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Major Highlights of EB Decisions on Developments of CDM Projects. Ram M. Shrestha, Sudhir Sharma, Suparno Majamdar and S. Kumar Asian Institute of Technology Klong Luang, Pathumthani Thailand 19 th October 2005. Agenda. CDM Project activity status Status on CDM methodology approval
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Major Highlights of EB Decisions on Developments of CDM Projects Ram M. Shrestha, Sudhir Sharma, Suparno Majamdar and S. Kumar Asian Institute of Technology Klong Luang, Pathumthani Thailand 19th October 2005
Agenda CDM Project activity status Status on CDM methodology approval Designated operational entities Afforestation and Reforestation (A&R) projects Large scale projects Small scale projects (SSC) Registration of CDM project activities
CDM Project activity StatusAs of 30th September 2005 Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Registered CDM Projects (1) – As of 13th Oct 2005 Total Number of Registered projects: 26 Location of projects: India (5), Honduras (4), Chile (4), Brazil (2), Korea (2), Others (9) South America & South Asia leading the pack(>60%) Closely followed by Central Americas South Asia & South Amecica accounting for 75%of CER’s. HFC project in Korea propelling that region’s CER’s. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Registered CDM Projects (2) – As of 13th Oct 2005 Technologies used in Registered Projects Most Registered Projects are in Renewable energy or MSW categories HFC generates max. CER due to high GWP. MSW – High potential area Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
CDM Project activity Status (2) Based on 237 projects submitted to EB as of 13th Sep 2005 (includes registered, validated, under validation, under review). Brazil, India, China, Mexico & Honduras main contributors to their respective regions Total CER estimated from the submitted 237 projects is 53.54 Millions Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Current CDM Project activity Status (3) Total number of projects considered: 237 (as of 13th September 2005) 1) MSW & AWMs projects dominating S.American scene. 2) HFC & N2O projects have high CERs due to their high GWP 3) Cogen projects –mainly in Brazil & India 4) Wind – China 5) Hydro – Central & South America Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Status of CDM methodology approval (1) • Large scale emission reduction CDM projects • Total number of New Methodologies submitted for approval: 132 • Out of which methodologies approved : 24 • The Approved methodologies (AMs) (for Large Scale Projects) are under the following Sectors Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Status of CDM methodology approval (2) • Total number of Approved Consolidated Methodologies – 6 • They are under sectoral scopes of • Landfill gas projects • Grid connected electricity generation from RE • Grid connected electricity generation from Biomass Residues • Partial substitution of fossil fuels by alternative fuels in Cement production • Waste gas and / or heat utilization for power generation • Increasing blend in Cement production • A&R CDM projects • Methodologies submitted for approval – 13 • Approved till date – none • Small scale CDM projects • Approved methodologies till date- 15 Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Status of CDM Methodology approval process (3) • TheSmall scale (SSC) AMsare under the Sectoral scopes of - Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Designated Operational Entities • Applicant entities (AEs) • Number of AE’s Allowed to submit New Methodologies: 26 • 4 from Non-Annex I countries (2 Korean and 2 South American) • Total number of DOEs operating currently: 11 • Only 2 of them are approved to undertake certification, rest all are approved only for validation. (http://cdm.unfccc.int/DOE/list gives a list of DOEs and their sectoral scopes) Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
A&R Projects (1) • On New Methodologies • Methodologies should be stand alone – clear separation should exist between PDD and NMB (EB 18) • Additionality assessment (EB 18) • No common practice step required. • Should include either, a barrier or an investment analysis. • EB “inviting” project participants to include methods for demonstrating eligibility of lands for A&R projects (EB 18). • Developing a new form for screening new methodologies (EB 18) (Source:http://cdm.unfccc.int/EB/Meetings/018/eb18repan5.pdf ) Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
