Project Cycle – Programme of Activities 7th CDM Joint Coordination Workshop

1. Project Cycle – Programme of Activities 7th CDM Joint Coordination Workshop Jun Wang; TÜV NORD CERT GmbH 2011-03-12

2. 1 PoA Development • 4 CPA Inclusion Cycle • 5 PoA Issuance Cycle • 2 PoA Project Cycle Index • 3 PoA Registration Cycle

3. 1 PoA Development Project Cycle – Programme of Activities

4. 2 PoA project Cycle Source: Module 2 Lesson 1 Transcript, World Bank E-learning course on the CDM PoA Project Cycle – Programme of Activities

5. 2 PoA project Cycle Project Cycle – Programme of Activities

6. 3 PoA Registration Cycle Source: Module 2 Lesson 1 Transcript, World Bank E-learning course on the CDM PoA Project Cycle – Programme of Activities

7. 3 PoA Registration Cycle • Host country LoAs • Some host country DNA does not support PoA or does not have a comprehensive LoA procedure for PoA and CPAs • CME knowledge on CDM and PoA • CMEs are not fully aware of its role and responsibilities in the PoA or with limited CDM project implementation and monitoring knowledge • Lengthy Validation process (EB 55 Annex 38 para. 13-17): • PoA-DD and generic (& real-case) CPA-DD + supporting documents for whole PoA design v.s. PoA Validation report • Real case CPA-DD + CPA supporting documents v.s. CPA Validation/Inclusion report • Example: 1000 pages doc package for 1 PoA VAL Project Cycle – Programme of Activities

8. 3 PoA Registration Cycle Pending Guidance for PoA validations • Guidelines on “additionallity demonstration at the PoA level and use criteria for inclusion of the CPA in the PoA to establish additionality at the CPA level” as per EB meeting report 54 para. 44; • “Guidelines for determining the eligibility criteria related to the inclusion of CPAs in registered programmes of activities” as per EB 57 meeting report, paragraph 10; • Further clarification on the leakage emission from PoA / CPAs for applicable small-scale methodologies, e.g.: • Most SSC methodologies have included a leakage requirement under PoA context: “The scrapping of replaced equipment should be documented and independently verified.” it is unclear how and who is responsible to verify. • AMS IIG v.2 para 15 Leakage for potentially increased baselines for other CDM projects. • Further clarification on cases when a PoA is implementing a mandatory law v.s. current CDM decision on policies with definition / quantification on improvement of the enforcement Project Cycle – Programme of Activities

9. 3 PoA Registration Cycle Pending Procedures for PoA Registration • PROCEDURE FOR REQUESTS FOR REGISTRATION OF PROPOSED CDM PROJECT ACTIVITIES (EB59 Annex 13): “5. The DOE shall submit the required documents listed in latest applicable version of the completeness checklist for requests for registration, which the secretariat will make publicly available by publishing it on the UNFCCC CDM website.” “11. …The schedule of requests for registration to be processed, including the expected date of commencement, shall be made publicly available.” •  The system for the Programme of Activities has not been adopted to the new registration procedures at this time. The deadlines of the subsequent steps will follow the new registration procedure for CDM Project Activities and Programme of Activities. Project Cycle – Programme of Activities

10. 4 CPA Inclusion Cycle Open-ended Liability Issues • Updated PoA Registration and Issuance Procedures (EB55 Annex 38): “26. If a DNA involved in the PoA or a Board member identifies information that may disqualify a CPA from inclusion in the PoA or renewal of its crediting period, the Secretary of the Board shall be notified, in accordance with the “Procedures for review of erroneous inclusion of a CPA” within one year after the inclusion of CPA into a registered PoA or renewal of the crediting period of the CPA, or six (6) months after the first issuance of CERs for that CPA, whichever is the later, Such a request for review shall be related to issues associated with the compliance of the CPA with the eligibility criteria specified in the CDM-POA-DD. ” • However, liabilities for CPA inclusions are still open-ended as per “Procedures for review of erroneous inclusion of a CPA” (EB55 Annex37) Project Cycle – Programme of Activities

11. 4 CPA Inclusion Cycle Procedures for review of erroneous inclusion of a CPA “10. A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA shall conduct the review referred to in paragraph 9, by assessing a random sample of 10% of all CPAs currently included and submitting a report to Board within eight weeks. ” “16. The consequences of the extension of the review are that: (a) … (b) A further sample of 15% of included CPAs shall be reviewed in accordance with the modalities contained in paragraphs 10 to 13; (c) If this second review also leads to the exclusion of further CPAs, the Board may decide to extend the review to all included CPAs. ” Consequences: Re-open the review to all CPAs included! Solution: only review CPAs which are still within the request for review time stipulated in paragraph 5 of the procedures, i.e., one year after the inclusion of CPA into a registered PoA or renewal of the crediting period of the CPA, or six (6) months after the first issuance of CERs for that CPA, whichever is later Project Cycle – Programme of Activities

12. 5 PoA Issuance Cycle Pending Procedures for PoA Issuance • PROCEDURE FOR REQUESTS OF ISSUANCE OF CERS (EB54 Annex 35) “6. The DOE shall submit the required documents listed in latest applicable version of the completeness checklist for requests for issuance, which the secretariat will make publicly available by publishing it on the UNFCCC CDM website. The DOE shall submit the required documents using the electronic, internet-based, submission tool provided by the secretariat to the DOE.” Project Cycle – Programme of Activities

13. 5 PoA Issuance Cycle Pending procedural guidance on monitoring • A version of the standardized format for monitoring reports applicable to Programme of Activities (PoA) shall be established as per EB 54 meeting report para. 72; • A summary of applicable guidelines to PoAs/CPAs as per EB 57 meeting report, paragraph 12, such as, inter alia, “Procedures for notifying and requesting approval of changes from the registered PDD” and “Procedures for revising monitoring plans”; • Further elaboration on “General guidelines for sampling and surveys for SSC project activities” (EB 50 Annex 30) on PoA/CPA monitoring and verification; • Guidance on approval procedures for DOEs who has performed validation/inclusion/renewal of crediting period activities for the PoA to undertake the verification of the same PoA. Esp. for SSC PoA as per paragraph 20 of the “Simplified modalities and procedures for small-scale CDM project activities” (decision 4/CMP.1, Annex II);

14. Thank you • for your attention! Mrs. Jun Wang PoA Product Manager GHG Lead Auditor - Assessor TÜV NORD CERT GmbH Langemarckstraße 20, D-45141 Essen Fon +49 (201) 825-2778 Fax +49 (201) 825-2139 • jwang@tuev-nord.dewww.tuev-nord.de