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Prgramme of activities fundamentals

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RCREEE Member States: from the first movers for the NAMAs
16-17 November 2011

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Prgramme of activities fundamentals

  1. 1. Programme of Activities: Fundamentals and key success factors Matthias Krey, Perspectives GmbH 16.11.2011 Training Course “Existing CDM Potential and Perspectives for Carbon Finance in RCREEE Member States beyond 2012”, Cairo, Egypt, 16. November 2011www.perspectives.cc · info@perspectives.cc © 2011 Perspectives GmbH
  2. 2. Why Programme of Activities (PoA)?  Scale up the CDM  Increase number and size of CDM activities  Increase emission reduction  Allow for more project types and host countries  Reduce transaction costswww.perspectives.cc · info@perspectives.cc 2
  3. 3. A PoA combines project activities in one programme  One tree for one apple  One tree for many apples Single CDM project CPA under programmatic CDMwww.perspectives.cc · info@perspectives.cc 3
  4. 4. Key features of PoAs  As CDM: baseline + credited approach -> offsets  The PoA provides the organizational, financial, and methodological framework for the emission reductions to occur - but the PoA does not actually achieve the emission reductions  The emission reductions are attained at the level of the “CDM program activities” (CPAs)  Duration of the PoA, up to 28 years - crediting period of any CPA (1x10 or 3x7years) shall be limited to the end date of the PoA regardless of when the CPA was addedwww.perspectives.cc · info@perspectives.cc 4
  5. 5. Main characteristics of a PoA under the CDM  Multiple Sites  CPAs can occur at different local, regional or national sites.  A PoA boundary may extent to more than one country  Two-tiered structure  Two types of project participants  PoA coordinator  CPA developers  Coordinator is key programme participant  (not required to undertake CPAs himself)  Unknown number and timing of projects  Exact number and time of implementation of CPAs not known at time of submission (not possible to estimate overall emission reductions of PoA)  Any CPA can be added to the PoA at any time during the duration of the PoA by the coordinating/managing entity.www.perspectives.cc · info@perspectives.cc 5
  6. 6. The inclusion of an activity (CPA) under a PoA PoA Design Letter of Approval - Methodology CDM validation - Technology - Eligibility criteria CDM registration - Baseline - Additionality - Monitoring Plan Generic CPA CPA1 CPA2 CPA3 CPAXwww.perspectives.cc · info@perspectives.cc 6
  7. 7. Latest rules and procedures: Methodologies PoAs can use a combination of baseline methodologies  Combination must be applied to all CPAs, in a consistent manner  Combinations can be automatically used for Small-scale (SSC) methodologies  Each combination proposal is to be checked by the Meth Panel/SSC WGwww.perspectives.cc · info@perspectives.cc 7
  8. 8. Latest rules and procedures Additionality Additionality of each CPA has to be demonstrated through the eligibility criteria for inclusion of CPAs and not on the CPA level itself:  Desk review by DOEs, no individually on-site visit  E.g. once it has been determined that a certain technical equipment is additional (on PoA level), e.g. a 5 W CFL of manufacturer x, every CPA with same CFL meets additionality criteria CPA developers do not need to be formal programme participantswww.perspectives.cc · info@perspectives.cc 8
  9. 9. Currently 12 Programme of Activities are registered Mexico: Bangladesh: India: ENEF – consumption - 1. Improved Cooking 1. ENEF – consumption – power (CFL) Stoves power (CFL) 2. Efficient lighting 2. Renewable - Biomass Initiative (CFL) (other) – Biomass based heat generation systems Tunisia: Renewable - Solar China - ENEF - Power thermal – SWH transmission and distribution – Egpt: Transformer125 PoA currently Vehicle scrapping Replacement under validation and recyling Honduras: Brazil: South Africa: Uganda: Renewable – Hydropower Waste – Animal Waste Renewable - Solar Waste – Avoidance and (run of river) thermal – SWH IncinerationSource: UNEP Risoe database, 18 October 2011 www.perspectives.cc · info@perspectives.cc 9
  10. 10. PoA can apply a small-scale (SSC) methodology without any limit on the overall size of the PoA  SSC projects are limited to the following sizes:  15 MWe for renewable energy  60 GWh/a for energy-efficiency improvement  60 ktCO2e/a for other activities  SSC threshold applies to each CPA under the PoA, but not to its entiretywww.perspectives.cc · info@perspectives.cc 10
  11. 11. Key Features: No SSC threshold limit on PoA size CDM SSC-PoA on Renewable Power generation (e.g. hydro) Total power capacity: 22 MW > 15 MW PoA No limit on the aggregated capacity of PoA CPA CPA 1MW 5,5 MW CPA CPA 6 MW 5 MW CPA 4,5 MW CPAs limited by the SSC threshold of 15 MWwww.perspectives.cc · info@perspectives.cc 11
  12. 12. Key success factors  Each PoA has certain eligibility requirements for CPAs: Clear view of the CPA design (e.g. technologies, sizes, etc) before you validate the PoA!  Use small-scale methodologies (especially, if a combination of methodologies is required)  Do no start the implementation of the project (CPA) before validation of the PoA (otherwise CPA cannot be included in the PoA)  How do you want to define the boundary of a CPA?  Regional  As technologies are implemented (1,2,3…)  Carefully analyze, if you want to apply micro-scale procedures for CPAs with a capacity of up to 5 MW for renewable energies or energy savings of up to 20 GWh per year => increases monitoring costs as each CPA needs to be monitored/sampledwww.perspectives.cc · info@perspectives.cc 12
  13. 13. Many Thanks for Your Attention! Matthias Krey, Perspectives GmbH 16.11.2011 Training Course “Existing CDM Potential and Perspectives for Carbon Finance in RCREEE Member States beyond 2012”, Cairo, Egypt, 16. November 2011www.perspectives.cc · info@perspectives.cc © 2011 Perspectives GmbH

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