Why are PoAs important for the future of CDM? Todd Ngara

1. Why are PoAsimportant for the future of CDM? Todd Ngara 1st November 2012, Abuja, Nigeria

2. Structure of PoAs

3. Background - PoAs first discussed in 2005 at the 1stCoP/MoP. - Since 2007 - Continuous improvements to meet needs of specific PoA participants - Similarities with CDM: project activities under a programme of activities (PoA) can be registered as a single CDM project activity, possible to register a voluntary coordinated action implementing a policy, measure or goal that leads to emission reduction, and to add, once it is registered, an unlimited number of component activities (CPAs). Conditionalities: approved baseline and monitoring methodologies are used Well defined project boundary avoid double counting and account for leakage, ensuring that the net anthropogenic removals by sinks and emission reductions are real, measurable and verifiable, additional to any that would occur in the absence of the project activity.

4. Benefits of PoAs Transaction costs, investment risks and uncertainties for individual CPA participants are reduced Access to the CDM is extended to smaller projects which would not be viable as stand-alone projects Emission reductions can be continuously scaled up after PoA registration, since an unlimited number of CPAs can be added at a later stage PoAs are managed on a regional level which speeds up the approval process Monitoring and verification can be undertaken on a collective basis by utilizing a sampling approach No registration fee is due for each CPA included after registration. Direct engagement of individual project developers in the CDM process is not required Specific regional policy goals can be effectively supported by accessing carbon finance through PoA

5. Why do we have PoAs? Opportunity 1: Extend CDM to micro-activities PoAsare ideal for CFLs, solar water heaters, cook stoves, household biogas, distributed energy, etc. Over 50% of PoAs in validation cover household sector (<<1% for stand-alone CDM projects) (P. Buerging, Southern Pole Management Certificate)

6. Opportunity 2: Improve regional representation of CDM Lower transactions costs & bankable CDM revenues Regional PoAs

7. Opportuntiy3: Step towards NAMAs PoAs establish operational features of NAMA, e.g. Project identification & inclusion Carbon incentives for individual sites Monitoring, reporting verification (MRV) Implications for Governments: ⇒ Identify national development / GHG mitigation priorities that can be implemented through PoAs ⇒ Promote PoAs to learn how to address NAMA challenges

8. If you want a NAMA tomorrow you need a PoA today!

9. Thank you for listening!