Overview of recent work under the CDM: Methodologies, PoAs , Standardized Baselines

1. Urban Methodologies for the built environment Workshop: Session 1 Overview of recent work under the CDM: Methodologies, PoAs, Standardized Baselines Gajanana Hegde SDM/UNFCCC

2. Updates on recent methodological work (2012-2013) • Recent CDM Methodologies relevant to built environment; • Updates on Programme of activities (PoAs); • Updates on Standardized baseline (SB);

3. CDM methodologies • 2013 CDM survey (800 stakeholder responses) • Methodologies are the biggest assets of CDM

4. Evolution of suppressed demand guidelines • Para 47 of 3/CMP.1:M & P of CDM cite future emissions increase • CMP.5 and CMP.6 request EB action • EB 61 and EB 62, 2011 (guidelines approved) • CMP.7 requests EB to accelerateimplementation in methodologies • Priority focus on LDCs, SIDs, African countries and underrepresented countries • Over 11 methodologies now address suppressed demand

5. Key Features of Suppressed Demand Guidelines • Applicable where the minimum service level (MSL) is not met • MSL is that service that meets basic human needs (e.g. basic housing, basic energy services including lighting, cooking, drinking water supply) • Provides methodological approaches under a suppressed demand situation for: • Identification of baseline measure/technology; and • Baseline service level to use to calculate baseline emissions

6. AMS-I.L “Electrification of rural communities using renewable energy“ (EB 66) • AMS-I.L joins AMS I.A and AMS III.AV; • RE Electrification of households & SMEs with no access to electricity • Default emission factors; • Tranche 1: [Np < 55 kWh/year] 6.8 kg CO2/kWh; • Tranche 2: [55< Nz <250]  1.3 kg CO2/kWh; • Tranche 3:[Nw> 250]  1.0 kg CO2/kWh ; • Default values + suppressed demand • New UN-backed emissions reduction scheme helps poorer nations use clean energy – (6 March 2012)

7. Recent Urban Methodologies Building sector: • AMS-II.N “Demand-side energy efficiency activities for installation of energy efficient lighting and/or controls in buildings” • Including control systems • AMS-II.Q “Energy efficiency and/or energy supply projects in commercial buildings” • Use of computer simulation • AMS-II.R: Energy efficiency space heating measures for residential buildings • Consideration of suppressed demand • AMS-II.O “Dissemination of energy efficient household appliances” • EE refrigerators (deemed savings)

8. Recent Urban Methodologies Transport sector: • AMS-III.AY “Introduction of LNG buses to existing and new bus routes” • AM0101 “High speed passenger rail systems” • AMS-III.BC “Emission reductions through improved efficiency of vehicle fleets" • AM0110 “Modal shift in transportation of liquid fuels”

9. Recent Urban Methodologies Waste treatment: • AM0083 “Avoidance of landfill gas emissions by in-situ aeration of landfills” • AM0093 “Avoidance of landfill gas emissions by passive aeration of landfills” • AMS-III.BA “Recovery and recycling of materials from E-waste” • AMS-III.BJ: Destruction of hazardous waste using plasma technology including energy recovery • AM0112: Less carbon intensive power generation through continuous reductive distillation of waste • ACM0024: Natural gas substitution by biogenic methane produced from the anaerobic digestion of organic waste

10. Other highlights • Automatic additionality for waste treatment projects • LFG to energy • Composting • AM091 for building • Inclusion of computer simulation • Suppressed demand

11. Updates on Programme of activities (PoAs) • Unlimited number of similar component project activities (CPA) can be administered under a single programme umbrella. • Scale up the CDM • No specified size limits • CPA can be time bound (e.g. activities commencing in a certain year). • Reduce transaction costs CME CPA CPA $$$ CPA CPA CER Buyer CME – coordinating or managing entity CPA – CDM programme activity

12. Updates on POAs Source : UNFCCC

13. Updates on POAs Source : UNFCCC

14. Updates on POAs Source : UNEP RISOE

15. Updates on POAs Source : UNEP RISOE

16. Updates on POAs Source : UNFCCC

17. Updates on POAs Source : UNFCCC

18. CME Structures in Africa (source: Promethium carbon)

19. Updates on PoA regulations • Combination of multiple technologies/measures and methodologies eligible; • Min one specific case CPA at registration covering one technology, specific CPA for other technologies can be added later; • Interactive effects (cross effects) needs to be considered; • Sampling for a group of CPAs or for the whole PoAallowed; • Best practices examples for sampling; • Simplified additionality • Projects/CPAs with units < 5% of SSC thresholds automatically additional (positive list) • Micro scale Guidelines also apply to project applying LS meth; • Flexibility for the start date of PoA/CPA;

