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Requirement of New Rules for PoA: DOEs Perspective UNFCCC Workshop on PoA under the CDM: Challenges and the Road Ahead Jun Wang; TÜV NORD CERT GmbH 2011-05-07. Table of Contents. 1 PoA Procedural and Projects Development. Source: UNFCCC website.

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slide1

Requirement of New Rules for PoA:

DOEs Perspective

UNFCCC Workshop on PoA under the CDM: Challenges and the Road Ahead

Jun Wang; TÜV NORD CERT GmbH

2011-05-07

1 poa procedural and projects development
1 PoA Procedural and Projects Development
  • Source: UNFCCC website

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

2 current specific poa rules compare to cdm
2 Current Specific PoA Rules compare to CDM
  • 3 Templates
  • Section structure
  • Guidance
  • CME Authorization
  • PoA Indication
  • Not for CPAs
  • Multi-Meth Approval
  • PoA Additionality
  • Sampling Plan
  • 3 DDs
  • 2 Reports
  • No CC Scheduling
  • No Iss. interface
  • Materiality level?
  • Cancellation Acc.
  • No MR template
  • No GSP interface
  • Sampling?
  • Materiality level
  • No same DOE
  • 100% Records
  • CME Responsibility
  • Sampling?
  • No EB Approval
  • DNA/EB review
  • Eligibility Criteria
  • CPA Additionality
  • DOE liability
  • Sampling/Materiality

Project Cycle – Programme of Activities

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

3 required new rules for poa registration
3 Required New Rules for PoA Registration
  • Consistent Section Structure
    • Current PoA-DD and CPA-DD Template compare to CDM PDD:

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

3 required new rules for poa registration1
3 Required New Rules for PoA Registration
  • Further Guidance
    • PoA-DD template
      • Starting Date of PoA
      • A.4.4.2 Monitoring Plan Vs. E.7.2 CPA Monitoring Plan
        • Sampling method/procedure for verifications
        • with different or identical verification periods
      • E.7.1 Table for Monitoring Parameters
        • Value of data applied for the purpose of calculating expected emission reductions in section B.5
    • CPA-DD template
      • CPA implementer/Operator v.s. entity/individual responsible for the CPA
      • B.6 missing tables for monitoring parameters

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

3 required new rules for poa registration2
3 Required New Rules for PoA Registration
  • DNA Approval
    • Guidance for new Host countries Approvals after PoA Registration
    • Optional DNA approvals for CPA inclusions – requested by some DNAs

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

3 required new rules for poa registration3
3 Required New Rules for PoA Registration
  • PoA Validation
    • Priority area for EB 63
      • PoA Additionality incl. Policy driven PoA (EB 60 Annex 27 3(a))
      • Multi-Meth Approval (EB 60 Annex 27 3(b))
      • Eligibility Criteria for CPA inclusion (EB 60 Annex 27 3(c))
      • Sampling Plan Guidance (EB 60 Annex 27 5(d))
    • Clarification on SSC meth. leakage req. under PoA:
      • “The scrapping of replaced equipment should be documented and independently verified.” - Who is responsible, how and when to verify? DOE, consultant, 3rd party, before/during verification…?
    • Clarification on mandatory policy PoA
      • V.s. current CDM decision on mandatory policies (EB 54 para. 54):
      • Definition/quantification on improvement of the mandatory policy enforcement, e.g., 50% threshold in AM0025?

Project Cycle – Programme of Activities

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

3 required new rules for poa registration4
3 Required New Rules for PoA Registration
  • PoA Registration
    • As per Procedure for requests for registration of proposed CDM project activities (EB59 Annex 13):
      • “5. The DOE shall submit the required documents listed in latest applicable version of the completeness checklist for requests for registration, which the secretariat will make publicly available by publishing it on the UNFCCC CDM website.”
      • “11. …The schedule of requests for registration to be processed, including the expected date of commencement, shall be made publicly available.”
    • Completeness Check automatic scheduling and reporting to be adopted to the new CDM registration procedures and system
      • Keep deadlines of the subsequent completeness check steps

Project Cycle – Programme of Activities

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

4 required new rules for cpa inclusion
4 Required New Rules for CPA Inclusion
  • DOE CPA inclusion liabilities – EB 60 Annex 27 para. 3(d) 5(e)
  • Revise PoA Procedures for Registration and Issuance
    • Current version 4.1- EB55 Annex 38:

