Programmatic CDM – How is it different?. Dr. Soren E. Lütken UNEP Risoe Center. a short story. a background from China Danish programme, UNEP and CASS, Programmatic CDM... A case in Henan province, biogas digesters An existing national programme
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Dr. Soren E. Lütken
UNEP Risoe Center
check “A primer on CDM Programme of Activities”
A programme of activities (PoA) is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary programmes), which leads to anthropogenic GHG emission reductions or net anthropogenic greenhouse gas removals by sinks that are additional to any that would occur in the absence of the PoA, via an unlimited number of CPAs.
A CPA isa project activity under a programme of activities. A CPA is a single, or a set of interrelated measure(s), to reduce GHG emissions or result in net anthropogenic greenhouse gas removals by sinks, applied within a designated area defined in the baseline methodology.
Definitionof a Programme of Activity - PoA
Definition of a CDM ProgrammeActivity - CPA
CDM project (owner)
The Executive Board has clarified that in general:
However, only mandatory laws and regulations need to be taken
into account, so national and local policies that do not have legally
binding status can be ignored:
In addition, the Executive Board has created exceptions for the
following types of mandatory national and/or sectoral policies:
1. National and/or sectoral policies or regulations that give comparative advantages to more emissions-intensive technologies or fuels over less emissions-intensive technologies or fuels [so-called Type E+ policies].
Only national and/or sectoral policies or regulations under paragraph 6 (a) that have been implemented before adoption of the Kyoto Protocol by the COP (decision 1/CP.3, 11 December 1997) shall be taken into account when developing a baseline scenario. If such national and/or sectoral policies were implemented since the adoption of the Kyoto Protocol, the baseline scenario should refer to a hypothetical situation without the national and/or sectoral policies or regulations being in place. (EB 22, Annex 3, paragraph 7(a)).
The Executive Board has created exceptions for the following
types of mandatory national and/or sectoral policies:
2. National and/or sectoral policies or regulations that give comparative advantages to less emissions-intensive technologies over more emissions-intensive technologies (e.g. public subsidies to promote the diffusion of renewable energy or to finance energy efficiency programs) [so-called Type E- policies] (EB 22, Annex 3, paragraph 6).
National and/or sectoral policies or regulations under paragraph 6 (b) that have been implemented since the adoption by the COP of the CDM M&P (decision 17/CP.7, 11 November 2001) need not be taken into account in developing a baseline scenario (i.e. the baseline scenario could refer to a hypothetical situation without the national and/or sectoral policies or regulations being in place) (EB 22, Annex 3, paragraph 7(b)).
Finally, where analysis shows that there is widespread non-
compliance in a country or region with mandatory laws and policies,
then a scenario involving non-compliance may be a valid baseline.
CPA-DD generic information
A completed CPA
Certification & Issuance
Monitoring & Reporting
“Procedures for registration of a programme of activities as a single CDM project activity and issuance of certified emission reductions for a programme of activities“
“Procedures for review of erroneous inclusion of a CPA"
“Procedures for approval of the application of multiple methodologies to a programme of activities”
provide the framework by which programmes of activities will be assessed.
Latest edition of procedures from EB55: (http://cdm.unfccc.int/Reference/Procedures/PoA_proc01.pdf)
EB 55 Report, Annex 38 Guidance on the registration of project activities under a PoA as a single CDM project activity (Ver.4.01)
a) Identify the C/ME, Host Party(ies) and PoA participants
b) Definition of the boundary for the PoA in terms of a geographical area
c) Description of the policy/measure or stated goal that the PoA seeks to promote
d) Confirmation that the proposed PoA is a voluntary action by the C/ME.
e) Demonstration that in the absence of the CDM
(i) the proposed voluntary measure would not be implemented, or
(ii) the mandatory policy/regulation: ‘systematically not enforced’ + non-compliance widespread in the country/region, or
(iii) that the PoA will lead to a greater level of enforcement of the existing mandatory policy /regulation
f) Description of a typical CPA that will be included in the PoA
g) Definition of eligibility criteria for CPA
h) PoA starting date and duration: Max 28 yr (60 yr for A/R)
i) Description of the operational and management arrangements
j) Description of a monitoring plan for a CPA
k) Description of sampling method/procedure to be used by DOEs for verification
l) Environmental analysis of the PoA
m) Stakeholder consultation
n) If public funding is used, confirm that no ODA is not being diverted to the implementation of the PoA
Submit more CPAs
DNA or EB member find errors in the CPA included
Criteria of de-bundling under PCDM: a proposed small-scale CPA of a PoA shall be deemed to be a de-bundled component of a large scale activity if there is already an activity, which:
Has the same activity implementer as the proposed small scale CPA or has a coordinating or managing entity, which also manages a large scale PoA of the same sectoral scope, and;
The boundary is within 1 km of the boundary of the proposed small-scale CPA, at the closest point.
Only those PoAs need to be considered in determining de-bundling that are: (i) in the same geographical area; and (ii) use the same methodology; as the POA to which proposed CPA is being added
Which may be a (i) registered small-scale CPA of a PoA, (ii) an application to register another small-scale CPA of a PoA or (iii) another registered CDM project activity
(check cdmpipeline.org or cdm.unfccc.int)
Up-front costs may need to be distributed to later CPA participants (unless donor
funded, but that is not a permanent solution)
How to guard against putting the whole PoA on hold if one CPA is erroneously included?
How to keep individual installations in the CPA/PoA?
If no up-front CER-payment by the CER-buyer, consider registering unilaterally, i.e. forget the ERPA in the beginning!
Ideally, the coordinator is an entity with an economic interest in promoting the PoA and a market against which he can determine his cost/benefit. – Or the CPA managers are
Keep Coordinator responsible for up-front payment to individual CPA-participants - or keep CPA-holders responsible for up-front payments to individuals (India case), but in such cases the coordinator is distanced from the deals