CDM Project Design Document

1. CDM Project Design Document CDM Project Design Document Training Course May 22, 2003 CCIC Conference Room Manila Observatory Ateneo de Manila University

2. What is a CDM-PDD? • The principal document used by project participants to get a CDM project approved • Outlined in Appendix B of the Modalities and Procedures of the CDM • Contents are evolving, and may change over time as the EB is continuously working on improving the modalities and procedures of the CDM • First version of CDM-PDD took effect on August 29, 2002; latest available version (for SSC-PDD): January 21, 2003

3. Contents of CDM-PDD A. General description of project activity   B. Baseline methodology   C. Duration of the project activity/ Crediting period   D. Monitoring methodology and plan   E. Calculations of GHG emissions by sources   F. Environmental impacts   G. Stakeholders comments

4. Contents of CDM-PDD Annex 1. Contact Information on Project Participants Annex 2. Information Regarding Public Funding Annex 3. New Baseline Methodology Annex 4. New Monitoring Methodology Annex 5. Table of Baseline Data

5. Large Scale PDD vs. Small Scale PDD • Virtually the same for both large scale and small scale PDD • Main differences: • Simplified modalities for baseline methodologies • Simplified monitoring methodology and plan • Simplified checklist for additionality requirements • Environmental impacts required for large scale projects. Needed for small scale projects only if host country requires it.

6. A. General Description of the Project Activity • A.1 Title • A.2 Description of Project Activity • A.3 Project Participants • A.4 Technical Description of the Project Activity • A.5 Confirmation that the small- scale project activity is not a debundled component of a larger project activity

7. …Continuation A. General Description of the Project Activity • A.1 Title • A.2 Description of Project Activity • Purpose • View of Project participants to the contribution of the project to sustainable development • Must include social, environmental and economic benefits • A.3 Project Participants • Detailed description on Annex 1

8. …Continuation A. General Description of the Project Activity • A.4 Technical Description • A.4.1 Location • Detailed description of the physical location including information allowing the unique identification of the project activity • A.4.2 Type and category(ies) and technology • Categories are found on Appendix B of the simplified M&P for small scale project activities • Shall include justification of project type and category • Describe how environmentally safe and sound technology and know-how is transferred to the host party, if such transfer is part of the project

9. Type and Category of Project Activities (Annex B of Simplified Modalities and Procedures for Small-Scale CDM Project Activities) • Type I – Renewable Energy Projects Category 1.A Electricity generation by the user Category 1.B Mechanical energy for a user Category 1.C Thermal energy for the user Category 1.D Renewable electricity generation for a grid

10. Type and Category of Project Activities (Annex B of Simplified Modalities and Procedures for Small-Scale CDM Project Activities) 2) Type II – Energy Efficiency Improvement Projects Category II.A Supply side EE improvements – transmission and distribution Category II.B Supply side EE improvements – generation Category II.C Demand side EE programs for specific technologies Category II.D EE and fuel switching measures for industrial facilities Category II.E EE and fuel switching measures for buildings

11. Type and Category of Project Activities (Annex B of Simplified Modalities and Procedures for Small-Scale CDM Project Activities) 3) Type III – Other Project Activities Category III.A Agriculture Category III.B Switching fossil cells Category III.C Emissions reductions by low greenhouse gas emitting vehicles Category III.D Methane recovery and avoidance

12. Type and Category of Project Activities If the project activity does not fit in any of the categories in Appendix B, additional project categories may be proposed for consideration by the EB.

13. …Continuation A. General Description of the Project Activity • A.4.3Brief Statement of how anthropogenic emissions of GHGs by sources are to be reduced by the proposed CDM project activity • Details are provided in section B • A.4.4 Public funding of the project activity • If public funding is involved, provide information on sources in Annex 2, including affirmation that such funding is not Official Development Assistance funds

14. …Continuation A. General Description of the Project Activity • A.5 Confirmation that the Small- scale project activity is not a debundled component of a larger project activity • Debundlingis defined as the fragmentation of a large project activity into smaller parts

15. Determining the Occurrence of Debundling of CDM Projects* A Proposed project activity is deemed to be a debundled component of a large project activity if there is a registered small-scale CDM project activity or an application to register another small scale CDM project activity: • With the same project participants • In the same project category and technology/measure; and • Registered within the previous 2 years; and • Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point. * Appendix C of the Simplified M&P of Small- Scale CDM activities

16. B. Baseline Methodology • B.1 Title and reference for the project category applicable to the project activity • B.2 Project category applicable to the project activity • B.3 Description of how anthropogenic GHG emissions by sources are reduced below those that would have occurred in the absence of a registered project activity

17. …Continuation B. Baseline Methodology • B.4 Description of project boundary for the project activity • B.5 Details of the baseline and its development

18. …Continuation B. Baseline Methodology • B.1 Title and reference for the project category applicable to the project activity • Type and category are found in Appendix B of the simplified M&P for CDM small scale project activities • Same as A.4.2 • B.2 Project category applicable to the project activity • Justification of the applicable baseline calculation as provided in Appendix B of the simplified M&P for CDM small scale project activities