“26. If a DNA involved in the PoA or a Board member identifies information that may disqualify a CPA from inclusion in the PoA or renewal of its crediting period, the Secretary of the Board shall be notified, in accordance with the “Procedures for review of erroneous inclusion of a CPA” within one year after the inclusion of CPA into a registered PoA or renewal of the crediting period of the CPA, or six (6) months after the first issuance of CERs for that CPA, whichever is the later, Such a request for review shall be related to issues associated with the compliance of the CPA with the eligibility criteria specified in the CDM-POA-DD. ”

4 required new rules for cpa inclusion1
4 Required New Rules for CPA Inclusion
  • Revise CPA Erroneous inclusion Review Procedures
    • Current version 4.1- EB55 Annex 37:

“10. A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA shall conduct the review referred to in paragraph 9, by assessing a random sample of 10% of all CPAs currently included and submitting a report to Board within eight weeks. ”

“16. The consequences of the extension of the review are that: (a) …

(b) A further sample of 15% of included CPAs shall be reviewed in accordance with the modalities contained in paragraphs 10 to 13;

(c) If this second review also leads to the exclusion of further CPAs, the Board may decide to extend the review to all included CPAs. ”

      • Consequences: Re-open the review to all CPAs included!
    • Need clear definition on review scope of issues, materiality and limited timeframe

Project Cycle – Programme of Activities

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

4 required new rules for cpa inclusion2
4 Required New Rules for CPA Inclusion
  • Guidance on CPA inclusion Eligibility Criteria incl. CPA Additionality requirements (EB 60 Annex 27 3(c))
  • Guidance on Sampling of CPA Validations and Materiality (EB 60 Annex 27 5(d))

Project Cycle – Programme of Activities

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

5 required new rules for poa issuance
5 Required New Rules for PoA Issuance
  • PoA/CPA Verification
    • No CPA MR template or MR GSP interface
      • A version of the standardized format for monitoring reports applicable to Programme of Activities (PoA) shall be established as per EB 54 meeting report para. 72;
    • Applicable guidelines to CPAs
      • “Procedures for revising monitoring plans” and “Procedures for requests for deviation prior to submitting request for issuance”;
    • Sampling Plan Guidance (EB 60 Annex 27 5(d))
      • Sampling for Baseline, Monitoring and Verification
    • Materiality Guidance incl. Materiality level
    • Procedures to approve same DOE conducting PoA Validation/CPA Inclusion and PoA Verification
      • E.g. automatic approval for SSC PoA as per para. 20 of the decision 4/CMP.1, Annex II

Project Cycle – Programme of Activities

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

5 new rules for poa issuance
5 New Rules for PoA Issuance
  • PoA/CPA Issuance
    • Checklist and Submission Interface
      • Procedure for requests of Issuance of CERs (EB54 Annex 35)

“6. The DOE shall submit the required documents listed in latest applicable version of the completeness checklist for requests for issuance, which the secretariat will make publicly available by publishing it on the UNFCCC CDM website. The DOE shall submit the required documents using the electronic, internet-based, submission tool provided by the secretariat to the DOE.”

    • CER Cancellation/Compensation Account
      • In case of erroneous inclusion or issuance
      • Compensate CERs from CME/PP‘s other issuance

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

6 recommendations
6 Recommendations
  • EB 60 Annex 27, Priority areas for the forthcoming revision of the regulatory framework for PoA, para. 4 :

“The Board agreed that the work on this matter should be progressed in conjunction with the consolidation of project cycle rules and requirements into clear standards and procedures. The Board requested the secretariat to develop the project cycle consolidation in a manner that is unambiguous regarding the applicability of project requirements to programmes and ensures that exemptions and derogations are explicitly defined.

  • Work closely to Smoothen the rules for qualified/ eligible and sustainable PoA/CPAs
6 recommendations1
6 Recommendations
  • Work closely!

Source: Module 2 Lesson 1 Transcript, World Bank E-learning course on the CDM PoA

UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective 2011-05-07

slide17

Thank you

  • for your attention!

Mrs. Jun Wang

PoA Product Manager

GHG Auditor - Lead Assessor

TÜV NORD CERT GmbH

Langemarckstraße 20, D-45141 Essen

Fon +49 (201) 825-2778

Fax +49 (201) 825-2139

  • jwang@tuev-nord.dewww.tuev-nord.de