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Programmatic CDM

Programmatic CDM. Development Dividend Task Force Meeting Vancouver March 27-28, 2006 Christiana Figueres and Erik Haites. COP/MOP 1 Decision. A policy or standard can not be a CDM project But a programme of activities can be registered as a single CDM project

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Programmatic CDM

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  1. Programmatic CDM Development Dividend Task Force Meeting Vancouver March 27-28, 2006 Christiana Figueres and Erik Haites

  2. COP/MOP 1 Decision • A policy or standard can not be a CDM project • But a programme of activities can be registered as a single CDM project • Large scale CDM projects can be bundled Not yet clarified by Executive Board

  3. Bundles of Large Projects Several separate CDM projects bundled to reduce transaction costs Projects not due to a programme Composition of bundle known at registration and does not change Existing methodologies apply to the individual CDM projects

  4. Policies and Standards Policies and standards can NOT be CDM projects Presumably due to: • difficulty demonstrating the policy or standard would not have been implemented otherwise and/or • measuring the emission reductions and attributing them to a specific policy or standard

  5. Programmatic Projects Involve a deliberate program of emission reduction actions Government policy (mandatory or voluntary) Private initiative (voluntary) An entity responsible for implementing the program Implement multiple dispersed actions May not occur at the same time Type, size and timing may not be known at registration Actions may be implemented by many entities

  6. Programmatic Projects One enacting agent • Private or public • Provides incentives or obligations • One of the “project participants” • Does not necessarily implement all actions Program is the project activity • Actions are not project activities

  7. Programmatic Projects Apply modalities and procedures for CDM projects mutatis mutandis As in current CDM practice: • Boundary • Leakage • Crediting period • Double counting (Executive Board currently seeking advice on how to prevent double counting)

  8. Programmatic Projects Baseline needed for program and actions • Program baseline reflects actions that would have been implemented otherwise • Action baseline reflects emissions that would have occurred otherwise Additionality for program and actions • Program level - as in single site CDM • Action level - as in single site if few large, or combination of eligibility conditions and free riders if many small

  9. Programmatic Projects Monitoring • must monitor actions due to the program, the participants; and • the emission reductions achieved by the actions • use sampling, control groups and other techniques if many small actions Important that first methodologies proposed be good – baseline, additionality, monitoring double counting

  10. Programmatic Projects Broadens access to the CDM to small business, households, transport Attractive for energy efficiency and small scale fuel switching actions Possible examples, efficient motor and appliance programs, ESCO retrofits, biodiesel production, solar water heaters, solar cookers, biogas stoves, etc.

  11. Conclusions Programmatic projects can enhance the development benefits of the CDM Requirements for programmatic projects not yet defined Submit high quality methodologies and projects to the Executive Board

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