UNFCCC/CCNUCC. CDM Executive Board I.E./Version 04 Sectoral Scope: 01 EB 60

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1 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories TYPE I - RENEWALE ENERGY PROJECTS Project participants shall appl the general guidelines to SSC CDM methodologies, information on additionalit (attachment A to Appendix ) and general guidance on leakage in biomass project activities (attachment C to Appendix ) provided at < mutatis mutandis. Switch from non-renewable biomass for thermal applications b the user Technolog/measure 1. This categor comprises activities to displace the use of non-renewable biomass b introducing renewable energ technologies. Examples of these technologies include but are not limited to biogas stoves, solar cookers, passive solar homes, renewable energ based drinking water treatment technologies (e.g. sand filters followed b solar water disinfection; water boiling using renewable biomass). 2. If an similar registered CDM project activities exist in the same region as the proposed project activit then it must be ensured that the proposed project activit is not saving the nonrenewable biomass accounted for b the alread registered project activities. 2. Project participants are able to show that non-renewable biomass has been used since 31 December 1989, using surve methods or referring to published literature, official reports or statistics. oundar 3. The project boundar is the phsical, geographical site of the use of biomass or the renewable energ. aseline 4. It is assumed that in the absence of the project activit, the baseline scenario would be the use of fossil fuels for meeting similar thermal energ needs. 5. Emission reductions would be calculated as: ER = * * NCV * EF (1) f NR, biomass projected_fossilfuel Where: ER Emission reductions during the ear in tco 2 e Quantit of wood biomass that is substituted or displaced in tonnes f Fraction of wood biomass used in the absence of the project activit in ear NR, that can be established as non renewable biomass using surve methods 1/7

2 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories Switch from non-renewable biomass for thermal applications b the user (cont) NCV Net calorific value of the non-renewable wood biomass that is substituted biomass (IPCC default for wood fuel, TJ/tonne) EF Emission factor for substitution of non renewable wood biomass b similar projected_fossilfuel consumers. The substitution fuel likel to be used b similar consumers is taken: 71.5 tco 2 /TJ for Kerosene, 63.0 tco 2 /TJ for Liquefied Petroleum Gas (LPG) or the IPCC default value of other relevant fossil fuel Emission factor for the substitution of non-renewable wood biomass b similar consumers. Use a value of 80.6 tco2/tj 1 6. is determined b using one of the following options. Calculated as the product of the number of appliances multiplied b the estimate of average annual consumption of wood biomass per appliance (tonnes/ear); This can be derived from historical data or estimated using surve methods; or Calculated from the thermal energ generated in the project activit as: = HG p, / (NCVbiomass * ηold) (2) Where: HG p, Quantit of thermal energ generated b the new renewable energ technolog in the project in ear (TJ) η 1. Efficienc of the sstem being replaced, measured using representative old sampling methods or based on referenced literature values (fraction), use weighted average values if more than one tpe of sstems are is being encountered replaced; 2. A default value of 0.10 default value ma be optionall used if the replaced sstem is the a three stone fire, or a conventional sstem lacking with no improved combustion air suppl mechanism and or flue gas ventilation sstem, i.e. without a grate or as well as a chimne; for other tpes of the rest of the sstems a default value of 0.2 default value ma be optionall used 1 This value represents the emission factor of the substitution fuels likel to be used b similar users, on a weighted average basis. It is assumed that the mix of present and future fuels used would consist of a solid fossil fuel (lowest in the ladder of fuel choices), a liquid fossil fuel (represents a progression over solid fuel in the ladder of fuel use choices) and a gaseous fuel (represents a progression over liquid fuel in the ladder of fuel use choices). Thus a 50% weight is assigned to coal as the alternative solid fossil fuel (96 tco 2 /TJ) and a 25% weight is assigned to both liquid and gaseous fuels (71.5 tco 2 /TJ for kerosene and 63.0 tco 2 /TJ for Liquefied Petroleum Gas (LPG). 2/7

