n-bjectin t reregistratin r a new LA by the DNAs f all Parties invlved in the prject activity is t be submitted. Validatin Prpsal A DOE undertakes validatin f the prject activity fr reregistratin: Ensures the implementatin is in accrdance with the registered PDD; Checks baseline, additinality, cntinuus mnitring etc. (if agreed by the Bard); Checks authenticity f statements issued by the PP and the revised MC; Validates pst registratin changes, if any. Paragraph 4 f the anntated agenda, Annex 1 11
12 Prcedural cnsideratins (cnt.) CDM registry Registry peratins The CDM registry will perate and supprt a deregistered prject activity during the administratin perid. Registry services can cntinue fr reregistered prject activities withut interruptin. Paragraph 4 f the anntated agenda, Annex 1 12
13 Prcedural cnsideratins (cnt.) CDM registry Registratin fee (Prpsal) At the time f deregistratin, any psitive balance n the registratin fee left after the deductin f the share f prceeds fr issued CERs is nt reimbursed. Administrative fees fr the reregistratin prcess: Optin 1: d nt charge a fee but btain the share f prceeds at the time f issuance. Recvery f administrative csts at issuance. Optin 2: charge a fee as an advance payment twards the share f prceeds similar t the fee at the initial registratin. Recvery f administrative csts safeguarded in case f n issuance. Paragraph 4 f the anntated agenda, Annex 1 13
14 Overall apprach The designing f a reregistratin prcess culd be guided by tw different appraches with regard t additinality and baseline: Treat the prject activity requesting reregistratin n a par with existing registered prject activities exempt redemnstratin f additinality & updating baseline at the time f reregistratin; Treat the prject activity requesting reregistratin n a par with new prject activities requesting fr registratin require redemnstratin f additinality & updating the baseline at the time f reregistratin. Validatin requirements wuld mirrr the apprach chsen. All ther envirnmental and prcedural cnsideratins can be cnsidered independently and decisins taken independent f each ther. Paragraph 4 f the anntated agenda, Annex 1 14
15 Impacts Reregistratin f a vluntarily deregistered prject activity may ffer an attractive ptin t deregistered prject activities, t re-enter the CDM due t a variety f market and nn-market-related cnsideratins. The cmbinatin f deregistratin and reregistratin prcesses may serve t increase mvement f prject activities between the CDM and ther GHG mitigatin schemes, within threshlds f envirnmental integrity established by the Bard. Hwever, nt permitting reregistratin at this pint in time wuld als nt have much negative impact fr the CDM as there is n clear demand fr such a prcess, r until the rle f the CDM becmes clearer in the new agreement under the UNFCCC prcess. Intrductin f a reregistratin prcess wuld require a CMP decisin befre the Bard implements the prcess. Paragraph 4 f the anntated agenda, Annex 1 15
16 Subsequent wrk and timelines Frmulatin f prvisins in the CDM regulatry dcuments t specify the prcess fr submissin f such a request, secretariat assessment and pssible Bard reviews; Prductin f relevant frms, checklists and IT Implementatin t supprt the reregistratin prcess. Paragraph 4 f the anntated agenda, Annex 1 16
17 Recmmendatins t the Bard The secretariat recmmends that the Bard: Cnsider the issues and implicatins highlighted in this cncept nte and decides whether t allw reregistratin f vluntarily deregistered prject activities; Mandate further wrk by the secretariat, if needed. Paragraph 4 f the anntated agenda, Annex 1 17
18 Thank Yu UNFCCC Secretariat SDM prgramme 18
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