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Programmatic CDM

Programmatic CDM. Joergen Fenhann DFC 9. August 2011. Regular CDM implementation – unbalaced d istribution of projects worldwide. Total submitted: 7939 Of which: 39 % at validation 42 % registered 2% in process of registration 17% rejected , withdrawn or terminated.

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Programmatic CDM

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  1. ProgrammaticCDM Joergen Fenhann DFC 9. August 2011

  2. Regular CDM implementation – unbalaced distribution of projects worldwide Total submitted: 7939 Of which: 39% at validation 42% registered 2% in process of registration 17% rejected, withdrawnorterminated Source: UNEP Risoe Centre CDM Pipeline, 1-August-2011 Source: downloaded from UNFCCC website on 26 Oct 2010

  3. Regular CDM implementation – low proportion of energy efficiency and transport projects Source: UNEP Risoe Centre CDM Pipeline, 01-10-2010

  4. Large potential for dispersed, small emission reduction activities unable to benefit Source: Figuress et al, URC CD4CDM Working paper No. 3, 2007

  5. Barriers to regular CDM project implementation • High upfront CDM project development costs (100,000 – 200,000 USD) • Long process: on average it takes 13 months from project submission to registration, and another 15 months from registration to the first issuance • Ex poste revenue based on actual emission reduction • Strict schedule – project size, starting date, technology, m Once size decided, can not change • Difficult to coordinate activities by different owners • Project cannot be added/expanded after project registration: size, starting date, technology, monitoring etc. fixed in registered Project Design Document

  6. What is programmatic CDM? • A way introduced to overcome the above barriers to CDM implementation • Definition: • 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 removals by sinks that are additional to any that would occur in the absence of the PoA, via an unlimited number of CDM programme activities • Difference from regular CDM: • A programme of activities rather than a project activity can be registered • Many similar CDM project activities coordinated by a private or public entity • Flexible schedule: The activities can take place in many different locations (including multi-country) over a period of up to 28 years

  7. PCDM Project Cycle Project design Validation PoA Registration PoA DD CPA-DD generic information A completed CPA validation report EB DOE Coordinating Entity Project participants LoA Coordinating Entity Project participants CPA CPA CER CPA DNA EB DOE DNA Approval EB Inclusion Certification & Issuance Coordinating Entity Project participants Implementation DOE kWh, hr… Verification Monitoring & Reporting

  8. Program vs activities – an example

  9. A brief history • Concept introduced at COP11/MOP1 in 2005 • Finally approved at EB 32 in June 2007 • Guidance, procedures, and PDD templates issued in July 2007 • Methodologies revised in 2007 to accomodate pCDM • Procedures further streamlined and clarified in May 2009 and July 2010 • As of 1st. August 2011, 109 P-CDM projects submitted, of which9 registered. • Now 3 registeredP-CDMs have included 1086 small projects.

  10. The speed of P-CDM activitysubmissionis increasingnow Source: UNEP Risoe Centre CDM Pipeline, 01-August-2011 Note: surge in PoAs submmited in Dec 2009 is because it is the deadline for allowing activities start before registration of programs

  11. Types and technologies of exsiting PoAs 3.5% for normal CDM 1.8% for normal CDM

  12. Does P-CDM lead to more balanced regional contribution? : YES

  13. List of all P-CDM projects

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