3 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories Switch from non-renewable biomass for thermal applications b the user (cont) (c) In the specific case of renewable energ based water treatment technologies, is calculated as the product of target population of the project multiplied b the volume of drinking water per person per da and the mass of wood biomass that would have been required to boil one litre of water as per the equation (3). 3 = N p, QDWp, WL (3) Where: N Project population in ear (number). For establishing the project population a p, baseline surve shall be conducted to demonstrate target population supplied with renewable energ based water treatment technolog b the project would have used water boiling as the water purification method in the absence of the project activit QDW Volume of drinking water in litres per person per da (litres). The volume of p, drinking water in litres per person per da shall be established using surve methods, subject to a cap of 5.5 litres 2 W Mass of wood biomass that would have been required to boil one litre of water L (kg/litre). The quantit of mass of wood biomass that would have been required to boil one litre of water for five minutes determined through Water oiling Test (WHO recommends a minimum duration of five minutes of water boiling) 3 Differentiation between non-renewable and renewable wood biomass 7. Project participants shall determine the shares of renewable and non-renewable wood biomass in (the quantit of wood biomass used in the absence of the project activit) the total biomass consumption using nationall approved methods (e.g. surves or government data if available) and then determine f NR, as described below. The following principles shall be taken into account: Demonstrabl renewable wood biomass 4 (DR) Wood 5 biomass is renewable if an one of the following two conditions is satisfied: 2 ased on WHO recommendations (Domestic Water Quantit, Service Level and Health, Table 2: Volumes of water required for hdration, WHO 2003). 3 WHO guidelines for Emergenc Treatment of drinking water at point of the use - < of_drinking_water.pdf>. 4 This definition uses elements of annex 18, E In cases of charcoal produced from wood biomass, the demonstration of renewabilit shall be done for the areas where the wood biomass is sourced. 3/7

4 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories Switch from non-renewable biomass for thermal applications b the user (cont) 1. The wood biomass is originating from land areas that are forests 6 where: (c) The land area remains a forest; Sustainable management practices are undertaken on these land areas to ensure, in particular, that the level of carbon stocks on these land areas does not sstematicall decrease over time (carbon stocks ma temporaril decrease due to harvesting); and An national or regional forestr and nature conservation regulations are complied with. 2. The biomass is wood biomass and originates from non-forest areas (e.g. croplands, grasslands) where: (c) The land area remains cropland and/or grasslands or is reverted to forest; Sustainable management practices are undertaken on these land areas to ensure in particular that the level of carbon stocks on these land areas does not sstematicall decrease over time (carbon stocks ma temporaril decrease due to harvesting); and An national or regional forestr, agriculture and nature conservation regulations are complied with. Non-renewable biomass Non-renewable wood biomass (NR) is the quantit of wood biomass used in the absence of the project activit ( ) minus the DR component, so as long as at least two of the following supporting indicators are shown to exist: A T trend showing an increase in time spent or distance travelled for gathering fuel-wood, b users (or fuel-wood suppliers) for gathering fuel wood, or alternativel, a trend showing an increase in the transportation distances for the fuel-wood is transported into the project area; Surve results, national or local statistics, studies, maps or other sources of information, such as remote-sensing data, that show that carbon stocks are depleting in the project area; Increasing trends in fuel wood prices indicating a scarcit of fuel-wood; Trends in the tpes of cooking fuel collected b users that suggesting indicate a scarcit of wood biomass. 6 The forest definitions as established b the countr in accordance with the decisions 11/CP.7 and 19/CP.9 should appl. 4/7

5 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories Switch from non-renewable biomass for thermal applications b the user (cont) 8. Thus, the fraction of wood biomass saved b the project activit in ear that can be established as non-renewable, is: f NR, = NR NR + DR (4) 9. Project participants shall also provide evidence that the trends seen identified are not occurring due to on account of the enforcement of local/national regulations. Leakage 9. If the project activit includes substitution of non-renewable biomass b renewable biomass, leakage in the production of renewable biomass must be considered using the general guidance on leakage in biomass project activities (attachment C of Appendix ). 10. Leakage relatinged to the non-renewable wood biomass saved b the project activit shall be assessed based on from ex post surves of users and the areas from whereich this wood biomass is sourced (using 90/30 precision for a selection of samples). The following potential source of leakage shall be considered: The Uuse/diversion of non-renewable wood biomass saved under the project activit b non-project households/users that previousl used renewable energ sources. If this leakage assessment quantifies an increase in the use of nonrenewable wood biomass used b the non-project households/users, that is attributable to the project activit, then is adjusted to account for the quantified leakage. Alternativel, is multiplied b a net to gross adjustment factor of 0.95 to account for leakages, in which case surves are not required. 11. If the equipment currentl being utilised is transferred from outside the boundar to the project boundar, leakage is to be considered. Monitoring 12. Monitoring shall consist of an annual checking of all appliances or a representative sample thereof, at least once ever two ears (biennial) to ensure that the are still operating or are replaced b an equivalent in service appliance. 13. In order to assess the leakages specified under paragraph 11 10, monitoring shall include data on the amount of wood biomass saved under the project activit that is used b non-project households/users (who previousl used renewable energ sources). Other data on non-renewable wood biomass use required for leakage assessment shall also be collected. 14. Monitoring should confirm the displacement or substitution of the non-renewable wood biomass at each location. In the case of appliances switching to renewable biomass the quantit of renewable biomass used shall be monitored. 5/7

