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Fast Track to Support Low-Income Countries & Regions under the CDM

Fast Track to Support Low-Income Countries & Regions under the CDM. Carbon Finance Unit World Bank. Fast Track CDM for Low-Income Countries and Regions (LICRs). 2. Standardized Baselines for LICRs.

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Fast Track to Support Low-Income Countries & Regions under the CDM

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  1. Fast Track to Support Low-Income Countries & Regions under the CDM Carbon Finance Unit World Bank

  2. Fast Track CDM for Low-Income Countries and Regions (LICRs) 2

  3. Standardized Baselines for LICRs • Introduction of standardized elements in already approved SSC / new SSC meth., relevant to LICRs. • Preliminary list of technologies: • Renewable energy (off grid) • Rural electrification • Cookstove • Solar water heaters • Heating & cooling / Building • Transformers, transmission and distribution of electricity • Transport (introduction of new technology/modal shift) • Biogas avoidance/recovery (composting/domestic biodigestors) • Charcoal production • LULUCF 3

  4. Standardized Baselines for LICRs • Proposals for standardization include: • Default values, e.g.: • -default ratio for renewable/non-renewable biomass for cookstoves. • -default factors for project emissions, e.g., composting/domestic biodigestors. • Deemed saving: e.g.deemed fuel consumption for cookstove. • Modeled approach: e.g., EE in building • Simplified monitoring: e.g., EE supply-side intervention: monitoring of market penetration rates. • Baselines setting : e.g., standards set by the government for appliances. • Penetration rate to define additionality: e.g., transportation sector. • Develop new SSC methodologies: grid electrification of rural communities. 4

  5. Standardized Baselines Rural Electrification, SSC methodology (under development) • Project type: Electrification of remote settlement (grid-extension or mini-grid connections), includes households/commercial users. • High efficiency lighting/more efficient power generation. • Cap on total energy consumption per household to rural universal access level (250 kWh, EIA 2009). • Baseline activity level for lighting: based on “minimum standard” for lighting, equivalent to 2 CFLs x 15W x 5 hr/d (EIA 2010) , convert to lumens and fuel consumption for kerosene lamp. • Deemed baseline emissions: based on fuel lighting characteristics and operational assumptions (0.75 tCO2/household p.a.). • Share of lighting vs other appliances is pre-defined: 30/70%. • Project emissions: T&D losses, SF6. • Simplified monitoring : households electricity consumed under project activity (individual or group). Commercial users: individual electricity meters. 5

  6. Recent Experiences: Validation Process Registration – recent experience Process Projects that started validation in 2009 Days at stage Started validation (independent audit) 1213 -- Successfully complete validation to date 397* 325 If fail, go to back of queue Wait in CDM queue 397 90 CDM document review (completeness check) 397 30† Request for registration to date 395 28 Secretariat & RIT Review 120 90^ Executive Board decision 55 90^ Registered to date (2 years later) 300 see below • Start of Validation to Registration: Total: average case 491 days * Note: Also 4 negative validations and 70 validations terminated †Note: Maximum time to complete the process ^Note: Estimate based on WB Experience Source: IGES and RISOE 6

  7. Fast Track CDM for LICRs Streamline approach for CDM project (micro-project activity) • Fast track for projects in LDCs/SIDs etc. (micro project): • Standardized check list/technology specific /relevant to LICRs. • Automatic registration if project complies with criteria in check list. • Verification by DOE of 1) conformity with check list; and 2) monitoring. • Proposal , to be developed along with the • principles: • Environmental integrity/ Conservativeness • Safeguards for implementation (e.g. high efficiency lighting) 7

  8. Thank you The World Bank Carbon Finance Unit www.carbonfinance.org

  9. Fast Track CDM for LDC+ CPAs with micro-project activity Fast track for PoA in LDCs/SIDs etc. (micro CPAs): Only PoA PDD (i.e. not CPA-DD) to be prepared for registration. Units /CPAs do not need to be validated at inclusion. PoA PDD validated by DOE. Should contain check list of eligibility requirements and must comply with additionality requirements for micro scale CDM projects Monitoring periodically undertaken for representative sample of all units included in PoA. Verification - DOE ensure units comply with eligibility criteria i.e. verification = “quasi validation”. Risk of liability much less than at point of registration. Issuance of CERs with verification report once approved by EB. 9

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