Roles and structure of Designated National Authorities (DNAs)

Roles and structure of Designated National Authorities (DNAs) Fabiana Rodrigues, UNFCCC secretariat Regional Workshop - Latin America and the Caribbean (31 August – 2 September) Bogota, Colombia

CONTENT • Role of the DNA • LoA issuance • Current requirements • Withdrawal of LoA • Default values of fraction of non-renewable biomass • Automatic additionality on microscale CDM project activities

The main task of the DNA • LoAissuance • Assess potential CDM projects to determine whether they will assist the host country in achieving its sustainable developmentgoals • and • Provide a letter of approval to project participants in CDM projects.

Current requirements • Issuing LoAs for Projects Activities • Issuing LoAs for PoAs • Issuing LoAs for Bundled Projects Activities • Issuing LoAs for CCS Projects • DOE verification points • Withdrawal of LoAs • Signature on the LoA

LoA for project activities CDM Project Standard - Version 07.0 7.6. Approval and authorization (PA) 78. Project participants shall obtain a letter of approval from the DNA of each Party involved in the proposed CDM project activity confirming that: • (a) The Party is a Party to the Kyoto Protocol; • (b) Participation in the proposed CDM project activity is voluntary; • (c) Project participants are authorized to participate in the proposed CDM project activity. 79. LoA shall also confirm that the proposed CDM projectactivity assists the host Party in achieving sustainable development.

LoA for PoAs CDM PSVersion 07.0 12.9. Approval and authorization (PoA) 227. The coordinating/managing entity (CME) shall obtain a letter of approval from the DNA of eachParty for the PoA, confirming that: • (a) Party to the Kyoto Protocol; and • (b) Participation is voluntary. 229. The LoA shall confirm that the PoA assists achieving sustainable development. 230. CMEs shall obtain a letter of authorization by each host Party of its coordination of the PoA. 231. Each PP shall be authorized to participate in the PoA by at least one Party involved in the proposed PoA. 232. CDM project participation is only recorded at the PoA level.

LoA for PoAscont… CDM PS Version 07.0 13.10.3. Changes of coordinating/managing entity 300. If the CME of a registered CDM PoA changes after the registration of the PoA, the new CME shall: (a) Obtain a new letter of authorization from each host Party stating the change and confirming the authorization of coordination of the new coordinating/managing entity of the PoA;

LoA for Bundled project Activities Annex 21 GENERAL PRINCIPLES FOR BUNDLING(Version 02.0) 16. The letter of approval by the host Party(ies) shall indicate that the Party is aware that the project activity(ies) taking place in its territory is part of the bundle. Bringing together of several small-scale CDM project activities, to form a single CDM project activity or portfolio without the loss of distinctive characteristics of each project activity

LoAfor CCS project activities CDM PS Version 07.0 11.3. Host Party participation requirements for carbon dioxide capture and storage projects 160. In addition to the approval and authorization set out section 7.6, PPs shall seek written confirmation of the following from the DNA of the host Party: (a) That the right to store carbon dioxide in, and gain access to, the proposed geological storage site has been conferred to them; (b) That the host Party agrees to the financial provision described in the PDD (c) That the host Party accepts the allocation of liabilityas proposed in the PDD and the transfer of liability (see section 11.9 below); (d) Whether the host Party accepts the obligation to address a net reversal of storage in the situation referred to in section “Addressing non-permanence in CCS project activities” of the Project cycle procedure.

DOEs are to verify that the LoA CDM VALIDATIONAND VERIFICATION STANDARDVersion 07.0 7.6.2. Means of validation 40. The DOE shall determine whether each letter confirms that: (a) The Party is a Party to the Kyoto Protocol; (b) Participation is voluntary; (c) In the case of the host Party, the proposed project activity contributes to the sustainable development of the country; (d) It refers to the precise proposed project activity title in the PDD being submittedfor registration. 41. The DOE shall determine whether the letter(s) of approval is unconditional with respect to 39 (a) to (d) above. 42. The DOE shall determine whether the letter(s) of approval has been issued by the respective Party’s DNA and is valid for the proposed project activity under validation. 43. If the DOE doubts the authenticity of the letter of approval, the DOE shall verify with the DNA that the letter of approval is authentic.

Signature on the LoA Signature on the LoA has to be same as one of the signatures submitted to the UNFCCC secretariat as sample of authorised signatures for the LoA. DNAs should update their representatives details, DNAs can have one primary and two alternate representatives.