6 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories Switch from non-renewable biomass for thermal applications b the user (cont) 15. In case option in paragraph 6 is chosen for baseline calculations, monitoring shall include the amount of thermal energ generated b the new renewable energ technolog in the project in ear, where applicable. 16. In the case of renewable energ based water treatment technologies, water qualit shall be monitored to ensure that it conforms to drinking water qualit specified in relevant national microbiological water qualit guidelines/standards of the host countr. In case a national standard/guideline is not available, the standards/guidelines b the World Health Organization (WHO) or United States Environmental Protection Agenc (US-EPA) shall be applied. Representative sampling methods 16. Sample size shall be chosen for a 90/10 precision (90% confidence interval and 10% margin of error) for parameter values used to determine emission reductions, and project proponents shall make all reasonable efforts to achieve this specified level of confidence/precision; in cases where surve results indicate that 90/10 precision is not achieved, the lower bound of a 90% confidence interval of the parameter value ma be chosen as an alternative to repeating the surve efforts to achieve the 90/10 precision. 17. A statisticall valid sample of the locations where the sstems are deploed, with consideration, in the sampling design, of occupanc and demographics differences can be used to determine parameter values used to determine emission reductions, as per the relevant requirements for sampling in the General guidelines for sampling and surves for small-scale CDM project activities. When biennial inspection is chosen a 95% confidence interval and 5% margin of error requirement shall be achieved for the sampling parameter. On the other hand when the project proponent chooses to inspect annuall, a 90% confidence interval and 10% margin of error requirement shall be achieved for the sampled parameters. In cases where surve results indicate that 90/10 precision or 95/5 precision as the case ma be is not achieved the lower bound of a 90% or 95% confidence interval of the parameter value ma be chosen as an alternative to repeating the surve efforts to achieve the 90/10 or 95/5 precision. Project activit under a Programme of Activities 18. The use of this methodolog in a project activit under a programme of activities is legitimate if the following leakages are estimated and accounted for, if required, on a sample basis using a 90/30 precision for the selection of samples, and accounted for: Use of non-renewable wood biomass saved under the project activit to justif the baseline of other CDM project activities can also be a potential source of leakage. If this leakage assessment quantifies a portion of non-renewable wood biomass saved under the project activit that is then used as the baseline of other CDM project activities then is adjusted to account for the quantified leakage; Increase in the use of non-renewable wood biomass outside the project boundar to create non-renewable wood biomass baselines can also be a potential source of leakage. If this leakage assessment quantifies an increase in the use of non- 6/7

7 CDM Executive oard /Version 04 for selected small-scale CDM project activit categories Switch from non-renewable biomass for thermal applications b the user (cont) (c) renewable wood biomass outside the project boundar, then account for the quantified leakage. is adjusted to As an alternative to subparagraphs and, old can be multiplied b a net to gross adjustment factor of 0.95 to account for leakages, in which case surves are not required Histor of the document Version Date Nature of revision 04, Annex # 15 April 2011 Requirements for leakage estimation simplified, default net gross adjustment factor is included as an option to account for an leakages, emission factor for the projected fossil fuel revised, more options for sampling and surve included. 03 E 56, Annex 17 To expand the applicabilit to renewable energ water treatment 17 September E 53, Annex March E 37, Annex 6 1 Februar 2008 Decision Class: Regulator Document Tpe: Standard usiness Function: Methodolog technologies. To include the changes below which are consistent with the changes to AMS-II.G approved b the oard at its fift-first meeting: Further clarification on the eligible technolog/measures; Default efficienc factors for baseline cook stoves; Procedures for sampling; Revised procedures for quantit of wood biomass that can be considered as non-renewable; and Clarifications as to which leakage requirements are appropriate for projects versus PoAs. Initial adoption. 7/7