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

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 2011
www.perspectives.cc · info@perspectives.cc © 2011 Perspectives GmbH

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 costs
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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
CDM
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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
added
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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.
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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 CPAX
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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 WG
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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 participants
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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: Transformer
125 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 Incineration
Source: UNEP Risoe database, 18 October 2011
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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 entirety
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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 MW
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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/sampled
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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 2011
www.perspectives.cc · info@perspectives.cc © 2011 Perspectives GmbH