A&R Projects (2) • Under consideration by the EB are: • Draft version of the tool for demonstrating the additionality of A&R project activities • Not required for small-scale A/R project activities • Tool for accounting of non-CO2 emissions, including emissions from sources existing before the implementation of a project activity. • Approaches for assessment of uncertainties in proposed new baseline and monitoring methodologies • The form for submitting new monitoring methodologies (CDM-AR-NMM) & new baseline methodologies (CDM-AR-NBM) for A&R projects will be revised to incorporate provisions relating to the monitoring of social and environmental impacts. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Large Scale CDM projects (1) • Revision of Approved methodology (AM) – EB21 • AM requiring significant changes to be “put on hold” – can’t be used during hold period • Project activities that have already used the above AM should submit projects for registration within 4 weeks of “put on hold” date. • The above revisions of the AM • shall only be applicable to project activities registered after the date of revision. • shall not affect registered CDM project activities during their crediting period. • Procedure for approval of revision of AM same as New Methodology (NM). • EB to decide whether public inputs are to be invited • Project proponents can submit proposals for revision on AM to EB (through DOE). Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Large Scale CDM projects (2) Other EB decisions - • For project activities temporarily resulting in “negative emission reductions” in a given year - CERs will only be issued when the emissions increase has been compensated by subsequent emission reductions by the project activity. (EB 21) • Any proposed project activity intending to use a New Baseline or New Monitoring Methodology, should submit a NM first followed by the submission of PDD. (EB 20) • For project activities requestingRetroactive Credits(EB 19) • Project participants will have to (for assessing additionality) consider the information that was available at the time when the decision was made to undertake the project activity. (EB 19) • For calculation of baseline emissions, the most recent information, corresponding to the vintage of data appropriate to the project, which is available at the validation stage shall be used. (EB 20) Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Small Scale CDM (SSC) projects (1) • Amendment to baseline methodology (EB18) • For Type I (Renewable energy projects) • If the unit added has both renewable and non-renewable components (e.g. a wind/diesel unit), the eligibility limit of 15 MW for a SSC project activity applies only to the renewable component. • For Category I.C (Thermal energy for user) • For co-generation systems and/or co-fired systems to qualify under this category, energy output cannot exceed 45 MW-thermal. • For Category III.D (Methane recovery) • The monitoring of methane captured and flared should be based on metering and methane content analysis. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Small Scale CDM (SSC) projects (2) • Eligibility as small scale projects where emission reductions of a proposed project are increasing during credit period. • If a project activity goes beyond the limit of its type in any year of the crediting period, the project can claim only the maximum CER estimated in the CDM-PDD for that year. • Project participants are required to demonstrate in the CDM-SSC-PDD that the characteristics of the project activity are defined in a way that precludes project activities to go beyond the limits for each category. The limits are: • For Type I (RE): 15 MW installed capacity, • For Type II (EE): efficiency improvements <=15 GWh every year throughout the crediting period; • For Type III (Other project activities): annual emissions <=15 ktCO2e over the entire crediting period. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Small Scale CDM (SSC) projects (3) • Amendments of the simplified modalities and procedures for small-scale CDM project activities. • SSC WG is to : • Develop guidelines for SSC-PDD, similar to the guidelines available for the CDMPDD, to facilitate submissions. • Make recommendations for bundled project activities of: • the same type, same category and technology/measure. • the same type, same category and different technologies /measures. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Small Scale CDM (SSC) projects (4) • Bundling of Projects • Once a project activity becomes part of a bundle for a project cycle stage, it shall not be de-bundled during that stage. EB may consider debundling in exceptional situations. • The composition of bundles cannot change over time. • All project activities in the bundle will have the same crediting period. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
CER’s Annex-I National Registry CER’s Non Annex-I Party EB/CDM Registry CER’s Registered Unilateral project Letter of Approval CER payments Annex-I Party Registration of Unilateral CDM project activities (1) • Unilateral CDM (UCDM) projects can be registered. (The registration of a project activity can take place without an Annex I Party being involved during its registration). • CER’s from UCDM projects can be transferred to Annex I party after the project’s registration. Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
THANKYOU Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005
Asian Regional Workshop on “Capacity Development for CDM” 19 – 21st October 2005