Session 2: CDM Project Cycle Validation and Registration of CDM Projects

1. Session 2: CDM Project CycleValidation and Registration of CDM Projects Training-Workshop to support the “Uganda Municipal Waste Compost Programme” 21 - 24 Oct 2013, Mukono Municipality, Uganda Nashib Kafle, Associate Programme Officer

2. Outline • CDM Project Cycle • Project Design Document (PDD) • Baseline • Additionality • Monitoring • Validation process • Registration process

3. Step Who’s responsible Project design Project Participant Project Design Document (PDD) & Host Country Approval National approval Validation DOE Validation & Request for registration Registration CDM EB Monitoring Verification / certification Issuance of Certified Emission Reductions (CERs) CDM Project Cycle DNA Project Design Document (PDD)

4. Project Design Document (PDD) WHAT? • Document that describes about the project, project participants, baseline, additionality and monitoring plan. • Prepared using the standard forms available in the UNFCCC CDM website. WHO? • Project participant prepare the PDD WHY? • PDD is the key document required for validation, registration and stakeholder consultation. • DNAs may also review PDD when issuing letter of approval.

5. Elements of Project Design Document (PDD) • Section A: Description of project activity • Section B: Application of selected approved baseline and monitoring methodology • Section C: Duration and crediting period • Section D: Environmental impacts • Section E: Local stakeholder consultations • Section F: Approval and authorization Appendices • Contact information of project participants, information on public funding, further details on emission reduction calculations and monitoring

6. Key elements in PDD PDD Baseline Additionality Monitoring Stakeholders and Environmental Impact

7. Baseline • Scenario that reasonably represents GHG emissions that would have occurred in the absence of the proposed project activity • Difference between the baseline emissions and project emissions (after implementation of CDM project) is the emission reduction achieved by the project. • Baseline is established on a project specific basis using the approved methodology. GHG emissions Without CDM Project Baseline emissions Emission reductions With CDM Project Project emissions Time

8. Additionality • A CDM project is additional if GHG emission are reduced below those that would have occurred in the absence of the registered CDM project activity Prior consideration of CDM

9. Additionality demonstration (1/2) Large scale projects • Demonstrated using the Additionality tool • Investment analysis (e.g. simple cost, investment comparison, benchmark) • Barrier analysis (e.g. barrier that prevent the implementation of project activity) • Common Practice analysis Small scale projects • Project up to 15MW or energy saving of 60GWh/yror methane avoidance/ destruction of less than 60ktCO2/yr • Demonstrate using the barrier (e.g. investment, technological, prevailing practice etc.) • Projects in positive listof technologies are automatically additional • Solar technologies, offshore wind, wave, tidal – Up to 15MW capacity • Micro/pico hydro or wind or PV-wind hybrid or geothermal – Individual units up to 100kW • Biomass gassification/biogas – Individual units up to 100kW

10. Additionality demonstration (2/2) Micro-scale project activities • Project up to 5MW or energy saving of 20GWh/yror methane destruction of less than 20ktCO2/yr • Automatically additional if • Located in LDC/SIDS or special underdeveloped zone of the host country • Off grid project supplying energy to households/communities • Distributed energy generation (each system less than 1500kW and end users are households/communities/SMEs) • Specific renewable energy technology/measures recommended by host country DNA • Isolated units (no larger than 5% of small scale threshold) where the technology/measures are households/communities/SMEs

11. Monitoring Objective of monitoring plan • Collecting and archiving all relevant data necessary for determining the baseline emissions, project emissions and leakage Elements of monitoring plan • Operational and management structure • Responsibilities and institutional arrangement for data monitoring. recording and archiving • Quality assurance and quality control (QA/QC) procedures • Uncertainty levels, methods and accuracy level of measuring instruments • Specification of the calibration frequency for measuring equipment • Sampling plan and method if sampling is used to monitor parameters

12. Monitoring Plan Include all data, parameters and related information required by applied methodology • Parameters fixed ex-ante (no need to monitor) • Parameters to be monitored

13. Validation of CDM project activity • Process of independent evaluation of a project activity by Designated Operational Entity (DOE) against the requirements of the CDM • DOE is either a domestic legal entity or an international organization accredited and designated by the CDM Executive Board (EB) • Currently there are 42 DOEs accredited for different sectoral scopes. • Principles for validation and verification • Independence • Ethical Conduct • Fair Presentation • Due professional care

14. Key Elements of Validation

15. Validation Process • DOE submits the Validation Report (with positive validation opinion) and supporting documents through dedicated interface on the UNFCCC CDM website • Secretariat issue unique reference number for the submission and a statement of the registration fee due • No fee for project activities and PoAs hosted in LDCs • Upon receipt of payment, the secretariat schedule the commencement of the processing of the request for registration in accordance with secretariat's operation plan

16. Registration of CDM project activity • Completeness Check (CC): Check the completeness and consistency of the documents • Information and Reporting Check (I&RC): Check in accordance with the I&RC Checklist for request for registration published in UNFCCC CDM website. • Summary Note (SN): Secretariat prepare and send the summary note to CDM EB Automatic Registration 58 days 7 days 23 days 14 days 14 days Summary Note preparation Period to Request for Review Commencement Request for Review by a party involved in CDM project or at least 3 EB members CC finalized I&RC finalized

17. Thank you Thank you