19. …Continuation B. Baseline Methodology • B.3 Description of how anthropogenic GHG emissions by sources are reduced below those that would have occurred in the absence of a registered project activity • Explanation of how and why this project is additional and therefore not the baseline scenario • Justify why the project is additional • Include a summary of national policies and circumstances relevant to the baseline of the proposed project activity

20. Additionality requirements for small-scale CDM Projects* Small-Scale project explanation must be based on at least one of the four barriers: • Investment barrier • Technological barrier • Barrier due to prevailing practice • Other barriers such as institutional barriers or limited information, managerial resources, organizational capacity, financial resources or capacity to absorb new technologies * Attachment A to Appendix B of the Simplified M&P of Small- Scale CDM activities

21. …Continuation B. Baseline Methodology • B.4 Description of project boundary for the project activity Boundary is defined as the physical, geographical site of the activity Leakage calculation is required if a renewable energy or energy efficiency technology equipment is transferred from another activity

22. …Continuation B. Baseline Methodology • B.5 Details of the baseline and its development • B.5.1 Baseline methodology specifications (assumptions, steps, sources of values) • B.5.2Dates of completing the final draft of the baseline section • B.5.3 Name of person/entity determining the baseline

23. C. Duration of the Project Activity/Crediting Period • C.1 Duration of the Project Activity • C.1.1 Starting date • C.1.2 Expected operational lifetime • C.2 Choice of Crediting Period and Related Information • Participants must decide which of the two crediting periods they prefer: • a) max 10 years or • b) 7 years with renewal options of at most 2 additional 7 year periods (max 21 yrs.)

24. D. Monitoring Methodology and Plan • D.1 Name and reference of approved methodology applied to the project activity • D.2 Justification of the choice of methodology and why it is applicable to the project activity • D.3 Data to be monitored • D.4 Name of person/entity determining the monitoring methodology

25. …Continuation D. Monitoring Methodology and Plan • Identify the data needs and quality with regards to accuracy, comparability, completeness and validity; • Describe the methodology used for data collection and monitoring including quality assurance and quality control provisions for monitoring, collecting and reporting; • In case of new monitoring methodology, provide a description of the methodology, including an assessment of the strengths and weaknesses and if it has been applied successfully elsewhere.

26. …Continuation D. Monitoring Methodology and Plan • Appendix B of the Simplified M&P for Small Scale Project Activities provides a simplified monitoring methodology such as : • - Metering the electricity generated or fuel use and output • - Measuring or calculating energy losses of the equipment installed • - Measured performance of equipment installed

27. ID number Data type Data variable Data unit Measured (m), calculated (c) or estimated (e) Recording frequency Proportion of data to be monitored How will the data be archived? (electronic/ paper) For how long is archived data to be kept? Comment …Continuation D. Monitoring Methodology and Plan • NOTE: D.3 provides a table that specifies the minimum information for monitored data:

28. E. Calculation of GHG Emission Reductions by Sources • E.1 Formulae Used • E.2 Table Providing Values Obtained when Applying Formulae

29. …Continuation E. Calculation of GHG Emission Reductions by Sources • Describe the formulae used to calculate and estimate the GHG emissions of the CDM project activity within the project boundary; • Describe the formulae used to calculate and to project leakage of GHG emissions (emissions outside the project boundary) that are attributable to the CDM project activity; • Estimate the total GHG emissions for the CDM project activity.

30. …Continuation E. Calculation of GHG Emission Reductions by Sources • Describe the formulae used to calculate and project the GHG emissions of the baseline; • Describe the formulae used to calculate and project leakage in the baseline; • Estimate the total GHG emissions in the baseline; • Indicate the difference between the GHG emissions of the baseline and CDM project activity.

31. F. Environmental Impacts • Large scale project activities require Environmental Impact Assessment. The Host Party shall ascertain the need for Small Scale project activity to submit documentation on analysis of its environmental impacts

32. G. Stakeholder Comments • G.1 Brief description of the process by which comments by local stakeholders have been invited and compiled • G.2 Summary of the comments received • G.3 Report on how due account was taken of any comments received

33. Supporting Documents and References • Provide as additional annexes, if necessary, documents that are relevant to the PDD.

34. Helpful Links: • CDM News and updates • http://cdm.unfccc.int/ • CDM PDD Version 01, CDM Modalities and Procedures, CDM-PDD Glossary: • http://cdm.unfccc.int/Reference/Documents • CDM SSC-PDD: • http://unfccc.int/cdm/Documents/ssc%20docs/sscpdd.pdf • CD4CDM activities • http://cd4cdm.org/ • CD4CDM – Philippines Updates • http://www.klima.ph/

35. Thank You! Jeanette S. Laurente Climate Change Information Center Manila Observatory Ateneo de Manila University Tel. No. (02) 426-6134 to 37 Fax. No.(02) 426-6070 Email: jslaurente@yahoo.com