Institute for Global Environmental Strategies Towards sustainable development - policy oriented, practical and strategic research on global environmental issues Validation of Programme of Validation of Programme of g Activities ( Activities (PoAs PoAs): ): Analysis of CARs and CLs Analysis of CARs and CLs f C f C C C Preparation Meeting for Capacity Building of Potential Thai DOEs 7 July 2010 7 July 2010 Nozomi OKUBO Institute for Global Environmental Strategies g Market Mechanism Group
Status of Status of PoA PoA Development Development # 45 40 40 N Nepal (1) l (1) S. Korea (1) Thailand (1) 30 30 Singapore (1) Asia Asia Biomass (2) (30) Other renewables (3) Philippines (2) Methane Bangladesh (3) Bangladesh (3) Avoidance (3) Avoidance (3) Hydro (4) Indonesia (3) 20 Vietnam(4) Vietnam(4) Bi Biogas(7) (7) L. America China Mexco (1) (7) (6) ( ) Brazil (1) Brazil (1) Energy India (1) Africa Efficiency India (11) Middle (7) (8) East (1) East (1) Projects in PoAs Countries PoAs in total Asia Registered in Asia 2 Data: IGES PoA Database (June, 2010)
Similar Project Cycle Applied to Similar Project Cycle Applied to PoA PoA Normal CDM PoA PoA-DD, Typical CPA-DD, Project Design Document (PDD) Specific CPA-DD Validation Validation of PoA-DD/CPA-DD DNA Approval DNA A l DNA Approval DNA A l Registration Registration of PoA-DD/CPA-DD Monitoring Monitoring Inclusion of New CPA- N CPA DD(s) Verification Verification V lid ti Validation of CPA f CPA CER Issuance CER Issuance 3
PoA PoA Validation Needs Extra Reference Validation Needs Extra Reference •Article 12 KP •CDM M&Ps CDM-(SSC)-PDD ( ) •SSC-CDM M&Ps •SSC-CDM M&Ps •EB Decisions •Approved A d CDM-(SSC)- Methodologies P A DD PoA-DD CDM-CPA-DD (General) PoA Guidance CDM-CPA-DD and Procedures and Procedures (Specific) 4
3 3 PoAs PoAs registered so far registered so far g CFLs distribtuion in Mexico Registered in July 31 2009 Registered in July 31, 2009 ERs: 520,365 t-CO 2 /y (POA) 24 283 t CO /y (CPA) 24,283 t-CO 2 /y (CPA) Biogas utilization in Brazil Registered in October 29, 2009 ERs: 591,418 t-CO 2 /y (POA) 139 t-CO 2 /y (CPA) CFLs distribution in India CFLs distribution in India Registered in April 29, 2010 ERs: 34 892 t-CO 2 /y (POA) ERs: 34,892 t-CO 2 /y (POA) 34,892 t-CO 2 /y (CPA) 5
Overview of PoA-CFLs-Mexico PoA Title CUIDEMOS Mexico (Campana De Uso Intelegente De Energia Mexico) – Smart Use of Energy Programme To replace incandescent light bulbs (ILBs) with CFLs Design in households by providing CFLs free of charge. Baseline Baseline AMS II C (ver09) “Demand side energy efficiency AMS-II.C (ver09) Demand-side energy efficiency activities for specific technologies” Continued use of ILBs. Sampling procedure will be applied to determine operating hours of CFLs. li d t d t i ti h f CFL Additionality The replacement is not required by any law. of PoA of PoA PoA will face financial barrier. PoA will face financial barrier. Additionality Simple cost analysis with/without CER revenue. of Typical Barrier analysis based on independent study. CPA CPA Monitoring No sampling for monitoring; direct verification by DOEs. Scrapping of incandescent light bulbs will DOEs. Scrapping of incandescent light bulbs will also be monitored. 6
Summary of PoA-CFLs-India PoA Title CFL lighting scheme – “Bachat Lamp Yojana” Programme P To replace incandescent light bulbs (ILB) with CFLs T l i d t li ht b lb (ILB) ith CFL Design in households by providing CFLs Baseline Baseline AMS-II.J (ver03) “Demand-side activities for efficient AMS II.J (ver03) Demand side activities for efficient lighting technologies” Continued use of ILBs Additionality There are no mandatory legal requirements. of PoA f P A A t Autonomous replacement faces barriers. l t f b i Additionality Investment Barrier (Net Present Value with/without of Typical of Typical CER revenue) CER revenue) CPA Monitoring Director monitoring of CFLs distribution and d destruction of ILBs. t ti f ILB Sampling method adopted to determine some parameters related to CFLs. Simple random sampling approach applied. 7
