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Session 3: The Concept of Programme of Activities ( PoA ). Overview of the PoA and business models. Training-Workshop on the “Uganda Municipal Waste Compost Programme” 21st -24th Oct 2013, Mukono Municipality, Uganda. Outline. Basic concepts PoA project cycle Business models
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Session 3: The Concept of Programme of Activities (PoA) Overview of the PoA and business models Training-Workshop on the “Uganda Municipal Waste Compost Programme” 21st -24th Oct 2013, Mukono Municipality, Uganda UNFCCC secretariat
Outline • Basic concepts • PoA project cycle • Business models • PoA implementation in Africa 2
PoA concept and benefits • Unlimited number of similar CDM project activities (CPA) can be administered under a single programme umbrella. • Scale up the CDM • No specified size limits • Can be geographic (e.g. a certain city/province), • CPA can be time bound (e.g. activities commencing in a certain year). • Reduce transaction costs • Individual project developers not directly engaged in the CDM process • Monitoring and verification possible for a number of CPAs • Reduces regulatory risks and uncertainties CME CPA CPA $$$ CPA CPA CER Buyer CME – coordinating or managing entity CPA – CDM programme activity
CPA Inclusion in PoA PoA DD PoA DD PoA at the time of registration PoA DD CPA Inclusion checked by DOE and uploaded in CDM website PoA DD Potential CPAs CPA Inclusion over the PoA Lifetime
Who’s responsible Step Coordinating/Managing Entity (CME) PoA Project design document (PoA-DD) Designated national authority (DNA) National approval Designated operational entity (DOE) Validation CDM Executive Board (CDM EB) Registration Monitoring Verification / certification Issuance of Certified Emission Reductions (CERs) CDM PoA Project Cycle CME Post-Registration Changes / CPA inclusion CDM EB Renewal of crediting period DOE DOE Validation CDM EB PP/CME Renewal of Crediting Period
Upstreamroles of the CME Bringing together the various carbon, legal and financial aspects in a coherent structure Secure political support & awareness, Obtain letter(s) of approval and authorisation(s) CME DNA Communicate with Executive Board Coordinate the issuance of CERs UNFCCC Submit PoA-DD, CPA-DD & monitoring reports, Arrange validation and verification DOE(s) Arrange monetization of the future CERs, Facilitate CPA implementers’ financing, CER buyers Banks/Investors Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013
Downstreamroles of the CME Ensuring leadership, administration and monitoring of the carbon platform CME Promoter B Design and manage the programme Ensure access to relevant technology and expertise, Provide training on carbon methodologies & procedures, Facilitate CPA implementers’ financing Promoter A Develop PoA-DD and CPA-DDs, Organise relationships among stakeholders & participants, Ensure long-term CDM compliance Secure ownership of carbon revenues, Set-up & manage projects information global database, Arrange for carbon revenues redistribution Promoter C Promote and expand the programme Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013
Indicative structure of a typical CME Responsibility and authority (structure of organization, operational team, management team) - Eligibility check & decision of inclusion of future CPAs; - Proper commissioning and distribution of the system(s); - Compliance of the technology with the PoA requirements; - Periodical monitoring set up and reports per CPA. - Installation and commissioning of new project units; - Product identification and maintenance of continuous records; - Customer training and introduction to O&M; - Legal agreements with end-users. - Innovations introduction in future CPA-DDs - Control of all issued serial numbers; - Changes / replacements of serial nos. during CPA life; - Check installed units’ certified quality and standards. - Monitoring supervision in accordance with registered monitoring plan; - Check and store measurement methods and recording frequency; - Monitoring data consolidation and processing to central database; - Annual monitoring report consistency - Registration, inclusion and CERs issuance follow-up As many different structures as CMEs; further examples from real-case studies of NEMA, ABREF & KenGen... Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013 - Adapted from KfW manual for management systems at CMEs (2012)
PoA Business Models CFL programme business model example Source: KfW PoA Blueprint Book, 2010
PoA Business Models Efficient stove programme business model example Source: KfW PoA Blueprint Book, 2010
PoA Business Models Domestic biogas programme business model example Source: KfW PoA Blueprint Book, 2010
PoA Business Models SWH programme business model example Source: KfW PoA Blueprint Book, 2010
PoA Business Models Small Hydropower (SHP) programme business model example Source: KfW PoA Blueprint Book, 2010
Distribution of Registered PoAs • Registered PoAs as of 12 Oct 2013 • All PoAs: 224 • All Africa: 64 (29%) • South Africa: 30 (13 %) • Africa PoAs as of 12 Oct 2013 • All Africa: 64 • Single-country PoAs: 49 (77%) • Multi-country PoAs: 15 (23%)
Summary • PoAs present many advantages – small-scale, dispersed activities (e.g. household and small commercial level, transport, agriculture) can become viable with flexibility, scaling up and standardization associated with PoAs • Africa is doing well with PoAs - with 29% share of total registered compared to stand alone projects (only 2%) • There is still a lot of potential that can be tapped through addition of host countries and CPA inclusion – need support of DNAs and partnerships between LDCs and non-LDCs (with the closure of EUTS to non-LDCs) • A PoA is a long-term venture (up to 28 years) involving many actors- CME needs to have good management system, transparent design and clear incentives for project owners to join in, as well as for other support entities (e.g., for monitoring and maintenance) who do not directly profit from the CERs generated.
Thank you for your attention CDM Regional Collaboration Centre A collaboration between the UNFCCC Climate Change Secretariat and the East African Development Bank EADB Offices, No. 4, Nile Avenue P.O. Box 7128, Kampala, Uganda Phone: +256 (0) 312517814