DNAs that withdraw approval/authorization Process for dealing with letters from DNAs that withdraw approval/authorization (adopted at EB 76) • (a) Provide guidance to DNAs of Parties as to the procedures that the Board will follow in the absence of specific instructions from that DNA. • (b) Provide some clarity to stakeholders affected by withdrawals of approval/authorization as to the process that will be followed by the Board and secretariat; • (c) Ensure consistency of treatment for all project activities and programmes of activities affected where the DNA does not specify particular implications.

Procedure says that letter withdrawing approval/authorization should… • Be addressed to the Executive Board; • Be sent by the DNA (rather than another agency/ministry) to the secretariat; • Identify the Affected project participants (namely, the project participant(s) to which the Withdrawal Letter applies) • Identify the project activity(ies) or PoA to which the Withdrawal Letter applies; • State the date of the original Letter of Approval; • Specify the Effective Date (NB MANDATORY); • Set out the implications of the withdrawal; • Include the reasons for the withdrawal; • Contain all other relevant information considered necessary by the DNA; • Be dated and duly signed or stamped; • If possible, be copied to all other project participant(s) currently participating in the project activity or PoA.

PoAs with more than one Host Party Host Party B withdraws approval/authorization, only CPAs in Host Party B are affected. As CERs are issued by Host Party, CDM registry/ITL can distinguish CERs from CPAs in Host Party A from CERs from CPAs in Host Party B.

2. Default values of fraction of non-renewable biomass

Default values of fraction of non-renewable biomass • The CDM Executive Board approved the approach to calculate the values of fraction of non-renewable biomass (fNRB) for: • least developed countries (LDC) • small island developing states (SIDs) • 10 or less registered CDM project When acceptance is received from DNAs, the default values can be applied in small-scale CDM project activities and programme of activities in the respective host countries. DNAs are requested to submit a form to indicate their acceptance of the proposed default fNRB values, and send via email to secretariat@unfccc.int.

3. Automatic additionality on microscale CDM project activities

Guidelines for Demonstrating Additionality of Certain Small-Scale Project Activities • Certain grid-connected renewable electricity generation technologies are automatically considered as additional. The positive list includes the following: (installed capacity up to 15 MW): • Solar technologies; • Off-shore wind technologies; • Marine technologies; • Building-integrated wind turbines (size up to 100 kW); • Off-grid electricity generation technology • Project activities solely composed of isolated units.

Automatic additionality • A DNA may propose specific micro-scale renewable energy technologies to the EB to qualify them for automatic additionality status. • The process which the DNA must undertake is set out in the Procedure for Submissions and Consideration of Microscale Renewable Energy Technologies for Automatic Additionality.

Microsale Project Activities Project activities up to 5 MW that employ renewable energy as their primary technology are additional if any one of the conditions below is satisfied: • LDCs/SIDs or in a special underdeveloped zone (SUZ); • off grid activity supplying energy to households/communities; • not connected to a national grid; • Recommended by the DNA and approved by the Board (remain valid for three years from the date of approval)

Special underdeveloped zones (SUZ) “Geographic location is in a special underdeveloped zone (SUZ) of the host country” • Proportion of population with income of less than USD 2 per day isgreater than 50%; or • Gross National Income (GNI) in the country is less than USD 3,000 and the population of the region is among the poorest 20% in the country as per official policies. • DNAs can submit their recommendation on SUZ to the Board for approval. Photographer: Eiji Matsubara Title: Cultivating the reforested parcel for pineapple production (agroforestry) CDM Project: 2694: Reforestation of croplands and grasslands in low income communities of Paraguarí Department, Paraguay Country: Paraguay

Automatic additionality on microscale CDM project activities DNAs from non-LDCs/non-SIDS • Proposing specific renewable energy technologies for automatic additionality; and • Recommending special underdeveloped zones. DNAs from LDCs/SIDS • Promoting the use of the microscale and small-scale additionality guidelines among project developers in your country All DNAs should provide input when calls for input are opened by the CDM Executive Board, your views are important!

Submission of Standardized Baselines The CMP, decided that Parties, project participants, as well as international industry organizations or admitted observer organizations through the DNA, may submit proposals for standardized baselines applicable to new or existing methodologies, for consideration by the Board.

What was achieved in this session • Role of the DNA • LoA issuance • Current requirements • Withdrawal of LoA • Default values of fraction of non-renewable biomass • Automatic additionality on microscale CDM project activities • Submission of Standardized Baselines

Thank you for your attention Direct communication with the Board at: F-CDM-RtB-DNA form email to the Moderator-DNA@unfccc.int

Roles and structure of Designated National Authorities (DNAs)