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Additionality

Additionality. Technical Workshop on CDM Paramaribo, 18 June 2008 Adriaan Korthuis. Content. Backgrounds and principles Use of the additionality tool Excercise. Marakech and practice.

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Additionality

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  1. Additionality Technical Workshop on CDM Paramaribo, 18 June 2008 Adriaan Korthuis

  2. Content • Backgrounds and principles • Use of the additionality tool • Excercise

  3. Marakech and practice • “A CDM project activity is additional if anthropogenic emissions of greenhouse gasses are reduced below those that would have occurred in the absence of the registered CDM project activity” • In practice: • Demonstrate that CDM helps to overcome financial barriers or • Demonstrate that CDM helps to overcome technical, practical, insititutional or other barriers.

  4. Background Uncapped emissions non-Annex I Countries • CDM is a “leak” in the capped environment emissions of Annex I countries • Kyoto tries to avoid that global total emissions increase unneeded CAPPED EMISSIONS BY ANNEX I COUNTRIES CER CER

  5. The never ending additionality debate

  6. Other types of additionality • Financial additionality: CDM project does not lead to deviation of official development aid (“ODA”) • Project participants have to indicate if ODA was used in the project; • If so, they have to seek written confirmation from the Annex I country that the ODA was not deviated • Dilemma: projects sponsored by development aid find it hard to further strengthen the project finance by CDM and find it hard to become independent of development aid,

  7. The additionality dilemma • Results: • complicated reasoning why a good project is so difficult • Continued debate on projects with “bad” additionality

  8. Practice: additionality tool • Demonstrate why project would not have happened without the CDM • Choice between investment and barrier analysis

  9. Step 0: Starting date check Transparency • Background: if you have started your project already before applying for CDM, you raise suspicion that the CDM is not needed • Principle: • Determine project starting date = the date that the first construction activities have begun • If first request for validation is before the starting date, no problem • If first request for validation is after starting date, then project owner needs to demonstrate that benefits from CDM were seriously considered before the starting date and were an important reason to start the project • Important: documentation!

  10. Step 1: Identification of alternatives Complete-ness Relevance

  11. Step 2: Investment analysis Accuracy Transparency Consistency If project is the financially most attractive: it is not additional

  12. Step 3: Barrier analysis Transparency Relevance

  13. Step 4: Common practice test Transparency Consistency

  14. Other additionality methods • Combined tool • Combination of baseline determination and alternatives selection in the additionality tool • Recommended in several methodologies, e.g. methodologies on biomass incineration. • Small scale • Only barrier analysis required • No testing of alternatives • Custom made tools in certain methodologies

  15. Contact details • Adriaan Korthuis • Phone +31 10 217 5993 • E-mail a.korthuis @ climatefocus.com • www.climatefocus.com

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