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Stephan Hild Head of Sales and Focal Point for PoA

Workshop on PoA under the CDM: challenges and the road ahead - Bonn 8/9 May 2011 Session 8.1 „ Additionality in the context of PoA - DOE perspectives .“. Stephan Hild Head of Sales and Focal Point for PoA Carbon Management Service TÜV SÜD Industrie Service GmbH.

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Stephan Hild Head of Sales and Focal Point for PoA

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  1. Workshop on PoAunderthe CDM: challengesandtheroadahead - Bonn 8/9 May 2011Session 8.1 „Additionality in thecontextofPoA - DOE perspectives.“ Stephan Hild Head of Sales andFocal Point forPoA Carbon Management ServiceTÜV SÜD Industrie Service GmbH

  2. additionalitydemonstration - context • Level and form ofadditionalitydemonstration, EB 47, para 73 ofthemeetingreport: • The Board, notingthat in thecontextofPoAthatadditionalityistobedemonstratedeitheratthePoAlevelorat CPA level, requestedthesecretariattoprepare a guideline (…) tobeconsideredat a futuremeeting. • Was tobeadressedat EB 51, 52, … 56, … • Challenge: howtocaptureadditionalitythrougheligibilitycriteria ? CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

  3. additionalitydemonstration – context II • Currentdiscussion on the matter: • demonstrationofAdditionality on PoAlevel • Additionalityaspectsshouldbetranslatedintoeligibilitycriteria • CPAs onlyhavetodemonstratethattheyare a consequenceofthePoA CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

  4. additionalitydemonstration – context III • Sounds good? Making surethatany CPA would not havebeenrealizedin theabsenceofthePoAremindsusof • para 43 ofthe CDM ModalitiesandProcedures: • „A CDM projectisadditionalif GHG (…) arereducedbelowthosethatwouldhaveoccured in theabsenceofthe registered projectactivity“ • For DOEs toprovethecounterfactual in thecontextof CPA inclusionsislikelytobeascomplex, tricky, cumbersomeandriskyastheproveofadditionality in normal CDM projects • Potential consequence => fullvalidationofeach CPA, includingcomprehensiveadditionalityassessment CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

  5. additionalitydemonstration – examples • „First ofitskind“ • Demonstration on PoAlevel • Compliance withEligibilityCriteria (EC) on CPA level => defaultadditionalityproof • Real lifeexample: heatretentiondevices on householdlevel in Africa • Investment Anaylsis • Frame setting on PoAlevel • Demonstration on CPA level => detailedadditionalityassessment • Real lifeexample: hydro power in LatAm CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

  6. additionalitydemonstration – examples II • Barriertest • AdditionalitytoolorAttachment A to Appendix B • Demonstration on PoAlevel • Transformation ofmostimportantbarrieraspect(s) intooneormore EC • Compliance withEligibilityCriteria (EC) on CPA level => defaultadditionalityproof • Real lifeexample: cookstoves in Africa – additionalitytool (barrieranalysis at CPA level) • Real lifeexample: CFL in Asia – Attachment A to Appendix B (financialbarrier: negative NPV) CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

  7. additionalitydemonstration – conclusion • Improvementsuggestions: potential solutions • Nature andlevelofaddtionalitydemonstrationfor CPAs shouldbeclearlyaddressed in thePoAsectionoftheveryBaselineMethodologies, per project type whereapplicable • Default additionalityalleviations (e.g. renewables in LDC – EB54) • Clearlydefinescopeofexpected DOE assessment in thecontextofpre-inclusionassessmentswithregardstoadditionalityof CPAs • Clear guidancefor Project Participants on thenatureofEligibilityCriteria: EC shouldbemeasurableandverifyable CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

  8. the end Thank you very much for your attention! Stephan Hild TÜV SÜD Industrie Service GmbH Carbon Management Service stephan.hild@tuev-sued.de CDM PoA Workshop - Bonn - Stephan Hild - TÜV SÜD

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