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

Urban Methodologies for the built environment Workshop: Session 1

Gajanana HegdeSDM/UNFCCC

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Updates on recent methodological work (2012-2013)

1. Recent CDM Methodologies relevant to built environment;2. Updates on Programme of activities (PoAs);3. Updates on Standardized baseline (SB);

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CDM methodologies

• 2013 CDM survey (800 stakeholder responses)a) Methodologies are the biggest assets of CDM

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 a) EB 61 and EB 62, 2011 (guidelines

approved)• CMP.7 requests EB to accelerate

implementation in methodologies a) Priority focus on LDCs, SIDs, African

countries and underrepresented countries

• Over 11 methodologies now address suppressed demand

Key Features of Suppressed Demand Guidelines

• Applicable where the minimum service level (MSL) is not met a) 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:a) Identification of baseline

measure/technology; andb) Baseline service level to use to

calculate baseline emissions

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; a) Tranche 1: [Np < 55 kWh/year]

6.8 kg CO2/kWh;b) Tranche 2: [55< Nz <250] 1.3

kg CO2/kWh; c) 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)

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Recent Urban Methodologies

Building sector: • AMS-II.N “Demand-side energy efficiency activities for

installation of energy efficient lighting and/or controls in buildings”a) Including control systems

• AMS-II.Q “Energy efficiency and/or energy supply projects in commercial buildings”a) Use of computer simulation

• AMS-II.R: Energy efficiency space heating measures for residential buildingsa) Consideration of suppressed demand

• AMS-II.O “Dissemination of energy efficient household appliances”a) EE refrigerators (deemed savings)

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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”

Recent Urban Methodologies

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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

Recent Urban Methodologies

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Other highlights

• Automatic additionality for waste treatment projectsa) LFG to energyb) Composting

• AM091 for building• Inclusion of computer simulation• Suppressed demand

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Updates on Programme of activities (PoAs)

CME

CER Buyer

CPA

CPA

CPA

CPA

$$$

CME – coordinating or managing entityCPA – CDM programme activity

• 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

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Updates on POAs

Source : UNFCCC

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Updates on POAs

Source : UNFCCC

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Updates on POAs

Source : UNEP RISOE

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Updates on POAs

Source : UNEP RISOE

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Updates on POAs

Source : UNFCCC

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Updates on POAs

Source : UNFCCC

CME Structures in Africa (source: Promethium carbon)

Carbon consultants

• 37 examples

Funding organisations

• 12 examples

CPA1 or technology providers

• 8 examples

Independent NPO

• 6 examples

Government

• 11 examples

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• Combination of multiple technologies/measures and methodologies eligible; a) Min one specific case CPA at registration covering one

technology, specific CPA for other technologies can be added later;

b) Interactive effects (cross effects) needs to be considered;• Sampling for a group of CPAs or for the whole PoA allowed;

a) Best practices examples for sampling; • Simplified additionality

a) Projects/CPAs with units < 5% of SSC thresholds automatically additional (positive list)

b) Micro scale Guidelines also apply to project applying LS meth;• Flexibility for the start date of PoA/CPA;

Updates on PoA regulations

• 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

Requirements for Multiple Methodologies/technologies in a PoA

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 methodologieso 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.

cross effects

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.

Cross effects examples

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Sampling Requirements

1) Use the following confidence/precision requirements:• 90/10 for small-scale;• 95/10 for large-scale; • Unless specified in the applicable methodology;

2) 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%.

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Sampling for a group of CPAs

• 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

PoA

CPA 1 CPA 2 CPA 3 CPA 4 CPA 5

Group of CPAs

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Validation and Verification of Sampling plans of Project Activities and PoAs

• 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.

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Sampling for DOE validation/verification

Producers = 5%

Consumers = 5%

Producers = 10%

Consumers = 10%

Producers = 10%

Consumers = 20%AQL UQL Sample

Size (n)

Accept.

number (c)

Sample

Size (n)

Accept.

number (c)

Sample

Size (n)

Accept.

number (c)1% 10% 61 2 38 1 29 11% 15% 30 1 25 1 10 01% 20% 22 1 18 1 8 0

0.5% 10% 46 1 38 1 16 00.5% 15% 30 1 15 0 10 00.5% 20% 22 1 11 0 8 0

New

Post registration changes

Added by DOERegistration

PoA-DD

Generic CPA-DD 1

1st Specific CPA-DD 1

2nd , 3rd , nth Specific CPA-

DD

Generic CPA-DD 2 PRC (optional)

Generic CPA-DD 3 PRC (optional)

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Start date and crediting period

CPA

2

CPA

3

CPA

4

CPA

5

CPA

6

PoA lifetime = max. 28 years

Start date of PoA (Date of registration at earliest) End date of PoA

7yrs 7yrs 7yrs 7 yrs

Renewal CPCPAs

CPA

1

● ●● ●

● ●

PoA renewal

PoA renewal

PoA renewal

● CPA renewal

Fixed CPCPAs

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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 ……

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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 establishment of 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.

Updates on standardized baselines

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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)

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Approved SB

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Standardized baseline (SB)

• 5+ submitted SB are under consideration by EBa) Power sectorb) Waste sectorc) Cement sector

• Draft tools to be considered at EB next week to facilitate SB development in Transport sector: a) "Baseline emissions for modal shift measures in inter-urban

cargo transport"b) "Baseline emissions for modal shift measures in urban

passenger transport"

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Thank you!