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PDD and PIN preparation

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PDD and PIN preparation

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    1. PDD and PIN preparation Technical Workshop on CDM Paramaribo, 18 June 2008 Adriaan Korthuis

    2. Contents PIN What and why How PDD What and why How

    3. Project development

    4. PIN and PDD

    5. PIN – Key Elements Clear description of project activities and technologies employed Identify project participants and arrangement for implementation Participants’ roles and their technical, financial capability to undertake Status of third party involvement if appropriate (e.g., PPA in case of electricity generation project or agreement with municipality, private operator regarding ownership of waste in case of landfill project) Eligibility outline: additionality and baseline scenario Why the project should not happen on its own? Sources of GHG emission reductions and total ER volume including possible leakage Local, national, and global benefits Risks

    6. Project Financing Bankability: sooner can achieve financial closure, better the chances of selection Project costs already determined and realistic Idea of how carbon would impact implementation or address expected financing gap Credible baseline and adequate volume Carbon credit volume should be sufficient to cover CDM or VER transaction costs Suggested minimum threshold: 20 ktCO2 per year or 100 ktCO2 total before 2012. What buyers look for (1) If not FSC certificate, then a proof that the biomass is supplied in a sustainable manner in case of biomass project that constitutes sourcing of biomass raw materials, environmental licencesIf not FSC certificate, then a proof that the biomass is supplied in a sustainable manner in case of biomass project that constitutes sourcing of biomass raw materials, environmental licences

    7. What buyers look for (2) For hydro project based on the existing reservoir, need to get water lincensing. For hydro project based on the existing reservoir, need to get water lincensing.

    8. Examples of PINs Worldbank: www.carbonfinance.org

    9. Elements of the PDD A. General description of the small scale project activity B. Application of a baseline and monitoring methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments   Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information

    10. A. General project description Project description, contribution to sustainable development Project participants Technical description Location Summary of emission reductions

    11. B. Application of a baseline and monitoring methodology Selection of methodology – justification and application Description of project boundary, sources and gasses Be complete and follow the methodology strictly Identification of the baseline scenario Support this by adequate evidence Identify risks of the baseline, e.g. if the situation continues over time Take care of logic in the PDD Demonstration of additionality Be complete, convincing, tranparant, well documented etc Inventory of data Ex-ante estimation of emission reductions Monitoring plan

    12. C. Dates Starting date: the day that construction starts Crediting period: Single period of 10 years OR Renewable period of 3 * 7 years Check of validity of the baseline Check of validity of assumptions (e.g. additionality) Update the baseline

    13. D. Environmental impacts Describe environmental impacts Carry out Environmental Impact Assessment if required by local law, and if impacts are considered considerable Add the EIA to the PDD

    14. Stakeholder comments Local stakeholders must be consulted Following local procedures Comments of stakeholders must be described Who was invited and how Who was there What information was provided How discussion was organised Which comments were given and concerns were raised Report on how these comments were taken into account.

    15. Examples of PDDs UNFCCC-website: cdm.unfccc.int – Project activities

    16. Contact details Adriaan Korthuis Phone +31 10 217 5993 E-mail a.korthuis @ climatefocus.com www.climatefocus.com

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