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PDD Preparation Process and Format

PDD Preparation Process and Format. Amr Abdel-Aziz, Ph.D. Consultant. CDM Project Cycle. First step in the CDM project cycle. Who Prepares a PDD ?. Responsibility of project participant Usually, project participant hires a consultant to prepare the PDD

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PDD Preparation Process and Format

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  1. PDD Preparation Process and Format Amr Abdel-Aziz, Ph.D. Consultant

  2. CDM Project Cycle • First step in the CDM project cycle

  3. Who Prepares a PDD ? • Responsibility of project participant • Usually, project participant hires a consultant to prepare the PDD • Project participant should avail funds for PDD preparation • Can be funded through special arrangements (CD Projects, seller and buyer agreement, etc.)

  4. Why Prepare a PDD ? • Validation is done based on a PDD • One of the requirements to be registered as a CDM project • Registration is a step done prior to verification and certification • i.e. can not have a CDM project and consequently certified emission reductions (CERs) without a PDD

  5. PDD Cost ? • Approximately $ 40,000 to $ 50,000 • Baseline $ 20,000 to $ 30,000 • Monitoring Plan $ 10,000 to 20,000 • Cost can be reduced by: • Development of Standardized baseline • National Experts • Previous experience of existing PDDs

  6. PDD Preparation Process • Prepare Project Identification Note (PIN) prior to Proceeding with PDD • Preliminary approval of Designated National Authority (DNA) • Prepare PDD • Assign DOE for validation • Submission of PDD to DNA to obtain official approval for project (voluntarily participation + assists in achieving SD)

  7. Registration Process • Prior to registration, DOE shall make the PDD available for public comments for 30 days (parties, stakeholders, UN-FCCC accredited NGO) • Registration requires the following: • PDD • DNA written approval • Explanation of how DOE has taken into account public comments • Registration of project should be completed in 8 weeks, unless there is a request for review

  8. PDD Format • PDD format available on UNFCCC CDM website • Must prepare PDD according to format • PDD Format available in 6 official languages of UN • Working language of the board is English  Must submit in english • 7 Sections and 5 Annexes

  9. PDD Format A. General Description of Project Activity B. Baseline Methodology C. Duration of Project Activity / Crediting Period

  10. Objections PDD Format D. Monitoring Methodology and Plan E. Calculation of GHG Emissions by Sources F. Environmental Impacts G. Stakeholder Comments

  11. PDD Format Annex 1 : Contact Info on Project Participants Annex 2 : Info Regarding Public Funding Annex 3 : New Baseline Methodology Annex 4: New Monitoring Methodology Annex 5: Table of Baseline Data

  12. Proposing a new Methodology • Have to submit draft PDD + Annex 3 for new baseline methodology + Annex 4 for new monitoring methodology • Takes approximately 4 months to get approved by Meth panel and EB • Public comments are invited for 15 days • Better use existing approved methodology to reduce time

  13. Small Scale Projects - Criteria • Renewable energy project activities with a maximum output capacity equivalent of up to: 15 MW • Energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of: 15 GWh per year • Other project activities that both reduce anthropogenic emissions by sources and directly emit less than: 15 ktCO2eq annually

  14. Small Scale Projects - Requirements • Reduced requirements for PDD preparation • Simplified baseline methodologies by project category • Simplified Monitoring methodologies by project category • Less cost in preparation • Same DOE may undertake validation and verification

  15. Small Scale Projects - Format

  16. Bundling and Debundling • Bundling • Combining a number of small scale projects in one PDD to reduce transaction costs • Projects may be bundled as long as the total size is below limits for single project • Debundling a large project to benefit from small scale simplified procedures is not allowed

  17. Useful Resources and Tools • Approved methodologies on UNFCCC CDM website • PDDs under review on UNFCCC CDM website • IPCC guidelines for emission estimation • PDD guidelines • CDM guidebook

  18. Recommendations • Do not underestimate the difficulty of preparing a PDD • Use conservative assumptions • Be transparent and “truthful” • A good PDD increases the chances of accepting a project • Process entails several check points (Stakeholder comments, validation, Public comments, may be a request for review)

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