20. Requirements for Multiple Methodologies/technologies in a PoA • Use pre approved combinations • For other combinations account for cross effects; • EB68 “Guidelines for consideration of interactive measures for application of multiple CDM methodologies for PoAs” • For LSC combination, request clarification/revision to MP

21. SSC Pre approved combinations • Combinations of approved methodologies by the Board are contained in the SSC General Guidelines: • AMS-III.R + AMS-I.C; AMS-III.D + AMS-I.C + AMS-I.F; and AMS-I.C + AMS-I.F. • Any one of the Type III methane generating methodologies, with any one of the Type I methane utilizing methodologies • i.e. AMS-III.H, AMS-III.D, AMS-III.F and AMS-III.G, with AMS-I.A, AMS-I.C, AMS-I.D and AMS-I.F.

22. cross effects • Cross effects examples EE measures in a building • Activity 1: efficient lighting bulbs • Activity 2: efficient space heating/cooling • Cross effect: Activity 1 will lead to increased/reduced fuel consumption for the same level of space heating/cooling.

23. Sampling Requirements • Use the following confidence/precision requirements: • 90/10 for small-scale; • 95/10 for large-scale; • Unless specified in the applicable methodology; • For precision (i.e. figure of ±10%), use relative percentage terms when parameter of interest is both a proportion and a mean value; • ±10% when average usage of a CFL is 3.5 hours implies that the population parameter is to be within ± 0.35hours. • ±10% when one expects 50% of cook stoves still to be operational means that population value is to be within ± 5%.

24. Sampling allowed for a group of CPAs under a small scale PoA; populations of all CPAs in the group are combined for a single survey Group of CPAs CPA 1 CPA 2 CPA 3 CPA 4 CPA 5 Sampling for a group of CPAs PoA

25. Criteria for Validation of Sampling Plans Adequate to achieve confidence/precision requirements? Reproduce of sample size calculation; Samples are randomly selected and are representative? DOEs may apply sampling when PPs have not applied sampling provided predefined level of assurance is met. Validation and Verification of Sampling plans of Project Activities and PoAs

26. Sampling for DOE validation/verification New

27. Post registration changes

28. Start date and crediting period PoArenewal PoArenewal PoArenewal ● CPA renewal CPA6 CPA5 CPA4 CPA3 Renewal CP CPAs Fixed CP CPAs CPA2 CPA1 ● ● ● ● ● ● 7yrs 7yrs 7yrs 7 yrs PoA lifetime = max. 28 years Start date of PoA (Date of registration at earliest) End date of PoA

29. Ongoing work on PoA regulation • Flexibility for issuance to CPAs (e.g. batched issuance request) • Simplification of documentation requirement and more flexibility with post registration changes • Further work on sampling and eligibility criteria • And more ……

30. Updates on standardized baselines • Key documents approved • Guidelines for the establishment of sector specific standardized baselines(SB guidelines); • Guidelines for data quality in the establishment of SBs (QA/QC guidelines). • Guidelines for establishmentof SBs for afforestation and reforestation project activities under the CDM (AR-SB guidelines) • Procedure for development, revision, clarification and update of standardized baselines; • Key principles on Standardised Baselines. • Standard on data coverage and validity of standardized baselines • Four standardized baselines for different DNAs.

31. Bottom up SBs approved • ASB0001: Grid Emission Factor of Southern African Power Pool (SAPP)- for 9 countries in Southern Africa (EF) • ASB0002: Technology Switch in charcoal production sector of Uganda (EF and positive list) • ASB0003: Grid Emission Factor for Uzbekistan (EF) • ASB0004: Technology Switch in rice mill sector of Cambodia (EF and positive list)

32. Approved SB

33. Standardized baseline (SB) • 5+ submitted SB are under consideration by EB • Power sector • Waste sector • Cement sector • Draft tools to be considered at EB next week to facilitate SB development in Transport sector: • "Baseline emissions for modal shift measures in inter-urban cargo transport" • "Baseline emissions for modal shift measures in urban passenger transport"

34. Thank you!