Summary of PoA-Biogas-Brazil PoA Title Methane capture and combustion from Animal Waste Management System (AWMS) of the 3S Program farms of the Instituto Sadia de Sustentabilidade farms of the Instituto Sadia de Sustentabilidade Programme To install biogas digesters to treat the manure under Design g controlled conditions and recover/burn the methane. Baseline AMS-III.D (ver13) “Methane recovery in agricultural and agro industrial activities” Continuation of the current situation Continuation of the current situation. Additionality There are no mandatory rules to collect and burn the of PoA methane in swine manure. High investment cost g discourage the utilization of methane. Additionality Investment Barrier (Simple cost analysis) of Typical of Typical Technological Barrier (no special expertise) Technological Barrier (no special expertise) CPA Monitoring g Sampling method to be used by DOEs for verification g y of ERs. Sample size of 25% of all CPAs. 8
5 Important Points in 5 Important Points in PoA p PoA Validation Validation 1. Operation and management of PoA Most of the PoAs received CAR/CL for the documentation of the PoA: - Number of CPAs expected should be defined. - PP/CME in PoA should be clearly mentioned PP/CME in PoA should be clearly mentioned. - Starting date of CPA should be confirmed not to be before the start of validation of the PoA be before the start of validation of the PoA. For more details: Para 4 (Preparation of a CDM For more details: Para 4 (Preparation of a CDM- PoA-DD) (a) to (n) and Para 5 (Preparation of a CDM-CPA-DD) (a) to (h) of PoA Procedures CDM-CPA-DD) (a) to (h) of PoA Procedures (EB47, Annex 29) 9
5 Important Points in 5 Important Points in PoA PoA Validation Validation 2. Additionality of PoA Additionality argument of PoA and CPA Additionality argument of PoA and CPA - PoA: clarifications on national/sectoral policy, demonstration of the fact that only coordinated d t ti f th f t th t l di t d voluntary action overcome the issue. - CPA: application of approved methodology. CPA li ti f d th d l Simple cost calculation is applied in most cases. Eligibility criteria for the additionality of CPA should be defined in PoA. Draft guidelines for the demonstration of additionality for CDM PoAs (EB51 Annotations annnex 11) has been under consideration 10
5 Important Points in 5 Important Points in PoA PoA Validation Validation 3. Ensuring no double counting/de-bundling Submission of evidence (e g spread sheet for Submission of evidence (e.g. spread sheet for identification of each CPA) is often requested. This will include the checking system by CMEs For more details: Guideline for Determining the Occurrence of De-bundling under a PoA (EB47 Annex 32) 4. Public Consultation at PoA/CPA level PP to choose at which level consultation will be held PP to choose at which level consultation will be held. In some cases, change was made during CARs/CL f from PoA to CPA level. P A t CPA l l 11
5 Important Points in 5 Important Points in PoA PoA Validation Validation 5. Sampling methodology/approach All 3 PoAs employ sampling approach for ex- All 3 PoAs employ sampling approach for ex- ante/ex-post determination of parameters. CARs/CL made for clarification on the formulas and CARs/CL made for clarification on the formulas and sampling size. In most cases they use below by following the In most cases, they use below by following the indicative guidance in “General Guidelines for Sampling and Survey for SSC CDM Project Sampling and Survey for SSC CDM Project Activities (EB50 Annex 30) Simple Random Sampling Simple Random Sampling 90% Confidence level 10% Error margin 12
Summary Summary Experiences of validating PoAs are yet to be accumulated CARs and CL have been requested regarding such points as: such points as: - Concrete information of CPAs - Proof of no double-counting Proof of no double counting - Sampling approach DOEs should focus on those points for efficient validation Current “Procedures for PoA” as well as “Guidelines for PoA” should serve as a reference for clarification 13
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